Rep. Paul to propose shuttering five Cabinet-level departments in budget plan

Texas Rep. Ron Paul (R) plans to outline in a speech Monday afternoon in Nevada a budget proposal that would shed $1 trillion from the federal budget, eliminate five Cabinet-level departments and cut salaries to government employees.

“Ron Paul’s plan is the only one that seriously addresses the economic and budgetary problems our nation faces. It cuts $1 trillion in one year, and slashes regulations and taxes so our economy can grow and create jobs,” Jesse Benton, Paul's campaign chairman, said in a statement.

Paul's cuts include completely eliminating the departments of Energy, Housing and Urban Development, Commerce, Interior and Education, along with agencies like the Transportation Security Administration. Paul's plan also would get rid of corporate subsidies and foreign aid, along with immediately withdrawing troops from oversees.

Paul would cut the federal workforce by 10 percent, slash congressional pay and limit travel by federal employees. The Texas congressman said he would only draw a salary of $39,336 as president, equivalent to the median income of the American worker.

“It’s the only plan offered by a presidential candidate that actually balances the budget and begins to pay down the debt. And it’s the only plan being offered that tries to reign in the Federal Reserve and get inflation under control," Benton said.

Paul's plan comes as fellow contender Herman Cain has gained significant traction in the GOP race with his 9-9-9 taxation plan, which would lower and flatten income and corporate taxes, instate a national sales tax and eliminate most credits and loopholes. Paul's plan would lower the corporate tax rate to 15 percent, permanently extend Bush-era tax cuts, and eliminate estate and personal savings taxes.

Paul also says he would eliminate many federal regulations and repeal the president's healthcare and financial reform laws. He said if his plan were to be enacted, the country would cease to run a deficit by 2015 and save $2.2 trillion compared to Obama's budget over the next four years.

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