Paul introduces 2012 budget resolution

Sen. Rand Paul (R-Ky.) announced Friday that a day earlier he introduced a budget resolution that will balance the federal budget within five years, without touching Social Security or Medicare.

“The budget resolution, or S. Con. Res. 20, results in a $19 billion surplus upon balancing, and does so without raising any taxes or changing Social Security or Medicare during the budget window,” a statement from his office states.

The budget resolution merely calls on committees to reform Social Security and Medicare, an indication Paul does not want to get embroiled in the fight over the House-passed budget which calls for Medicare to be turned into a type of voucher system.

The Paul budget balances by spending cuts alone. Overall spending is brought down to 18 percent of gross domestic product by 2016, down from 24 percent.

Instead of going after these entitlements, Paul slashes discretionary spending by $288 billion in 2012 and another $89 billion in 2013. He also cuts other mandatory spending by $248 billion in 2012.

Medicaid, children’s health insurance and food stamps are block-granted to the States and capped in the resolution.

Paul eliminates the departments of Commerce, Energy, Education, and Housing and Urban Development, all of which he says are unconstitutional.