Senator Rand Paul and Sean Hannity on One Cent Solution

Senator Rand Paul, cosponsor of S. 1316, the One Cent Solution/"Penny Plan"One Cent Solution supporter Senator Rand Paul was a guest on Sean Hannity’s radio show last evening and did a great job of explaining why the One Cent Solution is gaining traction in Congress and in the country:

Connie Mack is a House member and I’ve signed on to a plan of his. It would balance the budget if we cut the budget by one percent every year for six years.  Now you scratch your head and say how could you do that with only one percent? That’s because all of these other plans imply that spending goes up seven percent every year. The baseline is what everybody argues against.  The baseline is an artificial plan that is set in motion and it goes for ten years.  So the baseline plan, the Congressional Budget Office’s plan, goes up every year – spending goes up and debt goes up – and it adds about somewhere between eight to ten trillion dollars over the next ten years.

And:

That’s why the whole dramatic thing of Connie Mack’s plan, cutting only one percent, because its against a baseline that has zero growth, and that’s what most Americans understand, if you spend more next year, that’s an increase in spending, and if you spend less.  But it’s not a cut if you still spend more than you spent last year. Connie Mack’s plan that I’ve signed on to – what is called the “Penny Plan” – is you cut real spending, a real one percent every year for six years and its enormous, the savings against the baseline.  But the baseline is going up every year, so really they are trying to trick you, in that we’re trying to cut a trillion dollars. Most American public would say, oh, that’s a lot of money. Well, it is a lot of money, but they don’t tell you they are going to increase the debt by nine trillion dollars against their baseline. 

And:

That’s why I like the Penny Plan.  It’s one percent a year. It doesn’t sound draconian. It is a cut, but then we then would be talking about real cuts, and not cuts to proposed increases….  Spending has to be cut by one percent, but it doesn’t tell Congress how to do it. But, what I like about this plan is, if Congress doesn’t do it, then it’s across-the-board. So if you and I both think that national defense is a priority, we may say you can’t do it there, we need to cut it elsewhere, and we think the Department of Education needs a 10 percent cut or fifty percent cut.  So there are ways the legislators really get to prioritize where the cuts are, but you have to wind up with a real one percent cut. If you don’t do your job, then it’s across-the-board. 

Sean Hannity’s reaction?

Why haven’t we been arguing this earlier?… Something like this is very understandable, I think, for the American people. These plans get confusing. There’s a lot of obfuscation here.  You know, if we’re projecting out what the cuts are somewhere down the road, there’s no insurance that that’s going to happen. If there are accounting gimmicks, we can’t stop that. If we’re using a baseline budget that assumes growth of seven percent in every budget for every year, people don’t know that. We don’t know, for example, if they’re going to gut defense. This seems pretty simple to me. We can tell the American people take a test on it and I think ninety percent will get it by the next day.

Sean’s exactly right – the American people do get the One Cent Solution. Increasingly, smart members in both the House and Senate do too. 

Click here to listen to the interview.

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