1:43pm

Tue August 2, 2011
All Politics are Local

Paul Prefers Penny Pinching to Compromise

Kentucky Republican Senator Rand Paul was one of twenty six lawmakers to oppose a compromise that keeps the nation from defaulting on its debt. The legislation was passed with broad support in both chambers of Congress, but Senator Paul claims the more than two trillion dollars in budget cuts included in the deal are more fiction than fact.

“They’re all talking about cuts off of a baseline that increases at 7% every year. To me and to many Americans a cut would be spend less money next year than you spent this year, which would be difficult but that’s what the country needs, is to spend less money next year than this year.”

Paul supports an idea called the Penny Plan, which would slash one percent from federal spending every year for the next six years.

“And it’s not that much. That’s one penny out of every dollar that we spend. But everything up here talks about cutting trillions, but against a baseline that’s rising by trillions so when you add it all up you still add seven to eight trillion in new debt over the next 10 years,” said Paul.

The compromise sets up a bi-partisan congressional committee which will work out another one-and-a-half trillion dollars in spending cuts. Many Republicans who want big changes in entitlements also favor a measure that turns Medicare into what amounts to a voucher program. Kentucky Democrat Ben Chandler says his party will continue to fight that GOP proposal.

“We don’t want any cuts to seniors certainly and their healthcare, so we’re going to try to prevent that from happening. But at the same time we couldn’t let the country default. This bill, I think, will prevent those cuts in the final analysis, I believe that’s the case,” said Chandler.

Other Kentuckians who refused to compromise was Republican Representative Geoff Davis and Louisville Democrat John Yarmuth