Ron Paul Unveils Economic Plan to Cut Spending by $1T

Republican presidential candidate Rep. Ron Paul unveiled his economic "Plan to Restore America" in Las Vegas Monday afternoon, calling for a lower corporate tax rate, a cut in spending by $1 trillion during his first year in office and the elimination of five cabinet-level agencies.

Paul's "Restore America" plan calls for a drastically reduced federal government to help spur American business -- a familiar theme for the Texas Republican and many of the GOP White House hopefuls, The Wall Street Journal reported. But unlike some of his Republican rivals who have released economic plans, the libertarian congressman mostly avoids the weeds of tax and trade policy.

Paul does get specific when he calls for a 10 percent reduction in the federal work force, while pledging to limit his presidential salary to $39,336, which his campaign says is "approximately equal to the median personal income of the American worker." The current pay rate for commander in chief is $400,000 a year.

"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," Paul's campaign chairman Jesse Benton said in a statement Monday.

"It's the only plan offered by a presidential candidate that actually balances the budget and begins to pay down the debt. And it is the only plan being offered that tries to rein in the Federal Reserve and get inflation under control."

The Paul plan would lower the corporate tax rate to 15 percent from 35 percent, though it is silent on personal income tax rates, which Paul would like to abolish. The congressman would end taxes on personal savings and extend "all Bush tax cuts."

But the plan, at its heart, is libertarian. While promising to cut $1 trillion in spending during his first year, Paul would eliminate the Departments of Education, Commerce, Energy, Interior and Housing and Urban Development.

Paul would also push for the repeal of the new health care law, last year's Wall Street regulations law and the Sarbanes-Oxley Act, the 2002 corporate governance law passed in response to a number of corporate scandals, including Enron.