Rand Paul’s Penny Plan is a federal budget proposal built around a very simple rule: cut one penny out of every dollar the government spends, every year, for several years. Core Idea Each year, non-interest federal spending would be reduced by 1% (hence “one penny on the dollar”). After a set number of years (often 5), spending levels would be capped and allowed to grow only at the rate of inflation. The plan is meant to gradually balance the budget without requiring large, sudden cuts to specific programs. Projected Impact By applying just a 1% annual cut across the board, Paul argued the U.S. could balance the budget within about 5 years (depending on assumptions about revenue growth). Supporters see it as a fair, manageable way to rein in deficits without targeting individual programs. Critics argue that “across-the-board” cuts ignore differences in program value and could still mean very deep reductions in essential services over time. Political Context Rand Paul has repeatedly introduced versions of the Penny Plan since 2011. The idea has been popular in conservative circles but has never passed into law. It’s often framed as an alternative to both tax hikes and large entitlement reforms. Want me to run through the math example (say, starting from ~$6 trillion in federal spending) to show how quickly it adds up under his assumptions?