WATERLOO, Iowa—Sen. Rand Paul said he would cut spending in a “dramatic fashion” while speaking at the Five Sullivan Brothers Convention Center here Friday morning.

He spoke on his “fair and flat” tax plan.

“The 70,000 page tax code is chasing American jobs overseas, it’s chasing companies overseas.”

With the highest taxes in the world, Paul says America cannot expect to keep jobs at home.

“Let’s scrap the whole thing,” Paul said.

Paul wants to lower taxes and get rid of the payroll tax. Replacing the current system, he would like to see a one-page tax return with a flat 14.5 percent rate for businesses and individuals.

Acknowledging that his plan is a dramatic change from what is in place currently, Paul states, “We’ll be very lucky to ever get what I’m proposing.”

Nonetheless, he is confidently in favor of one simple rate where everyone gets a tax cut.

“Starving the beast,” as Paul calls it, he wants to see less money sent to Washington.

Paul would like to eliminate whole departments.

“Let’s get rid of the Department of Education once and for all. There’s no evidence that it’s helping. There’s no evidence that our kids are any smarter or doing any better on the test. There’s no evidence that teachers like it or parents like it.”

“The money gets swirled around in a bureaucracy and never gets back into education.”

“I think we should balance the budget,” said Paul. “I think we should just simply spend what comes in. We bring in $3 trillion. Could we not just live on $3 trillion?”

Having practiced medicine for almost 20 years, Paul was asked by an audience member about how to fix health care in the United States. He feels capitalism is the solution.

“The most important thing about fixing health care is actually an economic answer.”

“Obamacare made it illegal to sell inexpensive health care.”

Paul feels it is important to create a marketplace for health care and “make it legal to sell any kind of insurance that people want.”

He explained that expanding health savings accounts for all people would be a way to get to higher deductibles “and hopefully lower premiums.”

Another issue Paul was asked on: Planned Parenthood.

“There’s absolutely no argument for any money to go to Planned Parenthood.”

The Senate will hold a vote on Monday to defund America’s largest abortion provider.

“After seeing these grizzly videos, it has to stop.”