ROMNEY'S 2012 PLAN CUTS MEDICARE--Ron Paul’s plan cuts $1 trillion the first year & balances the budget in 3 years. The plan cuts spending by ending the costly foreign wars, and cuts foreign welfare, corporate welfare, and overgrown federal bureaucracy. These cuts are made so that those who are dependent on domestic spending programs such as Medicare aren’t endangered through a sudden change in benefits. Romney’s plan cuts Medicare, on which many elderly Americans rely.