Paul addresses two points. First that corporations and the rich avoid taxes and two that there isn't enough money to fund the public good. The solution to both is very simple.

First, completely scrap our current tax code. Start over from scratch. To avoid cheating make it insanely simple so their aren't any loopholes. Everyone and every company pays X% of their net income. No deductions. No anything.

Second, government has plenty of money. It's just gotten so inefficient due to bureaucracy that it can't do anything. The best story was a road that got washed away, government came in and said it was going to takes years to repair and cost over a million dollars. The town final got fed up and did it themselves. In a weekend.

Another great example is the school system. Bureaucracy, administrators, and union work rules have exploded the costs. The number of teachers has stayed stagnate while I believe administrators have quadrupled.