Spot on, cut the Military Budget by 5%.
Then go to the various entitlement programs and various "general welfare" type programs that are luxuries, not necessities, of what the government is supposed to do and cut enough from all those to total the same amount of money that 5% equals.
That'd cut almost 70 billion dollars out of the budget alone.
If the MILITARY decides to take their budget and decides to screw over those on the ground rather than cutting some high end experimental projects or to attempt to examine fraud and waste more or other measures then bitch, complain, and condemn the military individuals that are making that choice. The congress can cut spending, but they don't choose where those cuts go. You don't get to act like you're incapable of being cut by threatening to deal with it in a crappy manner and act like its their fault if you act that way.
To give an analogy, if I set my houses budget to be $90 every two weeks rather than $100 and my wife chooses to continue to go out to happy hour every tuesday and spend $30 on drinks but stops buying milk and bread while shopping, the fact we're not getting essentials that we need is on HER not on ME because she's choosing to be irresponsible with the money. It could only be blamed on me if every other none-necessity had already been removed from the budget and THEN I cut it, costing her to pick which necessity to get rid of.
Kudos to Paul at being realistic about this. We can't deal with the cost of government without dealing with all of it open and honestly. There's no reason why the defense budget shouldn't be our largest singular budgetary item, and I honestly have no issue with it being huge compared to other countries, but its ridiculous to also act like its a holy cow that can not be touched. We do the military with the government because it makes the most sense and is part of their job, but that doesn't magically change it from being the same thing as any other government bureaucracy...inefficient, bloated, and needing to be checked at times.