Ron Paul does want to eliminate the IRS and the Income Tax, because both those are abhorrent to the existence of private property, and the original intent of the Founding Fathers.
Does that mean that Paul is just going to shut it down and hope for the best? No.
You need to understand that Paul is a close friend of the von Mises institute, who have produced some of the finest economic minds in this century.
The proposition is to reduce the Federal Government's spending FIRST. By reducing the spending, liabilities, and unfunded liabilities the government will then go from a balanced budget to a budget surplus (think 1999 Clinton). Whereby the national debt is payed down with the surplus (which hasn't occurred since Andrew Jackson).
The program isn't going to be immediate, just like implementing the IRS, income tax, and National debt wasn't immediate -it was a process that accumulated over time.
The immediate benefit we will see under a Paul presidency is the reduction of spending and the return of accountable government.
Yes, "accountable government" is a buzz word and everybody should be wary of it. However, as President Paul will veto everything that Congress attempts to do that isn't explicitly enumerated in the Constitution (see Amendment X of the US Consitution).
Instead, the States will see their power returned to them. How cool would it be for gay marriage, abortion rights, and education to be returned to the local level? No longer will the Federal government overstep their Constitutional limits and interfere with the local, accountable government we find in our neighborhoods, communities, and states.
If you really want to see how the whole plan will work out, you need to set aside a lot of time and read the books and essays published by the von Mises Institute.
I'm not surprised that many people want to dismiss his ideas as insanity outright -afterall, Dr. Paul doesn't give those quick and easy answers that other politicians give. Instead, Paul gives us snippets of things to come, but if you truly want to see where he's coming from, you need to understand why he thinks the way he does.
You'll be hard pressed to find any other politician who can describe in excruciating detail the works of F. A. Hayek, Thorstein Veblen, Murray Rothbard, Milton Friedman, or many of the other economic titans.
Give Ron Paul a chance and explore where he's coming from before making a call. You might be surprised when you come out on the other side.
:::"Abolishing the Income Tax and internal Revenue Service would destroy thousands of jobs-government jobs, H&R block, Jackson Hewitt, and many other smaller businesses that depend on doing other people's taxes for money to live!!"
That is incorrect. Those people will still have jobs as people will still have a need for accountants. Government will still need to conduct accountability (such as revenue produced through tariffs, or corporate transactions), nor will they be fired outright. First, there will be a hiring freeze, and the people will retire or move to other government agencies. It's only the attack on the private citizen that Paul has concerned himself with.