Paul, R-Ky., who appeared on CNN's "State of the Union," also alleged that Democrats want to exceed the sequester caps and increase the country's debt.
"Now, they want a spending bill that increases spending and dramatically will increase the debt. It's a non-starter," he said.
A second round of sequester cuts are set to take effect in January. Paul said the cuts are needed to keep the government fiscally responsible.
"If we get rid of that, it's a terrible step in the wrong direction," he said.
Paul also said that President Barack Obama is employing scare tactics with the Republican leaders in relation to passing Thursday's deadline for increasing the debt limit.
"Obama said last week that if Republicans do not get 100 percent of their way, America will not pay its bills for the first time in history. I think it's also irresponsible for the president who when he was a senator actually voted not to raise the debt ceiling. It's irresponsible for him to scare people. He should be the opposite," Paul said.