Debt isn't that bad for a state. A state isn't a company and has to make a profit. It's there to provide infrastructure, stability, and security.
As long a state can afford to pay the interest rates, how high the debt is matters less. Especially for the major economies in the world today it's even less problematic. The USA, China, Japan or any other G7 state is basically safe from bankruptcy, because it would disrupt the world economy too much. Just look at the banking crisis and the bailouts there.
I wouldn't mind so much if they would be honest about it. "We will cut taxes and increase the deficit and thereby stimulate the economy." OK, cool. But instead what people like Paul say is, "We will cut taxes and this will result in a net increase in revenue by stimulating the economy."
