I'm sure you have an incredibly well-organized library of all of Ron Paul's interviews, so you can link to any of them at the drop of a hat to prove that he said x or y. I, however, do not. He DID say it though, during one of his interviews while he was running for president in 2012.
If you want to search around for it, be my guest. While you look for that, here's another interview that I quickly found where he "argues the moral case against it," and says, "If you believe in the death penalty...do it on Times Square and see them get their head chopped off and see how much [people] like it! Make them look at it!" (Skip to the last few minutes.) http://www.youtube.com/watch?v=o0mGDcybDL4
Keep in mind that just because Ron believes in states rights, it doesn't that he supports all the decisions that states might make. For example, I would also call him strongly pro-life, but he believes in letting the states handle abortion laws as well.
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