Obama threatens to veto 'cut, cap and balance'
WASHINGTON (AP) — The Obama administration says President Barack Obama would veto the "cut, cap and balance" plan proposed by tea party-backed House Republicans if it lands on his desk.
In a statement, the Office of Management and Budget says that setting arbitrary spending levels and a balanced budget amendment are not necessary in order to achieve financial stability.
The so-called "cut, cap and balance" plan is favored by some Republican freshmen in the House. It would allow the government to borrow an additional $2.4 trillion, but only after big and immediate spending cuts and adoption by Congress of a constitutional amendment requiring a balanced federal budget.
The plan is sure to stall in the Senate, where majority Democrats say it would lead to decimating budget cuts.