President Barack Obama would veto a House Republican proposal to impose mandatory budget cuts and set caps for government spending in order to raise the federal debt limit, the administration said in a statement.
“Neither setting arbitrary spending levels nor amending the Constitution is necessary to restore fiscal responsibility,” the statement said. The Republican proposal. known as the “Cut, Cap and Balance Act,” would “undercut” the government’s ability to meet its commitments, the statement said.
The House plans to vote this week on an increase in the debt ceiling tied to a balanced-budget amendment will let Republicans go on record while offering no immediate resolution by the Aug. 2 deadline Treasury Secretary Timothy Geithner has set for raising the $14.3 trillion debt ceiling.
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