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The Republicans “Cut, Cap and Balance” plan will get nowhere. President Obama has vowed to veto the plan if it makes it to his desk. The plan would condition a debt ceiling hike on a constitutional amendment requiring the federal government to balance its balance each year. The proposal would also demand significant spending cuts and a spending cap in order to raise the debt ceiling.
President Obama released a statement on Monday threatening to veto the bill. “Neither setting arbitrary spending levels nor amending the Constitution is necessary to restore fiscal responsibility,” reads the statement released by the White House. “The bill … would set unrealistic spending caps that could result in significant cuts to education, research and development, and other programs critical to growing our economy and winning the future. It could also lead to severe cuts in Medicare and Social Security, which are growing to accommodate the retirement of the baby boomers, and put at risk the retirement security for tens of millions of Americans.”
The proposal also “sets out a false and unacceptable choice between the Federal Government defaulting on its obligations now or, alternatively, passing a Balanced Budget Amendment that, in the years ahead, will likely leave the Nation unable to meet its core commitment of ensuring dignity in retirement,” the statement continues.
Ultimately, the bill “is inconsistent with this responsible framework to restore fiscal responsibility and is not an appropriate method of reducing the Nation’s deficits and debt,” it concludes.
The White House and Congress continue to try to find a compromise in order to raise the debt ceiling by the fast approaching deadline. Republicans are using this opportunity to try to force Obama and the Democrats to make drastic cuts to spending while refusing to raise taxes on the wealthy. A strange position to be in, for sure. The Republicans don’t see it that way though. Incredulously.
House Speaker John Boehner (R-Ohio) said Obama’s veto threat is “disappointing.”
“While American families have to set priorities and balance their books, this White House obviously isn’t serious about making the same tough choices,” Boehner said in a statement. “This unfortunate veto threat should make clear that the issue is not congressional inaction, but rather the President’s unwillingness to cut spending and restrain the future growth of our government.”
“The House will proceed as planned with its vote on the Cut, Cap and Balance Act,” Boehner added.