While President Barack Obama has not presented a specific alternative to Republican plans for reducing spending in the lead up to a vote on raising the debt ceiling, the White House has issued a formal veto threat to the “Cut, Cap and Balance,” plan that is expected to pass the House of Representatives on Tuesday.
“If the president were presented this bill for signature, he would veto it,” said a statement from the White House Office of Management and Budget (OMB).
The Republican proposal would cut spending, cap the growth in future spending, and allow a vote on a constitutional amendment – to be sent to the states for ratification -- requiring a balanced federal budget. The constitutional amendment – though widely supported by 72 percent of the public – requires a two-thirds vote in both chambers of Congress to pass, then ratification by three-fourths of the states.
“Cut, Cap, and Balance is the only solution that can pass Congress and actually stop the out-of-control growth of our debt,” said Rep. Jim Jordan (R-Ohio), chairman of the Republican Study Committee, in a statement. “If we are to preserve America's AAA credit rating and grow the economy, we must make real spending cuts and send a strong Balanced Budget Amendment to the states for ratification.”