White House Rejects "Cut, Cap And Balance"

The White House announced Monday that President Obama will veto H.R. 2560, also known as “The Cut, Cap and Balance Act of 2011,” should it reach his desk.

The legislation, introduced last month by a trio of conservative House Republicans, would slash spending in fiscal year 2012 by $111 billion, and would bring down federal spending as a percentage of GDP to 19.9% by the year 2021. It would also require Congress to pass a Balanced Budget Amendment to the Constitution (which would also require approval from two-thirds of the states) before allowing lawmakers to raise the nation’s debt limit, currently hovering near $14.3 trillion.

In a statement of policy, the White House said that the bill “would undercut the Federal Government’s ability to meet its core commitments to seniors, middle-class families and the most vulnerable, while reducing our ability to invest in our future.”

The bill could pass the House, which is scheduled to vote on it tomorrow, but likely will not pass the Democratically-controlled Senate.

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