Obama Says He'll Veto GOP Spending Cuts

The president is being malicious on the matter of federal spending.

"I think what the markets want to see is progress," he said. "If they see us chipping away at this problem in a serious way, even if we haven't solved 100 percent of it all in one fell swoop, then that will provide more confidence that -- that Washington can work."

This year's deficit is $1.5 trillion. How can cutting $1 trillion over ten years be viewed as serious?

"We've got to be careful ... Let's use a scalpel; let's not use a machete," he said.

Republicans were eager to wield the heavier instrument. House Speaker John Boehner said if his party's spending cuts led to job losses, that was the price of necessary austerity.

The heavier instrument proposed by the GOP is to cut $100 billion this year - or about 2% of federal spending. Not a very heavy instrument.

What we've done is we've been very specific in terms of how to stabilize the discretionary budget, be sure we are not adding additional debt by 2015, and then, let's together, Democrats and Republicans, tackle these long-term problems in a way that I think will insure our fiscal health, and insure that we are making investments in the future.

Since when is endless overspending, followed by big tax increases, the way to stimulate economic growth?

"Rather than focusing on Washington’s over-spending problem, the budget calls for higher taxes on families and small businesses to pay for even more government spending," said the organization (Americans for Tax Reform) in a statement posted on its Web site.