Congress debating ‘cut, cap and balance’ plan

The House today is expected to vote on a debt limit strategy being proposed by Republicans called the "cut, cap and balance" plan.

The plan would allow the debt ceiling to be raised by $2.4 trillion if Congress cuts spending by $5.8 trillion over 10 years, puts a cap on spending to no more than 20 percent of gross national product by 2021 and passes a constitutional amendment to require a balanced budget.

It is highly controversial. Republicans say it is necessary strong medicine to curb spending.  Democrats say it would be ruinous.

On the pro-side, Iowa Republican Rep. Tom Latham made the case for "cut, cap and balance" in a message Tuesday to constituents.

On the anti-side, Democrats are pointing to this report by the Center on Budget and Policy Priorities that calls it "one  of the most ideologically extreme pieces of major budget legislation to come before Congress in years, if not decades."

While "cut, cap and balance" is expected to pass in the GOP-controlled House, it is not expected to clear the Democratic-led Senate.  The White House has said President Barack Obama would veto it in any case.

Strategically, it is being seen as a way for Republicans to demonstrate they favor the strongest action to curb spending, before GOP leaders move on to negotiate more moderate legislation to solve the debt crisis before an Aug. 2 deadline.