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President Obama Threatens to Veto Deficit Reduction Package

ABC News(WASHINGTON) -- In his meeting with congressional leaders Thursday, President Obama said he would veto any deficit reduction bill that doesn't raise the debt ceiling until after the November 2012 election, sources tell ABC News.

The president argued that this was a time to think big, sources said, and House Speaker John Boehner, R-Ohio, agreed. Though how to get to an agreement is another matter.

As ABC News reported Wednesday, the president Thursday outlined three options.

One is a smaller, short-term deficit reduction measure. A second option would reduce the deficit by the same amount that the Congress would vote to increase the debt ceiling, roughly $2 trillion, as negotiated in the talks led by Vice President Biden.

The president argued for seizing the moment, going beyond the first two options and addressing new revenues and taxes, entitlement spending, defense spending, and discretionary spending, putting together a larger package that seriously addresses the deficit and steers the nation towards a more fiscally sustainable path.

All three scenarios need to extend the debt ceiling until after the election, Obama said.

Copyright 2011 ABC News Radio

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