After insisting for months that the federal budget deficit should be reduced by spending cuts rather than tax increases, House Republicans were blocked by a rebellion in their own ranks early Friday over a bill that would have imposed tough limits on spending.
Voting 286 to 146, the House defeated a bill that would have frozen or reduced spending on most discretionary programs outside of defense and domestic security, while leaving the way clear to make President Bush's tax cuts permanent.
The vote highlighted the conflict among Republican lawmakers, who have control of both the House and Senate, over how to claim the mantle of fiscal responsibility.
House and Senate Republicans had already been unable to pass a budget resolution, which provides the framework for spending and taxes, because they could not agree on whether lawmakers should be required to find ways to pay for new tax cuts as well as new spending programs. House Republicans insisted that lawmakers should apply such restrictions only to new spending, but a handful of Republican moderates in the Senate demanded that limits apply to tax cuts as well.
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http://www.nytimes.com/2004/06/25/politics/25spend.html