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House GOP Passes Controversial Budget Plan

 

WASHINGTON (WWJ) - The battle over the budget continues on Capitol Hill.

The Republican-led House Friday afternoon passed a $3.5 trillion spending bill for fiscal year 2012 that more than $6 billion from the budget President Barrack Obama proposed.

The largely party-line vote was 235-193. Just 4 Republicans voted against the GOP budget, and no Democrats voted for it.

Republicans are calling for big cuts in domestic agencies, food stamps and Medicaid.

Michigan Democratic U.S. Senator Carl Levin says this budget would hurt millions of Americans.

"The problem with that budget it is makes huge cuts in programs which are of major importance to our people... Major cuts in education programs; programs like Head Start, Pell Grants -- just the fundamental kinds of programs which are so important to us; the infrastructure programs, the road programs," Levin said.

Levin says we have to reduce the deficit,  but it can't be done through cuts alone.   He says we need to increase revenues by eliminating tax cuts for those in the highest income brackets.  

Levin says greed, conflict of interest, and lack of proper regulation were  to blame  for the nation's financial crisis. 

"Then, of course, you end up with Godman (Sachs) and a couple of banks like them. Goldman, being the bank that we focused on that engaged in deceptive practices -- selling securities by the billions to to their clients and customers, they then would bet against,knowing those securities had bad mortgages in them," he said.

According to Levin, high-risk mortgage lending was one of the key reasons for the financial meltdown. He says new laws should help prevent another crisis in the future, but Levin says it's up to government agencies to enforce those regulations.

Get the more on this story at http://www.cbsnews.com/.

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