White House warns of 'destructive' cuts

15 Sep 2012, 4:57 am   -   Source: AAP
(AAP)

(AAP)

A White House report is warning that $US110 billion ($A104.77 billion) in across-the-board spending cuts would be "deeply destructive".

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A White House report is warning that $US110 billion ($A104.77 billion) in across-the-board spending cuts would be "deeply destructive" to the military and core government responsibilities like patrolling US borders and air traffic control if they aren't cancelled before they take effect in January.

The report says the automatic cuts were mandated by the failure of last year's congressional deficit "super committee" to strike a deal and would require across-the-board trims of nine per cent to most Pentagon programs and eight per cent to many domestic programs.

The cuts, combined with the expiration of Bush-era tax cuts at the end of the year, have been dubbed the "fiscal cliff".

Economists warn that the one-two punch could drive the economy back into recession.

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