President Barack Obama would veto the House Republican “Plan B” tax proposal designed to avert Jan. 1 tax hikes, the White House said on Wednesday, saying the plan does not do enough to balance spending cuts and tax increases.

The veto threat comes less than two weeks before a series of tax hikes and automatic budget cuts that could push the U.S. economy toward a so-called fiscal cliff and trigger another recession.

Republicans in the U.S. House of Representatives could vote on Thursday on a “Plan B” tax bill that House Speaker John Boehner said would extend low tax rates, except on income of $1 million and above.

The White House has said Obama would accept a deal that puts the threshold for income tax hikes at $400,000, a higher threshold than his initial offer.

“The President urges the Republican leadership to work with us to resolve remaining differences and find a reasonable solution to this situation today,” White House Communications Director Dan Pfeiffer said in a statement.

(Reuters)