(CNN) – Republican presidential candidate Mitt Romney on Wednesday referred to a new Congressional Budget Office report that outlines the potentially dismal impact of the impending "fiscal cliff" as "unacceptable."
The CBO report found that the spending cuts and tax increases would result in a recession and higher unemployment. However, the report also said it would improve the outlook of the federal government's budget deficit.
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"Today was a very revealing day, because the CBO came out and said we're going to have another, a fourth year in a row with over a trillion dollars of spending above revenue. Unacceptable," Romney said Wednesday evening to a crowd of roughly 100 people at a fund-raiser at the Peabody Hotel in Little Rock.
Romney continued, "This is a challenging time for America, and one thing I will do is I will finally cut federal spending, encourage growth, and by virtue of those two things get America to a balanced budget."
The so-called fiscal cliff comprises a massive amount of tax hikes and spending cuts that are set to kick in beginning in January of next year. Among the fiscal changes is the expiration of the Bush tax cuts and $1.2 trillion in widespread federal cuts that will be triggered if Congress fails to reach an alternative deficit-reduction plan by the end of the year.
The scheduled automatic cuts–also known as sequestration–came about as a result of the Budget Control Act of 2011, a compromise budget measure passed into law after Congressional negotiations failed to agree on a deficit-reduction plan last fall.
Romney's remarks Wednesday night built on a statement released by the campaign earlier in the day that pinned responsibility on President Barack Obama for the CBO's findings.
Romney campaign spokeswoman Amanda Henneberg wrote in the statement that the report was "another indictment of President Obama's economic policies that have resulted in overspending, increasing debt, and a growing financial burden on the next generation."
"The Romney-Ryan Plan will get America back on track with lower spending and 12 million new jobs for middle-class families," she wrote Wednesday.
Romney's vice presidential pick, House Budget Committee Chairman Paul Ryan, along with many other Republicans, voted for the passage of the Budget Control Act last year, which triggered a series of steps that could lead to sequestration. It was signed into law by Obama on August 2, 2011 and was also supported by Democrats.
At the time, he said the measure represented "a victory for those committed to controlling government spending and growing our economy."
Democrats, however, point the blame at Republicans as responsible for the impending fiscal cliff.
White House Press Secretary Jay Carney wrote that Republicans, who control the House of Representatives, had "chosen to double down on the same failed policies that led to the economic crisis in the first place."
"They're willing to hold the middle class hostage unless we also give massive new tax cuts to millionaires and billionaires – tax cuts we can't afford that would do nothing to strengthen the economy," Carney wrote.
Romney's comments were made at an event expected to raise "safely over $2 million," the single largest fund-raising event in the history of Arkansas, according to the Romney campaign.
Over 250 tickets for the event were sold, costing between $2,500 and $50,000 per person.
– CNN's Dana Davidsen, Kevin Liptak, Gregory Wallace and CNNMoney's Jeanne Sahadi contributed to this report.
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