WASHINGTON – The Republican budget proposal to sharply cut federal spending would cost 700,000 jobs through 2012, according to the independent analyst Moody's.

In a new report obtained Monday by the Washington Post, Moody's Analytics chief economist Mark Zandi analyzes the House Republican budget proposal cutting spending by $61 billion this year and projects that it will curtail job growth.

"The House Republicans’ proposal would reduce 2011 real GDP growth by 0.5% and 2012 growth by 0.2%. This would mean some 400,000 fewer jobs created by the end of 2011 and 700,000 fewer jobs by the end of 2012," Zandi concluded.

The numbers challenge the GOP's philosophy that government spending cuts help create jobs and grow the economy, a view that puts the party at odds with Democrats.

Republicans have invoked job creation as a top priority, vigorously campaigning on the issue and attacking Democrats for ostensibly being lackadaisical about unemployment. The House GOP majority labeled its measure to roll back health reform the "Repealing The Job-Killing Health Care Law Act."

The report notes that Republicans are exercising "modest" but "meaningful" fiscal restraint, but serves as a warning that cutting government spending can sometimes hurt job growth.

"While long-term government spending restraint is vital, and laying out a credible path toward that restraint very desirable, too much cutting too soon would be counterproductive," Zandi wrote.

House Republicans passed their budget just over a week ago by a 235-189 margin, setting up a stand off with President Barack Obama and Democrats.