English subtitles for clip: File:11-29-12- White House Press Briefing.webm
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1 00:00:00,233 --> 00:00:02,333 Mr. Carney: I'm sorry, Mr. Knoller, did you have a request? 2 00:00:02,333 --> 00:00:03,333 The Press: You bet. 3 00:00:03,333 --> 00:00:04,967 (laughter) 4 00:00:04,967 --> 00:00:07,734 Any chance your briefing might be interrupted by a 5 00:00:07,734 --> 00:00:09,900 joint appearance? 6 00:00:09,900 --> 00:00:11,100 Mr. Carney: Uhh -- no. 7 00:00:11,100 --> 00:00:13,567 (laughter) 8 00:00:13,567 --> 00:00:15,133 The Press: Why not the historical record, seriously -- 9 00:00:15,133 --> 00:00:17,633 I mean, to view them together? 10 00:00:17,633 --> 00:00:21,299 We've seen other Presidents and those that they defeated in 11 00:00:21,300 --> 00:00:23,467 presidential election contests together. 12 00:00:23,467 --> 00:00:25,666 Why not something for the historical record -- 13 00:00:25,667 --> 00:00:27,533 visually or -- 14 00:00:27,533 --> 00:00:29,700 Mr. Carney: There's at least some chance we'll release a photograph, 15 00:00:29,700 --> 00:00:34,667 which will go into the historical record. 16 00:00:34,667 --> 00:00:38,066 It's a private lunch, and we're going to leave it at that. 17 00:00:38,066 --> 00:00:38,900 The Press: What's for lunch? 18 00:00:38,900 --> 00:00:39,967 The Press: Yes, lunch. 19 00:00:39,967 --> 00:00:44,734 Mr. Carney: I haven't looked at the menu, but I bet it was -- and is -- 20 00:00:44,734 --> 00:00:49,367 quite tasty, because they know how to prepare very fine meals. 21 00:00:49,367 --> 00:00:51,766 The Press: Is that a definite on stills? 22 00:00:51,767 --> 00:00:52,867 Mr. Carney: Let me look into that. 23 00:00:52,867 --> 00:00:53,766 I don't know yet. 24 00:00:53,767 --> 00:00:55,767 I'm pretty sure we'll release something. 25 00:00:55,767 --> 00:00:58,166 The Press: Any plans for him to come to the stakeout at all? 26 00:00:58,166 --> 00:01:03,766 Mr. Carney: You'd have to ask his assistants or whoever might have an answer 27 00:01:03,767 --> 00:01:08,533 for you on that because that's not our decision. 28 00:01:08,533 --> 00:01:10,667 And since we actually never said it, 29 00:01:10,667 --> 00:01:14,433 we're referring to the fact that the President of the United 30 00:01:14,433 --> 00:01:18,133 States is having lunch as we speak with Governor Romney. 31 00:01:18,133 --> 00:01:24,100 And I have, and will have, no readout of that lunch, 32 00:01:24,100 --> 00:01:25,699 since it's ongoing, from here today. 33 00:01:25,700 --> 00:01:28,667 I have no other announcements to make. 34 00:01:28,667 --> 00:01:30,467 So I will go straight to your questions. 35 00:01:30,467 --> 00:01:33,266 The Press: One more on this, Jay -- did the White House send a car for 36 00:01:33,266 --> 00:01:35,133 Mitt Romney? 37 00:01:35,133 --> 00:01:37,265 Mr. Carney: I'm not aware that we did, but I don't know the answer to 38 00:01:37,266 --> 00:01:40,066 that question. 39 00:01:40,066 --> 00:01:42,867 The Press: Speaker Boehner said today that there's been no substantive 40 00:01:42,867 --> 00:01:45,967 progress made between Republicans and the White House 41 00:01:45,967 --> 00:01:48,667 over the past two weeks on fiscal cliff negotiations. 42 00:01:48,667 --> 00:01:51,300 Is that an assessment that the White House agrees with, 43 00:01:51,300 --> 00:01:55,399 that there's been no progress? 44 00:01:55,400 --> 00:02:00,567 Mr. Carney: I'll say a couple things on that. 45 00:02:00,567 --> 00:02:06,934 In the summer of 2011, there was the possibility of reaching what 46 00:02:06,934 --> 00:02:13,300 was then called a grand bargain, and the obstacle that prevented 47 00:02:13,300 --> 00:02:17,500 that was, in the end, the refusal of Republicans to go 48 00:02:17,500 --> 00:02:22,467 along with the fundamental principle that a deficit 49 00:02:22,467 --> 00:02:25,700 reduction needed balance and it needed to include real, 50 00:02:25,700 --> 00:02:29,166 tangible revenues; that the wealthy ought to pay a 51 00:02:29,166 --> 00:02:32,166 little bit more. 52 00:02:32,166 --> 00:02:35,533 Since that time, and I think in an accelerated sense, 53 00:02:35,533 --> 00:02:38,266 in the last several weeks, we have seen progress. 54 00:02:38,266 --> 00:02:43,399 We have seen that obstacle partly overcome because 55 00:02:43,400 --> 00:02:47,867 Republicans have acknowledged that revenue must be part of a 56 00:02:47,867 --> 00:02:50,899 balanced approach to deficit reduction, 57 00:02:50,900 --> 00:02:54,734 and that that revenue must come from those who can 58 00:02:54,734 --> 00:02:57,467 afford it most. 59 00:02:57,467 --> 00:03:04,100 We're not there yet because the remaining obstacle here is -- 60 00:03:04,100 --> 00:03:06,934 on the revenue side, is that Republicans -- 61 00:03:06,934 --> 00:03:10,834 at least Republican leaders -- have yet to accept the essential 62 00:03:10,834 --> 00:03:13,467 fact that in order to achieve the kinds of revenue that are 63 00:03:13,467 --> 00:03:19,367 necessary for a balanced proposal, balanced plan, 64 00:03:19,367 --> 00:03:23,200 rates on the top 2%, the wealthiest earners in this 65 00:03:23,200 --> 00:03:25,833 country, are going up. 66 00:03:25,834 --> 00:03:27,400 They have to go up. 67 00:03:27,400 --> 00:03:31,433 The President will not sign any legislation that extends the 68 00:03:31,433 --> 00:03:34,733 Bush-era tax cuts for top earners in this country. 69 00:03:34,734 --> 00:03:39,300 This should not be news to anyone on Capitol Hill. 70 00:03:39,300 --> 00:03:43,166 It is certainly not news to anyone in America who was not in 71 00:03:43,166 --> 00:03:45,233 a coma during the campaign season, 72 00:03:45,233 --> 00:03:48,867 because this was an explicit, repeated, 73 00:03:48,867 --> 00:03:53,500 and high-profile debate throughout the campaign. 74 00:03:53,500 --> 00:03:57,166 And then on the spending side, the President has put forward, 75 00:03:57,166 --> 00:04:00,200 in September of 2011 with his proposal to the so-called super 76 00:04:00,200 --> 00:04:03,833 committee, in his budget in February of 2012, 77 00:04:03,834 --> 00:04:08,166 very specific spending cuts, including savings from health 78 00:04:08,166 --> 00:04:11,266 care entitlement programs. 79 00:04:11,266 --> 00:04:15,333 So what we haven't seen yet from Republicans is any movement, 80 00:04:15,333 --> 00:04:16,567 at least from Republican leaders, 81 00:04:16,567 --> 00:04:19,867 on the fundamental second stage of the obstacle that they need 82 00:04:19,867 --> 00:04:24,834 to clear, which is an acknowledgement that you cannot 83 00:04:24,834 --> 00:04:27,266 achieve the revenues unless rates go up. 84 00:04:27,266 --> 00:04:31,600 Rates have to go up for wage earners, even as we absolutely, 85 00:04:31,600 --> 00:04:36,233 essentially, must sign into law tax cuts for 98% of the 86 00:04:36,233 --> 00:04:37,266 American people. 87 00:04:37,266 --> 00:04:40,066 The Press: So are you saying that there is progress being made in the 88 00:04:40,066 --> 00:04:42,366 rhetoric or in perhaps the attitude of Republicans, 89 00:04:42,367 --> 00:04:45,367 but not actually in the negotiations themselves? 90 00:04:45,367 --> 00:04:53,700 Mr. Carney: Look, I think that we have seen some important signs of 91 00:04:53,700 --> 00:04:57,066 recognition of what needs to be done, but we aren't there yet. 92 00:04:57,066 --> 00:05:03,332 Once the acknowledgement is made that rates need to be part of 93 00:05:03,333 --> 00:05:06,633 this, I don't think it's very difficult to -- 94 00:05:06,633 --> 00:05:14,767 or all that difficult to achieve the kind of balanced compromise 95 00:05:14,767 --> 00:05:18,400 that the President seeks and that the American people seek, 96 00:05:18,400 --> 00:05:23,433 because there are specific cuts already on the table that would 97 00:05:23,433 --> 00:05:28,099 make up -- that would be the foundation of a discussion about 98 00:05:28,100 --> 00:05:30,867 the spending side of this equation. 99 00:05:30,867 --> 00:05:36,266 So we remain optimistic that this can get done. 100 00:05:36,266 --> 00:05:38,233 But the President's principles are clear. 101 00:05:38,233 --> 00:05:41,400 And it's not like we didn't have this discussion and debate for 102 00:05:41,400 --> 00:05:44,633 the past year; we did -- in fact, beyond that. 103 00:05:44,633 --> 00:05:47,767 And I understand that the position that some held that 104 00:05:47,767 --> 00:05:51,000 rates would never go up, that it was more important that 105 00:05:51,000 --> 00:05:55,533 millionaires and billionaires get a tax cut than we get a 106 00:05:55,533 --> 00:05:59,133 comprehensive deal for the sake and health of our economy -- 107 00:05:59,133 --> 00:06:00,734 that that was a position that was held. 108 00:06:00,734 --> 00:06:02,866 But it's not plausible anymore. 109 00:06:02,867 --> 00:06:05,667 And the American people have spoken and the President has 110 00:06:05,667 --> 00:06:06,900 been very clear. 111 00:06:06,900 --> 00:06:08,900 The Press: One last thing on this. 112 00:06:08,900 --> 00:06:11,799 You say that the President has put forward specific 113 00:06:11,800 --> 00:06:12,967 spending cuts. 114 00:06:12,967 --> 00:06:17,000 Boehner said again this morning that they haven't seen any plan. 115 00:06:17,000 --> 00:06:19,500 Where do they fall on this when they actually talk in person, 116 00:06:19,500 --> 00:06:22,200 what they did last night or what they did on Saturday? 117 00:06:22,200 --> 00:06:24,866 Has the President said that he's put forward spending cuts and he 118 00:06:24,867 --> 00:06:28,233 doesn't plan to put forth any more? 119 00:06:28,233 --> 00:06:31,633 Mr. Carney: I'm glad you asked. 120 00:06:31,633 --> 00:06:34,366 This is available not just here but to everyone in the world who 121 00:06:34,367 --> 00:06:37,834 has an Internet connection. 122 00:06:37,834 --> 00:06:40,433 And I know things are done the old-fashioned way sometimes on 123 00:06:40,433 --> 00:06:43,233 Capitol Hill, but I believe they have electricity and Internet 124 00:06:43,233 --> 00:06:45,266 connections and they can get this. 125 00:06:45,266 --> 00:06:49,934 This is an 85-page plan that is very detailed -- 126 00:06:49,934 --> 00:06:54,934 sorry, maybe 65, going on 70 -- that's very detailed and it 127 00:06:54,934 --> 00:06:57,967 outlines -- it's the President's Plan for Economic Growth and 128 00:06:57,967 --> 00:07:01,500 Deficit Reduction that was submitted in September of 2011. 129 00:07:01,500 --> 00:07:06,266 It is of a piece with his budget that he put forward in 130 00:07:06,266 --> 00:07:07,700 February 2012. 131 00:07:07,700 --> 00:07:11,767 And in terms of where we are missing specifics is anything 132 00:07:11,767 --> 00:07:17,900 specific, politically feasible, or substantial from the 133 00:07:17,900 --> 00:07:20,400 Republican side on revenues. 134 00:07:20,400 --> 00:07:26,633 And while there has been progress of sorts on that 135 00:07:26,633 --> 00:07:29,032 subject, more needs to be done. 136 00:07:29,033 --> 00:07:33,266 But let me just say that we remain optimistic that we 137 00:07:33,266 --> 00:07:34,266 can get there. 138 00:07:34,266 --> 00:07:37,400 It's important for the American people to know that we 139 00:07:37,400 --> 00:07:39,000 can get there. 140 00:07:39,000 --> 00:07:41,834 The President has made clear from the start that he 141 00:07:41,834 --> 00:07:47,367 understands that he will not get every item in this proposal or 142 00:07:47,367 --> 00:07:50,633 in his budget proposal, that compromise requires tough 143 00:07:50,633 --> 00:07:52,599 choices from all sides. 144 00:07:52,600 --> 00:07:53,867 He's acknowledged that up front. 145 00:07:53,867 --> 00:07:57,066 And in this proposal and others, he has made clear in great 146 00:07:57,066 --> 00:08:01,299 specificity the kinds of tough choices he's willing to make. 147 00:08:01,300 --> 00:08:03,600 And he is willing to make more. 148 00:08:03,600 --> 00:08:06,800 But a fundamental principle here that was much discussed and 149 00:08:06,800 --> 00:08:11,500 debated during the campaign is that broad deficit reduction on 150 00:08:11,500 --> 00:08:15,967 the scale that is essential requires asking the wealthiest 151 00:08:15,967 --> 00:08:18,767 to pay more, and it requires -- the only way to get the kind 152 00:08:18,767 --> 00:08:22,100 of revenue that we need in order to achieve that balance is for 153 00:08:22,100 --> 00:08:25,367 rates to go up for the wealthiest earners in America 154 00:08:25,367 --> 00:08:29,967 even as we ensure that tax cuts are extended for 98% of the 155 00:08:29,967 --> 00:08:31,400 American people. 156 00:08:31,400 --> 00:08:34,500 The Press: Jay, does the President have plans to meet or speak with 157 00:08:34,500 --> 00:08:35,933 Speaker Boehner? 158 00:08:35,933 --> 00:08:39,165 If not, at what point would that direct contact be appropriate? 159 00:08:39,166 --> 00:08:42,667 Mr. Carney: Well, I think you saw reported that they spoke last night. 160 00:08:42,667 --> 00:08:45,734 So I haven't got a new engagement to announce today. 161 00:08:45,734 --> 00:08:47,567 They spoke last night, they spoke over the weekend, 162 00:08:47,567 --> 00:08:51,767 they met prior to the President's trip to Asia, 163 00:08:51,767 --> 00:08:53,367 and I'm sure they will speak again. 164 00:08:53,367 --> 00:08:58,900 But I don't have a specific timeframe for that. 165 00:08:58,900 --> 00:09:02,934 As you know, Secretary Geithner and Rob Nabors from the White 166 00:09:02,934 --> 00:09:06,500 House are up on Capitol Hill right now having meetings on 167 00:09:06,500 --> 00:09:10,567 this subject, and that process will continue. 168 00:09:10,567 --> 00:09:12,700 And the process that the President has been engaged in 169 00:09:12,700 --> 00:09:15,000 all week, in addition to the phone calls he's had, 170 00:09:15,000 --> 00:09:22,333 of engaging the broader American community beyond the halls of 171 00:09:22,333 --> 00:09:24,600 the Capitol is ongoing. 172 00:09:24,600 --> 00:09:28,066 He's traveling to Pennsylvania tomorrow, as you know, 173 00:09:28,066 --> 00:09:34,333 to visit a company that would be affected adversely if Congress 174 00:09:34,333 --> 00:09:36,867 the House were to decide not to extend tax cuts for the middle 175 00:09:36,867 --> 00:09:40,467 class -- because that is a very important part of this debate. 176 00:09:40,467 --> 00:09:45,199 And it's very important -- contrary to suggestions that we 177 00:09:45,200 --> 00:09:46,967 heard a few days ago in this room -- 178 00:09:46,967 --> 00:09:49,900 that the President of the United States engage with the American 179 00:09:49,900 --> 00:09:51,967 people about these critical debates that affect 180 00:09:51,967 --> 00:09:53,300 their future. 181 00:09:53,300 --> 00:09:57,433 And it's entirely appropriate that leaders on Capitol Hill do 182 00:09:57,433 --> 00:09:58,867 the same thing. 183 00:09:58,867 --> 00:10:00,666 It's really, really important. 184 00:10:00,667 --> 00:10:09,100 It's amazing if you look at some of the data out there about what 185 00:10:09,100 --> 00:10:11,433 the American people know about this debate. 186 00:10:11,433 --> 00:10:12,934 It's quite substantial. 187 00:10:12,934 --> 00:10:18,632 And they made clear -- at least a majority of them -- 188 00:10:18,633 --> 00:10:23,500 what path they prefer their leaders in Washington take, 189 00:10:23,500 --> 00:10:25,600 and that's a path of both compromise but a path 190 00:10:25,600 --> 00:10:26,734 of balance. 191 00:10:26,734 --> 00:10:28,667 And that's the path the President has proposed, 192 00:10:28,667 --> 00:10:31,667 and that's the path he's traveling in these 193 00:10:31,667 --> 00:10:32,567 days and weeks. 194 00:10:32,567 --> 00:10:34,300 The Press: One of the things Speaker Boehner said this morning was 195 00:10:34,300 --> 00:10:37,666 that any increase in the debt limit would have to be matched 196 00:10:37,667 --> 00:10:41,300 by or exceeded by further spending cuts. 197 00:10:41,300 --> 00:10:44,467 That's the same kind of rhetoric that we heard in 2011. 198 00:10:44,467 --> 00:10:47,000 Are you concerned that that is being used as leverage again in 199 00:10:47,000 --> 00:10:48,700 a way that could be damaging to the United States? 200 00:10:48,700 --> 00:10:51,633 Mr. Carney: Well, that's a good question. 201 00:10:51,633 --> 00:10:56,567 I was struck by that myself. 202 00:10:56,567 --> 00:11:02,266 I'd say two things about that. 203 00:11:02,266 --> 00:11:07,834 Asking that a political price be paid in order for Congress to do 204 00:11:07,834 --> 00:11:10,766 its job to ensure that the United States of America pays 205 00:11:10,767 --> 00:11:13,600 its bills and does not default for the first time in its 206 00:11:13,600 --> 00:11:16,367 history is deeply irresponsible. 207 00:11:16,367 --> 00:11:19,934 It was deeply irresponsible in the summer of 2011, 208 00:11:19,934 --> 00:11:24,000 and it would be deeply irresponsible if we were to see 209 00:11:24,000 --> 00:11:26,266 that kind of approach taken again. 210 00:11:26,266 --> 00:11:29,533 The President absolutely expects Congress to do its job. 211 00:11:29,533 --> 00:11:32,734 And one of the jobs that Congress has is to make sure 212 00:11:32,734 --> 00:11:35,033 that the United States government pays its bills. 213 00:11:35,033 --> 00:11:39,233 As the greatest economy and greatest country on Earth, 214 00:11:39,233 --> 00:11:42,199 we pay our bills. 215 00:11:42,200 --> 00:11:45,433 The President believes that it is entirely appropriate that 216 00:11:45,433 --> 00:11:51,600 Congress take action on this as part of an end-of-the-year deal, 217 00:11:51,600 --> 00:11:54,867 if you will, on the issues that confront us -- 218 00:11:54,867 --> 00:11:57,400 the fiscal cliff and broader deficit reduction. 219 00:11:57,400 --> 00:12:05,467 It would be a terrible mistake and I think would earn deserved 220 00:12:05,467 --> 00:12:08,467 approbation from the American public if Congress were to try 221 00:12:08,467 --> 00:12:09,600 to travel that path again. 222 00:12:09,600 --> 00:12:16,633 The harm done was done mostly to the American middle class. 223 00:12:16,633 --> 00:12:21,633 We had our economy downgraded; we had consumer confidence 224 00:12:21,633 --> 00:12:26,033 plunge all because of this brinksmanship that is entirely 225 00:12:26,033 --> 00:12:29,767 inappropriate, and we hope we won't see that again. 226 00:12:29,767 --> 00:12:31,400 The Press: So you're looking for an agreement to raise the debt 227 00:12:31,400 --> 00:12:33,900 ceiling as part of the negotiations before the end 228 00:12:33,900 --> 00:12:36,632 of the year? 229 00:12:36,633 --> 00:12:42,467 Mr. Carney: In whatever manner it comes, it should be done soon and 230 00:12:42,467 --> 00:12:43,633 without drama. 231 00:12:43,633 --> 00:12:47,066 But we cannot have the kind of situation where there was harm 232 00:12:47,066 --> 00:12:52,200 done even with the threat of default. 233 00:12:52,200 --> 00:12:55,900 There was significant damage done to our economy, 234 00:12:55,900 --> 00:13:00,567 significant damage done to consumer confidence simply when 235 00:13:00,567 --> 00:13:06,233 the prospect of default was in the air in 2011, 236 00:13:06,233 --> 00:13:09,199 and we shouldn't allow that to happen again. 237 00:13:09,200 --> 00:13:10,567 Let me move around a little bit. 238 00:13:10,567 --> 00:13:11,300 Yes, sir. 239 00:13:11,300 --> 00:13:12,733 The Press: Thank you, Jay. 240 00:13:12,734 --> 00:13:15,467 South Korean newspapers yesterday were reporting that 241 00:13:15,467 --> 00:13:19,300 back in August there were senior members of the NSC that flew 242 00:13:19,300 --> 00:13:23,567 into Pyongyang and were meeting with the North Koreans to 243 00:13:23,567 --> 00:13:25,800 prevent them from doing any provocative actions before the 244 00:13:25,800 --> 00:13:27,900 elections in the U.S. 245 00:13:27,900 --> 00:13:28,834 What can you -- 246 00:13:28,834 --> 00:13:31,632 Mr. Carney: I haven't seen those reports, and they don't ring true to me, 247 00:13:31,633 --> 00:13:32,800 but I'll have to take your question. 248 00:13:32,800 --> 00:13:34,900 The Press: Back in October, there were similar reports out of North 249 00:13:34,900 --> 00:13:38,967 Korea that they met with members of the NSC and the CIA. 250 00:13:38,967 --> 00:13:40,900 I mean North Koreans and South Koreans -- 251 00:13:40,900 --> 00:13:45,699 Mr. Carney: You're citing reports I haven't seen sourced to places I am not 252 00:13:45,700 --> 00:13:48,166 familiar with, so -- I'm not sure what the sourcing 253 00:13:48,166 --> 00:13:49,166 is on that. 254 00:13:49,166 --> 00:13:50,033 I would have to take your question. 255 00:13:50,033 --> 00:13:53,033 That's not a question I can answer because it is news to me. 256 00:13:53,033 --> 00:13:55,233 The Press: The only place this meeting seems to be a secret is here in 257 00:13:55,233 --> 00:13:57,333 the U.S., which gives the impression that the President 258 00:13:57,333 --> 00:13:59,867 has some sort of domestic political 259 00:13:59,867 --> 00:14:00,967 consideration or fear -- 260 00:14:00,967 --> 00:14:02,834 Mr. Carney: I think you're making an editorial comment based on an 261 00:14:02,834 --> 00:14:05,266 article I haven't seen, so I'm happy to take the question. 262 00:14:05,266 --> 00:14:07,567 The Press: Would you take the question and include it in the transcript? 263 00:14:07,567 --> 00:14:10,233 Mr. Carney: I will take the question and see what we find out. 264 00:14:10,233 --> 00:14:11,065 Yes. 265 00:14:11,066 --> 00:14:12,266 The Press: Jay, thanks. 266 00:14:12,266 --> 00:14:15,099 Politico has characterized the conversation between President 267 00:14:15,100 --> 00:14:18,333 Obama and House Speaker John Boehner last night as "curt." 268 00:14:18,333 --> 00:14:20,199 How would you characterize the conversation? 269 00:14:20,200 --> 00:14:21,467 Is that accurate? 270 00:14:21,467 --> 00:14:26,734 Mr. Carney: Twenty-eight minutes long is my understanding. 271 00:14:26,734 --> 00:14:32,133 It was -- I would actually echo what Speaker Boehner said in his 272 00:14:32,133 --> 00:14:36,567 remarks earlier today, which is that it was frank and direct and 273 00:14:36,567 --> 00:14:38,200 a good conversation. 274 00:14:38,200 --> 00:14:40,066 I think the President would agree with that characterization 275 00:14:40,066 --> 00:14:41,700 -- and it was also 28 minutes long. 276 00:14:41,700 --> 00:14:46,266 The Press: During the debt ceiling fight, President Obama was criticized 277 00:14:46,266 --> 00:14:51,632 for not reaching out directly enough to congressional leaders. 278 00:14:51,633 --> 00:14:52,367 Is his strategy -- 279 00:14:52,367 --> 00:14:53,132 Mr. Carney: During which fight? 280 00:14:53,133 --> 00:14:54,867 The Press: During the debt ceiling debate. 281 00:14:54,867 --> 00:14:56,900 Mr. Carney: My God, they practically lived together down the hall here. 282 00:14:56,900 --> 00:14:58,500 I don't think that's the case, not during the debt 283 00:14:58,500 --> 00:14:59,367 ceiling crisis. 284 00:14:59,367 --> 00:15:02,400 The Press: People said that there were not enough meetings between the 285 00:15:02,400 --> 00:15:03,266 President and -- 286 00:15:03,266 --> 00:15:06,967 Mr. Carney: As I recall, there was -- that doesn't ring true from the debt 287 00:15:06,967 --> 00:15:07,834 ceiling fight. 288 00:15:07,834 --> 00:15:08,632 I think there were a lot of meetings, 289 00:15:08,633 --> 00:15:14,400 a lot of conversations, a lot of later reported on meetings that 290 00:15:14,400 --> 00:15:15,967 weren't even public at the time. 291 00:15:15,967 --> 00:15:17,533 The Press: But I'm talking about one-on-one conversations. 292 00:15:17,533 --> 00:15:18,400 Is his strategy any different? 293 00:15:18,400 --> 00:15:19,733 Mr. Carney: So am I. 294 00:15:19,734 --> 00:15:22,066 And they were numerous during the debt ceiling. 295 00:15:22,066 --> 00:15:25,667 What I often get asked about and have been asked about subsequent 296 00:15:25,667 --> 00:15:29,800 to that was during the payroll tax cut discussion debate at the 297 00:15:29,800 --> 00:15:33,367 end of last year, and during the debate over whether or not we 298 00:15:33,367 --> 00:15:38,567 should allow rates for student loans to rise dramatically -- 299 00:15:38,567 --> 00:15:43,233 there were calls mostly from colleagues of yours here in this 300 00:15:43,233 --> 00:15:45,934 room for more and more meetings between the President and the 301 00:15:45,934 --> 00:15:47,033 Speaker to resolve these issues. 302 00:15:47,033 --> 00:15:49,700 And of course, there were conversations between the White 303 00:15:49,700 --> 00:15:51,467 House and the Capitol in resolving these issues. 304 00:15:51,467 --> 00:15:55,734 But the President also, very appropriately, 305 00:15:55,734 --> 00:15:59,100 went out into the country to make sure that the American 306 00:15:59,100 --> 00:16:02,667 people were engaged in this and that their voices were heard in 307 00:16:02,667 --> 00:16:03,667 this kind of debate. 308 00:16:03,667 --> 00:16:05,667 And that's what he's doing again -- 309 00:16:05,667 --> 00:16:07,467 because that's how it should be. 310 00:16:07,467 --> 00:16:09,800 The Press: In addition to going out -- going to Pennsylvania tomorrow, 311 00:16:09,800 --> 00:16:14,000 is part of his strategy to be in regular contact with Speaker 312 00:16:14,000 --> 00:16:16,667 Boehner, as he was last night? 313 00:16:16,667 --> 00:16:20,367 Mr. Carney: It has been less than 24 hours since they spoke. 314 00:16:20,367 --> 00:16:22,834 Prior to that it was five days, four days, 315 00:16:22,834 --> 00:16:26,032 since Saturday I think they spoke. 316 00:16:26,033 --> 00:16:30,066 In between that conversation and the meeting they had, 317 00:16:30,066 --> 00:16:33,133 the President traveled to three countries in Asia and there was 318 00:16:33,133 --> 00:16:35,467 a major American holiday. 319 00:16:35,467 --> 00:16:38,300 So I'd say that's pretty regular contact. 320 00:16:38,300 --> 00:16:40,867 The Press: So that is my question -- is that a part of his strategy? 321 00:16:40,867 --> 00:16:43,000 Mr. Carney: I don't have a -- it's not a strategy. 322 00:16:43,000 --> 00:16:51,066 The President's strategy is to reach a deal with Congress that 323 00:16:51,066 --> 00:16:53,800 embodies the principles that he has long espoused, 324 00:16:53,800 --> 00:16:57,300 which is to reduce our deficit in a responsible way that allows 325 00:16:57,300 --> 00:16:59,500 the economy to continue to grow and create jobs; 326 00:16:59,500 --> 00:17:04,300 that achieves that deficit reduction through broad balance 327 00:17:04,300 --> 00:17:08,599 that includes spending cuts, entitlement reform savings and 328 00:17:08,599 --> 00:17:12,332 revenues that come from those who can afford it most, 329 00:17:12,333 --> 00:17:15,767 the top 2% of earners in this country. 330 00:17:15,767 --> 00:17:18,266 And he has put forward this proposal. 331 00:17:18,266 --> 00:17:20,734 He has put forward his budget. 332 00:17:20,733 --> 00:17:24,532 And so what his specific ideas are on these issues are well 333 00:17:24,532 --> 00:17:26,532 known and documented. 334 00:17:27,967 --> 00:17:31,600 But he has also said, as he did in the aftermath of the election 335 00:17:31,600 --> 00:17:36,199 to you, that he understands that tough choices need to be made 336 00:17:36,200 --> 00:17:40,000 and he's, as he has demonstrated, 337 00:17:40,000 --> 00:17:41,533 willing to make them. 338 00:17:41,533 --> 00:17:46,000 But there are principles here that he will not alter, 339 00:17:46,000 --> 00:17:51,300 and one of them is that revenues from top earners have to be part 340 00:17:51,300 --> 00:17:52,433 of this deal. 341 00:17:52,433 --> 00:17:54,667 That's what the American people believe. 342 00:17:54,667 --> 00:17:56,600 It is what he believes. 343 00:17:56,600 --> 00:17:59,300 It is what we have seen increasingly Republicans 344 00:17:59,300 --> 00:18:02,899 acknowledge, including -- increasingly, we've seen 345 00:18:02,900 --> 00:18:04,000 Republicans acknowledge that. 346 00:18:04,000 --> 00:18:07,900 We've seen business leaders acknowledge that, 347 00:18:07,900 --> 00:18:12,433 because it's mathematically self-evident. 348 00:18:12,433 --> 00:18:15,400 So we know where we need to go. 349 00:18:15,400 --> 00:18:19,867 And the President looks forward to continuing the discussion and 350 00:18:19,867 --> 00:18:22,466 reaching a deal, a deal that's good for the American people and 351 00:18:22,467 --> 00:18:24,033 good for the economy. 352 00:18:24,033 --> 00:18:27,000 The Press: And one more on the lunch that President Obama is having with 353 00:18:27,000 --> 00:18:28,467 Mitt Romney. 354 00:18:28,467 --> 00:18:31,200 One of Romney's former chief strategists, Stuart Stevens, 355 00:18:31,200 --> 00:18:35,066 wrote an op-ed in which he essentially suggests that Romney 356 00:18:35,066 --> 00:18:38,033 lost because minorities overwhelmingly voted for 357 00:18:38,033 --> 00:18:39,367 President Obama. 358 00:18:39,367 --> 00:18:43,100 Does that op-ed -- do the comments that Romney made in any 359 00:18:43,100 --> 00:18:48,199 way cloud or set a certain backdrop to this lunch? 360 00:18:48,200 --> 00:18:50,200 Mr. Carney: No, first of all. 361 00:18:50,200 --> 00:18:54,100 I think campaigns are a tough business. 362 00:18:54,100 --> 00:18:57,632 Debates are sharp, and in this case they were very substantive 363 00:18:57,633 --> 00:19:00,400 and important. 364 00:19:00,400 --> 00:19:04,967 There is I think an event up in "Haavad," in Cambridge, 365 00:19:04,967 --> 00:19:08,834 tonight where a lot of these issues will be discussed by the 366 00:19:08,834 --> 00:19:09,700 two campaigns -- 367 00:19:09,700 --> 00:19:10,600 The Press: Where is that? 368 00:19:10,600 --> 00:19:11,600 (laughter) 369 00:19:11,600 --> 00:19:14,332 Mr. Carney: I was just trying it out. 370 00:19:14,333 --> 00:19:16,934 The Press: Try "park" and "quarter" and "water." 371 00:19:16,934 --> 00:19:20,734 Mr. Carney: Paak the car, Haavad Yard. 372 00:19:20,734 --> 00:19:22,166 But seriously, I think you know about this -- 373 00:19:22,166 --> 00:19:25,433 the top campaign officials from both sides have traditionally 374 00:19:25,433 --> 00:19:29,266 gotten together and had a discussion about what transpired 375 00:19:29,266 --> 00:19:31,266 at the campaign strategy level, so that -- 376 00:19:31,266 --> 00:19:33,734 I'm sure we'll all take an interest in seeing that. 377 00:19:33,734 --> 00:19:37,166 I think there's been a lot of people who have effectively 378 00:19:37,166 --> 00:19:43,567 refuted the assertion you made about this race. 379 00:19:43,567 --> 00:19:47,834 I mean, I think I don't need to do that from here. 380 00:19:47,834 --> 00:19:48,533 Ed. 381 00:19:48,533 --> 00:19:50,166 The Press: Jay, you mentioned the budget. 382 00:19:50,166 --> 00:19:52,233 Republicans point out it was voted down unanimously and 383 00:19:52,233 --> 00:19:55,966 hasn't moved forward, but you quite correctly note there are 384 00:19:55,967 --> 00:19:56,967 spending cuts in there. 385 00:19:56,967 --> 00:19:59,300 I guess my question would be, can you also hold up that 386 00:19:59,300 --> 00:20:01,332 budget, look in the camera and say, 387 00:20:01,333 --> 00:20:04,934 dear fellow Democrats on Capitol Hill, vote for, 388 00:20:04,934 --> 00:20:08,600 include some of these spending cuts in this deal to avoid the 389 00:20:08,600 --> 00:20:09,600 fiscal cliff? 390 00:20:09,600 --> 00:20:10,833 Because that's not what they're doing right now. 391 00:20:10,834 --> 00:20:12,834 Should they include those? 392 00:20:12,834 --> 00:20:15,166 Mr. Carney: Yes. 393 00:20:15,166 --> 00:20:19,633 And I think that -- and I know that Democrats accept that there 394 00:20:19,633 --> 00:20:24,734 have -- that this has to be a balanced package that includes 395 00:20:24,734 --> 00:20:27,899 revenues and cuts -- and spending cuts, and -- 396 00:20:27,900 --> 00:20:31,300 The Press: But Senator Durbin said entitlement cuts should not be 397 00:20:31,300 --> 00:20:31,899 part of this. 398 00:20:31,900 --> 00:20:32,633 So I just want to -- 399 00:20:32,633 --> 00:20:36,633 Mr. Carney: No, "this" is a loose, even though short, word, which is -- 400 00:20:36,633 --> 00:20:38,633 The Press: He said even as the fiscal cliff -- 401 00:20:38,633 --> 00:20:40,734 Mr. Carney: And I think everybody understands that there are two 402 00:20:40,734 --> 00:20:42,466 parts, two pieces of this. 403 00:20:42,467 --> 00:20:49,433 We have the deadlines bearing down on us related to automatic 404 00:20:49,433 --> 00:20:51,967 tax hikes that would occur and automatic across-the-board 405 00:20:51,967 --> 00:20:55,700 spending cuts that would occur if some sort of agreement isn't 406 00:20:55,700 --> 00:20:57,400 reached on that issue. 407 00:20:57,400 --> 00:21:00,967 There is the broader issue, which reflects the President's 408 00:21:00,967 --> 00:21:04,100 longstanding interest and oft-expressed interest in a big 409 00:21:04,100 --> 00:21:09,199 deal that achieves broadly $4 trillion in cuts and reduction 410 00:21:09,200 --> 00:21:11,300 that he believes ought to be part of this. 411 00:21:11,300 --> 00:21:16,567 In that broader context, absolutely, 412 00:21:16,567 --> 00:21:19,567 savings from health care entitlements need to be and will 413 00:21:19,567 --> 00:21:24,433 be part of it; other savings need to and will be part of it. 414 00:21:24,433 --> 00:21:27,367 The President has already signed into law over a trillion dollars 415 00:21:27,367 --> 00:21:29,033 in non-defense discretionary spending cuts. 416 00:21:29,033 --> 00:21:30,567 The Press: But when he said yesterday, "next year," 417 00:21:30,567 --> 00:21:32,900 you're saying clearly that this year -- 418 00:21:32,900 --> 00:21:35,867 Mr. Carney: I heard Speaker Boehner talk today about the framework that 419 00:21:35,867 --> 00:21:37,533 they -- I'm just using his words, 420 00:21:37,533 --> 00:21:41,065 I'm not reading out paper that they give us or meetings that we 421 00:21:41,066 --> 00:21:43,100 had with them, but just citing him -- 422 00:21:43,100 --> 00:21:45,332 he talked about a framework and a two-stage process. 423 00:21:45,333 --> 00:21:49,533 And that may be how it works out. 424 00:21:49,533 --> 00:21:51,600 I'm not going to prejudge that because that's why 425 00:21:51,600 --> 00:21:53,166 they're negotiating. 426 00:21:53,166 --> 00:21:56,500 But the broader point is there are two elements to this that 427 00:21:56,500 --> 00:21:58,700 are linked: One is the fiscal cliff and one is the broader 428 00:21:58,700 --> 00:22:01,767 deficit reduction package that the President seeks. 429 00:22:01,767 --> 00:22:02,767 The Press: Okay. 430 00:22:02,767 --> 00:22:03,767 Finally, I would note there are colleagues in the back of the 431 00:22:03,767 --> 00:22:05,467 room who have been complaining about not getting 432 00:22:05,467 --> 00:22:06,467 enough questions. 433 00:22:06,467 --> 00:22:08,400 I appreciate you moving around. 434 00:22:08,400 --> 00:22:10,133 Some of them asked me, as president of the association, 435 00:22:10,133 --> 00:22:12,667 to set rules on how many questions everyone gets. 436 00:22:12,667 --> 00:22:17,100 We don't police people, but in the spirit of sharing the ball, 437 00:22:17,100 --> 00:22:19,766 I yield back the balance of my time and encourage my colleagues 438 00:22:19,767 --> 00:22:20,834 to do the same. 439 00:22:20,834 --> 00:22:21,767 (laughter) 440 00:22:21,767 --> 00:22:23,633 Mr. Carney: I want to commend Ed for that. 441 00:22:23,633 --> 00:22:25,900 And I'll -- with that, I'll go to the back of the room. 442 00:22:25,900 --> 00:22:26,900 Cheryl. 443 00:22:26,900 --> 00:22:27,967 The Press: Thank you. 444 00:22:27,967 --> 00:22:30,633 Thanks, Ed. 445 00:22:30,633 --> 00:22:33,734 I was going to ask about some Northeast lawmakers in 446 00:22:33,734 --> 00:22:36,867 particular are very anxious about getting a spending 447 00:22:36,867 --> 00:22:40,066 supplemental for the Hurricane Sandy disaster. 448 00:22:40,066 --> 00:22:41,834 And when is the White House going to send that up, 449 00:22:41,834 --> 00:22:45,066 and do you know how much that's going to be? 450 00:22:45,066 --> 00:22:48,100 Mr. Carney: I do not have any detail for you. 451 00:22:48,100 --> 00:22:51,100 We're obviously looking at the requests that have come in, 452 00:22:51,100 --> 00:22:52,265 studying them very closely. 453 00:22:52,266 --> 00:22:54,934 The President's been enormously focused, as you know -- 454 00:22:54,934 --> 00:22:57,533 I was in a meeting with him earlier today where the 455 00:22:57,533 --> 00:23:03,699 discussion -- we spent some time talking about Hurricane Sandy 456 00:23:03,700 --> 00:23:10,767 and the lasting impact that that terrible storm has had on the 457 00:23:10,767 --> 00:23:13,000 residents of New Jersey and New York and some parts 458 00:23:13,000 --> 00:23:14,000 of Connecticut. 459 00:23:14,000 --> 00:23:16,633 And so he remains focused on this. 460 00:23:16,633 --> 00:23:23,066 He remains focused on ensuring that the federal team is doing 461 00:23:23,066 --> 00:23:25,800 everything it can to help with this effort in the 462 00:23:25,800 --> 00:23:26,800 Cabinet meeting. 463 00:23:26,800 --> 00:23:29,265 As you know -- or maybe as you don't know, 464 00:23:29,266 --> 00:23:33,567 but this was discussed -- also Shaun Donovan is leading a task 465 00:23:33,567 --> 00:23:36,433 force, at the President's request, 466 00:23:36,433 --> 00:23:41,500 for the continued efforts at the federal level to assist states 467 00:23:41,500 --> 00:23:44,033 and localities in response to this storm. 468 00:23:44,033 --> 00:23:46,966 So this is very much on the President's mind. 469 00:23:46,967 --> 00:23:50,734 But I don't have a specific number for you or anything about 470 00:23:50,734 --> 00:23:51,766 a supplemental at this time. 471 00:23:51,767 --> 00:23:53,633 Yes, sir. 472 00:23:53,633 --> 00:23:56,266 The Press: I would love to see quotes from the meeting -- 473 00:23:56,266 --> 00:23:58,133 or the phone call with Speaker Boehner. 474 00:23:58,133 --> 00:24:01,734 If not, can you characterize -- did the President say what you 475 00:24:01,734 --> 00:24:04,132 just said to the American people to the Speaker, 476 00:24:04,133 --> 00:24:07,800 that there will be tax rate increases on -- 477 00:24:07,800 --> 00:24:10,133 Mr. Carney: I think you'll find that I won't read out the contents of 478 00:24:10,133 --> 00:24:13,467 conversations that the President has. 479 00:24:13,467 --> 00:24:16,500 But I will say what the President's positions are, 480 00:24:16,500 --> 00:24:19,200 and I think it's fair to say that the President's positions 481 00:24:19,200 --> 00:24:21,200 are consistent in public and in private. 482 00:24:23,700 --> 00:24:28,233 So in terms of the nature of and character of the phone call, 483 00:24:28,233 --> 00:24:32,734 I would echo what Speaker Boehner said, 484 00:24:32,734 --> 00:24:37,433 and he said that it was frank and direct and good. 485 00:24:37,433 --> 00:24:39,867 The Press: With Mr. Romney here, one of his proposals that some Democrats 486 00:24:39,867 --> 00:24:43,533 seem to think makes a little bit of sense is capping deductions. 487 00:24:43,533 --> 00:24:46,567 Where does the President stand on that specific issue? 488 00:24:46,567 --> 00:24:50,633 Mr. Carney: Well, if you look at his plan and go to the revenue section in 489 00:24:50,633 --> 00:24:55,166 it, you'll notice that we talk a lot about rates. 490 00:24:55,166 --> 00:24:57,833 And one of the points that I've been making and others have been 491 00:24:57,834 --> 00:25:00,333 making is that you cannot get the kind of revenue that you 492 00:25:00,333 --> 00:25:03,834 need simply from capping deductions or closing loopholes 493 00:25:03,834 --> 00:25:07,734 without taxing the heck out of the middle class -- 494 00:25:07,734 --> 00:25:09,600 and that's unacceptable for the President -- 495 00:25:09,600 --> 00:25:14,833 or without basically ending the charitable deduction or doing 496 00:25:14,834 --> 00:25:17,633 other things that would never fly on Capitol Hill, 497 00:25:17,633 --> 00:25:20,567 for good economic as well as political reasons. 498 00:25:20,567 --> 00:25:21,934 So there's that. 499 00:25:21,934 --> 00:25:25,834 But the President has put forward as part of his revenue 500 00:25:25,834 --> 00:25:30,567 proposals caps on some deductions for top earners and 501 00:25:30,567 --> 00:25:32,400 closing of some loopholes. 502 00:25:32,400 --> 00:25:35,333 Our point has always been that you need to do both, 503 00:25:35,333 --> 00:25:37,800 that rates need to go up for the wealthiest Americans -- 504 00:25:37,800 --> 00:25:40,867 and when we say go up, like this is not -- 505 00:25:40,867 --> 00:25:44,166 let's remember what we're talking about here. 506 00:25:44,166 --> 00:25:47,533 The top rates for earners that will happen when the Bush-era 507 00:25:47,533 --> 00:25:52,533 tax cuts expire for them are the rates that were in place in the 508 00:25:52,533 --> 00:25:58,367 1990s when President Clinton was in office, 509 00:25:58,367 --> 00:26:02,800 rates that were decried by some of the leaders in the Republican 510 00:26:02,800 --> 00:26:05,433 Party on Capitol Hill at the time -- 511 00:26:05,433 --> 00:26:10,233 I mean, today's leaders who were members back then -- 512 00:26:10,233 --> 00:26:14,899 and yet, the result of the economic policies that were 513 00:26:14,900 --> 00:26:18,834 adopted in that period was the longest sustained economic 514 00:26:18,834 --> 00:26:22,133 expansion, peacetime, in our history; 515 00:26:22,133 --> 00:26:24,767 the creation of over 23 million jobs; 516 00:26:24,767 --> 00:26:27,934 the transformation of budget deficits into budget surpluses 517 00:26:27,934 --> 00:26:32,033 -- basically a record that I think most Americans would want 518 00:26:32,033 --> 00:26:34,433 to see happen again. 519 00:26:34,433 --> 00:26:39,400 So these are not -- there's nothing extreme about asking 520 00:26:39,400 --> 00:26:45,333 millionaires and billionaires, wealthy Americans to pay at 521 00:26:45,333 --> 00:26:48,767 rates that were in place during the strongest economy of 522 00:26:48,767 --> 00:26:49,800 our lifetime. 523 00:26:49,800 --> 00:26:51,899 The Press: But if you got the rate hikes you're looking for, 524 00:26:51,900 --> 00:26:54,800 would the President agree to an overall cap of deductions for 525 00:26:54,800 --> 00:26:55,700 all Americans? 526 00:26:55,700 --> 00:26:57,633 Mr. Carney: Well, I don't think that we'd have to do an -- 527 00:26:57,633 --> 00:27:00,967 I think I would point to -- there are ways to address caps 528 00:27:00,967 --> 00:27:06,166 on deductions and I think we proposed 28% for top earners, 529 00:27:06,166 --> 00:27:09,867 closing loopholes, some of them, like corporate jets and things 530 00:27:09,867 --> 00:27:11,033 like that, but closing loopholes. 531 00:27:11,033 --> 00:27:17,300 One of the problems with the suggestion that you can achieve 532 00:27:17,300 --> 00:27:21,700 substantial revenues out of -- without touching rates is that 533 00:27:21,700 --> 00:27:27,033 you have to do Draconian things when it comes to deductions and 534 00:27:27,033 --> 00:27:29,833 loopholes that aren't economically wise or 535 00:27:29,834 --> 00:27:32,600 politically feasible. 536 00:27:32,600 --> 00:27:35,899 So that's why, when I talk about we need something that's 537 00:27:35,900 --> 00:27:38,333 realistic and mathematically sound, 538 00:27:38,333 --> 00:27:40,934 not just something that adds up on paper -- 539 00:27:40,934 --> 00:27:43,399 that's why the President is taking the approach he has had, 540 00:27:43,400 --> 00:27:46,667 which includes allowing the rates to rise for top earners, 541 00:27:46,667 --> 00:27:50,199 but also includes changes to our tax code -- 542 00:27:50,200 --> 00:27:54,266 deductions and loopholes -- that are plausible as well 543 00:27:54,266 --> 00:27:57,700 as revenue-producing. 544 00:27:57,700 --> 00:27:58,467 Yes. 545 00:27:58,467 --> 00:27:59,834 The Press: I've been told that on that phone call, 546 00:27:59,834 --> 00:28:01,934 the President did say to Speaker Boehner, 547 00:28:01,934 --> 00:28:05,000 there will be no deal without an increase on the tax rates for 548 00:28:05,000 --> 00:28:05,834 the wealthiest. 549 00:28:05,834 --> 00:28:07,367 So you're not going to read out the call. 550 00:28:07,367 --> 00:28:11,834 My question is, is the President sticking to the Clinton rates? 551 00:28:11,834 --> 00:28:13,100 You said it worked in that time. 552 00:28:13,100 --> 00:28:15,800 Does it have to be the Clinton rates? 553 00:28:15,800 --> 00:28:18,533 Mr. Carney: Again, without reading out the phone call, 554 00:28:18,533 --> 00:28:21,265 quoting any member of that -- participant in that phone call, 555 00:28:21,266 --> 00:28:27,567 I would say that there can be no deal without rates on top 556 00:28:27,567 --> 00:28:30,533 earners going up. 557 00:28:30,533 --> 00:28:36,332 The President has been very clear about his proposal and the 558 00:28:36,333 --> 00:28:40,500 revenues that would be part of that proposal that would result 559 00:28:40,500 --> 00:28:44,500 from and flow from extending tax cuts to the middle class and 560 00:28:44,500 --> 00:28:48,066 allowing rates to go back up to the Clinton levels for top 561 00:28:48,066 --> 00:28:51,767 earners, and then going to my earlier point, 562 00:28:51,767 --> 00:28:57,867 and that would then be coupled with other changes that would 563 00:28:57,867 --> 00:29:01,332 produce additional revenue -- changes to the tax code on 564 00:29:01,333 --> 00:29:07,300 capping deductions and closing loopholes for top earners. 565 00:29:07,300 --> 00:29:08,800 Going back to my first point with Julie, 566 00:29:08,800 --> 00:29:11,966 we haven't seen any kind of proposal from the Republicans on 567 00:29:11,967 --> 00:29:14,000 rates -- there has not even been an acknowledgement from 568 00:29:14,000 --> 00:29:16,700 Republican leaders of the fundamental fact that rates have 569 00:29:16,700 --> 00:29:18,200 to go up. 570 00:29:18,200 --> 00:29:22,900 The Press: But the offer here is Clinton rates for the top 2%, 571 00:29:22,900 --> 00:29:25,066 for the top two marginal rates? 572 00:29:25,066 --> 00:29:26,233 Mr. Carney: I'm not going to negotiate the deal. 573 00:29:26,233 --> 00:29:30,166 I don't have an offer to make from the podium. 574 00:29:30,166 --> 00:29:32,133 What is in the President's proposal, 575 00:29:32,133 --> 00:29:35,633 in this proposal and his budget, what he talked about repeatedly 576 00:29:35,633 --> 00:29:41,066 throughout the year, is that he will sign tomorrow a bill that 577 00:29:41,066 --> 00:29:43,633 would extend tax cuts for the middle class, 578 00:29:43,633 --> 00:29:46,767 and that he will not sign under any circumstances legislation 579 00:29:46,767 --> 00:29:49,867 that would keep rates where they are for the 580 00:29:49,867 --> 00:29:50,966 wealthiest Americans. 581 00:29:50,967 --> 00:29:51,900 The Press: (inaudible) 582 00:29:51,900 --> 00:29:58,033 Mr. Carney: Well, but my point is -- you can speak hypothetically about 39.5 583 00:29:58,033 --> 00:29:59,833 versus 39.6. 584 00:29:59,834 --> 00:30:00,900 Let's be realistic. 585 00:30:00,900 --> 00:30:04,767 The realistic proposals that are on the table involve -- 586 00:30:04,767 --> 00:30:07,667 that create the kind of revenues absolutely essential for real 587 00:30:07,667 --> 00:30:11,100 balance in this proposal involve raising the rates -- 588 00:30:11,100 --> 00:30:13,166 letting the rates return to where they were. 589 00:30:13,166 --> 00:30:14,734 Because remember this whole thing about -- 590 00:30:14,734 --> 00:30:16,132 that we sort of got into the other day, 591 00:30:16,133 --> 00:30:19,166 maybe it was yesterday -- about whether we're asking people to 592 00:30:19,166 --> 00:30:21,767 vote for a tax hike -- no, we're just asking people not to vote 593 00:30:21,767 --> 00:30:23,834 for a tax cut for rich people. 594 00:30:23,834 --> 00:30:26,000 We're saying that we can't afford it economically, 595 00:30:26,000 --> 00:30:29,066 that the American people overwhelmingly don't support and 596 00:30:29,066 --> 00:30:33,900 that many -- increasing numbers of business leaders don't think 597 00:30:33,900 --> 00:30:35,100 it's the right thing to do. 598 00:30:35,100 --> 00:30:36,699 The Press: Can you just clarify one thing on a different topic 599 00:30:36,700 --> 00:30:37,567 so we can -- 600 00:30:37,567 --> 00:30:38,433 Mr. Carney: Sure. 601 00:30:38,433 --> 00:30:41,333 The Press: For people who are still curious about whether the President has 602 00:30:41,333 --> 00:30:44,800 an offer for Mitt Romney when they're meeting today, 603 00:30:44,800 --> 00:30:46,633 has something changed overnight? 604 00:30:46,633 --> 00:30:53,066 Is the President offering Governor Romney a job? 605 00:30:53,066 --> 00:30:54,600 Mr. Carney: I really just don't have a readout on that. 606 00:30:54,600 --> 00:30:57,433 I think this is -- but without giving any specifics, 607 00:30:57,433 --> 00:31:01,133 this was a conversation the President wanted to have with 608 00:31:01,133 --> 00:31:05,033 Governor Romney, as he mentioned I think the night of 609 00:31:05,033 --> 00:31:06,033 the election. 610 00:31:06,033 --> 00:31:11,533 And there was not an agenda that involves that kind of proposal 611 00:31:11,533 --> 00:31:12,533 that I'm aware of. 612 00:31:12,533 --> 00:31:14,367 I think that he's very interested in some of Governor 613 00:31:14,367 --> 00:31:16,300 Romney's ideas. 614 00:31:16,300 --> 00:31:22,100 And I'm sure they will or have already compared experiences on 615 00:31:22,100 --> 00:31:22,934 the campaign trail. 616 00:31:22,934 --> 00:31:29,367 I mean, it is -- there have only been 28 press secretaries, 617 00:31:29,367 --> 00:31:31,100 so it's a pretty -- but think about it, 618 00:31:31,100 --> 00:31:34,567 there aren't that many people who have been nominees for their 619 00:31:34,567 --> 00:31:37,700 party, right, there aren't that many people you can talk to who 620 00:31:37,700 --> 00:31:40,467 know what it's like to do what these two gentlemen did for 621 00:31:40,467 --> 00:31:41,734 the past year. 622 00:31:41,734 --> 00:31:44,265 And I think that they'll probably talk a lot about that, 623 00:31:44,266 --> 00:31:47,600 which is I think will be very interesting for them. 624 00:31:47,600 --> 00:31:49,199 The Press: But to follow, Jay, you said yesterday specifically 625 00:31:49,200 --> 00:31:50,000 there was no -- 626 00:31:50,000 --> 00:31:51,500 Mr. Carney: You're not going to follow on the fact that there have only 627 00:31:51,500 --> 00:31:52,633 been 29 press secretaries? 628 00:31:52,633 --> 00:31:53,367 The Press: No, no, no. 629 00:31:53,367 --> 00:31:54,133 You said yesterday -- 630 00:31:54,133 --> 00:31:55,000 The Press: You said 28. 631 00:31:55,000 --> 00:31:57,000 Mr. Carney: Twenty-eight prior to me. 632 00:31:57,000 --> 00:31:58,667 The Press: You said yesterday there would be no ask. 633 00:31:58,667 --> 00:32:00,833 You're not saying that as clearly today. 634 00:32:00,834 --> 00:32:01,700 Mr. Carney: I'll say it clearly. 635 00:32:01,700 --> 00:32:03,633 The Press: Okay, there is no ask? 636 00:32:03,633 --> 00:32:04,767 Mr. Carney: That I'm aware of. 637 00:32:04,767 --> 00:32:10,333 Now, I don't -- I can't dictate what the President says, 638 00:32:10,333 --> 00:32:11,600 let alone what Governor Romney says, 639 00:32:11,600 --> 00:32:14,600 but I don't think that's what this conversation is about. 640 00:32:14,600 --> 00:32:17,433 The President is very interested in his ideas and very 641 00:32:17,433 --> 00:32:20,233 appreciative that Governor Romney is here to have 642 00:32:20,233 --> 00:32:21,533 lunch with him. 643 00:32:21,533 --> 00:32:23,132 But beyond that, I think it's -- 644 00:32:23,133 --> 00:32:24,500 The Press: What ideas does he like? 645 00:32:24,500 --> 00:32:27,533 Mr. Carney: I think we talked -- the President mentioned that 646 00:32:27,533 --> 00:32:31,699 Governor Romney very successfully resuscitated and 647 00:32:31,700 --> 00:32:33,266 ran the Olympics in Salt Lake City. 648 00:32:33,266 --> 00:32:34,233 The Press: That's not an idea -- 649 00:32:34,233 --> 00:32:39,700 Mr. Carney: No, but I think Governor Romney certainly knows how to manage an 650 00:32:39,700 --> 00:32:41,400 operation like that. 651 00:32:41,400 --> 00:32:45,500 And the President is -- as I know, 652 00:32:45,500 --> 00:32:48,500 because I've sat in the room and heard him go into detail on this 653 00:32:48,500 --> 00:32:49,667 and get very passionate about it -- 654 00:32:49,667 --> 00:32:55,132 is very interested in creating greater efficiencies in this 655 00:32:55,133 --> 00:32:57,266 government, making it run better, 656 00:32:57,266 --> 00:33:02,166 making it more effective in the 21st century, 657 00:33:02,166 --> 00:33:04,133 because we have a lot of agencies and institutions that 658 00:33:04,133 --> 00:33:07,900 were created long ago and they can be improved upon. 659 00:33:07,900 --> 00:33:10,100 And that's reflected in the proposal for government 660 00:33:10,100 --> 00:33:12,100 reorganization that the President put forward. 661 00:33:12,100 --> 00:33:14,300 And he can be pretty wonky about this stuff. 662 00:33:14,300 --> 00:33:19,966 And somebody with Governor Romney's experience clearly 663 00:33:19,967 --> 00:33:24,300 would have insight into how to maximize efficiency in an 664 00:33:24,300 --> 00:33:26,834 operation like the federal government. 665 00:33:26,834 --> 00:33:29,767 Again, I just know that's what interests the President. 666 00:33:29,767 --> 00:33:32,333 I can't guarantee you at this stage that that's what they're 667 00:33:32,333 --> 00:33:34,333 talking about, but I know that is a subject that interests 668 00:33:34,333 --> 00:33:35,000 the President. 669 00:33:35,000 --> 00:33:37,100 The Press: -- ideas he advanced during the campaign the President has come 670 00:33:37,100 --> 00:33:39,667 around to think maybe that was not such a bad idea after all -- 671 00:33:39,667 --> 00:33:41,433 economic idea, social ideas, policy ideas? 672 00:33:41,433 --> 00:33:43,734 Mr. Carney: Well, I mean, there were certainly things that the two 673 00:33:43,734 --> 00:33:44,734 men agreed on. 674 00:33:44,734 --> 00:33:46,734 I mean, if you watch the debates there were certain like "I agree 675 00:33:46,734 --> 00:33:48,399 "with the President" on this or "I agree with Governor 676 00:33:48,400 --> 00:33:49,266 "Romney on this." 677 00:33:49,266 --> 00:33:50,533 I wouldn't say it was the majority of things. 678 00:33:50,533 --> 00:33:52,632 It wasn't. 679 00:33:52,633 --> 00:33:54,900 And they clearly had very starkly different ideas about 680 00:33:54,900 --> 00:33:59,333 how to move the economy forward and the like. 681 00:33:59,333 --> 00:34:02,834 I haven't heard the President reference specific things put 682 00:34:02,834 --> 00:34:07,300 forward during the campaign, but I'm confident that there are 683 00:34:07,300 --> 00:34:10,199 ideas that the two men agree on. 684 00:34:10,199 --> 00:34:12,699 The Press: -- that he could play a role in solving this fiscal 685 00:34:12,699 --> 00:34:14,466 cliff impact -- 686 00:34:14,467 --> 00:34:16,567 Mr. Carney: I'm just not going to speculate. 687 00:34:16,567 --> 00:34:19,667 Again, I think that the fiscal cliff is upon us at the moment. 688 00:34:19,667 --> 00:34:22,667 We're dealing with that with Congress. 689 00:34:22,667 --> 00:34:26,833 This is I think an initial conversation in the wake of the 690 00:34:26,833 --> 00:34:29,065 election that the President and Governor are having. 691 00:34:29,065 --> 00:34:31,466 The Press: Jay, a couple of questions to follow up on the 692 00:34:31,467 --> 00:34:32,834 Sandy supplemental. 693 00:34:32,833 --> 00:34:34,899 Will the administration put that proposal forward 694 00:34:34,900 --> 00:34:35,900 before year-end? 695 00:34:35,900 --> 00:34:39,533 And does he want it wrapped up as part of whatever needs to be 696 00:34:39,533 --> 00:34:41,232 done to avoid the fiscal cliff? 697 00:34:41,233 --> 00:34:44,133 And does he believe as a matter of policy it should not be 698 00:34:44,132 --> 00:34:45,966 offset with any spending cuts, it should be added to 699 00:34:45,967 --> 00:34:47,400 the deficit? 700 00:34:47,400 --> 00:34:49,133 Mr. Carney: Major, I just confess that I haven't -- 701 00:34:49,132 --> 00:34:51,366 I've been so focused on these other issues, 702 00:34:51,367 --> 00:34:54,033 the fiscal cliff and others, that I haven't had a real 703 00:34:54,033 --> 00:34:57,400 discussion with folks here about that. 704 00:34:57,400 --> 00:35:00,400 So I just don't know the framework within which we want 705 00:35:00,400 --> 00:35:01,400 to proceed on that. 706 00:35:01,400 --> 00:35:05,033 We're definitely looking at the proposals put forward by the 707 00:35:05,033 --> 00:35:07,100 states and the requests put forward by the states. 708 00:35:07,100 --> 00:35:08,600 But I just don't have more detail on it. 709 00:35:08,600 --> 00:35:09,967 I wouldn't want to guess. 710 00:35:09,967 --> 00:35:11,166 The Press: How close is the administration -- 711 00:35:11,166 --> 00:35:15,166 Mr. Carney: I haven't had it described in my presence as something that would 712 00:35:15,166 --> 00:35:16,900 be part of the fiscal cliff deal. 713 00:35:16,900 --> 00:35:17,967 The Press: It would not? 714 00:35:17,967 --> 00:35:18,967 Mr. Carney: I haven't heard that discussed. 715 00:35:18,967 --> 00:35:20,100 But, again, I just haven't -- 716 00:35:20,100 --> 00:35:21,366 The Press: But you don't rule it out? 717 00:35:21,367 --> 00:35:22,600 Mr. Carney: Well, no. 718 00:35:22,600 --> 00:35:23,467 The Press: Okay. 719 00:35:23,467 --> 00:35:26,433 How close is the administration to recognizing and arming the 720 00:35:26,433 --> 00:35:27,333 Syrian opposition? 721 00:35:27,333 --> 00:35:30,800 And what has changed to lead those discussions to what 722 00:35:30,800 --> 00:35:34,500 appears to be a culmination in the affirmative? 723 00:35:34,500 --> 00:35:36,233 Mr. Carney: Well, look, we've had discussions in the past. 724 00:35:36,233 --> 00:35:38,066 I mean, I've been asked about this in the past when stories 725 00:35:38,066 --> 00:35:42,767 have been written that this is an issue. 726 00:35:42,767 --> 00:35:46,299 Our position on assistance to the Syrian opposition 727 00:35:46,300 --> 00:35:47,400 has not changed. 728 00:35:47,400 --> 00:35:49,967 And the United States remains committed to providing 729 00:35:49,967 --> 00:35:52,633 humanitarian assistance to the Syrian people and providing 730 00:35:52,633 --> 00:35:55,734 non-lethal equipment and training to unarmed, 731 00:35:55,734 --> 00:35:57,734 civilian-led opposition groups. 732 00:35:57,734 --> 00:36:01,333 We have not provided any support to the armed opposition. 733 00:36:01,333 --> 00:36:04,767 It is also the case, as I've said periodically when asked 734 00:36:04,767 --> 00:36:09,834 that we're always reviewing the kinds of assistance that we're 735 00:36:09,834 --> 00:36:12,100 providing to the Syrian people and the Syrian opposition. 736 00:36:12,100 --> 00:36:13,165 And we'll continue to do that. 737 00:36:13,166 --> 00:36:14,834 But we have not changed our position on the -- 738 00:36:14,834 --> 00:36:17,700 The Press: You categorically deny the reports today that suggest the 739 00:36:17,700 --> 00:36:21,100 administration is on the cusp of recognizing and beginning to arm 740 00:36:21,100 --> 00:36:23,066 the Syrian opposition? 741 00:36:23,066 --> 00:36:28,399 Mr. Carney: Well, I just said that we're always look at and reviewing our 742 00:36:28,400 --> 00:36:31,133 assistance programs to the Syrian opposition, 743 00:36:31,133 --> 00:36:32,667 the Syrian people. 744 00:36:32,667 --> 00:36:37,200 I can categorically state that today our position is what it 745 00:36:37,200 --> 00:36:42,567 has been, which is we are not providing lethal assistance to 746 00:36:42,567 --> 00:36:45,567 the Syrian opposition. 747 00:36:45,567 --> 00:36:46,867 Yes, sir. 748 00:36:46,867 --> 00:36:48,767 The Press: Jay, can I come back to the budget talks, 749 00:36:48,767 --> 00:36:50,200 and specifically the spending side? 750 00:36:50,200 --> 00:36:53,466 Because I think that's what Speaker Boehner's main complaint 751 00:36:53,467 --> 00:36:56,500 is -- that there are these talks going on, 752 00:36:56,500 --> 00:36:58,400 they wanted to be flexible on the revenue side, 753 00:36:58,400 --> 00:37:03,533 but they want to see a specific proposal for additional cuts on 754 00:37:03,533 --> 00:37:05,232 the spending entitlement side. 755 00:37:05,233 --> 00:37:07,734 And you were just holding up the President's budget. 756 00:37:07,734 --> 00:37:10,799 Are you saying that's it, that's all you get, 757 00:37:10,800 --> 00:37:13,166 what's in here is our proposal and nothing more? 758 00:37:13,166 --> 00:37:14,266 Mr. Carney: Well, I didn't say that. 759 00:37:14,266 --> 00:37:17,367 I said, in fact, that the President made clear and 760 00:37:17,367 --> 00:37:22,667 continues to make clear that he knows he will not -- 761 00:37:22,667 --> 00:37:24,799 he is not wedded to every detail in his proposals, 762 00:37:24,800 --> 00:37:27,467 and will not get every detail in his proposals. 763 00:37:27,467 --> 00:37:30,066 But we have, in answer to the question of where are your 764 00:37:30,066 --> 00:37:35,567 spending cut proposals, it must be a rhetorical question because 765 00:37:35,567 --> 00:37:38,433 those who ask it know that we have put forward very specific 766 00:37:38,433 --> 00:37:39,433 spending cut proposals. 767 00:37:39,433 --> 00:37:43,633 As I noted the other day, in this proposal are $340 billion 768 00:37:43,633 --> 00:37:46,899 of savings from our health care entitlement programs over 10 769 00:37:46,900 --> 00:37:48,834 years -- $340 billion. 770 00:37:48,834 --> 00:37:52,232 That number exceeds what was contained in the Simpson-Bowles 771 00:37:52,233 --> 00:37:54,734 proposals -- exceeds -- in the first 10 years. 772 00:37:54,734 --> 00:37:57,633 So this is real. 773 00:37:57,633 --> 00:38:01,600 The President has always engaged in this with real numbers. 774 00:38:01,600 --> 00:38:03,767 When you talk about flexibility on revenue, 775 00:38:03,767 --> 00:38:06,133 all we've heard so far -- and it's welcome, 776 00:38:06,133 --> 00:38:08,165 don't get me wrong -- but we've heard that, yes, 777 00:38:08,166 --> 00:38:13,266 revenue is on the table, but we need more than that. 778 00:38:13,266 --> 00:38:18,333 We need concrete proposals and acknowledgement that the only 779 00:38:18,333 --> 00:38:21,867 way we can achieve the kind of target that's necessary for 780 00:38:21,867 --> 00:38:26,100 balance in revenues and be realistic about it in terms of 781 00:38:26,100 --> 00:38:31,567 what can pass Congress, and hold true to the President's absolute 782 00:38:31,567 --> 00:38:34,166 insistence that the middle class doesn't get stuck with the bill, 783 00:38:34,166 --> 00:38:36,667 is to have rates go up on top earners. 784 00:38:36,667 --> 00:38:41,066 And this is not -- remember when the President talked about he's 785 00:38:41,066 --> 00:38:43,366 familiar with the literature of second-term Presidents who 786 00:38:43,367 --> 00:38:47,567 overreach, you know what he's talking about? 787 00:38:47,567 --> 00:38:49,500 Absolutely what he talked about during the campaign. 788 00:38:49,500 --> 00:38:52,500 None of this is news to anybody who has followed this debate. 789 00:38:52,500 --> 00:38:53,333 The Press: I understand. 790 00:38:53,333 --> 00:38:55,900 My question, though, was on the spending cut side. 791 00:38:55,900 --> 00:38:58,600 Are you saying to them, look, if you guys want more than what was 792 00:38:58,600 --> 00:39:01,266 in this budget that the President has been very specific 793 00:39:01,266 --> 00:39:03,433 about, you need to ask for it? 794 00:39:03,433 --> 00:39:04,300 Is that your position? 795 00:39:04,300 --> 00:39:07,000 Mr. Carney: Well, look, we want to have a discussion about what the 796 00:39:07,000 --> 00:39:11,033 overall compromise would look like. 797 00:39:11,033 --> 00:39:13,900 But what is non-negotiable, if you will, 798 00:39:13,900 --> 00:39:17,667 is that revenues from the wealthiest Americans have to be 799 00:39:17,667 --> 00:39:21,200 a part of this, and the only way to get to that revenue target, 800 00:39:21,200 --> 00:39:25,232 as I said, is -- so that has to happen. 801 00:39:25,233 --> 00:39:26,500 The Press: But revenue has to come first? 802 00:39:26,500 --> 00:39:28,767 Mr. Carney: It's not a first -- it all goes together. 803 00:39:28,767 --> 00:39:35,799 But the President has already put forward substantial savings 804 00:39:35,800 --> 00:39:39,333 in health care entitlements, as well as non-defense 805 00:39:39,333 --> 00:39:40,800 discretionary savings. 806 00:39:40,800 --> 00:39:41,967 The Press: Because the only thing -- the reason I'm asking is the 807 00:39:41,967 --> 00:39:44,867 political ownership of this. 808 00:39:44,867 --> 00:39:49,900 They're saying, well, you guys want us to take the political 809 00:39:49,900 --> 00:39:52,166 heat for cutting granny's Medicare, 810 00:39:52,166 --> 00:39:54,000 and that sort of thing. 811 00:39:54,000 --> 00:39:58,700 Mr. Carney: The President -- look, as I noted during the last two 812 00:39:58,700 --> 00:40:03,533 election cycles, Republicans pummeled Democrats, 813 00:40:03,533 --> 00:40:09,400 including my boss, because he had the temerity to include in 814 00:40:09,400 --> 00:40:13,266 the Affordable Care Act $716 billion in savings from our 815 00:40:13,266 --> 00:40:16,000 health care entitlements. 816 00:40:16,000 --> 00:40:20,266 Just pummeled them, right? 817 00:40:20,266 --> 00:40:21,834 He did that because it was the right thing to do; 818 00:40:21,834 --> 00:40:25,332 it was important to achieve the Affordable Care Act. 819 00:40:25,333 --> 00:40:30,266 These savings were achievable without harming beneficiaries. 820 00:40:30,266 --> 00:40:33,133 And now he has put forward additional savings from those 821 00:40:33,133 --> 00:40:34,600 health care entitlement programs -- 822 00:40:34,600 --> 00:40:37,700 again, savings that are reasonable and don't ask, 823 00:40:37,700 --> 00:40:42,033 as Republicans did earlier this year with their budget 824 00:40:42,033 --> 00:40:45,734 proposals, seniors to accept a plan that ends Medicare as we 825 00:40:45,734 --> 00:40:47,400 know it, turns Medicare into a voucher -- 826 00:40:47,400 --> 00:40:50,300 all so that we didn't have to ask the wealthiest to pay more. 827 00:40:50,300 --> 00:40:52,567 So a lot -- this debate has been engaged. 828 00:40:52,567 --> 00:40:55,934 The President's seriousness has been demonstrated, 829 00:40:55,934 --> 00:41:00,767 and he is going to continue to be very serious about it. 830 00:41:00,767 --> 00:41:06,567 And he owns his proposals, and he will -- 831 00:41:06,567 --> 00:41:11,767 he looks forward to working on a package proposal that includes 832 00:41:11,767 --> 00:41:14,033 the elements that we've talked about and includes tough choices 833 00:41:14,033 --> 00:41:15,667 for everyone. 834 00:41:15,667 --> 00:41:18,433 April and then Roger and then Peter. 835 00:41:18,433 --> 00:41:21,367 The Press: Jay, we understand that Governor Romney has left the building. 836 00:41:21,367 --> 00:41:24,667 (laughter) 837 00:41:24,667 --> 00:41:25,767 The Press: Like Elvis. 838 00:41:25,767 --> 00:41:27,700 The Press: Uh, well...okay. 839 00:41:27,700 --> 00:41:30,200 Is there any way, any chance that we can get a readout at 840 00:41:30,200 --> 00:41:32,866 least, something later on today from you? 841 00:41:32,867 --> 00:41:33,900 Could you do that? 842 00:41:33,900 --> 00:41:36,667 Mr. Carney: Well, we'll see -- yes, we'll provide something. 843 00:41:36,667 --> 00:41:39,533 I just haven't spoken to the President yet about the lunch, 844 00:41:39,533 --> 00:41:42,133 but I'm sure we'll provide something on paper for you. 845 00:41:42,133 --> 00:41:47,200 The Press: And also speaking about this Romney luncheon and just the 846 00:41:47,200 --> 00:41:51,500 phone call with the Speaker, I remember at the onset of this 847 00:41:51,500 --> 00:41:54,934 administration about four years ago when they were conversations 848 00:41:54,934 --> 00:41:56,734 about transparency. 849 00:41:56,734 --> 00:41:58,933 What do you think about transparency today? 850 00:41:58,934 --> 00:42:00,500 Mr. Carney: I think transparency is very important. 851 00:42:00,500 --> 00:42:03,367 I think that this is the most -- indisputably the most 852 00:42:03,367 --> 00:42:04,567 transparent White House that has -- 853 00:42:04,567 --> 00:42:07,533 The Press: As you shut us down all throughout this briefing 854 00:42:07,533 --> 00:42:08,433 pretty much? 855 00:42:08,433 --> 00:42:09,400 Mr. Carney: What are you talking about? 856 00:42:09,400 --> 00:42:10,233 The Press: What am I talking about? 857 00:42:10,233 --> 00:42:10,967 Governor Romney. 858 00:42:10,967 --> 00:42:12,734 Oh, I'm not going to let you in, can't talk about it. 859 00:42:12,734 --> 00:42:17,033 Mr. Carney: The President had a private lunch with his opponent from the 860 00:42:17,033 --> 00:42:18,933 campaign, as is entirely appropriate. 861 00:42:18,934 --> 00:42:21,133 Nothing is preventing you from speaking with Governor Romney 862 00:42:21,133 --> 00:42:22,133 about it -- 863 00:42:22,133 --> 00:42:23,265 The Press: We're just trying to get -- 864 00:42:23,266 --> 00:42:26,667 Mr. Carney: Well, I mean, that's obviously up to former Governor Romney to 865 00:42:26,667 --> 00:42:28,866 decide whether he wants to have a conversation with you. 866 00:42:28,867 --> 00:42:33,867 But the -- and you are welcome when the President next appears 867 00:42:33,867 --> 00:42:35,400 before you to ask him about it. 868 00:42:35,400 --> 00:42:37,000 We will provide a readout. 869 00:42:37,000 --> 00:42:39,667 But we didn't -- I think they wanted to have -- 870 00:42:39,667 --> 00:42:42,266 each man wanted to have a private conversation. 871 00:42:42,266 --> 00:42:44,400 They didn't want to turn it into a press event. 872 00:42:44,400 --> 00:42:46,333 The Press: But you're bringing in -- on the Speaker's conversation -- 873 00:42:46,333 --> 00:42:47,900 you're bringing all these people in, 874 00:42:47,900 --> 00:42:50,433 the stakeholders and bringing them into the conversation, 875 00:42:50,433 --> 00:42:53,734 but shutting them off and not letting people know exactly 876 00:42:53,734 --> 00:42:57,500 what's going on in conversations or parts of that with 877 00:42:57,500 --> 00:42:58,200 the Speaker. 878 00:42:58,200 --> 00:42:59,466 I mean transparency is not -- 879 00:42:59,467 --> 00:43:01,633 Mr. Carney: I think participants in the conversations that have taken 880 00:43:01,633 --> 00:43:06,433 place in this building have volubly discussed those 881 00:43:06,433 --> 00:43:09,600 conversations with the press, many members right out here at 882 00:43:09,600 --> 00:43:11,933 the stakeout and others elsewhere. 883 00:43:11,934 --> 00:43:16,734 So we're hardly -- I just don't agree. 884 00:43:16,734 --> 00:43:21,700 I think the President is very interested in having business 885 00:43:21,700 --> 00:43:23,600 leaders who have met with him, regular -- 886 00:43:23,600 --> 00:43:25,633 ordinary Americans who have met with him, 887 00:43:25,633 --> 00:43:27,899 labor leaders and others, civic leaders, 888 00:43:27,900 --> 00:43:34,734 talk about what they're hearing from the President and his team 889 00:43:34,734 --> 00:43:38,299 and what their ideas are about how we move forward. 890 00:43:38,300 --> 00:43:39,433 Roger and then Peter. 891 00:43:39,433 --> 00:43:40,200 The Press: Thanks. 892 00:43:40,200 --> 00:43:41,366 Okay, two questions. 893 00:43:41,367 --> 00:43:43,266 First some old business I had asked yesterday about 894 00:43:43,266 --> 00:43:45,867 Mississippi River closing and Senator Harkin -- 895 00:43:45,867 --> 00:43:48,233 I understand you might have some -- 896 00:43:48,233 --> 00:43:50,300 Mr. Carney: Well, I did look into this a little bit more, 897 00:43:50,300 --> 00:43:53,000 and I can tell you that the President remains very concerned 898 00:43:53,000 --> 00:43:55,100 about the devastating impact of the drought. 899 00:43:55,100 --> 00:43:58,933 He actually raised this with Secretary Vilsack yesterday in 900 00:43:58,934 --> 00:43:59,934 the Cabinet meeting. 901 00:43:59,934 --> 00:44:01,166 The Press: I'm sorry, who? 902 00:44:01,166 --> 00:44:03,467 Mr. Carney: The President raised it with Secretary Vilsack yesterday in 903 00:44:03,467 --> 00:44:04,300 the Cabinet meeting. 904 00:44:04,300 --> 00:44:07,633 He asked about the drought and for an update from Secretary 905 00:44:07,633 --> 00:44:08,734 Vilsack in this. 906 00:44:08,734 --> 00:44:10,433 And going back to the summer, he directed -- 907 00:44:10,433 --> 00:44:13,734 he, the President, directed his administration to take every 908 00:44:13,734 --> 00:44:16,400 step within our authority to mitigate the damage caused by 909 00:44:16,400 --> 00:44:19,867 the drought, and the Army Corps has taken proactive action over 910 00:44:19,867 --> 00:44:24,266 the time to ensure navigability of the river system. 911 00:44:24,266 --> 00:44:27,600 However, we also share the specific concerns from lawmakers 912 00:44:27,600 --> 00:44:31,734 and others about the decreasing water level of the Mississippi. 913 00:44:31,734 --> 00:44:36,165 And while there is a complex set of legal technical and policy 914 00:44:36,166 --> 00:44:39,367 questions around these issues, we are exploring all 915 00:44:39,367 --> 00:44:40,667 possible options. 916 00:44:40,667 --> 00:44:41,967 The Press: We, meaning the White House? 917 00:44:41,967 --> 00:44:43,000 Mr. Carney: We the White House. 918 00:44:43,000 --> 00:44:43,934 The Press: Okay, fine. 919 00:44:43,934 --> 00:44:46,767 Mr. Carney: And the administration writ large. 920 00:44:46,767 --> 00:44:50,066 The Press: Second question, different topic. 921 00:44:50,066 --> 00:44:54,299 Ambassador Susan Rice and her husband hold stock in 922 00:44:54,300 --> 00:44:57,367 TransCanada Corporation valued at between $300,000 and 923 00:44:57,367 --> 00:45:01,834 $600,000 -- TransCanada being the outfit that wants to build 924 00:45:01,834 --> 00:45:04,299 the pipeline under review at the State Department. 925 00:45:04,300 --> 00:45:07,600 If she were nominated as Secretary of State, 926 00:45:07,600 --> 00:45:10,299 would that pose any sort of conflict? 927 00:45:10,300 --> 00:45:13,200 Mr. Carney: Well, I'll give two answers here. 928 00:45:13,200 --> 00:45:16,399 First of all, the President has not made a decision about that 929 00:45:16,400 --> 00:45:22,533 or other personnel moves that he has to make because Secretary 930 00:45:22,533 --> 00:45:25,900 Clinton is leaving, Secretary Geithner is leaving. 931 00:45:25,900 --> 00:45:28,000 So that's one point. 932 00:45:28,000 --> 00:45:31,066 So I have no -- I'm not going to speculate about a personnel 933 00:45:31,066 --> 00:45:33,165 decision the President has not made, 934 00:45:33,166 --> 00:45:36,033 a nomination he has not put forward. 935 00:45:36,033 --> 00:45:38,400 Secondly, I would commend Republican opposition 936 00:45:38,400 --> 00:45:43,033 researchers for the intellectual bandwidth that is required to 937 00:45:43,033 --> 00:45:45,366 read a financial disclosure form, 938 00:45:45,367 --> 00:45:49,500 because this was all documented in a financial disclosure form, 939 00:45:49,500 --> 00:45:52,834 entirely, appropriately, legally and by the books. 940 00:45:52,834 --> 00:45:58,799 So what this represents I think in vivid fashion is what I've 941 00:45:58,800 --> 00:46:01,166 been talking about for a while now, 942 00:46:01,166 --> 00:46:06,900 which is that none of this has anything to do with the tragedy 943 00:46:06,900 --> 00:46:08,100 that occurred in Benghazi. 944 00:46:08,100 --> 00:46:10,700 This is about politics. 945 00:46:10,700 --> 00:46:13,100 And that's a shame. 946 00:46:13,100 --> 00:46:16,165 So I actually, in part of my old-school presentation here 947 00:46:16,166 --> 00:46:19,467 that included a hard copy of the President's proposal, 948 00:46:19,467 --> 00:46:24,467 I brought an interesting news article here that begins with 949 00:46:24,467 --> 00:46:27,133 the fact that a member of Congress requested those 950 00:46:27,133 --> 00:46:29,933 original talking points from the intelligence community that have 951 00:46:29,934 --> 00:46:31,133 been so much discussed. 952 00:46:31,133 --> 00:46:32,966 And I liked this couple of sentences. 953 00:46:32,967 --> 00:46:35,967 "More than 10 weeks later, the four pallid sentences that 954 00:46:35,967 --> 00:46:39,166 "intelligence analysts cautiously delivered are the 955 00:46:39,166 --> 00:46:41,834 "unlikely center of a quintessential Washington drama 956 00:46:41,834 --> 00:46:45,466 "in which a genuine tragedy has been fed into the meat grinder 957 00:46:45,467 --> 00:46:48,000 "of election-year politics. 958 00:46:48,000 --> 00:46:49,834 "In the process, the most important questions about 959 00:46:49,834 --> 00:46:53,200 "Benghazi, where Ambassador J. Christopher Stevens and three 960 00:46:53,200 --> 00:46:56,033 "other Americans were killed...have largely 961 00:46:56,033 --> 00:46:57,900 "gotten lost." 962 00:46:57,900 --> 00:46:58,900 I agree with that. 963 00:46:58,900 --> 00:47:00,500 The Press: Jay, the question wasn't about Benghazi at all. 964 00:47:00,500 --> 00:47:02,533 The question is about why the conflict. 965 00:47:02,533 --> 00:47:03,900 If you don't think it's a conflict, 966 00:47:03,900 --> 00:47:05,467 explain to us why it isn't. 967 00:47:05,467 --> 00:47:06,367 Mr. Carney: It's a hypothetical. 968 00:47:06,367 --> 00:47:08,233 The Press: What has that got to do with Benghazi at all? 969 00:47:08,233 --> 00:47:12,467 Mr. Carney: Well, because, Major, I know you're not so naïve to believe 970 00:47:12,467 --> 00:47:15,066 that we're not seeing these articles because of the 971 00:47:15,066 --> 00:47:18,600 continued assault that's been taking place on Ambassador Rice 972 00:47:18,600 --> 00:47:24,033 that has all started with the non-event of her appearances on 973 00:47:24,033 --> 00:47:25,633 Sunday shows, one. 974 00:47:25,633 --> 00:47:26,466 Two -- 975 00:47:26,467 --> 00:47:27,333 The Press: No, I'm just trying to help my colleague. 976 00:47:27,333 --> 00:47:28,200 He asked you a specific question -- 977 00:47:28,200 --> 00:47:29,100 Mr. Carney: And I answered that question. 978 00:47:29,100 --> 00:47:30,834 I'm not going to speculate about a nomination process that hasn't 979 00:47:30,834 --> 00:47:31,633 even occurred. 980 00:47:31,633 --> 00:47:32,700 The Press: Do you believe it's a conflict, and if not, why not? 981 00:47:32,700 --> 00:47:34,700 Mr. Carney: That's based on speculation. 982 00:47:34,700 --> 00:47:36,700 The Press: Well, if -- 983 00:47:36,700 --> 00:47:39,834 Mr. Carney: If somebody were nominated, would there be a conflict? 984 00:47:39,834 --> 00:47:42,232 Let's address this once we have a nomination. 985 00:47:42,233 --> 00:47:43,967 The Press: It's not a disqualifier, in other words? 986 00:47:43,967 --> 00:47:46,433 Mr. Carney: As the President has said and others have said, 987 00:47:46,433 --> 00:47:50,433 I have said to the extent that my opinion matters, 988 00:47:50,433 --> 00:47:55,633 that Susan Rice is eminently qualified for any number of 989 00:47:55,633 --> 00:47:57,834 high-level foreign policy positions, 990 00:47:57,834 --> 00:48:00,933 including the one she has where she has performed with 991 00:48:00,934 --> 00:48:04,867 great distinction. 992 00:48:04,867 --> 00:48:06,667 I owe Peter. 993 00:48:06,667 --> 00:48:10,333 The Press: I want to go back to -- I think what the Republican point would 994 00:48:10,333 --> 00:48:13,867 be is that they have come off the position that they had a 995 00:48:13,867 --> 00:48:16,066 year and a half ago where you all put that forward. 996 00:48:16,066 --> 00:48:17,265 Mr. Carney: Have you seen a proposal that demonstrates that? 997 00:48:17,266 --> 00:48:17,967 The Press: No. 998 00:48:17,967 --> 00:48:18,667 Mr. Carney: Okay. 999 00:48:18,667 --> 00:48:19,467 The Press: I haven't seen one from you, either. 1000 00:48:19,467 --> 00:48:20,233 I'm questioning whether -- 1001 00:48:20,233 --> 00:48:21,100 Mr. Carney: You have. 1002 00:48:21,100 --> 00:48:22,133 The Press: No, that's the same proposal from last year. 1003 00:48:22,133 --> 00:48:23,834 They're saying they're willing to go beyond -- 1004 00:48:23,834 --> 00:48:24,633 Mr. Carney: But, Peter -- 1005 00:48:24,633 --> 00:48:25,567 The Press: Can I finish the question? 1006 00:48:25,567 --> 00:48:26,367 Mr. Carney: Okay. 1007 00:48:26,367 --> 00:48:29,166 The Press: They're saying they're willing to come beyond the proposal that 1008 00:48:29,166 --> 00:48:31,900 they agreed to last year in terms of non-tax revenues. 1009 00:48:31,900 --> 00:48:33,867 They have not given a specific proposal. 1010 00:48:33,867 --> 00:48:36,367 You are going to that as a proposal you had last year, 1011 00:48:36,367 --> 00:48:37,367 which is reasonable. 1012 00:48:37,367 --> 00:48:39,934 Are you willing to come beyond that proposal of last year? 1013 00:48:39,934 --> 00:48:42,667 Mr. Carney: I have said, as the -- echoing the President, 1014 00:48:42,667 --> 00:48:46,066 that he is not wedded to every detail in his plan and he 1015 00:48:46,066 --> 00:48:50,232 understands that tough choices are required and compromise 1016 00:48:50,233 --> 00:48:52,934 means moving off of your position. 1017 00:48:52,934 --> 00:48:57,567 So I'm not going to get into specifics or numbers about what 1018 00:48:57,567 --> 00:48:59,567 cuts will look like in this area or that. 1019 00:48:59,567 --> 00:49:01,867 But he is committed to spending cuts. 1020 00:49:01,867 --> 00:49:04,367 But to go back to your question here, 1021 00:49:04,367 --> 00:49:09,600 the issue is "we haven't seen any spending cuts from the White 1022 00:49:09,600 --> 00:49:12,467 "House," and that's just fundamentally not the case. 1023 00:49:12,467 --> 00:49:14,133 They have not been adopted. 1024 00:49:14,133 --> 00:49:16,667 They are still serious, substantive, 1025 00:49:16,667 --> 00:49:19,866 viable proposals that have not been adopted. 1026 00:49:19,867 --> 00:49:22,300 What we've never seen, going back even to the passing of 1027 00:49:22,300 --> 00:49:26,800 paper in 2011, are anything like -- 1028 00:49:26,800 --> 00:49:28,667 when it comes to revenue, anything like the kind of 1029 00:49:28,667 --> 00:49:30,933 specificity we've provided on cuts from the Republicans 1030 00:49:30,934 --> 00:49:31,934 on revenue. 1031 00:49:31,934 --> 00:49:33,433 And to this day we haven't seen that. 1032 00:49:33,433 --> 00:49:36,400 And to this day, I believe on the floor of one of the 1033 00:49:36,400 --> 00:49:38,333 chambers, one of the Republican leaders said -- 1034 00:49:38,333 --> 00:49:40,800 as if we didn't have this debate, 1035 00:49:40,800 --> 00:49:43,500 and as if the American people haven't spoken -- 1036 00:49:43,500 --> 00:49:47,133 that there is no way we're going to raise rates on 1037 00:49:47,133 --> 00:49:48,133 high-income Americans. 1038 00:49:48,133 --> 00:49:51,033 I mean, another way to look at that is that they insist on 1039 00:49:51,033 --> 00:49:54,232 voting for a tax cut, again, for the top 2%. 1040 00:49:54,233 --> 00:50:00,400 And if they don't get that, you, 98% of the American people, 1041 00:50:00,400 --> 00:50:01,934 get a tax hike. 1042 00:50:01,934 --> 00:50:03,834 That's just not a position that plausible. 1043 00:50:03,834 --> 00:50:04,734 The Press: Can I just ask a question -- 1044 00:50:04,734 --> 00:50:05,533 Mr. Carney: No, let me give Peter some time. 1045 00:50:05,533 --> 00:50:06,400 Yes. 1046 00:50:06,400 --> 00:50:07,400 The Press: I'm sorry, you said he is not wedded to the details, 1047 00:50:07,400 --> 00:50:10,834 but he is saying he is willing to go with spending cuts that 1048 00:50:10,834 --> 00:50:16,433 are broader, larger, deeper, more in total amount than that 1049 00:50:16,433 --> 00:50:18,500 would encompass? 1050 00:50:18,500 --> 00:50:22,300 Mr. Carney: Look, I think that, without getting into a negotiating 1051 00:50:22,300 --> 00:50:25,000 posture here, that when the President says that he is 1052 00:50:25,000 --> 00:50:29,400 willing to move off of his proposals, 1053 00:50:29,400 --> 00:50:31,333 acknowledge that he doesn't get everything he wants, 1054 00:50:31,333 --> 00:50:37,500 that he's acknowledging that this is a negotiation and that 1055 00:50:37,500 --> 00:50:39,867 you don't get everything you want in a negotiation. 1056 00:50:39,867 --> 00:50:45,467 And clearly, Republicans are interested in spending cuts, 1057 00:50:45,467 --> 00:50:48,967 and he looks forward to having that discussion. 1058 00:50:48,967 --> 00:50:51,367 But a fundamental proposition here, 1059 00:50:51,367 --> 00:50:53,600 which at least rhetorically has been addressed but not in any 1060 00:50:53,600 --> 00:50:56,400 substantive way, is that revenues have to be a 1061 00:50:56,400 --> 00:50:57,400 part of this. 1062 00:50:57,400 --> 00:51:00,066 And the only way to get to the revenues that are necessary to 1063 00:51:00,066 --> 00:51:04,265 achieve the balance that the American people want is to not 1064 00:51:04,266 --> 00:51:06,533 give another tax cut to millionaires and billionaires. 1065 00:51:06,533 --> 00:51:07,600 That's pretty simple. 1066 00:51:07,600 --> 00:51:09,767 And as I talked about before, it's sort of a -- 1067 00:51:09,767 --> 00:51:12,232 it's like a two-step hurdle here. 1068 00:51:12,233 --> 00:51:17,700 They've cleared one hurdle by saying that revenues need to be 1069 00:51:17,700 --> 00:51:19,332 part of this. 1070 00:51:19,333 --> 00:51:23,066 Now we get to the next stage, which is what those revenues 1071 00:51:23,066 --> 00:51:24,700 look like and what they have to look like. 1072 00:51:24,700 --> 00:51:28,399 Because there has not been any credible proposal that anyone 1073 00:51:28,400 --> 00:51:32,834 has seen that could pass Congress or makes economic sense 1074 00:51:32,834 --> 00:51:39,633 that creates the kind of revenue necessary without raising rates. 1075 00:51:39,633 --> 00:51:40,633 Good? 1076 00:51:40,633 --> 00:51:41,633 Thanks very much.