English subtitles for clip: File:12-3-12- White House Press Briefing.webm

1
00:00:00,533 --> 00:00:01,967
Mr. Carney:
Good afternoon, everyone.

2
00:00:01,967 --> 00:00:03,433
Thanks for being here.

3
00:00:03,433 --> 00:00:06,400
It's Monday, so there's that.

4
00:00:06,400 --> 00:00:07,066
(laughter)

5
00:00:07,066 --> 00:00:10,367
But it's also practically 70
degrees outside in December.

6
00:00:10,367 --> 00:00:13,200
The Press:
-- psyched golfers.

7
00:00:13,200 --> 00:00:14,734
Mr. Carney:
Exactly.

8
00:00:14,734 --> 00:00:16,133
The Press:
Can we have the
briefing outside?

9
00:00:16,133 --> 00:00:17,700
(laughter)

10
00:00:17,700 --> 00:00:18,500
Mr. Carney:
Everybody agree?

11
00:00:18,500 --> 00:00:19,400
TV, you're okay with that?

12
00:00:19,400 --> 00:00:20,900
(laughter)

13
00:00:20,900 --> 00:00:22,266
Unfortunately not today.

14
00:00:22,266 --> 00:00:23,366
Maybe one day.

15
00:00:23,367 --> 00:00:24,567
Perhaps my last day.

16
00:00:24,567 --> 00:00:26,467
(laughter)

17
00:00:26,467 --> 00:00:28,933
The Press:
Personnel announcement?

18
00:00:28,934 --> 00:00:30,000
Mr. Carney:
Might be four years from now.

19
00:00:33,200 --> 00:00:36,166
Before I take your questions, I
wanted to let you know that in

20
00:00:36,166 --> 00:00:39,233
the past week, over 300,000
Americans from across the

21
00:00:39,233 --> 00:00:43,333
country have tweeted and emailed
to tell us what extending income

22
00:00:43,333 --> 00:00:46,132
tax for middle-class
families means to them.

23
00:00:46,133 --> 00:00:49,367
President Obama just sent a
tweet announcing that he will

24
00:00:49,367 --> 00:00:52,333
answer questions on Twitter
about extending middle-class

25
00:00:52,333 --> 00:00:56,233
tax cuts today at 2:00 p.m.
People can ask the President

26
00:00:56,233 --> 00:00:59,099
questions on Twitter
with the hashtag "My2K."

27
00:00:59,100 --> 00:01:04,233
You can all follow that chat
at twitter.com/whitehouse.

28
00:01:04,233 --> 00:01:10,734
I can also, just to stick with
the schedule, remind you that

29
00:01:10,734 --> 00:01:13,100
after that, this afternoon
the President has a bilateral

30
00:01:13,100 --> 00:01:15,833
meeting with the Prime
Minister of Bulgaria,

31
00:01:15,834 --> 00:01:17,200
Prime Minister Borisov.

32
00:01:17,200 --> 00:01:18,200
Bulgaria is an important
NATO partner, and we have

33
00:01:18,200 --> 00:01:24,967
a very important bilateral
relationship with Bulgaria.

34
00:01:24,967 --> 00:01:28,033
Later this afternoon still, at
about 4:00 p.m., the President

35
00:01:28,033 --> 00:01:31,300
will deliver a speech at the
National Defense University

36
00:01:31,300 --> 00:01:34,734
commemorating the 20th
anniversary of the Cooperative

37
00:01:34,734 --> 00:01:40,166
Threat Reduction Program, which
as you know was authored by

38
00:01:40,166 --> 00:01:42,700
Senators Nunn and Lugar.

39
00:01:42,700 --> 00:01:47,467
That cooperation, bipartisan
cooperation between those two

40
00:01:47,467 --> 00:01:54,166
men has resulted in a regime
that allows us to achieve one

41
00:01:54,166 --> 00:01:56,467
of the President's highest
priorities -- or to try to

42
00:01:56,467 --> 00:01:58,734
achieve -- and that is to secure
loose nuclear materials and

43
00:01:58,734 --> 00:02:00,600
weapons around the world.

44
00:02:00,600 --> 00:02:04,699
And it's an important time to
remember that when it comes to

45
00:02:04,700 --> 00:02:07,967
these kinds of objectives,
Democrats and Republicans

46
00:02:07,967 --> 00:02:10,734
can come together and achieve
very important things, and the

47
00:02:10,734 --> 00:02:14,867
President looks forward to the
fact that both Senators Nunn and

48
00:02:14,867 --> 00:02:16,934
Lugar will be there today.

49
00:02:16,934 --> 00:02:19,367
Later this evening, you know
he has the Congressional Ball.

50
00:02:19,367 --> 00:02:25,834
And then at about 8:30 p.m., I
know many of you will, like me,

51
00:02:25,834 --> 00:02:30,033
be tuning in to see RGIII
and the Redskins take on

52
00:02:30,033 --> 00:02:30,966
the New York Giants.

53
00:02:30,967 --> 00:02:33,033
With that, I will take -- oh,
wait, I have one more thing I

54
00:02:33,033 --> 00:02:35,700
wanted to mention, and that is
that on behalf of everyone here

55
00:02:35,700 --> 00:02:37,632
in the White House, beginning
with the President and the First

56
00:02:37,633 --> 00:02:40,300
Lady, we extend our
congratulations to the

57
00:02:40,300 --> 00:02:44,800
Duke and Duchess of Cambridge
on the welcome news this morning

58
00:02:44,800 --> 00:02:48,433
out of London that they are
expecting their first child.

59
00:02:48,433 --> 00:02:50,266
The Press:
Does the President personally
have any advice for them

60
00:02:50,266 --> 00:02:51,066
as parents?

61
00:02:51,066 --> 00:02:52,467
(laughter)

62
00:02:52,467 --> 00:02:55,533
Mr. Carney:
I haven't had that conversation
with them, but I know they both

63
00:02:55,533 --> 00:02:59,700
feel that having a child is one
of the most wonderful parts of

64
00:02:59,700 --> 00:03:00,767
their lives.

65
00:03:00,767 --> 00:03:03,100
So I'm sure that will be the
same for the Duke and Duchess

66
00:03:03,100 --> 00:03:04,433
of Cambridge.

67
00:03:04,433 --> 00:03:09,266
On a note about a commoner here
at the White House, I also want

68
00:03:09,266 --> 00:03:12,166
to congratulate Brian Deese of
the NEC, and his wife on the

69
00:03:12,166 --> 00:03:15,799
birth of their child, Adeline
Sutton Deese, over the weekend.

70
00:03:15,800 --> 00:03:17,100
And with that I will
take your questions.

71
00:03:17,100 --> 00:03:17,700
Julie.

72
00:03:17,700 --> 00:03:18,266
The Press:
Thank you.

73
00:03:18,266 --> 00:03:22,066
The United Nations is
moving staff out of Syria.

74
00:03:22,066 --> 00:03:25,166
Does the U.S. consider the
security situation in Syria

75
00:03:25,166 --> 00:03:26,834
to be deteriorating further?

76
00:03:26,834 --> 00:03:29,934
And how does that impact U.S.
concerns about the security

77
00:03:29,934 --> 00:03:34,066
of chemical weapons?

78
00:03:34,066 --> 00:03:36,400
Mr. Carney:
Let me address a
few points here.

79
00:03:36,400 --> 00:03:39,266
We closely monitor and we
continue to closely monitor

80
00:03:39,266 --> 00:03:43,066
Syria's proliferation-sensitive
materials and facilities.

81
00:03:43,066 --> 00:03:45,433
As the opposition makes
strategic advances and

82
00:03:45,433 --> 00:03:49,033
grows in the strength, the Assad
regime has been unable to halt

83
00:03:49,033 --> 00:03:51,733
the opposition's progress
through conventional means,

84
00:03:51,734 --> 00:03:55,767
and we are concerned that an
increasingly beleaguered regime,

85
00:03:55,767 --> 00:03:58,600
having found its escalation of
violence through conventional

86
00:03:58,600 --> 00:04:01,632
means inadequate, might be
considering the use of chemical

87
00:04:01,633 --> 00:04:03,033
weapons against
the Syria people.

88
00:04:03,033 --> 00:04:06,899
And as the President has said,
any use or proliferation of

89
00:04:06,900 --> 00:04:11,300
chemical weapons by the Syrian
regime would cross a red line

90
00:04:11,300 --> 00:04:13,000
for the United States.

91
00:04:13,000 --> 00:04:16,934
The Assad regime must know that
the world is watching and that

92
00:04:16,934 --> 00:04:19,667
they will be held accountable
by the United States and the

93
00:04:19,666 --> 00:04:22,467
international community if they
use chemical weapons, or fail to

94
00:04:22,467 --> 00:04:25,032
meet their obligations
to secure them.

95
00:04:25,033 --> 00:04:28,200
We continue to consult actively
with Syria's neighbors, our

96
00:04:28,200 --> 00:04:30,200
friends in the international
community and with the

97
00:04:30,200 --> 00:04:33,500
opposition to underscore
our common concern about the

98
00:04:33,500 --> 00:04:36,900
security of these weapons and
the Syrian government's absolute

99
00:04:36,900 --> 00:04:39,299
obligation to secure them.

100
00:04:39,300 --> 00:04:42,066
The Press:
What does the U.S. deem the
security of those chemicals

101
00:04:42,066 --> 00:04:44,900
weapons at this point?

102
00:04:44,900 --> 00:04:47,299
Mr. Carney:
Well, I can't get into
intelligence assessments.

103
00:04:47,300 --> 00:04:50,066
We believe they are -- remain
in the possession of the Syria

104
00:04:50,066 --> 00:04:51,232
regime, the Assad regime.

105
00:04:51,233 --> 00:04:57,166
But as the regime has lost
all legitimacy to lead Syria,

106
00:04:57,166 --> 00:04:59,533
and the opposition grows in
strength, our concern about the

107
00:04:59,533 --> 00:05:03,200
regime's intentions regarding
its chemical weapons stockpiles

108
00:05:03,200 --> 00:05:04,500
has increased.

109
00:05:04,500 --> 00:05:06,734
The Press:
And just to go back to the red
line, I just want to clarify

110
00:05:06,734 --> 00:05:08,866
where the red line
is for the President.

111
00:05:08,867 --> 00:05:11,133
Obviously, use of chemical
weapons is a red line.

112
00:05:11,133 --> 00:05:14,233
But in terms of the movement
of that, there obviously are

113
00:05:14,233 --> 00:05:17,767
reports that the weapons are
being moved or have been moved.

114
00:05:17,767 --> 00:05:20,332
Is the type of movement that
we're seeing right now, does

115
00:05:20,333 --> 00:05:23,233
that cross the red line?

116
00:05:23,233 --> 00:05:24,900
Mr. Carney:
Well, I think the President
made clear that the use of

117
00:05:24,900 --> 00:05:26,532
weapons was a red line.

118
00:05:26,533 --> 00:05:29,667
We are monitoring the situation
in Syria closely, and we are

119
00:05:29,667 --> 00:05:35,734
monitoring the regime's
chemical weapons stockpiles.

120
00:05:35,734 --> 00:05:37,467
I'm not going to get
into intelligence matters,

121
00:05:37,467 --> 00:05:42,200
but as I said, we believe that
with the regime's grip on power

122
00:05:42,200 --> 00:05:47,300
loosening, with its failure to
put down the opposition through

123
00:05:47,300 --> 00:05:52,734
conventional means, we have
an increased concern about the

124
00:05:52,734 --> 00:05:57,265
possibility of the regime taking
the desperate act of using its

125
00:05:57,266 --> 00:05:58,266
chemical weapons.

126
00:05:58,266 --> 00:06:01,200
The Press:
But at this point, you can't say
for sure that what we're seeing

127
00:06:01,200 --> 00:06:04,667
right now does not cross
the President's red line?

128
00:06:04,667 --> 00:06:06,667
Mr. Carney:
Well, again, I think we're
talking about the use of

129
00:06:06,667 --> 00:06:07,700
chemical weapons.

130
00:06:07,700 --> 00:06:09,633
The Press:
But he also talked about the
movement of chemical weapons

131
00:06:09,633 --> 00:06:10,767
in his press
conference in August.

132
00:06:10,767 --> 00:06:11,700
Mr. Carney:
Well, I understand that.

133
00:06:11,700 --> 00:06:13,866
The Press:
So does it change the equation
if it was being moved?

134
00:06:13,867 --> 00:06:16,867
Mr. Carney:
Well, I think that you're
hearing from me about our

135
00:06:16,867 --> 00:06:18,233
increased concern.

136
00:06:18,233 --> 00:06:20,300
You're hearing from me the fact
that we are consulting with our

137
00:06:20,300 --> 00:06:23,767
allies and international
partners, as well as the

138
00:06:23,767 --> 00:06:27,800
opposition about this, and there
is no doubt that we have an

139
00:06:27,800 --> 00:06:30,734
increased concern about this.

140
00:06:30,734 --> 00:06:35,400
But beyond that I'm not going to
get into matters of intelligence

141
00:06:35,400 --> 00:06:38,366
except to say that we do
have an increased concern.

142
00:06:38,367 --> 00:06:39,200
Yes, Reuters.

143
00:06:39,200 --> 00:06:42,933
The Press:
And what action would the U.S.
take if Syria were to cross that

144
00:06:42,934 --> 00:06:46,133
red line and use
chemical weapons?

145
00:06:46,133 --> 00:06:49,667
Mr. Carney:
Well, I wouldn't want to
speculate, but we think it

146
00:06:49,667 --> 00:06:52,032
is important to prepare
for all scenarios.

147
00:06:52,033 --> 00:06:55,834
Contingency planning is the
responsible thing to do,

148
00:06:55,834 --> 00:06:57,867
and we are also actively
consulting with friends,

149
00:06:57,867 --> 00:07:00,100
allies and the opposition.

150
00:07:00,100 --> 00:07:03,900
But I wouldn't want to speculate
about what action we might take.

151
00:07:03,900 --> 00:07:06,933
The Press:
Could that include
military action?

152
00:07:06,934 --> 00:07:09,433
Mr. Carney:
Well, again, I think the
contingency planning of

153
00:07:09,433 --> 00:07:13,066
all kinds is the
responsible thing to do.

154
00:07:13,066 --> 00:07:16,900
The Press:
Israel's settlement-building
plan has provoked some pretty

155
00:07:16,900 --> 00:07:19,700
strong reactions, especially in
Europe where several countries

156
00:07:19,700 --> 00:07:23,265
have summoned Israeli
ambassadors to hear protests.

157
00:07:23,266 --> 00:07:24,934
But Israel is
sticking to that plan.

158
00:07:24,934 --> 00:07:29,367
Is the U.S. taking any further
steps beyond criticizing the

159
00:07:29,367 --> 00:07:32,100
settlement expansion plan
as counterproductive to

160
00:07:32,100 --> 00:07:33,600
the peace process?

161
00:07:33,600 --> 00:07:35,934
Mr. Carney:
Well, I can tell you that we
reiterate our longstanding

162
00:07:35,934 --> 00:07:38,967
opposition to Israeli
settlement activity and

163
00:07:38,967 --> 00:07:41,166
East Jerusalem construction.

164
00:07:41,166 --> 00:07:44,967
We oppose all unilateral
actions, including settlement

165
00:07:44,967 --> 00:07:47,433
activity and housing
construction, as they

166
00:07:47,433 --> 00:07:51,467
complicate efforts to resume
direct bilateral negotiations

167
00:07:51,467 --> 00:07:54,933
and risk prejudging the
outcome of those negotiations.

168
00:07:54,934 --> 00:07:58,400
And this includes building
in the so-called E1 area.

169
00:07:58,400 --> 00:08:00,500
We have made clear to the
Israeli government that such

170
00:08:00,500 --> 00:08:04,266
action is contrary to U.S.
policy, opposing unilateral

171
00:08:04,266 --> 00:08:06,233
action including
settlement activity

172
00:08:06,233 --> 00:08:08,233
and housing construction
in East Jerusalem.

173
00:08:08,233 --> 00:08:10,367
And we in the international
community expect all parties

174
00:08:10,367 --> 00:08:13,200
to play a constructive role
in efforts to achieve peace.

175
00:08:13,200 --> 00:08:16,233
We urge Israeli leaders to
reconsider these unilateral

176
00:08:16,233 --> 00:08:19,300
decisions and exercise
restraint as these actions

177
00:08:19,300 --> 00:08:22,600
are counterproductive and
make it harder to resume

178
00:08:22,600 --> 00:08:27,633
direct negotiations to
achieve a two-state solution.

179
00:08:27,633 --> 00:08:29,265
Kristen.

180
00:08:29,266 --> 00:08:30,066
The Press:
Jay, thanks.

181
00:08:30,066 --> 00:08:33,232
Over the weekend, House Speaker
John Boehner said on FOX News

182
00:08:33,232 --> 00:08:36,566
Sunday, "Right now I would
say we're nowhere, period,

183
00:08:36,567 --> 00:08:38,834
in terms of the fiscal
cliff negotiations."

184
00:08:38,833 --> 00:08:40,599
Does the President agree
with that assessment?

185
00:08:40,600 --> 00:08:41,600
Mr. Carney:
No, he doesn't.

186
00:08:41,600 --> 00:08:44,467
I think you saw Secretary
Geithner over the weekend

187
00:08:44,467 --> 00:08:50,433
on other Sunday shows very
clearly express the President's

188
00:08:50,433 --> 00:08:52,800
position, talk about the
proposals the President

189
00:08:52,800 --> 00:08:57,666
has put forward, and express
our belief that there has been

190
00:08:57,667 --> 00:09:03,266
progress and that we can
achieve a bipartisan agreement.

191
00:09:03,266 --> 00:09:07,934
The obstacle remains at this
point the refusal to acknowledge

192
00:09:07,934 --> 00:09:12,500
by Republican leaders that there
is no deal that achieves the

193
00:09:12,500 --> 00:09:15,934
kind of balance that is
necessary without raising

194
00:09:15,934 --> 00:09:20,100
rates on the top 2%
wealthiest Americans.

195
00:09:20,100 --> 00:09:21,633
The math simply does not add up.

196
00:09:21,633 --> 00:09:27,533
And we look forward to
presentation by Republican

197
00:09:27,533 --> 00:09:33,934
leaders -- their ideas for how
to achieve the kind of revenue

198
00:09:33,934 --> 00:09:37,065
targets that are necessary, or
their ideas for spending cuts.

199
00:09:37,066 --> 00:09:40,300
As you know, and Secretary
Geithner spoke quite clearly

200
00:09:40,300 --> 00:09:44,500
about, we have put forward
a proposal that includes

201
00:09:44,500 --> 00:09:49,767
$600 billion in detailed
spending cuts in health care

202
00:09:49,767 --> 00:09:52,600
and other entitlement programs,
including the farm subsidy

203
00:09:52,600 --> 00:09:57,100
program, and that comes on top
of over a trillion dollars in

204
00:09:57,100 --> 00:09:59,367
spending cuts, both defense and
non-defense, that the President

205
00:09:59,367 --> 00:10:03,333
signed into law as part of
the Budget Control Act, and is

206
00:10:03,333 --> 00:10:07,467
companioned with our proposals
for how to achieve the kinds of

207
00:10:07,467 --> 00:10:12,033
revenue from the wealthiest
Americans that we believe is

208
00:10:12,033 --> 00:10:17,367
necessary to help the economy
grow and achieve the sort of

209
00:10:17,367 --> 00:10:20,500
deficit reduction that puts us
in -- puts us on a path towards

210
00:10:20,500 --> 00:10:22,266
a better economy.

211
00:10:22,266 --> 00:10:23,800
The Press:
Republicans have said, though,
that the President's initial

212
00:10:23,800 --> 00:10:27,367
offer is "not a serious one"
-- that's another quote.

213
00:10:27,367 --> 00:10:29,800
What will he do at this
moment to try to move these

214
00:10:29,800 --> 00:10:31,032
negotiations forward?

215
00:10:31,033 --> 00:10:34,900
Mr. Carney:
Well, I would simply redirect
that question to Republican

216
00:10:34,900 --> 00:10:38,699
leaders who to this day have not
put forward any proposal on how

217
00:10:38,700 --> 00:10:43,133
they would achieve revenues,
how they would address the

218
00:10:43,133 --> 00:10:47,500
issue that rates have
to rise on the top 2%.

219
00:10:47,500 --> 00:10:48,767
There's no other way to do it.

220
00:10:48,767 --> 00:10:50,967
There is no mathematically
sound way to do it.

221
00:10:50,967 --> 00:10:58,165
And making vague promises
about achieving revenue through

222
00:10:58,166 --> 00:11:03,400
capping deductions or closing
loopholes simply doesn't add

223
00:11:03,400 --> 00:11:05,199
up to a serious proposal.

224
00:11:05,200 --> 00:11:07,667
We haven't heard which
deductions they would cap

225
00:11:07,667 --> 00:11:09,500
or which loopholes
they would close.

226
00:11:09,500 --> 00:11:12,767
And what is true is that other
proposals that have been put

227
00:11:12,767 --> 00:11:18,166
forward that include attempts
to do it, to raise revenue only

228
00:11:18,166 --> 00:11:22,367
through closing loopholes and
limiting deductions, can only

229
00:11:22,367 --> 00:11:25,132
achieve the necessary revenue
if the middle class gets stuck

230
00:11:25,133 --> 00:11:26,133
with the bill.

231
00:11:26,133 --> 00:11:31,000
And that's simply not -- or if
you have a proposal, it's wildly

232
00:11:31,000 --> 00:11:34,166
politically unfeasible because
it suggests that we would wipe

233
00:11:34,166 --> 00:11:39,500
out charitable deductions or
other measures that might add

234
00:11:39,500 --> 00:11:42,400
up on paper, but simply
aren't plausible when it

235
00:11:42,400 --> 00:11:44,400
comes to getting something
through Congress.

236
00:11:44,400 --> 00:11:47,100
The Press:
Jay, also, on one other topic,
today marks the three-year

237
00:11:47,100 --> 00:11:50,367
anniversary of the arrest
of American contractor Alan

238
00:11:50,367 --> 00:11:51,367
Gross in Cuba.

239
00:11:51,367 --> 00:11:54,699
Cuba has offered to sit down
with the U.S. to talk about

240
00:11:54,700 --> 00:11:57,200
issues of mutual
interest, including Gross.

241
00:11:57,200 --> 00:12:01,300
Given that the campaign is over,
the President beginning his

242
00:12:01,300 --> 00:12:04,099
second term, is this something
that the administration is open

243
00:12:04,100 --> 00:12:05,667
to and is considering right now?

244
00:12:05,667 --> 00:12:09,033
Mr. Carney:
Well, the President has followed
Mr. Gross's case with concern,

245
00:12:09,033 --> 00:12:12,100
and he urges Mr.
Gross's release.

246
00:12:12,100 --> 00:12:14,600
The Cuban government should
release Alan Gross and return

247
00:12:14,600 --> 00:12:17,200
him to his family
where he belongs.

248
00:12:17,200 --> 00:12:20,467
Tomorrow, Alan Gross will begin
his fourth year of unjustified

249
00:12:20,467 --> 00:12:22,033
imprisonment in Cuba.

250
00:12:22,033 --> 00:12:25,900
He was arrested on December 3,
2009, and later given a 15-year

251
00:12:25,900 --> 00:12:28,632
prison sentence by Cuban
authorities for simply

252
00:12:28,633 --> 00:12:32,400
facilitating communications
between Cuba's Jewish community

253
00:12:32,400 --> 00:12:33,733
and the rest of the world.

254
00:12:33,734 --> 00:12:37,300
Mr. Gross is a 63-year-old
husband, father, and dedicated

255
00:12:37,300 --> 00:12:39,800
professional, with a
long history of providing

256
00:12:39,800 --> 00:12:42,666
assistance and support to
underserved communities in

257
00:12:42,667 --> 00:12:44,533
more than 50 countries.

258
00:12:44,533 --> 00:12:48,000
Since his arrest, Mr. Gross has
lost more than 100 pounds and

259
00:12:48,000 --> 00:12:51,934
suffers from severe degenerative
arthritis that affects his

260
00:12:51,934 --> 00:12:53,733
mobility and other
health problems.

261
00:12:53,734 --> 00:12:57,800
His family is anxious,
understandably, to evaluate

262
00:12:57,800 --> 00:13:00,500
whether he is receiving
appropriate medical treatment,

263
00:13:00,500 --> 00:13:03,300
something that can be best
determined by having a doctor

264
00:13:03,300 --> 00:13:04,733
of his own choosing examine him.

265
00:13:04,734 --> 00:13:08,266
We continue to ask for the Cuban
government to grant Alan Gross's

266
00:13:08,266 --> 00:13:11,199
request to travel to the United
States to visit his 90-year-old

267
00:13:11,200 --> 00:13:14,500
mother, Evelyn Gross,
who is gravely ill.

268
00:13:14,500 --> 00:13:16,500
This is a humanitarian issue.

269
00:13:16,500 --> 00:13:18,800
The Press:
His family believes that
he's been abandoned by

270
00:13:18,800 --> 00:13:19,733
the U.S. government.

271
00:13:19,734 --> 00:13:21,967
His wife was quoted as saying,
he feels like a soldier who's

272
00:13:21,967 --> 00:13:23,333
been left to die.

273
00:13:23,333 --> 00:13:25,800
What specifically is the
President going to do to

274
00:13:25,800 --> 00:13:28,834
try to get his release beyond
asking the Cuban government

275
00:13:28,834 --> 00:13:30,065
to release him?

276
00:13:30,066 --> 00:13:31,967
Mr. Carney:
Well, we continue to press the
Cuban government to release him

277
00:13:31,967 --> 00:13:36,766
for the reasons that
I just enumerated.

278
00:13:36,767 --> 00:13:38,500
This is a humanitarian issue.

279
00:13:38,500 --> 00:13:43,567
There is -- it is essential that
he released for his own health

280
00:13:43,567 --> 00:13:47,133
reasons, and it is -- would be
incredible appropriate to allow

281
00:13:47,133 --> 00:13:50,500
him to visit his
gravely-ill mother.

282
00:13:50,500 --> 00:13:51,233
Ed.

283
00:13:51,233 --> 00:13:53,367
The Press:
Jay, on the fiscal cliff, you
were just laying out about

284
00:13:53,367 --> 00:13:57,333
$1.6 trillion of spending cuts,
$600 billion new ones you say on

285
00:13:57,333 --> 00:13:59,400
top of a trillion from 2011.

286
00:13:59,400 --> 00:14:01,600
But then the Republicans
point out you've put about

287
00:14:01,600 --> 00:14:05,066
$1.6 trillion in new tax
increases or revenue increases

288
00:14:05,066 --> 00:14:08,600
on the table in some new
spending, question being

289
00:14:08,600 --> 00:14:10,133
that's roughly one to one.

290
00:14:10,133 --> 00:14:13,533
I thought during the campaign
a balanced approach was $2.50

291
00:14:13,533 --> 00:14:15,900
in spending cuts per
$1 in tax increases.

292
00:14:15,900 --> 00:14:18,100
That's roughly what both Bill
Clinton and I think President

293
00:14:18,100 --> 00:14:20,200
Obama said on the trail,
at the convention.

294
00:14:20,200 --> 00:14:22,600
So my question is, sort of
the latest balanced approach,

295
00:14:22,600 --> 00:14:25,834
what is that split
for this White House?

296
00:14:25,834 --> 00:14:28,165
Mr. Carney:
Ed, it is absolutely the case
that the President's proposal

297
00:14:28,166 --> 00:14:30,467
that he put forward to the super
committee and that is repeated

298
00:14:30,467 --> 00:14:33,333
in his budget achieves
roughly the ratio that

299
00:14:33,333 --> 00:14:34,333
you're talking about.

300
00:14:34,333 --> 00:14:38,132
And it achieves the target of
$4 trillion in deficit reduction

301
00:14:38,133 --> 00:14:41,734
that was put forward by the
Simpson-Bowles commission,

302
00:14:41,734 --> 00:14:44,633
for example, as the kind
of deficit reduction that's

303
00:14:44,633 --> 00:14:49,600
necessary over 10 years to
put us on a sustainable path,

304
00:14:49,600 --> 00:14:50,700
get our fiscal house in order.

305
00:14:50,700 --> 00:14:53,233
It is also the case, and the
President talked about this

306
00:14:53,233 --> 00:14:55,800
repeatedly during the campaign,
that we need to make the kinds

307
00:14:55,800 --> 00:14:59,032
of investments in key sectors
of our economy that will help

308
00:14:59,033 --> 00:15:02,367
our economy grow faster
and help it create jobs.

309
00:15:02,367 --> 00:15:06,900
I think Republicans have likely
heard what the President has

310
00:15:06,900 --> 00:15:10,600
heard from business leaders,
which is they are adamant about

311
00:15:10,600 --> 00:15:13,333
the need to take action to
improve our infrastructure,

312
00:15:13,333 --> 00:15:18,433
to put people to work building
our -- rebuilding our roads and

313
00:15:18,433 --> 00:15:22,133
bridges and highways, ports
and airports, because that is

314
00:15:22,133 --> 00:15:24,133
essential to long-term
economic growth.

315
00:15:24,133 --> 00:15:27,834
So what the President has put
forward in terms of measures

316
00:15:27,834 --> 00:15:30,766
that would put Americans back
to work are the kinds of things

317
00:15:30,767 --> 00:15:32,333
that help us grow
in the long term.

318
00:15:32,333 --> 00:15:36,033
They're paid for and they're
vital for that balance that

319
00:15:36,033 --> 00:15:37,200
we've talked about all along.

320
00:15:37,200 --> 00:15:44,300
Again, what we have not
seen from Republicans --

321
00:15:44,300 --> 00:15:46,400
we understand that they don't
agree with everything the

322
00:15:46,400 --> 00:15:48,500
President has put on the table,
but we haven't seen alternatives

323
00:15:48,500 --> 00:15:49,333
from them.

324
00:15:49,333 --> 00:15:53,500
They have spoken about the
need for revenue, and that

325
00:15:53,500 --> 00:15:55,166
acknowledgment is welcome.

326
00:15:55,166 --> 00:15:58,967
But thus far, Republican leaders
have been adamant that they

327
00:15:58,967 --> 00:16:03,433
don't believe rates ought
to go up on the top 2% of

328
00:16:03,433 --> 00:16:04,433
wealthiest Americans.

329
00:16:04,433 --> 00:16:06,433
Well, the American
people overwhelmingly

330
00:16:06,433 --> 00:16:08,400
disagree -- overwhelmingly.

331
00:16:08,400 --> 00:16:12,000
And what the President
believes is that you cannot

332
00:16:12,000 --> 00:16:15,834
mathematically achieve the kinds
of revenue that are necessary

333
00:16:15,834 --> 00:16:19,400
for that balanced approach
through any other means.

334
00:16:19,400 --> 00:16:20,699
So rates have to rise.

335
00:16:20,700 --> 00:16:24,066
And the Republicans
need to acknowledge that,

336
00:16:24,066 --> 00:16:26,667
that that's the only way
to get from here to there.

337
00:16:26,667 --> 00:16:29,934
The Press:
You say rates need to rise, so
there's one scenario floating

338
00:16:29,934 --> 00:16:33,367
out there that the Republicans
may say, okay, we'll -- they say

339
00:16:33,367 --> 00:16:36,433
they'll extend the middle-class
tax rates that the President has

340
00:16:36,433 --> 00:16:38,633
been demanding, Bush
tax rates, so that --

341
00:16:38,633 --> 00:16:39,633
Mr. Carney:
That would be welcome.

342
00:16:39,633 --> 00:16:43,166
The Press:
That would suggest that the Bush
-- taxes for the rich would go

343
00:16:43,166 --> 00:16:44,667
up, as you're asking for.

344
00:16:44,667 --> 00:16:47,400
But my question is, they then
suggest, the Republicans, that

345
00:16:47,400 --> 00:16:49,300
they would leave the debt
ceiling, all this other

346
00:16:49,300 --> 00:16:51,233
stuff until at least January.

347
00:16:51,233 --> 00:16:52,433
Is that acceptable?

348
00:16:52,433 --> 00:16:55,266
They essentially do what you
want on the middle-class tax

349
00:16:55,266 --> 00:16:57,233
cuts and then go home and
deal with the rest of this

350
00:16:57,233 --> 00:16:58,233
in January?

351
00:16:58,233 --> 00:16:59,300
Mr. Carney:
I'll say two things.

352
00:16:59,300 --> 00:17:01,433
One is I'm not going to
negotiate the specifics

353
00:17:01,433 --> 00:17:05,900
of an end-of-the-year
deal from here.

354
00:17:05,900 --> 00:17:08,934
But I will reiterate and echo
what Secretary Geithner said

355
00:17:08,934 --> 00:17:14,032
over the weekend, which is that
it is entirely unacceptable to

356
00:17:14,032 --> 00:17:17,934
have a repeat performance of
what the American people watched

357
00:17:17,934 --> 00:17:20,867
with horror in the summer of
2011, which was a willingness

358
00:17:20,867 --> 00:17:26,332
by a minority of the overall
assemblage of lawmakers on

359
00:17:26,333 --> 00:17:30,967
Capitol Hill to hold the
American economy hostage,

360
00:17:30,967 --> 00:17:36,166
to threaten default on the
American economy, and therefore

361
00:17:36,166 --> 00:17:38,533
default on the savings and
investments of the American

362
00:17:38,533 --> 00:17:43,132
people, in the name of tax cuts
for the wealthiest Americans.

363
00:17:43,133 --> 00:17:44,133
It's just not acceptable.

364
00:17:44,133 --> 00:17:45,166
And it's bad policy.

365
00:17:45,166 --> 00:17:47,233
What the President put forward,
what the President believes we

366
00:17:47,233 --> 00:17:50,332
ought to do, as Secretary
Geithner spelled out over the

367
00:17:50,333 --> 00:17:54,367
weekend, is adopt the proposal
that was enacted into law in the

368
00:17:54,367 --> 00:17:57,200
Budget Control Act that was put
forward by Senator McConnell,

369
00:17:57,200 --> 00:18:00,767
nobody's idea of a liberal,
a man with solid conservative

370
00:18:00,767 --> 00:18:04,000
credentials, the Republican
Leader in the Senate put forward

371
00:18:04,000 --> 00:18:08,200
a proposal that enables the
debt ceiling to be raised

372
00:18:08,200 --> 00:18:11,533
appropriately so the United
States pays its bills.

373
00:18:11,533 --> 00:18:15,367
It allows Congress to voice its
opinion, but it makes sure that

374
00:18:15,367 --> 00:18:17,834
we do not have the threat
of default hanging over us

375
00:18:17,834 --> 00:18:23,066
periodically as if we were
not the greatest and strongest

376
00:18:23,066 --> 00:18:24,500
economy in the world.

377
00:18:24,500 --> 00:18:26,166
It's just not the right
way to do business.

378
00:18:26,166 --> 00:18:28,066
The Press:
And the last thing, there have
been reports suggesting that the

379
00:18:28,066 --> 00:18:30,233
Defense and State Department
picks could come as soon as

380
00:18:30,233 --> 00:18:30,966
this week.

381
00:18:30,967 --> 00:18:32,266
Is that possible?

382
00:18:32,266 --> 00:18:37,000
Mr. Carney:
Anything is possible, Ed, but
I would urge you to accept the

383
00:18:37,000 --> 00:18:43,000
notion -- and I mean you, plural
-- that the President will make

384
00:18:43,000 --> 00:18:46,433
personnel announcements after
he has made personnel decisions,

385
00:18:46,433 --> 00:18:49,100
and when he believes
it's appropriate.

386
00:18:49,100 --> 00:18:50,600
There's a great deal
of speculation about

387
00:18:50,600 --> 00:18:51,600
the timing of that.

388
00:18:51,600 --> 00:18:55,233
I can promise you that no
decisions have been made by

389
00:18:55,233 --> 00:19:02,200
the President, and you will hear
from him when he believes he's

390
00:19:02,200 --> 00:19:05,700
ready to make any
such announcements.

391
00:19:05,700 --> 00:19:09,266
The Press:
Does the President believe that
he has a mandate to push for the

392
00:19:09,266 --> 00:19:13,633
increases on taxes on the top
2% because he campaigned on

393
00:19:13,633 --> 00:19:19,533
it and because of polls --
is that a correct assessment?

394
00:19:19,533 --> 00:19:23,065
Mr. Carney:
He believes -- and I think most
people would acknowledge -- that

395
00:19:23,066 --> 00:19:26,066
the American people
support that.

396
00:19:26,066 --> 00:19:28,433
He also believes that it's the
right thing to do as a matter of

397
00:19:28,433 --> 00:19:31,233
policy, as a matter
of economic policy.

398
00:19:31,233 --> 00:19:35,934
We know from independent
economists that tax cuts for

399
00:19:35,934 --> 00:19:38,867
middle-class Americans -- and in
the case of the legislation that

400
00:19:38,867 --> 00:19:42,767
he wants to see pass, tax cuts
for 98% of American

401
00:19:42,767 --> 00:19:46,900
taxpayers -- are vastly more
beneficial to the economy and

402
00:19:46,900 --> 00:19:50,934
economic growth than giving
tax cuts to the wealthiest 2%

403
00:19:50,934 --> 00:19:52,100
-- so as economic policy.

404
00:19:52,100 --> 00:19:55,934
We also cannot afford tax
cuts for the wealthiest 2%.

405
00:19:55,934 --> 00:20:00,834
That's $950 billion over 10
years that we should not be

406
00:20:00,834 --> 00:20:05,433
spending in order to provide tax
cuts to folks who have enjoyed

407
00:20:05,433 --> 00:20:08,133
enormous tax cuts over the last
10 years as the middle class has

408
00:20:08,133 --> 00:20:09,900
been squeezed.

409
00:20:09,900 --> 00:20:13,400
So when it comes to balance, the
President believes that, yes,

410
00:20:13,400 --> 00:20:16,533
it's the right economic policy
to let rates rise; it's the only

411
00:20:16,533 --> 00:20:19,966
mathematically sound way to
achieve balance in a deficit

412
00:20:19,967 --> 00:20:21,633
reduction package;
and it is supported

413
00:20:21,633 --> 00:20:22,633
by the American people.

414
00:20:22,633 --> 00:20:24,567
The Press:
And as a political matter,
the President campaigned

415
00:20:24,567 --> 00:20:25,567
on it repeatedly.

416
00:20:25,567 --> 00:20:28,333
Mr. Carney:
Well, I think the point I've
been trying to make is that he

417
00:20:28,333 --> 00:20:32,367
was very clear about this, so
it should not be a surprise to

418
00:20:32,367 --> 00:20:34,966
Republican leaders, and it's
certainly not a surprise to

419
00:20:34,967 --> 00:20:35,967
the American people.

420
00:20:35,967 --> 00:20:39,166
The Press:
So my question is, in this offer
that the President made to House

421
00:20:39,166 --> 00:20:41,133
Republicans and Senate
Republicans, he's pushing

422
00:20:41,133 --> 00:20:42,166
for more than that, though.

423
00:20:42,166 --> 00:20:45,934
It's not just the ones -- the
tax increases that he campaigned

424
00:20:45,934 --> 00:20:47,533
on, it's other ones as well.

425
00:20:47,533 --> 00:20:51,199
Mr. Carney:
The President spoke repeatedly
during the year about his

426
00:20:51,200 --> 00:20:57,233
proposal that is enshrined in
the 70-odd-page document that

427
00:20:57,233 --> 00:21:01,800
I had with me at the podium last
week, that was presented for the

428
00:21:01,800 --> 00:21:04,033
super committee's consideration.

429
00:21:04,033 --> 00:21:08,433
The $1.6 trillion target of
deficit reduction through

430
00:21:08,433 --> 00:21:10,834
revenues has long
been his position.

431
00:21:10,834 --> 00:21:13,266
It has been explicitly
his position.

432
00:21:13,266 --> 00:21:16,033
We talked about it
prior to the election.

433
00:21:16,033 --> 00:21:17,734
We talked about it in
the immediate aftermath

434
00:21:17,734 --> 00:21:18,734
of the election.

435
00:21:18,734 --> 00:21:21,800
This is not -- he did not --
to suggest that he somehow

436
00:21:21,800 --> 00:21:24,433
added to his proposal
is to pretend that --

437
00:21:24,433 --> 00:21:26,166
The Press:
I'm not saying he added to his
proposal, but what I'm saying

438
00:21:26,166 --> 00:21:29,533
is he didn't campaign on, for
instance, limiting the mortgage

439
00:21:29,533 --> 00:21:32,533
deduction for wealthier
Americans, or limiting the

440
00:21:32,533 --> 00:21:34,867
charity deduction for
wealthier Americans.

441
00:21:34,867 --> 00:21:36,834
Those are not items
that he talked about

442
00:21:36,834 --> 00:21:37,934
on the campaign trail.

443
00:21:37,934 --> 00:21:41,399
Mr. Carney:
He talked explicitly and broadly
about his approach on this

444
00:21:41,400 --> 00:21:44,934
issue, which included letting
rates return to Clinton-era

445
00:21:44,934 --> 00:21:48,867
levels for the top 2% and
included broadly $1.6 trillion

446
00:21:48,867 --> 00:21:51,332
in revenues from the wealthiest.

447
00:21:51,333 --> 00:21:54,567
And if you look at his proposals
-- and we were very explicit

448
00:21:54,567 --> 00:21:58,433
about this both here in
Washington when we were engaged

449
00:21:58,433 --> 00:22:01,934
in legislative negotiations with
Congress, and broadly throughout

450
00:22:01,934 --> 00:22:05,066
the year -- those proposals
included -- I mean, I talked

451
00:22:05,066 --> 00:22:08,300
numerous times last year and
the year before about capping

452
00:22:08,300 --> 00:22:10,233
deductions at 28%
for the wealthiest --

453
00:22:10,233 --> 00:22:11,233
The Press:
That's not the President
on the campaign trail.

454
00:22:11,233 --> 00:22:12,233
I didn't hear him
really talk about that.

455
00:22:12,233 --> 00:22:16,533
Mr. Carney:
Well, he did, Jake, and he
would certainly when engaged

456
00:22:16,533 --> 00:22:19,867
with reporters in discussions
about his detailed plan,

457
00:22:19,867 --> 00:22:20,600
he would talk about this.

458
00:22:20,600 --> 00:22:21,699
This is something that --

459
00:22:21,700 --> 00:22:22,467
The Press:
Limiting deductions?

460
00:22:22,467 --> 00:22:25,266
Mr. Carney:
Absolutely. For the
top 2%, absolutely.

461
00:22:25,266 --> 00:22:30,700
And it is something that he
has been explicit about for

462
00:22:30,700 --> 00:22:33,033
more than a year now, since
September of 2011, when he put

463
00:22:33,033 --> 00:22:35,199
forward that proposal
to the super committee.

464
00:22:35,200 --> 00:22:37,633
The Press:
Is one of the reasons that the
stimulus is in this proposal

465
00:22:37,633 --> 00:22:42,133
because it's intended to offset
the economic damage caused by

466
00:22:42,133 --> 00:22:44,066
any of the tax increases?

467
00:22:44,066 --> 00:22:48,133
Mr. Carney:
I would say that one of the
reasons for measures that would

468
00:22:48,133 --> 00:22:50,867
put Americans back to work
is that we need to continue

469
00:22:50,867 --> 00:22:51,867
to grow the economy.

470
00:22:51,867 --> 00:22:55,133
And he has always believed that
you don't achieve -- deficit

471
00:22:55,133 --> 00:22:57,100
reduction is not a goal unto
itself, that we need to achieve

472
00:22:57,100 --> 00:23:03,100
deficit reduction in a way that
doesn't halt progress we've made

473
00:23:03,100 --> 00:23:04,567
or throw us backwards.

474
00:23:04,567 --> 00:23:07,367
One of the reasons why people
are so concerned about the

475
00:23:07,367 --> 00:23:10,934
prospect of the fiscal cliff
is that the combination of

476
00:23:10,934 --> 00:23:14,633
tax increases and spending cuts
across the board would have a

477
00:23:14,633 --> 00:23:17,266
negative impact on economic
growth and on hiring.

478
00:23:17,266 --> 00:23:19,200
So we need to do
it in a smart way.

479
00:23:19,200 --> 00:23:21,734
And the President has longed
believed and been very explicit

480
00:23:21,734 --> 00:23:28,399
about that even as we find
savings and enact cuts in

481
00:23:28,400 --> 00:23:32,767
programs where they can be found
and can be enacted, we need to

482
00:23:32,767 --> 00:23:35,867
make targeted investments in
infrastructure, research and

483
00:23:35,867 --> 00:23:39,667
development, or education and
the like that help our economy

484
00:23:39,667 --> 00:23:40,632
grow in the long term.

485
00:23:40,633 --> 00:23:44,667
The Press:
So the answer is, no, it's not
there to offset any economic

486
00:23:44,667 --> 00:23:47,766
harm to job growth that might
result because of the tax

487
00:23:47,767 --> 00:23:49,300
increases on wealthy Americans?

488
00:23:49,300 --> 00:23:49,934
Mr. Carney:
It's not.

489
00:23:49,934 --> 00:23:52,332
It is part of -- I mean, in the
sense that it's not specifically

490
00:23:52,333 --> 00:23:53,000
designed for that.

491
00:23:53,000 --> 00:23:55,800
It is part of the President's
broader approach to this,

492
00:23:55,800 --> 00:23:59,667
which is you need to be
very discriminating in

493
00:23:59,667 --> 00:24:00,533
how you approach it.

494
00:24:00,533 --> 00:24:03,399
You need to achieve savings
where you can, significant

495
00:24:03,400 --> 00:24:06,767
savings -- a trillion-plus in
the original Budget Control Act

496
00:24:06,767 --> 00:24:12,300
in discretionary non-defense and
defense savings; additional $600

497
00:24:12,300 --> 00:24:16,300
billion in savings put forward
as part of his proposal and in

498
00:24:16,300 --> 00:24:18,934
revenues from the wealthiest 2%.

499
00:24:18,934 --> 00:24:21,033
Coupled with that, you need to
make targeted investments that

500
00:24:21,033 --> 00:24:24,399
help the economy grow, because
the balance in the package is

501
00:24:24,400 --> 00:24:28,066
essential for the broader goal,
which is stronger growth,

502
00:24:28,066 --> 00:24:29,800
job creation.

503
00:24:29,800 --> 00:24:36,133
He also believes that as a
principle, deficit reduction

504
00:24:36,133 --> 00:24:41,967
done well, done right, is
positive for the economy.

505
00:24:41,967 --> 00:24:44,667
So there aren't pieces -- they
all go together in his mind.

506
00:24:44,667 --> 00:24:46,466
The Press:
One last question, on
the subject of Israel,

507
00:24:46,467 --> 00:24:52,367
in the last few weeks,
when it comes to U.S.

508
00:24:52,367 --> 00:24:56,166
lobbying against the declaration
of statehood or whatever for the

509
00:24:56,166 --> 00:25:02,332
Palestinians, the very
successful results of the

510
00:25:02,333 --> 00:25:07,000
Iron Dome and the U.S. support
for Israeli military activities

511
00:25:07,000 --> 00:25:13,233
in Gaza, the U.S. has been very
steadfastly standing by Israel.

512
00:25:13,233 --> 00:25:16,734
I'm wondering, in light of
that, other than you expressing

513
00:25:16,734 --> 00:25:19,033
displeasure in any paper
statements that have gone out

514
00:25:19,033 --> 00:25:22,632
on the matter, what the Obama
administration or the President

515
00:25:22,633 --> 00:25:24,867
has done, or any of his
emissaries, to express

516
00:25:24,867 --> 00:25:27,233
displeasure with what the
Israelis are doing right now

517
00:25:27,233 --> 00:25:30,433
in terms of settlements and
other what can be described as

518
00:25:30,433 --> 00:25:34,300
punitive actions against
the Palestinians.

519
00:25:34,300 --> 00:25:35,734
Mr. Carney:
Well, I would refer you
to the State Department

520
00:25:35,734 --> 00:25:39,033
for communications that may be
taking place, as they do on a

521
00:25:39,033 --> 00:25:40,367
daily basis, with the Israelis.

522
00:25:40,367 --> 00:25:41,533
The Press:
(inaudible)

523
00:25:41,533 --> 00:25:43,399
Mr. Carney:
I don't have any conversation
with the President to read out.

524
00:25:43,400 --> 00:25:47,633
But I want to be clear -- we
oppose unilateral actions that

525
00:25:47,633 --> 00:25:52,667
make a return to bilateral
negotiations harder.

526
00:25:52,667 --> 00:25:56,833
We oppose, as we long have,
Israeli settlement activity

527
00:25:56,834 --> 00:25:58,834
and construction in East
Jerusalem because they are

528
00:25:58,834 --> 00:26:03,500
counterproductive to what we
believe is the goal here, and

529
00:26:03,500 --> 00:26:08,133
should be the goal, which is
Israel and a Palestinian state

530
00:26:08,133 --> 00:26:12,700
side by side living in
security and freedom.

531
00:26:12,700 --> 00:26:16,233
The Press:
Did we know -- did the U.S. know
about this before the Netanyahu

532
00:26:16,233 --> 00:26:18,734
government announced it?

533
00:26:18,734 --> 00:26:21,300
Mr. Carney:
I would refer you to the
State Department for those

534
00:26:21,300 --> 00:26:22,300
kinds of communications.

535
00:26:22,300 --> 00:26:23,367
I can just tell you that --

536
00:26:23,367 --> 00:26:25,834
The Press:
In the past, they've done it
without notifying -- in fact,

537
00:26:25,834 --> 00:26:29,367
I believe there was one time
when it was -- when Netanyahu

538
00:26:29,367 --> 00:26:32,734
was arriving here and the
announcement was made.

539
00:26:32,734 --> 00:26:35,199
Mr. Carney:
I don't have information to give --

540
00:26:35,200 --> 00:26:36,567
The Press:
When you worked for the Vice
President -- you must remember

541
00:26:36,567 --> 00:26:39,700
-- when the Vice President
arrived in Israel one time,

542
00:26:39,700 --> 00:26:40,767
there was an announcement.

543
00:26:40,767 --> 00:26:42,567
That must have been fun.

544
00:26:42,567 --> 00:26:45,700
Mr. Carney:
I can just tell you, Jake,
that I don't have any specific

545
00:26:45,700 --> 00:26:48,166
information about those
communications between the

546
00:26:48,166 --> 00:26:52,033
Israeli government and
this administration.

547
00:26:52,033 --> 00:26:54,433
I don't think we could be
clearer about our position

548
00:26:54,433 --> 00:26:58,433
that we oppose unilateral
actions that make the return

549
00:26:58,433 --> 00:27:01,633
to bilateral
negotiations harder.

550
00:27:01,633 --> 00:27:04,467
We oppose Israeli settlement
activity and the construction

551
00:27:04,467 --> 00:27:06,233
in East Jerusalem.

552
00:27:06,233 --> 00:27:08,600
And we're obviously
communicating that.

553
00:27:08,600 --> 00:27:10,166
The Press:
But there's no consequences,
they'll do whatever and

554
00:27:10,166 --> 00:27:11,166
you'll --

555
00:27:11,166 --> 00:27:15,033
Mr. Carney:
I don't have anything additional
to provide to you on that.

556
00:27:15,033 --> 00:27:16,934
Major and then Jessica.

557
00:27:16,934 --> 00:27:19,800
The Press:
Jay, what's the degree of the
President's awareness of and

558
00:27:19,800 --> 00:27:23,000
concern about and appetite for
intervening in the dock strike

559
00:27:23,000 --> 00:27:25,767
in Los Angeles and Long Beach?

560
00:27:25,767 --> 00:27:31,734
Mr. Carney:
Concern about, appetite for --
lot of verbs and prepositions

561
00:27:31,734 --> 00:27:34,300
there that I will have
to appropriately digest.

562
00:27:34,300 --> 00:27:35,934
(laughter)

563
00:27:35,934 --> 00:27:36,600
The Press:
-- all at once.

564
00:27:36,600 --> 00:27:38,332
(laughter)

565
00:27:38,333 --> 00:27:40,533
Mr. Carney:
I can just tell you that we --
and that includes the President

566
00:27:40,533 --> 00:27:44,166
-- continue to monitor the
situation in Los Angeles closely

567
00:27:44,166 --> 00:27:46,867
and urge the parties to continue
their work at the negotiating

568
00:27:46,867 --> 00:27:49,500
table to get a deal done
as quickly as possible.

569
00:27:49,500 --> 00:27:52,000
The Press:
Does he have any
appetite to intervene?

570
00:27:52,000 --> 00:27:57,767
Mr. Carney:
I don't have any additional
insights about the President

571
00:27:57,767 --> 00:27:59,934
on this to provide to you
except that we're monitoring

572
00:27:59,934 --> 00:28:03,466
the situation and we urge
each side -- all parties

573
00:28:03,467 --> 00:28:05,333
to continue negotiations.

574
00:28:05,333 --> 00:28:07,567
The Press:
-- look at the situation and
say has real-time economic

575
00:28:07,567 --> 00:28:10,400
consequences not only in that
immediate region, but possibly

576
00:28:10,400 --> 00:28:13,400
throughout the entire U.S.
economy, and they would say

577
00:28:13,400 --> 00:28:15,700
the President is only concerned?

578
00:28:15,700 --> 00:28:18,700
Mr. Carney:
Well, he is concerned, and that
is -- and we at the White House

579
00:28:18,700 --> 00:28:20,266
and broadly in the
administration are concerned,

580
00:28:20,266 --> 00:28:22,066
which is why we're urging
parties to continue their

581
00:28:22,066 --> 00:28:27,166
work at the negotiating table
to reach a deal as quickly as

582
00:28:27,166 --> 00:28:29,600
possible for the reasons
that you just mentioned.

583
00:28:29,600 --> 00:28:30,667
The Press:
A follow-up on Ed's question.

584
00:28:30,667 --> 00:28:33,332
Isn't it true that when
Secretary Geithner went up to

585
00:28:33,333 --> 00:28:36,834
the Hill and described broadly
his and the administration's

586
00:28:36,834 --> 00:28:40,533
approach, there were far more
things put on the table as asks

587
00:28:40,533 --> 00:28:44,033
or requests -- unemployment
insurance payroll tax, at least

588
00:28:44,033 --> 00:28:49,000
conceptualized, and dealing with
Medicare premium reimbursement

589
00:28:49,000 --> 00:28:52,467
issue -- there are lots of other
issues beside the one singular

590
00:28:52,467 --> 00:28:56,734
issue that you are focusing
on as far as the top 2%.

591
00:28:56,734 --> 00:28:58,533
Isn't it true that you are
seeking something that is

592
00:28:58,533 --> 00:28:59,632
much broader than that?

593
00:28:59,633 --> 00:29:01,533
Mr. Carney:
No, it's not true.

594
00:29:01,533 --> 00:29:04,466
And what is remarkable -- and I
was stunned by this even on the

595
00:29:04,467 --> 00:29:08,433
Sunday shows -- is to this day,
in December of 2012, how few

596
00:29:08,433 --> 00:29:12,667
people are aware of what was
a highly detailed, specific

597
00:29:12,667 --> 00:29:15,667
proposal that the President
put out in September of 2011.

598
00:29:15,667 --> 00:29:18,100
And these issues
were all in there.

599
00:29:18,100 --> 00:29:20,300
We have long been on the record
for extension of unemployment

600
00:29:20,300 --> 00:29:24,834
insurance, for example -- at a
time when the unemployment rate,

601
00:29:24,834 --> 00:29:27,834
while it has come down, is still
higher at this time than it was

602
00:29:27,834 --> 00:29:29,834
when George W. Bush extended
unemployment insurance.

603
00:29:29,834 --> 00:29:32,433
The Press:
-- these particular
conversations --

604
00:29:32,433 --> 00:29:34,567
Mr. Carney:
But the conversations
weren't just about the

605
00:29:34,567 --> 00:29:35,433
revenue component.

606
00:29:35,433 --> 00:29:39,767
Included in that was the $600
billion in spending cuts that

607
00:29:39,767 --> 00:29:43,333
the President has proposed
through, again, in detail

608
00:29:43,333 --> 00:29:46,934
and with specificity in a way
that we have yet to see from

609
00:29:46,934 --> 00:29:48,667
our Republican friends.

610
00:29:48,667 --> 00:29:49,667
So, no.

611
00:29:49,667 --> 00:29:53,533
And again, I know you know
because you covered it that

612
00:29:53,533 --> 00:29:56,100
we talked explicitly about, and
have since we introduced the

613
00:29:56,100 --> 00:29:59,766
American Jobs Act, the need to
invest in infrastructure, put

614
00:29:59,767 --> 00:30:05,567
people back to work building our
roads and bridges and highways.

615
00:30:05,567 --> 00:30:10,000
This is not -- there is nothing
-- there is, literally, nothing

616
00:30:10,000 --> 00:30:12,800
that should come as a surprise
in terms of what the President's

617
00:30:12,800 --> 00:30:15,767
positions are and what he
believes, in his view,

618
00:30:15,767 --> 00:30:16,767
are the right actions to take.

619
00:30:16,767 --> 00:30:20,500
Now, he has also said that he
is not wedded to every detail of

620
00:30:20,500 --> 00:30:23,934
his plan, that he is willing to
compromise, and he looks forward

621
00:30:23,934 --> 00:30:27,734
to concrete proposals from
Republicans that address the

622
00:30:27,734 --> 00:30:30,833
question of revenue,
for example.

623
00:30:30,834 --> 00:30:32,900
They're open to revenue.

624
00:30:32,900 --> 00:30:36,200
They say at this point that they
don't want to raise tax rates on

625
00:30:36,200 --> 00:30:38,066
the wealthiest Americans.

626
00:30:38,066 --> 00:30:40,834
It is mathematically impossible
to achieve the kind of revenue

627
00:30:40,834 --> 00:30:44,734
targets that are necessary
for balance in a way that only

628
00:30:44,734 --> 00:30:49,066
closes loopholes and caps
deductions, both economically --

629
00:30:49,066 --> 00:30:50,400
The Press:
-- I think it's
mathematically possible;

630
00:30:50,400 --> 00:30:51,300
it's not politically possible.

631
00:30:51,300 --> 00:30:52,533
That's been your earlier point.

632
00:30:52,533 --> 00:30:55,833
Mr. Carney:
Well, it's both, depending
on the proposal that you're

633
00:30:55,834 --> 00:30:57,400
talking about.

634
00:30:57,400 --> 00:31:01,834
It's either possible to do it if
you stick it to the middle class

635
00:31:01,834 --> 00:31:04,400
and raise taxes on the middle
class so that you protect the

636
00:31:04,400 --> 00:31:08,734
wealthiest Americans from having
to contribute more in revenue,

637
00:31:08,734 --> 00:31:15,300
or you would do it in a way that
would go after things like the

638
00:31:15,300 --> 00:31:19,367
charitable deduction or the home
mortgage plan in a way that is

639
00:31:19,367 --> 00:31:21,834
not either economically
sound or politically feasible

640
00:31:21,834 --> 00:31:22,834
on Capitol Hill.

641
00:31:22,834 --> 00:31:28,433
So what we hope for is some
specificity from Republicans.

642
00:31:28,433 --> 00:31:31,734
We can't -- if they need
something different, if their

643
00:31:31,734 --> 00:31:36,800
ideas are different from ours,
we can't guess what they are.

644
00:31:36,800 --> 00:31:37,800
They need to tell us.

645
00:31:37,800 --> 00:31:42,332
And we look forward to the
time when they are specific

646
00:31:42,333 --> 00:31:44,066
with ideas in the way
that we have been.

647
00:31:44,066 --> 00:31:46,600
We understand that they don't
like our plan in its entirety.

648
00:31:46,600 --> 00:31:49,934
The President has understood
and made clear that he won't

649
00:31:49,934 --> 00:31:51,899
get everything that he wants.

650
00:31:51,900 --> 00:31:55,300
He brings to this very specific
principles about balance.

651
00:31:55,300 --> 00:31:58,000
He's made very clear that he
will not under any circumstances

652
00:31:58,000 --> 00:32:03,567
sign an extension of
tax cuts for the top 2%.

653
00:32:03,567 --> 00:32:06,834
He's made very clear that he
would sign tomorrow if just

654
00:32:06,834 --> 00:32:10,533
a few dozen or so House
Republicans -- well, first,

655
00:32:10,533 --> 00:32:13,132
if the leaders of the Republican
Party in the House said, let's

656
00:32:13,133 --> 00:32:16,266
vote on that Senate bill to
extend cuts for 98% of

657
00:32:16,266 --> 00:32:18,767
the American people and then
however many Republicans it

658
00:32:18,767 --> 00:32:21,033
takes -- probably not that many,
because I know every Democrat

659
00:32:21,033 --> 00:32:23,399
wants to extend tax cuts for
the middle-class Americans --

660
00:32:23,400 --> 00:32:24,900
let that pass.

661
00:32:24,900 --> 00:32:27,266
That addresses a good portion of
the fiscal cliff and it says to

662
00:32:27,266 --> 00:32:30,033
the American people, we can
actually take action on things

663
00:32:30,033 --> 00:32:32,132
that we agree on: tax
cuts for the middle class.

664
00:32:32,133 --> 00:32:33,133
It's good for everybody.

665
00:32:33,133 --> 00:32:34,133
It's good for the economy.

666
00:32:34,133 --> 00:32:35,767
It's good for the fiscal cliff.

667
00:32:35,767 --> 00:32:39,667
And it would I think set a tone
here in Washington that we can

668
00:32:39,667 --> 00:32:41,833
get something done when we
work together cooperatively.

669
00:32:41,834 --> 00:32:45,900
So we've been
explicit and specific.

670
00:32:45,900 --> 00:32:50,033
We look forward to specificity
from the Republicans.

671
00:32:50,033 --> 00:32:53,199
The Press:
One last question on
this, the sequencing.

672
00:32:53,200 --> 00:32:56,567
There are now countdown clocks
around the country predicated

673
00:32:56,567 --> 00:32:58,767
on December 31st.

674
00:32:58,767 --> 00:33:00,400
For those of us who have been
lucky enough to cover the

675
00:33:00,400 --> 00:33:03,133
legislative body once or
twice in our career, we have

676
00:33:03,133 --> 00:33:05,967
a practical understanding
of how things have to go.

677
00:33:05,967 --> 00:33:07,533
And there are more and more
lawmakers, Republican and

678
00:33:07,533 --> 00:33:09,567
Democrat, who look at the
calendar and say, it's not

679
00:33:09,567 --> 00:33:12,867
December 31st, it's December
15th, really, if you're going to

680
00:33:12,867 --> 00:33:15,367
have an agreement and have the
time necessary for it to be

681
00:33:15,367 --> 00:33:18,466
read, digested, debated, and
gotten to the President in a

682
00:33:18,467 --> 00:33:20,500
practical matter
before Christmas.

683
00:33:20,500 --> 00:33:22,567
Does the President
share that time horizon?

684
00:33:22,567 --> 00:33:25,367
Do you look at this actually
as not December 31st, but

685
00:33:25,367 --> 00:33:27,834
something, as a practical
matter, much earlier than that,

686
00:33:27,834 --> 00:33:30,266
and does that in any way create
a greater sense of urgency?

687
00:33:30,266 --> 00:33:32,533
Mr. Carney:
Well, the President certainly
believes that the sooner the

688
00:33:32,533 --> 00:33:35,500
better; that we receive
specificity from Republicans

689
00:33:35,500 --> 00:33:41,133
about what it is they would
do on revenues, for example;

690
00:33:41,133 --> 00:33:47,367
what it is they want on spending
cuts, for example, we will be

691
00:33:47,367 --> 00:33:51,033
able to move forward, and we
look forward to doing that.

692
00:33:51,033 --> 00:33:54,300
In terms of the congressional
clock, I, too, enjoyed covering

693
00:33:54,300 --> 00:33:56,500
Congress when I had the
opportunity and I know

694
00:33:56,500 --> 00:33:58,066
what you're talking about.

695
00:33:58,066 --> 00:34:01,300
But we're not going to dictate
to congressional leaders their

696
00:34:01,300 --> 00:34:05,133
calendar, but it is certainly
the case that we hope and expect

697
00:34:05,133 --> 00:34:12,699
that Republicans will be more
specific about what it is beyond

698
00:34:12,699 --> 00:34:15,299
not liking the President's
proposals; what is it they would

699
00:34:15,300 --> 00:34:20,367
do alternatively to achieve the
kind of deficit reduction and a

700
00:34:20,367 --> 00:34:22,800
resolution of the fiscal
cliff that the President's

701
00:34:22,800 --> 00:34:23,767
plan would do.

702
00:34:23,766 --> 00:34:25,132
The Press:
Perhaps the President
will stay in Washington

703
00:34:25,132 --> 00:34:26,500
until this is resolved?

704
00:34:26,500 --> 00:34:28,500
Mr. Carney:
Well, again, I believe -- as
Secretary Geithner expressed

705
00:34:28,500 --> 00:34:30,533
over the weekend -- that
we can accomplish this.

706
00:34:30,533 --> 00:34:35,132
I really believe that if
Republicans were to acknowledge

707
00:34:35,132 --> 00:34:39,065
and do so with some specificity
that rates are going up on the

708
00:34:39,065 --> 00:34:40,399
wealthiest Americans --

709
00:34:40,400 --> 00:34:41,533
The Press:
(inaudible)

710
00:34:41,533 --> 00:34:43,199
Mr. Carney:
Well, I'm talking about getting
to -- no, no, I'm not talking

711
00:34:43,199 --> 00:34:44,100
about an endgame here.

712
00:34:44,100 --> 00:34:47,266
I'm talking about getting --
moving the ball forward here

713
00:34:47,266 --> 00:34:49,433
in terms of progress
and reaching a deal.

714
00:34:49,433 --> 00:34:52,934
That that's a principle --
that's an obstacle that, once

715
00:34:52,934 --> 00:34:58,233
overcome, would allow us to I
think move more quickly towards

716
00:34:58,233 --> 00:35:04,200
the kind of compromise that --
remember, what was new in what

717
00:35:04,200 --> 00:35:08,133
Secretary Geithner spoke about
and what he and Rob Nabors

718
00:35:08,133 --> 00:35:12,133
brought to their meetings on
Capitol Hill was a framework for

719
00:35:12,133 --> 00:35:15,033
-- our proposed framework for
how to achieve, if you will,

720
00:35:15,033 --> 00:35:18,533
a two-stage process
towards a resolution.

721
00:35:18,533 --> 00:35:21,734
So there's a means to get there.

722
00:35:21,734 --> 00:35:23,333
What we need from the
Republicans, what we need

723
00:35:23,333 --> 00:35:26,533
to hear and see from the
Republicans is pretty clear.

724
00:35:26,533 --> 00:35:30,000
As of now, the only party to
these negotiations who has put

725
00:35:30,000 --> 00:35:33,533
forward anything specific when
it comes to broad-based deficit

726
00:35:33,533 --> 00:35:37,333
reduction is the President.

727
00:35:37,333 --> 00:35:40,400
The Press:
Jay, you just said that the
administration laid out a highly

728
00:35:40,400 --> 00:35:43,633
detailed, specific proposal,
including on spending cuts.

729
00:35:43,633 --> 00:35:44,133
Mr. Carney:
Yes.

730
00:35:44,133 --> 00:35:46,767
The Press:
Did the administration's
proposal also detail how you'd

731
00:35:46,767 --> 00:35:50,734
get to $400 billion on Medicare
and other entitlement savings?

732
00:35:50,734 --> 00:35:53,834
Mr. Carney:
I think you heard Secretary
Geithner say over the weekend

733
00:35:53,834 --> 00:35:57,399
he talked about -- when you talk
about the broader spending cuts,

734
00:35:57,400 --> 00:36:00,100
including a $600 billion, they
include reform of our farm

735
00:36:00,100 --> 00:36:03,834
subsidy program, but he also
spoke about asking high-wage

736
00:36:03,834 --> 00:36:08,433
earners, high earners who are
Medicare beneficiaries to pay

737
00:36:08,433 --> 00:36:11,533
more in premiums, a little bit
more in premiums, and he talked

738
00:36:11,533 --> 00:36:12,533
about some other specifics.

739
00:36:12,533 --> 00:36:15,799
But I would refer you, again, to
a document that's been available

740
00:36:15,800 --> 00:36:24,600
to everyone for 14 or 15 months
now and we've been specific

741
00:36:24,600 --> 00:36:27,165
about what the President
believes is the right course

742
00:36:27,166 --> 00:36:31,033
of action and we look forward
to Republicans doing the same.

743
00:36:31,033 --> 00:36:34,266
The Press:
Is the administration committing
to that as its proposal for

744
00:36:34,266 --> 00:36:37,400
bringing down entitlement
spending, or is the

745
00:36:37,400 --> 00:36:42,000
administration outlining a
framework -- $400 billion in

746
00:36:42,000 --> 00:36:44,734
proposed cuts -- to be
resolved down the line?

747
00:36:44,734 --> 00:36:48,066
Mr. Carney:
Well, I would refer you to what
-- I think Secretary Geithner

748
00:36:48,066 --> 00:36:49,232
spoke in detail about this.

749
00:36:49,233 --> 00:36:52,533
But we have -- we do
have specific proposals.

750
00:36:52,533 --> 00:36:55,467
The Press:
When it came to entitlements,
he said there were principles,

751
00:36:55,467 --> 00:36:57,066
but he did not commit --

752
00:36:57,066 --> 00:36:59,567
Mr. Carney:
There are specifics in the
proposals, far more than

753
00:36:59,567 --> 00:37:00,633
we've seen from the other side.

754
00:37:00,633 --> 00:37:05,500
Remember, in the House
Republican budget, we saw

755
00:37:05,500 --> 00:37:09,633
nothing like the specificity
-- we saw undocumented savings,

756
00:37:09,633 --> 00:37:13,767
unspecified savings over 10
years, after which Medicare

757
00:37:13,767 --> 00:37:16,232
would end as we know it, and
there would be additional

758
00:37:16,233 --> 00:37:17,934
savings that would
help pay for tax cuts.

759
00:37:17,934 --> 00:37:19,233
The President has been
much more specific.

760
00:37:19,233 --> 00:37:22,567
His proposed savings in health
care entitlements in the first

761
00:37:22,567 --> 00:37:27,033
10 years exceed the savings put
forward by the Bowles-Simpson

762
00:37:27,033 --> 00:37:30,834
commission, the North Star,
if you will, of this process.

763
00:37:30,834 --> 00:37:35,066
And, again, I'd refer you to
the document for more details.

764
00:37:35,066 --> 00:37:36,066
We have been specific.

765
00:37:36,066 --> 00:37:42,399
We understand that Republicans
won't -- maybe they want

766
00:37:42,400 --> 00:37:43,400
different kinds of cuts.

767
00:37:43,400 --> 00:37:46,967
Maybe they want additional cuts.

768
00:37:46,967 --> 00:37:50,400
The President has made clear he
will entertain others' ideas.

769
00:37:50,400 --> 00:37:51,533
He looks forward
to hearing them.

770
00:37:51,533 --> 00:37:52,667
But we need to
see what they are.

771
00:37:52,667 --> 00:37:57,232
We can't guess on their behalf
what Republicans want out of

772
00:37:57,233 --> 00:37:58,233
this process.

773
00:37:58,233 --> 00:37:59,900
They need to put forward
their ideas as we have

774
00:37:59,900 --> 00:38:01,033
put forward ours.

775
00:38:01,033 --> 00:38:03,967
The Press:
One of their frustrations
is that they feel the

776
00:38:03,967 --> 00:38:07,100
administration has been less
than specific about entitlement

777
00:38:07,100 --> 00:38:10,467
changes, but is being very
specific about what's needed

778
00:38:10,467 --> 00:38:15,400
for tax reform and that
this amounts to overreach.

779
00:38:15,400 --> 00:38:18,300
It amounts to bullying --
you've heard what they've said.

780
00:38:18,300 --> 00:38:20,000
Mr. Carney:
Well, I understand what you're
saying, but instead of just

781
00:38:20,000 --> 00:38:21,934
quoting what they've said,
look at the proposals we've

782
00:38:21,934 --> 00:38:23,633
put on the table,
they are specific.

783
00:38:23,633 --> 00:38:25,834
We understand that they
may want different ones.

784
00:38:25,834 --> 00:38:27,600
Senator McConnell has
talked about different ones.

785
00:38:27,600 --> 00:38:28,866
Others have talked
about different ones

786
00:38:28,867 --> 00:38:29,934
or additional ones.

787
00:38:29,934 --> 00:38:33,600
But let's be specific about
the fact that we've put forward

788
00:38:33,600 --> 00:38:36,767
substantial savings in health
care entitlements, as well as

789
00:38:36,767 --> 00:38:38,200
other entitlement programs.

790
00:38:38,200 --> 00:38:39,033
The Republicans have not.

791
00:38:39,033 --> 00:38:41,567
The Press:
Secretary Geithner seemed to
reject what over the weekend --

792
00:38:41,567 --> 00:38:44,333
Secretary Geithner seemed to
reject what McConnell said in

793
00:38:44,333 --> 00:38:46,734
the op-ed in the Wall
Street Journal interview.

794
00:38:46,734 --> 00:38:48,232
Mr. Carney:
Well, I don't know
that he rejected it.

795
00:38:48,233 --> 00:38:50,600
We know what our position is.

796
00:38:50,600 --> 00:38:52,600
What I would note is that the
ideas that Senator McConnell

797
00:38:52,600 --> 00:38:56,866
talked about don't even amount
to half of the savings that are

798
00:38:56,867 --> 00:38:58,300
documented in the
President's proposal.

799
00:38:58,300 --> 00:39:03,567
So the President's willing
to entertain others' ideas.

800
00:39:03,567 --> 00:39:07,934
But we haven't seen anything
yet from Republicans that is

801
00:39:07,934 --> 00:39:09,166
credible and specific.

802
00:39:09,166 --> 00:39:11,600
On the revenue side,
we've seen nothing at all.

803
00:39:11,600 --> 00:39:14,299
Because sometimes when we
get into this debate and the

804
00:39:14,300 --> 00:39:17,300
crossfire about who has a plan
and who doesn't, and who's

805
00:39:17,300 --> 00:39:21,300
showing you theirs and
who's not, they say, well,

806
00:39:21,300 --> 00:39:22,433
we passed a budget.

807
00:39:22,433 --> 00:39:24,900
But let's remember, the Ryan
budget -- the House Republican

808
00:39:24,900 --> 00:39:27,567
budget contains
zero in revenues.

809
00:39:27,567 --> 00:39:29,734
So that's not a
plausible alternative.

810
00:39:29,734 --> 00:39:33,299
Republicans have acknowledged
that we need revenues and that

811
00:39:33,300 --> 00:39:37,700
revenues have to come from
those who can afford them.

812
00:39:37,700 --> 00:39:40,533
Now we need to move that
acknowledgement further

813
00:39:40,533 --> 00:39:44,400
along down the road to include
specificity about how -- what

814
00:39:44,400 --> 00:39:49,200
loopholes, what deductions
and what they envision in

815
00:39:49,200 --> 00:39:50,399
terms of rates.

816
00:39:50,400 --> 00:39:53,700
We've been very clear about
what we propose: Rates should

817
00:39:53,700 --> 00:39:55,466
rise to the Clinton era.

818
00:39:55,467 --> 00:39:59,834
And we've been very specific
about capping deductions for

819
00:39:59,834 --> 00:40:01,667
wealthy earners and
closing loopholes.

820
00:40:01,667 --> 00:40:06,366
So what do the Republicans
have to show us on that score?

821
00:40:06,367 --> 00:40:09,367
The Press:
So Speaker Boehner is supposed
to be attending this holiday

822
00:40:09,367 --> 00:40:10,300
reception here tonight.

823
00:40:10,300 --> 00:40:12,934
Does the President plan to have
a pull-aside with him to discuss

824
00:40:12,934 --> 00:40:13,734
some of these issues?

825
00:40:13,734 --> 00:40:17,900
Mr. Carney:
I don't have a schedule for you
of the President's conversations.

826
00:40:17,900 --> 00:40:19,834
He looks forward to the event
tonight, but I don't have

827
00:40:19,834 --> 00:40:20,834
anything specific for you.

828
00:40:20,834 --> 00:40:25,265
But it is true that every member
of Congress has been invited and

829
00:40:25,266 --> 00:40:27,800
he looks forward to the event.

830
00:40:27,800 --> 00:40:28,500
Peter.

831
00:40:28,500 --> 00:40:31,667
The Press:
Did President Clinton have
any advice or suggestions

832
00:40:31,667 --> 00:40:34,165
for President Obama yesterday
during their golf game on the

833
00:40:34,166 --> 00:40:35,433
fiscal cliff?

834
00:40:35,433 --> 00:40:36,934
Might there have been some
discussion about the fiscal

835
00:40:36,934 --> 00:40:39,166
cliff when he played golf?

836
00:40:39,166 --> 00:40:42,934
Mr. Carney:
For reasons that would be
apparent to anybody who has seen

837
00:40:42,934 --> 00:40:47,200
me swing a golf club, I was not
there and therefore do not know.

838
00:40:47,200 --> 00:40:50,866
The Press:
No readout on the golf game?

839
00:40:50,867 --> 00:40:54,000
Mr. Carney:
I know that President
Obama enjoyed the session.

840
00:40:54,000 --> 00:40:56,300
But beyond that, I don't
have anything else for you.

841
00:40:56,300 --> 00:40:58,900
The Press:
Who won?

842
00:40:58,900 --> 00:41:03,400
Mr. Carney:
Doesn't the sitting
President always win?

843
00:41:03,400 --> 00:41:06,133
The Press:
Tomorrow, the President is
meeting with governors about

844
00:41:06,133 --> 00:41:07,033
the fiscal cliff.

845
00:41:07,033 --> 00:41:08,933
Can you give us more detail
about who will be here and

846
00:41:08,934 --> 00:41:11,166
how many, and what he hopes
governors can add to the

847
00:41:11,166 --> 00:41:13,467
dialogue that isn't already
part of the conversation?

848
00:41:13,467 --> 00:41:15,400
Mr. Carney:
Well, broadly speaking,
governors can have a lot

849
00:41:15,400 --> 00:41:16,400
to add to the dialogue.

850
00:41:16,400 --> 00:41:18,033
And the President looks
forward to the meeting.

851
00:41:18,033 --> 00:41:22,400
I think we'll have details
on that later this evening.

852
00:41:22,400 --> 00:41:23,734
I don't have a list for you.

853
00:41:23,734 --> 00:41:27,667
The Press:
Can you just, in concept, talk
about what experience governors

854
00:41:27,667 --> 00:41:29,900
have, what he's hoping to hear
from them, what he wants to say

855
00:41:29,900 --> 00:41:33,400
to them that differs from what
we've been hearing every day?

856
00:41:33,400 --> 00:41:36,667
Mr. Carney:
I think that governors have a
lot at stake in this process.

857
00:41:36,667 --> 00:41:39,767
They have an interest in
seeing Washington get its

858
00:41:39,767 --> 00:41:40,767
fiscal house in order.

859
00:41:40,767 --> 00:41:45,600
They have an interest in seeing
Washington take action to ensure

860
00:41:45,600 --> 00:41:47,700
that the economy
continues to grow.

861
00:41:47,700 --> 00:41:50,165
I think governors, broadly
speaking, have a keen interest

862
00:41:50,166 --> 00:41:54,266
in, for example, Washington
making wise investments in

863
00:41:54,266 --> 00:41:56,367
rebuilding our infrastructure.

864
00:41:56,367 --> 00:41:59,333
They obviously have a stake
in our health care entitlement

865
00:41:59,333 --> 00:42:02,900
programs, including,
of course, Medicaid.

866
00:42:02,900 --> 00:42:07,800
And what governors have in
common with the President of

867
00:42:07,800 --> 00:42:09,867
the United States is that
they're chief executives.

868
00:42:09,867 --> 00:42:12,934
They understand -- they
run things and they're very

869
00:42:12,934 --> 00:42:15,333
practical and pragmatic
about it, by and large.

870
00:42:15,333 --> 00:42:20,533
That's sometimes a distinction
between governors and lawmakers

871
00:42:20,533 --> 00:42:22,066
on Capitol Hill.

872
00:42:22,066 --> 00:42:24,667
I think governors -- I can't
speak for every single one of

873
00:42:24,667 --> 00:42:28,133
them -- tend to want pragmatic,
practical solutions to these

874
00:42:28,133 --> 00:42:30,100
kinds of fiscal challenges.

875
00:42:30,100 --> 00:42:32,667
So the President looks forward
to having a conversation with

876
00:42:32,667 --> 00:42:35,200
those governors that
he'll meet with.

877
00:42:35,200 --> 00:42:36,767
The Press:
A question on Puerto Rico.

878
00:42:36,767 --> 00:42:39,200
The Press:
Actually following up on Ari's
question about the governors,

879
00:42:39,200 --> 00:42:43,200
since some of the states have
not yet completed or met all the

880
00:42:43,200 --> 00:42:46,799
deadlines with regard to the
health care exchanges, health

881
00:42:46,800 --> 00:42:49,100
insurance exchanges, will
that be on the table as part

882
00:42:49,100 --> 00:42:51,533
of the fiscal cliff
discussions tomorrow?

883
00:42:51,533 --> 00:42:53,767
Mr. Carney:
I suppose it could be discussed.

884
00:42:53,767 --> 00:42:57,466
I don't have an agenda beyond
what we've talked about to read

885
00:42:57,467 --> 00:42:58,367
out to you.

886
00:42:58,367 --> 00:43:00,233
The Press:
And then, one more question
on a different topic.

887
00:43:00,233 --> 00:43:04,333
The President has a honorary
degree, Jay, a law degree from

888
00:43:04,333 --> 00:43:05,567
the University of Notre Dame.

889
00:43:05,567 --> 00:43:09,467
Will he be rooting for his
honorary alma mater in the BCS

890
00:43:09,467 --> 00:43:11,934
title game on January 7th?

891
00:43:11,934 --> 00:43:14,967
Mr. Carney:
I don't know and I
will have to ask him.

892
00:43:14,967 --> 00:43:18,767
But that was a heck of a game
between Alabama and Georgia?

893
00:43:18,767 --> 00:43:20,066
Anybody catch it?

894
00:43:20,066 --> 00:43:21,265
Yes, Puerto Rico question.

895
00:43:21,266 --> 00:43:22,934
The Press:
Thank you.

896
00:43:22,934 --> 00:43:29,834
As you know, this last time
around, 61% of Puerto

897
00:43:29,834 --> 00:43:35,366
Ricans voted for statehood.

898
00:43:35,367 --> 00:43:39,467
Is the President going to be
helping us or trying to make

899
00:43:39,467 --> 00:43:42,000
it easier or trying
to make it faster?

900
00:43:42,000 --> 00:43:44,967
What is he going to do for us?

901
00:43:44,967 --> 00:43:47,300
Mr. Carney:
Well, I think the outcome was
a little less clear than that,

902
00:43:47,300 --> 00:43:49,367
because of the process itself.

903
00:43:49,367 --> 00:43:52,166
And what I can tell you is the
people of Puerto Rico have made

904
00:43:52,166 --> 00:43:54,734
it clear that they want a
resolution to the issue of

905
00:43:54,734 --> 00:43:56,467
the island's political status.

906
00:43:56,467 --> 00:43:58,667
And consistent with the
recommendations of the task

907
00:43:58,667 --> 00:44:03,533
force report, Congress should
now study the results closely

908
00:44:03,533 --> 00:44:06,900
and provide the people of Puerto
Rico with a clear path forward

909
00:44:06,900 --> 00:44:10,667
that lays out the means by which
Puerto Ricans themselves can

910
00:44:10,667 --> 00:44:11,799
determine their own status.

911
00:44:11,800 --> 00:44:14,066
This administration, as you
know, is committed to the

912
00:44:14,066 --> 00:44:17,066
principle that the question of
political status is a matter of

913
00:44:17,066 --> 00:44:20,232
self-determination for
the people of Puerto Rico.

914
00:44:20,233 --> 00:44:22,300
And the task force on Puerto
Rico's status will work with

915
00:44:22,300 --> 00:44:25,633
Congress to address
this important issue.

916
00:44:25,633 --> 00:44:28,265
In addition to the question of
status, the task force continues

917
00:44:28,266 --> 00:44:30,700
to work with Congress, the
people of Puerto Rico and its

918
00:44:30,700 --> 00:44:33,332
leaders to address the
concerns of the 4 million

919
00:44:33,333 --> 00:44:37,400
U.S. citizens who call Puerto
Rico home by implementing their

920
00:44:37,400 --> 00:44:40,600
2011 report's recommendations
to promote job creation and

921
00:44:40,600 --> 00:44:44,266
economic development, education,
health care, clean energy and to

922
00:44:44,266 --> 00:44:45,367
improve security.

923
00:44:45,367 --> 00:44:47,266
April.

924
00:44:47,266 --> 00:44:50,633
The Press:
Jay, what are your thoughts
about Congressman Elijah

925
00:44:50,633 --> 00:44:53,033
Cummings, who happens to be very
good friends with the President,

926
00:44:53,033 --> 00:44:59,366
saying that no deal is better
than a bad deal on the issue

927
00:44:59,367 --> 00:45:00,700
of the fiscal cliff?

928
00:45:00,700 --> 00:45:03,433
What say you about
that, that statement?

929
00:45:03,433 --> 00:45:07,266
Mr. Carney:
Well, I didn't see
those specific comments.

930
00:45:07,266 --> 00:45:10,333
The President certainly has
principles here that he intends

931
00:45:10,333 --> 00:45:16,033
to stick to, which is that he
will not sign an extension of

932
00:45:16,033 --> 00:45:21,366
the Bush-era tax cuts for the
top 2% -- full stop.

933
00:45:21,367 --> 00:45:25,133
He will not sign a bill that
extends those tax rates for

934
00:45:25,133 --> 00:45:26,133
the top 2%.

935
00:45:26,133 --> 00:45:27,133
We can't afford it.

936
00:45:27,133 --> 00:45:29,899
It is not a wise
economic policy.

937
00:45:29,900 --> 00:45:32,700
It's not a wise fiscal policy.

938
00:45:32,700 --> 00:45:37,700
And it would defeat the
principle of balance that

939
00:45:37,700 --> 00:45:44,700
he has embraced so clearly
throughout these negotiations.

940
00:45:44,700 --> 00:45:49,232
He is fully committed to
extending tax cuts for the vast

941
00:45:49,233 --> 00:45:51,734
majority of the American
people -- 98%.

942
00:45:51,734 --> 00:45:56,799
And he wishes that the House of
Representatives would pass that

943
00:45:56,800 --> 00:45:59,300
bill tomorrow, and he
would sign it right away.

944
00:45:59,300 --> 00:46:02,700
That is a principle
that he takes into this.

945
00:46:02,700 --> 00:46:09,299
So I don't want to forecast in
a pessimistic way, because I

946
00:46:09,300 --> 00:46:11,200
believe, and the President
believes, and Secretary Geithner

947
00:46:11,200 --> 00:46:13,899
believes that we can
achieve a compromise here.

948
00:46:13,900 --> 00:46:20,300
And how that -- what that
compromise looks like and how we

949
00:46:20,300 --> 00:46:23,533
get there are both pretty clear.

950
00:46:23,533 --> 00:46:27,933
We just hope that Republicans
will acknowledge that the ball

951
00:46:27,934 --> 00:46:29,667
is in their court, that the
President has put forward a

952
00:46:29,667 --> 00:46:30,767
specific proposal.

953
00:46:30,767 --> 00:46:32,700
They know where he stands.

954
00:46:32,700 --> 00:46:37,933
He has put forward a framework
that would achieve a process by

955
00:46:37,934 --> 00:46:39,767
which we could
reach an agreement.

956
00:46:39,767 --> 00:46:42,834
And obviously the Republicans
don't agree with every detail

957
00:46:42,834 --> 00:46:46,000
of that, so we look forward
to their specific proposals

958
00:46:46,000 --> 00:46:50,033
on rates and revenues and on
spending cuts, as opposed to

959
00:46:50,033 --> 00:46:53,333
just saying that they don't
like the President's proposal.

960
00:46:53,333 --> 00:46:54,633
We look forward to
seeing something from

961
00:46:54,633 --> 00:46:55,767
them that's specific.

962
00:46:55,767 --> 00:46:58,466
The Press:
But with the belief that
there is deal -- could it

963
00:46:58,467 --> 00:47:03,300
become a reality that December
31st comes and there is no deal

964
00:47:03,300 --> 00:47:05,867
because there could be
bad options on the table?

965
00:47:05,867 --> 00:47:10,000
Mr. Carney:
Well, I remain optimistic
that that won't come to pass.

966
00:47:10,000 --> 00:47:16,934
But the obstacle here continues
to be Republicans who hold out

967
00:47:16,934 --> 00:47:21,633
hope that we can somehow
go through this process

968
00:47:21,633 --> 00:47:26,966
and still deliver tax cuts to
millionaires and billionaires.

969
00:47:26,967 --> 00:47:30,233
And that's just not
going to happen.

970
00:47:30,233 --> 00:47:31,767
It cannot happen mathematically.

971
00:47:31,767 --> 00:47:33,567
It's bad policy.

972
00:47:33,567 --> 00:47:39,767
And it certainly is the case
that this is an issue that was

973
00:47:39,767 --> 00:47:43,133
broadly discussed and
debated in the past year,

974
00:47:43,133 --> 00:47:44,966
during the campaign.

975
00:47:44,967 --> 00:47:48,934
So the President's position
on this is absolutely clear.

976
00:47:48,934 --> 00:47:53,266
It is supported by the majority
of the American people.

977
00:47:53,266 --> 00:47:55,967
And he will abide
by that principle.

978
00:47:55,967 --> 00:47:58,834
But there has been progress,
as Secretary Geithner said,

979
00:47:58,834 --> 00:48:00,399
and we hope that there
will be more progress.

980
00:48:00,400 --> 00:48:03,734
We need to do this on behalf
of the American people and on

981
00:48:03,734 --> 00:48:05,600
behalf of the American economy.

982
00:48:05,600 --> 00:48:06,200
The Press:
Thanks, Jay.

983
00:48:06,200 --> 00:48:07,799
Mr. Carney:
Steve. Last one.

984
00:48:07,800 --> 00:48:09,333
The Press:
Back to the speech.

985
00:48:09,333 --> 00:48:11,600
Earlier this year, the Russians
said that they didn't want to

986
00:48:11,600 --> 00:48:15,232
extend Nunn-Lugar,
after 20 years.

987
00:48:15,233 --> 00:48:18,000
Was the President disappointed
by this given his interest in

988
00:48:18,000 --> 00:48:20,967
this area and his friendship
with Senator Lugar?

989
00:48:20,967 --> 00:48:25,166
And is he going to ask the
Putin government to reconsider?

990
00:48:25,166 --> 00:48:28,300
Mr. Carney:
Well, I don't want to get ahead
of the President's remarks,

991
00:48:28,300 --> 00:48:33,500
which are on an issue
that he considers one

992
00:48:33,500 --> 00:48:35,967
of his highest priorities.

993
00:48:35,967 --> 00:48:41,567
He is committed to continued
action to secure loose nuclear

994
00:48:41,567 --> 00:48:47,700
materials and weapons, and he
has made it a priority of his

995
00:48:47,700 --> 00:48:48,700
international agenda.

996
00:48:48,700 --> 00:48:53,332
It's something that he always
raises with our international

997
00:48:53,333 --> 00:48:56,633
partners, and will
continue to do so.

998
00:48:56,633 --> 00:48:58,667
But beyond that, I think
I'll ask you to wait for

999
00:48:58,667 --> 00:48:59,933
the President's remarks.

1000
00:48:59,934 --> 00:49:00,900
Thanks, everybody.