English subtitles for clip: File:12-4-12- White House Press Briefing.webm

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Mr. Carney:
Sorry!

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(laughter)

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Actually, I am on a tight
schedule today, so --

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I have a meeting.

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The Press:
So do I.

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(laughter)

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Mr. Carney:
Well, good; we can move through
this with great efficiency.

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And with that in mind, I will
not make any announcements.

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I think you have seen a list of
governors who participated in

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the President's
meeting earlier today.

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It was a good, solid meeting
discussing the fiscal cliff,

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I think the shared concerns of
governors that we address our

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fiscal challenges in a way
that ensures that the economy

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continues to grow
and create jobs.

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With that, I will
take your questions.

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The Press:
Thanks, Jay.

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Two questions on
the fiscal cliff.

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In the Bloomberg interview, the
President was asked directly

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whether tax rates on the
wealthiest Americans have to go

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to Clinton levels --
39.6% at the top now.

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Is that an absolute red line?

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And he never really
answered that directly.

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He talked about a process
where rates could go down for

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everybody eventually next
year as part of tax reform.

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And you talk consistently
about how rates need to go up,

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but what he campaigned on was
39.6 at the end of the year.

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Is that the case?

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Mr. Carney:
Well, let me say this.

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The President has been
absolutely clear, as have I,

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that rates have to
go up on top earners,

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on millionaires
and billionaires,

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everyone making over $250,000.

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The President made that clear
again and again, all year long.

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And he's made it clear since --
in this post-election period,

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when we've been engaged in
conversations with members of

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Congress about how to deal
with the fiscal cliff and our

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long-term deficit challenges.

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We have yet to see even an
acknowledgment from Republican

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leaders of the fundamental fact
that there is no deal that does

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not include rates going
up on top earners.

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And as the President said in
the interview that you cited,

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and as he has said before,
he doesn't hold that position

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because it's inherently good.

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He doesn't hold it because
he wants to punish

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wealthy Americans.

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He holds it because it
is mathematically sound.

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It is an absolute fact that
there is no way to achieve the

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kind of balance in a broad
deficit reduction package,

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a balance that requires
significant revenues,

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without rates going
up on top earners.

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You cannot achieve it through
promised closing of loopholes or

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capping of deductions.

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And you certainly can't achieve
it through the kind of vague

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proposal that we've
seen from Republicans,

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which contains no
specificity whatsoever,

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not a single deduction named
or loophole identified

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to be closed.

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So rates have to go up.

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The President believes, and it's
part of his proposal that his

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team put forward to Congress,
that we need to have a framework

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here that envisions dealing
with the fiscal cliff and the

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deadlines we face at
the end of the year,

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but also recognizes that
broader entitlement reform,

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broader tax reform would
probably take more than a few

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weeks that we have remaining
here at the end of the year,

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and that that should be
part of a process next year.

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But rates are going up.

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They have to go up.

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It is the economically essential
thing that we have to do as part

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of a balanced approach to
deficit reduction and a balanced

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approach to dealing
with the fiscal cliff.

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Because he will not accept a
deal that has specific cuts in

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spending, specific cuts in
entitlement programs that asks

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middle-class Americans, seniors,
college students who need loans,

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families with disabled children
to sacrifice, to pay a price,

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on the one hand,
and the promise --

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the vague promise, the
unspecified promise --

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of some magical revenue that
will appear from wealthier

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Americans in the future.

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That is not a deal this
President will sign.

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The Press:
I understand the process and I
understand what the White House

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is looking for from Republicans.

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But I'm asking about the
President's position,

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a yes or no question.

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Is it his position that the top
tax rate has to go to 39.6 on

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January 1?

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Mr. Carney:
It's his position that he will
not sign an extension of the

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Bush-era tax cuts for
wealthy Americans.

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Those tax cuts have rates
for top earners at 35%.

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If you do not sign an extension,
the rates go back up to 39.6,

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the top rate.

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That is a fact.

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Secondly, he has not
seen a single proposal --

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he has not seen a single
acknowledgement that a proposal

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is necessary or will be
forthcoming from Republicans

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that even allows for the
essential fact that rates have

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to go up on top earners as
part of a balanced deal.

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So we are now where
we are in December,

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and we need Congress --
Republican leaders in Congress

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-- to be serious about what the
parameters of a deal look like.

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And the only obstacle, or the
major obstacle to an agreement,

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is this refusal to acknowledge
that rates have to go up.

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Because once Republicans do do
that, the President believes --

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we believe -- that the contours
of an agreement are pretty

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evident and an agreement
could be reached.

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The President has made clear he
is willing to move off of his

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proposal, that he's not wedded
to every detail of his plan.

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And he has acknowledged in
advance that he will have to

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make tough choices and
the Democrats won't get

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everything they want.

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But on the fundamental issue of
balance and where revenues have

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to come from, Republicans need
to acknowledge reality here,

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because rates have to go up.

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That has been a debate that
was explicitly engaged in

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throughout the year.

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It is a policy position
the President has held

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for four years.

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It comes as news to no
one on Capitol Hill,

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no one out there in the country,
that this is his position.

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It's a position that's
supported by a majority of the

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American people.

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And we need to see from
Republicans an acknowledgement

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of that and a willingness
to work together towards a

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compromise that includes
revenues that meet the basic

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test of fairness and balance.

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The Press:
It still sounds like --

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Mr. Carney:
I'm not going to negotiate
the fine details.

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I think we went
through this before.

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The Press:
I understand that, but --

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Mr. Carney:
Is it 39.8 or is it --
I mean, that's not --

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the point is the only proposals
that are on the table are ones

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who extend middle class tax cuts
for 98% of the American people.

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The only obstacle to that
becoming law is a refusal of

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Republican leaders to allow a
vote take place in the House on

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the Senate bill.

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That could happen tomorrow;
the President would sign

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it tomorrow.

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It would send great certainty
to the American people,

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middle-class Americans.

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It would be a great relief
to business leaders,

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especially retailers around the
country who want to ensure that

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consumers out there have
the money to spend at

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their businesses.

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And it would send a signal
broadly to the American people

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that we can take action on the
things at the very least that we

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agree on.

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We sign those into law, those
tax cuts for 98% of the American

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people, tax rates return to what
they were for the high-income

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Americans in the Clinton era.

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When while I saw a prominent
Republican senator declare that

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raising taxes on wealthy
Americans would cause economic

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Armageddon, we know from
experience that that is actually

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not the case, and we know from
the Clinton budget in 1993 what

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the result of that budget deal
was and the decisions made then

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-- the result was the longest
peacetime economic expansion in

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our lifetimes.

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And the result of it was a
situation where President

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Clinton inherited deficits
and passed on to his successor

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budget surpluses.

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The Press:
I'll wrap with this.

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On the -- if you look at this
debate right now from outside

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Washington, it's very easy to
see that this looks like a

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version of the default crisis,
the government shutdown crisis,

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in which it's going to
play out to the end.

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It will come down to a deadline.

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Both sides are not just
making their positions,

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but they're campaigning.

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Is this good
government right now?

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Mr. Carney:
It's not good government for one
party in Congress to refuse to

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acknowledge what a
compromise has to include,

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a compromised position that
is not just the President's

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position, is not just the
Democratic Party's position,

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but it's the position of the
majority of the American people.

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I mean, I think we've seen data
again today that reinforced that

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fundamental fact.

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And it's certainly
not good government --

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the reference you made to
our debt ceiling debacle --

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to even hint at the possibility
of holding the American economy

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hostage again to the ideological
whims of one wing of one party

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in Congress.

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That's unacceptable.

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Congress has its responsibility:
payment of bills that the United

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States incurs because
Congress passes bills that

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incur those debts.

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Congress has to raise the debt
ceiling and do it without drama.

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It should be part of this deal.

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It should be done.

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And you talk about something
that causes heartburn among

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America's businessmen and women,
and that is the prospect that we

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would engage in those
kinds of shenanigans.

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Again, that's unacceptable.

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The Press:
Jay, speaking of
the debt ceiling,

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does an agreement to raise the
debt ceiling have to be part of

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an agreement to avert
the fiscal cliff?

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Mr. Carney:
We're not going to negotiate
over what is a fundamental

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responsibility of Congress,
which is to pay the bills that

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Congress incurred.

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It should be part of the deal.

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It should be done and it
should be done without drama.

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We cannot allow our economy to
be held hostage again to the

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whims of an ideological agenda.

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We are the United
States of America.

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We are the greatest
economy on Earth.

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We pay our bills.

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We always have.

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If Congress wants
to reduce spending,

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that should be part of the
negotiations that go into making

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decisions about how we spend --
the programs we spend money on.

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And the President is very
interested in reducing spending

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and in reducing our deficits.

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But you don't default
on the economy.

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We saw what happened in
2011, and it's unacceptable.

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The Press:
Did the President have a chance
to speak to any Republicans last

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night at the reception here
about the fiscal cliff?

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Mr. Carney:
I won't read out conversations.

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The President and the First Lady
met with scores and scores of

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lawmakers last night, as is the
norm in a situation like this.

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But I'm not going to read
out individual conversations.

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The Press:
And Speaker Boehner was not
one of them, is that right?

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Mr. Carney:
I've seen it reported that
Speaker Boehner was not part of

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the receiving line, but the
President has conversations with

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Speaker Boehner with some
regularity and looks forward to

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speaking with him again.

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The Press:
Last question, then --
both sides have now given

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their proposals.

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You've said what you need to
see from the Republican side.

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What in terms of process
now is the next step?

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Mr. Carney:
Well, conversations continue
between our team and lawmakers

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and their teams.

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The President will continue
to have conversations as well.

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I don't have any to preview
for you or read out to you.

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And those conversations will
encompass not just leaders of

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Congress, but business leaders
and civic leaders and governors

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and others who have a stake in
the process and the outcome of

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these negotiations.

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But as Secretary Geithner
said over the weekend,

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as I think President Obama
conveyed in his interview

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earlier today with Bloomberg TV,
he remains confident that we can

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get this done.

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He remains optimistic that once
Republicans accept that there is

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no deal without an
acknowledgment and an acceptance

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00:12:56,861 --> 00:12:58,828
that rates have to go
up on high-end earners,

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00:12:58,828 --> 00:13:04,194
that we can find a compromise
here that resolves the fiscal

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00:13:04,194 --> 00:13:11,127
cliff and takes a very important
step towards the kind of broad

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00:13:11,127 --> 00:13:14,026
balanced deficit reduction
package that will do enormous

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00:13:14,027 --> 00:13:17,928
good to our economy --
and the kind of package,

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00:13:17,928 --> 00:13:21,361
I should not leave out, that
includes targeted investments so

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00:13:21,361 --> 00:13:24,795
that our economy continues
to grow and create jobs.

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00:13:24,795 --> 00:13:26,761
As I've said I think on
a number of occasions,

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00:13:26,761 --> 00:13:28,828
deficit reduction in and
of itself is not a goal.

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00:13:28,828 --> 00:13:32,828
It should be part of an economic
plan that is focused on economic

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00:13:32,828 --> 00:13:36,294
growth and job creation,
as the President is very

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00:13:36,294 --> 00:13:37,261
focused on that.

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00:13:37,261 --> 00:13:38,895
Jake.

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00:13:38,895 --> 00:13:40,661
The Press:
Just a second ago,
you referred to,

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00:13:40,661 --> 00:13:42,328
when talking about
the debt ceiling,

257
00:13:42,328 --> 00:13:45,560
taking it off the table
needs to be part of the deal.

258
00:13:45,561 --> 00:13:48,695
You referred to the economy
being held hostage by an

259
00:13:48,695 --> 00:13:49,695
ideological view.

260
00:13:49,695 --> 00:13:51,428
You're aware that
when he was a senator,

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00:13:51,428 --> 00:13:53,994
President Obama voted
against raising it.

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00:13:53,994 --> 00:13:56,328
Mr. Carney:
We addressed that and there
was no threat of default

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00:13:56,328 --> 00:13:57,328
at the time.

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00:13:57,328 --> 00:14:00,861
What happened in 2011
-- as we all know,

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00:14:00,861 --> 00:14:03,428
because we all lived it,
most of us in this room --

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00:14:03,428 --> 00:14:09,294
was the threat of default, a
willingness expressed on the

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00:14:09,294 --> 00:14:14,328
record and publicly by numerous
members of Congress to see the

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00:14:14,328 --> 00:14:20,461
American economy under default
and with all the consequent

269
00:14:20,461 --> 00:14:26,394
impacts on the global economy
and on the American middle class

270
00:14:26,394 --> 00:14:30,895
in order to achieve some sort
of political victory that was

271
00:14:30,895 --> 00:14:33,561
driven by ideology
and partisanship.

272
00:14:33,561 --> 00:14:38,728
And that was enormously
damaging to the economy,

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00:14:38,728 --> 00:14:40,728
to consumer confidence.

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00:14:40,728 --> 00:14:42,661
We were downgraded, famously.

275
00:14:42,661 --> 00:14:47,828
And it is a testament to the
American people and the American

276
00:14:47,828 --> 00:14:53,461
economy, American business and
some of the success we have had

277
00:14:53,461 --> 00:14:56,161
working with Congress that
we have been able to rebound.

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00:14:56,161 --> 00:14:58,428
The economy continues
to grow and create jobs.

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00:14:58,428 --> 00:15:01,961
But the fact is that was a
self-inflicted wound and we

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00:15:01,961 --> 00:15:04,561
can't have that kind
of nonsense anymore.

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00:15:04,561 --> 00:15:07,761
The Press:
So it's okay for people
to engage in that kind of

282
00:15:07,761 --> 00:15:10,161
nonsense if it's --

283
00:15:10,161 --> 00:15:13,493
Mr. Carney:
Jake, I appreciate the question,
and we engaged in this a lot at

284
00:15:13,494 --> 00:15:17,428
the time and I refer you to my
comments about it back then.

285
00:15:17,428 --> 00:15:18,594
But the fact that --

286
00:15:18,594 --> 00:15:20,994
The Press:
-- people voting the way that
Senator Obama did and except

287
00:15:20,994 --> 00:15:22,661
you're using derisive terms --

288
00:15:22,661 --> 00:15:27,460
Mr. Carney:
What happened in 2011 is that
Republicans in Congress demanded

289
00:15:27,461 --> 00:15:30,027
-- said they would let America
default for the first time in

290
00:15:30,027 --> 00:15:34,861
its history if they did not
get the items on their agenda.

291
00:15:34,861 --> 00:15:37,394
That was consequential
and it was unprecedented,

292
00:15:37,394 --> 00:15:40,628
and the result was
bad for everyone.

293
00:15:40,628 --> 00:15:42,528
The Press:
Anyway, moving on
-- a few weeks ago,

294
00:15:42,528 --> 00:15:44,561
the Committee for a
Responsible Federal Budget,

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00:15:44,561 --> 00:15:48,261
which is a bipartisan group that
includes a lot of Democrats that

296
00:15:48,261 --> 00:15:52,795
the President consults with,
including Laura Tyson and Alice

297
00:15:52,795 --> 00:15:58,361
Rivlin and others, they put out
a paper on raising revenue from

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00:15:58,361 --> 00:16:00,294
high earners.

299
00:16:00,294 --> 00:16:03,461
They say that there's a middle
ground in which Democrats can

300
00:16:03,461 --> 00:16:04,728
raise revenues
from high earners,

301
00:16:04,728 --> 00:16:06,928
Republicans can
avoid rate increases,

302
00:16:06,928 --> 00:16:08,127
the same amount of revenue.

303
00:16:08,127 --> 00:16:10,294
You just don't agree
with their number?

304
00:16:10,294 --> 00:16:11,694
Mr. Carney:
Well, I'm saying that
independent economists have

305
00:16:11,695 --> 00:16:12,895
assessed that.

306
00:16:12,895 --> 00:16:14,795
And you can add up
the numbers on paper,

307
00:16:14,795 --> 00:16:17,328
but when you talk about wiping
out the charitable deduction,

308
00:16:17,328 --> 00:16:18,328
it's not plausible.

309
00:16:18,328 --> 00:16:21,861
When you talk about cutting into
the mortgage deduction in a way

310
00:16:21,861 --> 00:16:24,328
that taxes
middle-class Americans,

311
00:16:24,328 --> 00:16:26,861
that violates a very fundamental
principle that the President

312
00:16:26,861 --> 00:16:31,227
has, which is this should not --
in order to preserve low taxes,

313
00:16:31,227 --> 00:16:33,728
low tax rates for
wealthy Americans,

314
00:16:33,728 --> 00:16:38,361
to ask the middle class to
pay the price is not going

315
00:16:38,361 --> 00:16:39,294
to happen.

316
00:16:39,294 --> 00:16:41,061
It's just not good policy.

317
00:16:41,061 --> 00:16:45,127
The Press:
This is talking about only taxes
on those families making more

318
00:16:45,127 --> 00:16:46,294
than $250,000.

319
00:16:46,294 --> 00:16:47,294
Mr. Carney:
I would have to look
at that proposal.

320
00:16:47,294 --> 00:16:49,394
But every proposal that we have
seen and every proposal that has

321
00:16:49,394 --> 00:16:52,294
been analyzed that imagines that
you can achieve the necessary

322
00:16:52,294 --> 00:16:56,761
amount of revenue from simply
closing deductions or --

323
00:16:56,761 --> 00:17:01,294
capping deductions or closing
loopholes does that in one of

324
00:17:01,294 --> 00:17:08,560
two ways: one, raising taxes on
the middle class by limiting

325
00:17:08,560 --> 00:17:13,060
very family-friendly deductions
like the mortgage deduction or

326
00:17:13,060 --> 00:17:14,360
health care
deduction and others,

327
00:17:14,361 --> 00:17:21,194
or by taking Draconian action on
charitable deductions or others

328
00:17:21,194 --> 00:17:25,060
that just aren't good policy
or aren't politically feasible

329
00:17:25,060 --> 00:17:26,060
or realistic.

330
00:17:26,060 --> 00:17:27,093
It would be hard to explain.

331
00:17:27,094 --> 00:17:28,895
I don't think members of
Congress of either party would

332
00:17:28,895 --> 00:17:32,461
want to explain to
nonprofit hospitals,

333
00:17:32,461 --> 00:17:35,027
major charities or
non-major charities,

334
00:17:35,027 --> 00:17:40,895
universities and others that
all the contributions that they

335
00:17:40,895 --> 00:17:44,761
received in the past will not be
forthcoming because of inaction

336
00:17:44,761 --> 00:17:45,860
of Congress.

337
00:17:45,861 --> 00:17:49,094
I just don't think
that's realistic.

338
00:17:49,094 --> 00:17:50,227
The Press:
One last question -- I'm sorry.

339
00:17:50,227 --> 00:17:56,161
If the amount of revenue were
the same as raising rates,

340
00:17:56,161 --> 00:17:57,361
does it matter?

341
00:17:57,361 --> 00:18:01,461
As long as the revenue is being
raised from wealthier Americans

342
00:18:01,461 --> 00:18:03,961
with the stipulation that
there's this one deduction that

343
00:18:03,961 --> 00:18:05,795
you don't want to take
away for charitable --

344
00:18:05,795 --> 00:18:07,261
Mr. Carney:
It is not just one.

345
00:18:07,261 --> 00:18:09,428
I'm using one as an example.

346
00:18:09,428 --> 00:18:14,561
I'm happy to provide a more
detailed response to your

347
00:18:14,561 --> 00:18:16,127
questions about this
particular proposal.

348
00:18:16,127 --> 00:18:17,828
But we have not seen
-- and no outside,

349
00:18:17,828 --> 00:18:19,261
independent economists
have seen --

350
00:18:19,261 --> 00:18:22,461
a credible proposal that says
you can achieve the kind of

351
00:18:22,461 --> 00:18:25,594
revenues that are necessary
for a balanced approach just by

352
00:18:25,594 --> 00:18:29,761
closing loopholes or
capping deductions.

353
00:18:29,761 --> 00:18:32,961
The Press:
A while ago, you said
conversations continue on the

354
00:18:32,961 --> 00:18:33,828
fiscal cliff.

355
00:18:33,828 --> 00:18:37,394
But a senior GOP aide tells
CNN that there are no talks,

356
00:18:37,394 --> 00:18:40,761
no private communications
of any kind right now --

357
00:18:40,761 --> 00:18:43,594
no back channels, no emails
going back and forth.

358
00:18:43,594 --> 00:18:47,294
So if this is the
case, how can you --

359
00:18:47,294 --> 00:18:49,661
Mr. Carney:
So somebody on background
told you that?

360
00:18:49,661 --> 00:18:51,061
I just want to point
out that we do not --

361
00:18:51,061 --> 00:18:52,695
can I just say in answer
to your question --

362
00:18:52,695 --> 00:18:53,828
The Press:
This is more than
just one person, now.

363
00:18:53,828 --> 00:18:55,027
It's at least three
people who have said that.

364
00:18:55,027 --> 00:18:58,027
Mr. Carney:
We do not schedule meetings
for the press and we do not

365
00:18:58,027 --> 00:18:59,194
negotiate through the press.

366
00:18:59,194 --> 00:19:05,161
We do not, for example, give the
press our proposals before we

367
00:19:05,161 --> 00:19:06,628
give them to the Republicans.

368
00:19:06,628 --> 00:19:07,593
The Press:
I'm not asking for proposals --

369
00:19:07,594 --> 00:19:10,628
Mr. Carney:
We do not go to meetings
with proposals and leak them

370
00:19:10,628 --> 00:19:13,093
afterwards, or take proposals
from the other side and leak

371
00:19:13,094 --> 00:19:14,795
them to the press.

372
00:19:14,795 --> 00:19:16,594
That's not the way
we're operating here.

373
00:19:16,594 --> 00:19:18,994
I can guarantee you that
conversations continue at

374
00:19:18,994 --> 00:19:21,127
different levels among
different groups.

375
00:19:21,127 --> 00:19:25,194
Whether there are emails beings
exchanged at this moment I

376
00:19:25,194 --> 00:19:26,194
cannot say.

377
00:19:26,194 --> 00:19:28,127
But, broadly speaking, there
are conversations taking place.

378
00:19:28,127 --> 00:19:32,027
The President met with dozens,
scores of lawmakers last night

379
00:19:32,027 --> 00:19:33,594
and had conversations.

380
00:19:33,594 --> 00:19:36,828
I'm not going to get into the
details of the conversations.

381
00:19:36,828 --> 00:19:38,928
It's inconceivable to me that
nobody mentioned the fiscal

382
00:19:38,928 --> 00:19:41,261
cliff, but I wasn't
present for all of them.

383
00:19:41,261 --> 00:19:42,561
The Press:
He talked with the governors.

384
00:19:42,561 --> 00:19:45,160
Mr. Carney:
I'm talking about the numerous
lawmakers who were in the White

385
00:19:45,161 --> 00:19:46,161
House last night.

386
00:19:46,161 --> 00:19:47,895
The Press:
Because it's not just one.

387
00:19:47,895 --> 00:19:49,394
We have at least three
who are saying --

388
00:19:49,394 --> 00:19:53,828
Mr. Carney:
I think I answered -- I
understand the desire to try to

389
00:19:53,828 --> 00:19:55,795
negotiate these things
through the press,

390
00:19:55,795 --> 00:19:59,161
but we prefer to do it directly.

391
00:19:59,161 --> 00:20:02,928
The Press:
On Iran and this drone that they
claim was a U.S. drone that they

392
00:20:02,928 --> 00:20:05,294
shot down, can you give us
any more information on that?

393
00:20:05,294 --> 00:20:08,461
I know the Navy has said
it's not one of theirs.

394
00:20:08,461 --> 00:20:10,161
Perhaps it's a CIA drone.

395
00:20:10,161 --> 00:20:11,027
I don't know.

396
00:20:11,027 --> 00:20:14,194
Is there anything that you
can tell us about the drone?

397
00:20:14,194 --> 00:20:18,394
Mr. Carney:
I can tell you that we have no
evidence that the Iranian claims

398
00:20:18,394 --> 00:20:21,661
you cite are true.

399
00:20:21,661 --> 00:20:24,294
I'd refer you to the Pentagon's
comments this morning for

400
00:20:24,294 --> 00:20:28,094
details about this
particular type of UAV.

401
00:20:28,094 --> 00:20:30,328
But, again, we have no
evidence that the Iranian

402
00:20:30,328 --> 00:20:31,661
claims are true.

403
00:20:31,661 --> 00:20:35,261
The Press:
How do you view, though, the
fact that they have shot down

404
00:20:35,261 --> 00:20:37,328
some drone, whether
it's U.S. or not?

405
00:20:37,328 --> 00:20:38,761
Mr. Carney:
Again, we have no evidence that
the Iranian claims are true.

406
00:20:38,761 --> 00:20:43,594
I'm not going to comment on
something about which we have no

407
00:20:43,594 --> 00:20:46,528
evidence in its truthfulness.

408
00:20:46,528 --> 00:20:47,528
Yes?

409
00:20:47,528 --> 00:20:48,328
The Press:
Jay, thanks.

410
00:20:48,328 --> 00:20:50,261
I want to go back to something
that the President was asked

411
00:20:50,261 --> 00:20:52,594
about during his
interview with Bloomberg.

412
00:20:52,594 --> 00:20:54,661
He was just asked about the fact
that during his negotiations

413
00:20:54,661 --> 00:20:58,194
with Speaker Boehner a year ago,
he seemed willing to consider

414
00:20:58,194 --> 00:21:00,961
increasing the eligibility age
for Medicare recipients and

415
00:21:00,961 --> 00:21:03,161
slowing benefit increases
for entitlements.

416
00:21:03,161 --> 00:21:05,428
And he said he was willing
to look at anything that

417
00:21:05,428 --> 00:21:07,127
strengthens our system.

418
00:21:07,127 --> 00:21:08,127
So can you clarify?

419
00:21:08,127 --> 00:21:10,895
Are those proposals that
could strengthen the system?

420
00:21:10,895 --> 00:21:13,161
Is that what he was signaling?

421
00:21:13,161 --> 00:21:16,294
Mr. Carney:
I will say a couple of things
that build on and echo what the

422
00:21:16,294 --> 00:21:18,494
President said today and
has said in the past.

423
00:21:18,494 --> 00:21:22,360
We have put forward substantial
and specific savings in

424
00:21:22,361 --> 00:21:27,428
entitlement programs, both
health care entitlements and

425
00:21:27,428 --> 00:21:31,094
non-health care mandatories,
to use budgetspeak,

426
00:21:31,094 --> 00:21:35,194
including farm subsidy
programs and others.

427
00:21:35,194 --> 00:21:38,628
As I said, those savings are
substantial and specific.

428
00:21:38,628 --> 00:21:43,461
The President has said and
continues to say that in

429
00:21:43,461 --> 00:21:47,561
negotiations with Congress
over the spending side,

430
00:21:47,561 --> 00:21:49,660
the spending cut
side of this package,

431
00:21:49,661 --> 00:21:53,728
he wants to hear other
ideas and from all sides --

432
00:21:53,728 --> 00:21:55,695
Republicans and Democrats
and from the outside --

433
00:21:55,695 --> 00:21:57,860
and is willing to
entertain all ideas.

434
00:21:57,861 --> 00:22:00,394
And he has said that he knows he
will not get everything that he

435
00:22:00,394 --> 00:22:03,394
wants, he will not get every
item in his proposal and that he

436
00:22:03,394 --> 00:22:04,628
will have to make
tough decisions.

437
00:22:04,628 --> 00:22:09,494
I'm not going to negotiate
specific items that may or may

438
00:22:09,494 --> 00:22:11,660
not be discussed or put forward.

439
00:22:11,661 --> 00:22:13,628
I will say, as I did the other
day -- I think, yesterday --

440
00:22:13,628 --> 00:22:15,561
about the two that
you mentioned,

441
00:22:15,561 --> 00:22:17,428
that those two in
and of themselves,

442
00:22:17,428 --> 00:22:20,461
the savings contained --
projected by taking those two

443
00:22:20,461 --> 00:22:23,061
measures are significantly less
than the savings the President

444
00:22:23,061 --> 00:22:24,394
has put forward.

445
00:22:24,394 --> 00:22:27,428
Again, I'm not ruling in or
out discussions about any

446
00:22:27,428 --> 00:22:28,795
serious proposal.

447
00:22:28,795 --> 00:22:31,861
But my point is the President
has demonstrated with

448
00:22:31,861 --> 00:22:38,194
specificity and seriousness that
he is willing to take steps to

449
00:22:38,194 --> 00:22:40,761
garner savings from our
entitlement programs,

450
00:22:40,761 --> 00:22:43,728
including our health care
entitlement programs.

451
00:22:43,728 --> 00:22:48,261
He has put forward specific
proposals for savings and

452
00:22:48,261 --> 00:22:51,027
deficit reduction through
increased revenues.

453
00:22:51,027 --> 00:22:55,127
What we haven't seen from
Republicans is specificity at

454
00:22:55,127 --> 00:22:59,494
all when it comes to revenues,
or either an acknowledgement the

455
00:22:59,494 --> 00:23:01,961
rates have to be part of it,
or any specificity at all --

456
00:23:01,961 --> 00:23:04,294
just one sentence about
closing loopholes and

457
00:23:04,294 --> 00:23:05,294
capping deductions.

458
00:23:05,294 --> 00:23:11,027
And, in fact, the proposal offer
that the Speaker put forward

459
00:23:11,027 --> 00:23:13,628
says that they want to
lower rates for the wealthy;

460
00:23:13,628 --> 00:23:16,660
not just leave them
alone, but lower them.

461
00:23:16,661 --> 00:23:20,561
Secondly, while there has
been a little more detail from

462
00:23:20,561 --> 00:23:24,261
Republicans on
entitlement reform,

463
00:23:24,261 --> 00:23:25,728
we're not going to do
one without the other.

464
00:23:25,728 --> 00:23:30,294
The President has been very
clear that we are not going to

465
00:23:30,294 --> 00:23:36,194
sign on to a deal that locks in
sacrifice from the middle class,

466
00:23:36,194 --> 00:23:41,461
that locks in sacrifice from
senior citizens or families with

467
00:23:41,461 --> 00:23:44,428
disabled children
on the one hand,

468
00:23:44,428 --> 00:23:51,928
and then has as its other
element a vague promise of tax

469
00:23:51,928 --> 00:23:55,695
reform and closure of loopholes
that may or may not produce

470
00:23:55,695 --> 00:23:57,360
revenue from the wealthy.

471
00:23:57,361 --> 00:23:58,561
You know why?

472
00:23:58,561 --> 00:24:02,428
Because whenever that happens,
the middle class is left

473
00:24:02,428 --> 00:24:03,461
holding the bag.

474
00:24:03,461 --> 00:24:05,895
The Press:
But on that specific point,
are those two points a

475
00:24:05,895 --> 00:24:06,895
possible compromise?

476
00:24:06,895 --> 00:24:10,293
Mr. Carney:
Well, I think I just said the
President is willing to discuss

477
00:24:10,294 --> 00:24:12,528
serious proposals put forward --

478
00:24:12,528 --> 00:24:13,461
The Press:
So, yes?

479
00:24:13,461 --> 00:24:15,194
Mr. Carney:
Well, I'm not going to
negotiate on any specific --

480
00:24:15,194 --> 00:24:16,494
I'm not saying yes or no.

481
00:24:16,494 --> 00:24:18,093
I'm just saying that the
President looks forward to

482
00:24:18,094 --> 00:24:22,961
negotiating and discussing
specific serious proposals for

483
00:24:22,961 --> 00:24:26,528
spending cuts, including cuts in
health care entitlement programs

484
00:24:26,528 --> 00:24:31,461
that might be put forward
by Republicans or Democrats.

485
00:24:31,461 --> 00:24:36,528
But there is no deal to be had
on the spending side without an

486
00:24:36,528 --> 00:24:39,695
acknowledgement and an
acceptance by Republican leaders

487
00:24:39,695 --> 00:24:42,528
that rates have to go up on
top earners as part of a

488
00:24:42,528 --> 00:24:43,594
balanced approach.

489
00:24:43,594 --> 00:24:45,994
The Press:
The President also said that he
didn't think it was possible to

490
00:24:45,994 --> 00:24:48,895
get a comprehensive reform
package on taxes and

491
00:24:48,895 --> 00:24:51,094
entitlements in
the next two weeks,

492
00:24:51,094 --> 00:24:53,261
that that would essentially need
to be done within the next year.

493
00:24:53,261 --> 00:24:57,161
And I guess the question is what
would be included in this plan

494
00:24:57,161 --> 00:24:59,394
that would compel Congress to
act in a year when they haven't

495
00:24:59,394 --> 00:25:02,061
been able to make some of
those tough decisions up

496
00:25:02,061 --> 00:25:03,226
until this point?

497
00:25:03,227 --> 00:25:07,761
Mr. Carney:
Well, there's a long history of
mechanisms that are set up in

498
00:25:07,761 --> 00:25:11,494
this way, including under
President Reagan and others.

499
00:25:11,494 --> 00:25:16,360
And I think if there's one area
of agreement that we've seen

500
00:25:16,361 --> 00:25:19,094
between Republicans and
Democrats and the White House on

501
00:25:19,094 --> 00:25:23,094
how we would move forward
structurally here in terms of

502
00:25:23,094 --> 00:25:27,861
the framework, it is that it
would have that sort of two-step

503
00:25:27,861 --> 00:25:32,895
aspect to it that -- a part that
would we lock in before the end

504
00:25:32,895 --> 00:25:35,194
of the year here and a
part that would be further

505
00:25:35,194 --> 00:25:36,795
negotiated next year.

506
00:25:36,795 --> 00:25:41,661
The Press:
Would it be another
version of a sequester?

507
00:25:41,661 --> 00:25:45,061
Mr. Carney:
I'm not going to get into the
details of a deal that has not

508
00:25:45,061 --> 00:25:47,394
been negotiated.

509
00:25:47,394 --> 00:25:50,294
But I think there are a variety
of ways that you could do this

510
00:25:50,294 --> 00:25:53,428
as envisioned I think by both
Republicans and Democrats.

511
00:25:53,428 --> 00:25:55,127
The Press:
And one on Syria, Jay.

512
00:25:55,127 --> 00:25:58,428
Yesterday, you, the President,
Secretary of State talked about

513
00:25:58,428 --> 00:26:02,294
the increased concern
over Assad's actions.

514
00:26:02,294 --> 00:26:04,795
Given this increased concern,
has the President and the

515
00:26:04,795 --> 00:26:07,761
Secretary of State started to
more seriously consider arming

516
00:26:07,761 --> 00:26:12,261
the rebels, no-fly zone, any
of those other alternatives?

517
00:26:12,261 --> 00:26:19,261
Mr. Carney:
Our position on that
issue has not changed,

518
00:26:19,261 --> 00:26:22,226
but we think it is important
to prepare for all scenarios.

519
00:26:22,227 --> 00:26:24,561
Contingency planning is the
responsible thing to do,

520
00:26:24,561 --> 00:26:27,561
and we are also actively
consulting with friends and

521
00:26:27,561 --> 00:26:31,628
allies and the
opposition on this issue.

522
00:26:31,628 --> 00:26:35,695
But we continue to believe that
a political resolution is the

523
00:26:35,695 --> 00:26:37,828
best resolution in Syria.

524
00:26:37,828 --> 00:26:39,860
The Press:
Do you have any indication
that Assad got the President's

525
00:26:39,861 --> 00:26:42,461
message yesterday
and took it to heart,

526
00:26:42,461 --> 00:26:44,294
and that the
government forces did?

527
00:26:44,294 --> 00:26:46,728
Mr. Carney:
Well, I mean, I didn't obviously
have any direct conversations

528
00:26:46,728 --> 00:26:49,361
with members of the --
I haven't seen any --

529
00:26:49,361 --> 00:26:51,561
it would be hard for me to
imagine that they're not fully

530
00:26:51,561 --> 00:26:53,461
aware of the seriousness of the
President's position on this,

531
00:26:53,461 --> 00:27:00,061
the seriousness with which we
would take the prospect of the

532
00:27:00,061 --> 00:27:02,494
use of chemical weapons.

533
00:27:02,494 --> 00:27:06,695
And I think that message was
delivered very clearly by the

534
00:27:06,695 --> 00:27:09,994
President, by others in the
administration and others

535
00:27:09,994 --> 00:27:11,628
around the world.

536
00:27:11,628 --> 00:27:16,593
So we continue to say that
if the Assad regime makes the

537
00:27:16,594 --> 00:27:18,661
tragic mistake of
using chemical weapons,

538
00:27:18,661 --> 00:27:21,895
or fails to meet their
obligations to secure chemical

539
00:27:21,895 --> 00:27:24,594
weapons, there will
be consequences,

540
00:27:24,594 --> 00:27:27,761
and the regime will
be held accountable.

541
00:27:27,761 --> 00:27:29,127
The Press:
Can I follow up on that, Jay?

542
00:27:29,127 --> 00:27:30,027
Mr. Carney:
Sure.

543
00:27:30,027 --> 00:27:31,027
The Press:
You've got a loophole there.

544
00:27:31,027 --> 00:27:34,161
Are you saying that they have to
use the weapons first before the

545
00:27:34,161 --> 00:27:35,728
world can do anything?

546
00:27:35,728 --> 00:27:38,895
Preparations to make
sarin gas are not enough?

547
00:27:38,895 --> 00:27:41,494
Mr. Carney:
I will just repeat
what I said, Connie.

548
00:27:41,494 --> 00:27:44,160
If the Assad regime makes the
tragic mistake of using chemical

549
00:27:44,161 --> 00:27:48,328
weapons or fails to meet their
obligations to secure them,

550
00:27:48,328 --> 00:27:50,360
there will be consequences
and the regime will be

551
00:27:50,361 --> 00:27:51,494
held accountable.

552
00:27:51,494 --> 00:27:53,360
The President spoke about
this very explicitly --

553
00:27:53,361 --> 00:27:54,661
we had this conversation
yesterday --

554
00:27:54,661 --> 00:27:58,994
about another component
of this is proliferation.

555
00:27:58,994 --> 00:28:04,226
So it's either use by Syria or
proliferation of its chemical

556
00:28:04,227 --> 00:28:06,994
weapons stockpiles.

557
00:28:06,994 --> 00:28:08,528
Ed.

558
00:28:08,528 --> 00:28:10,394
The Press:
You said earlier on the fiscal
cliff that the President is

559
00:28:10,394 --> 00:28:12,227
focused on economic growth.

560
00:28:12,227 --> 00:28:16,494
I think in answer to Ben you
said it's economically important

561
00:28:16,494 --> 00:28:18,593
to raise these tax
rates on the rich.

562
00:28:18,594 --> 00:28:21,328
I seem to recall when the
President extended all the Bush

563
00:28:21,328 --> 00:28:25,795
tax rates in 2010, one of his
reasons publicly was that you

564
00:28:25,795 --> 00:28:28,194
don't raise taxes in the
middle of a downturn.

565
00:28:28,194 --> 00:28:30,695
So given the fact that the
economy is still coming along to

566
00:28:30,695 --> 00:28:32,828
the point that you want to
stimulate it with some new

567
00:28:32,828 --> 00:28:36,127
spending, what's the economic
justification for raising

568
00:28:36,127 --> 00:28:38,494
taxes right now?

569
00:28:38,494 --> 00:28:43,026
Mr. Carney:
The fact of the matter is that
it is vitally important that we

570
00:28:43,027 --> 00:28:44,695
extend and, in the
President's view,

571
00:28:44,695 --> 00:28:49,093
make permanent tax cuts for
98% of the American people.

572
00:28:49,094 --> 00:28:52,695
The President would like to see
that done tomorrow and would

573
00:28:52,695 --> 00:28:54,428
sign it right away.

574
00:28:54,428 --> 00:28:57,227
The only obstacle here is the
refusal of Republicans in the

575
00:28:57,227 --> 00:28:59,027
House to accept that premise.

576
00:28:59,027 --> 00:29:04,194
Secondly, while we are
continuing to dig ourselves out

577
00:29:04,194 --> 00:29:07,528
of the mess of the
Great Recession,

578
00:29:07,528 --> 00:29:10,394
the economy has continued to
grow and has continued to

579
00:29:10,394 --> 00:29:11,394
create jobs.

580
00:29:11,394 --> 00:29:13,227
But it is certainly the
President's position that you

581
00:29:13,227 --> 00:29:17,594
have to address this broader
deficit reduction goal in a way

582
00:29:17,594 --> 00:29:22,728
that does not achieve deficit
reduction as a goal unto itself,

583
00:29:22,728 --> 00:29:25,227
and in a way that harms the
economy or harms growth.

584
00:29:25,227 --> 00:29:29,194
In fact, the only reason why
we're having this discussion

585
00:29:29,194 --> 00:29:31,628
about the fiscal cliff is
because I think there is a

586
00:29:31,628 --> 00:29:39,994
shared concern about the impact
of tax hikes of the magnitude

587
00:29:39,994 --> 00:29:42,328
that would result if you don't
extend tax cuts for the middle

588
00:29:42,328 --> 00:29:45,795
class and across-the-board
spending cuts of the size

589
00:29:45,795 --> 00:29:49,561
envisioned in the sequester
on the economy because that is

590
00:29:49,561 --> 00:29:58,593
using an unfair and blunt
device to reduce our deficit.

591
00:29:58,594 --> 00:30:01,494
So we need to do this
in a balanced way.

592
00:30:01,494 --> 00:30:05,394
And what economists universally
agree is that tax cuts for

593
00:30:05,394 --> 00:30:11,795
middle-class Americans, tax cuts
for 97% of small businesses have

594
00:30:11,795 --> 00:30:16,127
far greater positive economic
impact than tax cuts for the

595
00:30:16,127 --> 00:30:20,961
wealthiest of Americans because
the tax cuts to ordinary folks

596
00:30:20,961 --> 00:30:25,328
tend to go right back into the
economy in the most immediate

597
00:30:25,328 --> 00:30:26,795
and beneficial way.

598
00:30:26,795 --> 00:30:31,127
And I think that -- it is
important every time we talk

599
00:30:31,127 --> 00:30:35,194
about this debate that we
are talking about 98% of the

600
00:30:35,194 --> 00:30:39,494
American people -- 98%.

601
00:30:39,494 --> 00:30:44,494
And 100% of the American
people -- Warren Buffett,

602
00:30:44,494 --> 00:30:47,961
Mark Zuckerberg, everybody would
get a tax cut if the tax cuts

603
00:30:47,961 --> 00:30:51,795
are extended for the top 98%.

604
00:30:51,795 --> 00:30:54,695
They would just pay more
on income above $250,000.

605
00:30:54,695 --> 00:30:56,593
But they would benefit
from lower rates on income

606
00:30:56,594 --> 00:30:57,895
below $250,000.

607
00:30:57,895 --> 00:30:59,661
So, Ed, maybe you make $300,000.

608
00:30:59,661 --> 00:31:00,428
I don't know.

609
00:31:00,428 --> 00:31:01,328
I hope it's more.

610
00:31:01,328 --> 00:31:06,293
But you would get a tax cut
on the first $250,000 of your

611
00:31:06,294 --> 00:31:07,861
income, okay?

612
00:31:07,861 --> 00:31:10,161
And you would only pay a higher
rate on the last $50,000.

613
00:31:10,161 --> 00:31:11,394
(laughter)

614
00:31:11,394 --> 00:31:16,961
So that's another -- but the
point is there's the canard

615
00:31:16,961 --> 00:31:19,328
about small businesses the
Republicans like to throw out,

616
00:31:19,328 --> 00:31:21,695
and it's been refuted again
and again and again by outside

617
00:31:21,695 --> 00:31:25,394
independent experts, and we just
take issue with the supposition

618
00:31:25,394 --> 00:31:28,227
that small businesses
by any one --

619
00:31:28,227 --> 00:31:30,561
any common definition
out on Main Street,

620
00:31:30,561 --> 00:31:35,828
include hedge fund managers,
include law partners.

621
00:31:35,828 --> 00:31:38,860
The small businesses we need to
help most are the ones that have

622
00:31:38,861 --> 00:31:41,361
been helped by the President's
numerous tax cuts and tax

623
00:31:41,361 --> 00:31:42,761
credits for small businesses.

624
00:31:42,761 --> 00:31:46,127
And it would be helped by
extension of tax cuts for those

625
00:31:46,127 --> 00:31:49,661
earning less than $250,000.

626
00:31:49,661 --> 00:31:52,227
The Press:
You were saying earlier -- not
good government for one party

627
00:31:52,227 --> 00:31:53,928
to dig in.

628
00:31:53,928 --> 00:31:56,928
How can it be good government
then when Speaker Boehner puts a

629
00:31:56,928 --> 00:31:59,428
plan on the table, and this
White House basically says,

630
00:31:59,428 --> 00:32:01,528
it's so ridiculous
-- in your words --

631
00:32:01,528 --> 00:32:03,628
that you're not even going
to do a counter offer?

632
00:32:03,628 --> 00:32:07,026
Where's the leadership to
say, okay, we don't like that,

633
00:32:07,027 --> 00:32:08,027
but here's a counter?

634
00:32:08,027 --> 00:32:09,861
Why can't you put
something else --

635
00:32:09,861 --> 00:32:13,695
Mr. Carney:
We are not going to negotiate
with ourselves over --

636
00:32:13,695 --> 00:32:15,160
The Press:
He put a plan on the
table, you have to admit.

637
00:32:15,161 --> 00:32:18,328
Mr. Carney:
He put a couple of
sentences on --

638
00:32:18,328 --> 00:32:21,895
that's not a plan to say that
we're going to magically reduce

639
00:32:21,895 --> 00:32:28,094
-- increase revenues through
loophole closures and deduction

640
00:32:28,094 --> 00:32:31,394
caps with not a single
element of specificity.

641
00:32:31,394 --> 00:32:33,394
So we don't know who pays.

642
00:32:33,394 --> 00:32:37,928
We don't know what we're
talking about in terms of actual

643
00:32:37,928 --> 00:32:41,227
legislation to
increase revenues.

644
00:32:41,227 --> 00:32:43,661
It's magic beans and fairy dust.

645
00:32:43,661 --> 00:32:46,428
The President has put
forward a specific proposal.

646
00:32:46,428 --> 00:32:49,594
I acknowledge that while not
with any great specificity,

647
00:32:49,594 --> 00:32:52,728
there's a little more meat on
the bones in terms of their

648
00:32:52,728 --> 00:32:55,461
proposals on the
spending cuts side.

649
00:32:55,461 --> 00:33:01,394
When it comes to revenues, it
doesn't meet the test of balance

650
00:33:01,394 --> 00:33:04,161
or the necessary
test of specificity.

651
00:33:04,161 --> 00:33:06,594
The Press:
But the fact that he at least
put $800 billion in revenues,

652
00:33:06,594 --> 00:33:08,394
which Republicans
haven't wanted to do --

653
00:33:08,394 --> 00:33:10,828
there's now a piece of paper
where the Speaker of the House

654
00:33:10,828 --> 00:33:12,728
is for -- whether
it's specific or not.

655
00:33:12,728 --> 00:33:15,027
I'm just saying, he's
for revenues, which --

656
00:33:15,027 --> 00:33:17,061
that's movement by Republicans.

657
00:33:17,061 --> 00:33:19,261
Would you at least say that's
a step towards where you are?

658
00:33:19,261 --> 00:33:21,928
Mr. Carney:
I would acknowledge
that, broadly speaking,

659
00:33:21,928 --> 00:33:24,994
in the wake of the election,
the acknowledgement from many

660
00:33:24,994 --> 00:33:27,061
Republicans, including
the Speaker of the House,

661
00:33:27,061 --> 00:33:30,127
that revenue from the wealthy
have to be part of this

662
00:33:30,127 --> 00:33:31,194
is progress.

663
00:33:31,194 --> 00:33:33,293
But it is not enough
progress to achieve a deal.

664
00:33:33,294 --> 00:33:37,328
The President has been very
clear that rates have to go up.

665
00:33:37,328 --> 00:33:41,194
It is the only way to achieve
the kind of revenue target that

666
00:33:41,194 --> 00:33:44,394
allows for a balanced
package of deficit reduction.

667
00:33:44,394 --> 00:33:47,628
And it's the only way to ensure
that the middle class doesn't

668
00:33:47,628 --> 00:33:50,895
get stuck holding the bag, as it
has traditionally in these kinds

669
00:33:50,895 --> 00:33:56,461
of deals in the past when
promises of revenues --

670
00:33:56,461 --> 00:33:59,394
gauzy promises of revenues --
have been paired with very

671
00:33:59,394 --> 00:34:03,561
specific cuts that affect real
people around the country.

672
00:34:03,561 --> 00:34:07,026
The Press:
We all know you're very stylish,
and supposedly you're a reader

673
00:34:07,027 --> 00:34:08,828
of Vogue Magazine, I'm sure.

674
00:34:08,828 --> 00:34:11,094
Anna Wintour going be
the ambassador to the

675
00:34:11,094 --> 00:34:12,094
United Kingdom?

676
00:34:12,094 --> 00:34:14,594
Mr. Carney:
I have no personnel
announcements to make,

677
00:34:14,594 --> 00:34:15,860
and I'll leave it at that.

678
00:34:15,860 --> 00:34:17,627
Major.

679
00:34:17,628 --> 00:34:20,628
The Press:
You just said "magic
beans and fairy dust."

680
00:34:20,628 --> 00:34:21,695
(laughter)

681
00:34:21,695 --> 00:34:23,361
Is that what the White House
is talking to the Republicans

682
00:34:23,360 --> 00:34:25,261
about then?

683
00:34:25,261 --> 00:34:28,328
Mr. Carney:
No, we are continuing to
engage, broadly speaking,

684
00:34:28,328 --> 00:34:32,360
with stakeholders about how
we move this process forward.

685
00:34:32,360 --> 00:34:34,027
I think it is fair
to say that --

686
00:34:34,027 --> 00:34:35,061
The Press:
So it's serious enough --

687
00:34:35,061 --> 00:34:40,127
Mr. Carney:
I think it's fair to say
that perhaps separate --

688
00:34:40,127 --> 00:34:43,161
either separate from or in
addition to the proposal that

689
00:34:43,161 --> 00:34:46,161
was provided to the
press prior to --

690
00:34:46,161 --> 00:34:47,261
The Press:
And the White House --

691
00:34:47,261 --> 00:34:50,360
Mr. Carney:
-- prior to us receiving
it, there are others --

692
00:34:50,360 --> 00:34:54,226
there are other conversations
happening about how we achieve a

693
00:34:54,226 --> 00:34:55,226
deal and a compromise.

694
00:34:55,226 --> 00:34:57,493
I'm not going to read out
specific conversations.

695
00:34:57,494 --> 00:35:00,227
And I think the stakeholders
involved in this process are

696
00:35:00,227 --> 00:35:02,694
broader than those you all
envision meeting in the

697
00:35:02,695 --> 00:35:08,528
Roosevelt Room, because this is
a process that affects far more

698
00:35:08,528 --> 00:35:11,160
people than the
denizens of Washington.

699
00:35:11,161 --> 00:35:14,594
And the President is continuing
to push the process forward.

700
00:35:14,594 --> 00:35:17,795
We know what the contours
of an agreement look like.

701
00:35:17,795 --> 00:35:23,461
We simply hope that Republican
leaders in Congress acknowledge

702
00:35:23,461 --> 00:35:27,328
the fundamental fact that rates
have to go up on the top 2% in

703
00:35:27,328 --> 00:35:30,561
order to make sure that a deal
is balanced and doesn't leave

704
00:35:30,561 --> 00:35:35,328
the middle class or seniors
bearing the burden of these

705
00:35:35,328 --> 00:35:37,061
important economic goals.

706
00:35:37,061 --> 00:35:40,027
The Press:
Speaking of burdens, Ben and I
are burdened by the inability to

707
00:35:40,027 --> 00:35:42,561
understand exactly what the
President was conveying on this

708
00:35:42,561 --> 00:35:45,161
question of rates, all right?

709
00:35:45,161 --> 00:35:45,361
Because it's not
immaterial -- hold up.

710
00:35:45,361 --> 00:35:47,227
No, it's not immaterial --

711
00:35:47,227 --> 00:35:50,127
Mr. Carney:
To quote Warren Buffett,
let me unburden you.

712
00:35:50,127 --> 00:35:52,227
The Press:
It's not immaterial to
Republicans who look at

713
00:35:52,227 --> 00:35:53,227
this, okay?

714
00:35:53,227 --> 00:35:55,127
He said there's a
two-stage process,

715
00:35:55,127 --> 00:35:58,828
leaving open the possibility of
reexamining rates in the context

716
00:35:58,828 --> 00:36:00,227
of tax reform.

717
00:36:00,227 --> 00:36:03,328
Ben asked, and I repeat, on
behalf of that clarity for the

718
00:36:03,328 --> 00:36:08,094
present, is it the President's
position that now to avert the

719
00:36:08,094 --> 00:36:11,294
fiscal cliff, at least as it
relates to the middle-class tax

720
00:36:11,294 --> 00:36:14,461
cuts, rates have to go
the Clinton-era rates now?

721
00:36:14,461 --> 00:36:15,294
Mr. Carney:
Right.

722
00:36:15,294 --> 00:36:16,361
The Press:
Then they can be revisited.

723
00:36:16,361 --> 00:36:19,661
Not revisited now or tweaked
in any way less than that now,

724
00:36:19,661 --> 00:36:22,761
but later -- and only later?

725
00:36:22,761 --> 00:36:26,861
Mr. Carney:
Well, it has been a desire on
the specific point to have me

726
00:36:26,861 --> 00:36:34,027
make, again, proposals and
offers to the Republicans that

727
00:36:34,027 --> 00:36:35,428
I'm not going to do.

728
00:36:35,428 --> 00:36:37,461
The President's position --

729
00:36:37,461 --> 00:36:40,394
The Press:
Given that opportunity to set
that marker, you are deferring?

730
00:36:40,394 --> 00:36:44,794
Mr. Carney:
We're not going to --
there is a reality here,

731
00:36:44,795 --> 00:36:48,961
which is that these tax
cuts expire on December 31st.

732
00:36:48,961 --> 00:36:51,993
And the fact of the matter is,
when it comes to raising rates,

733
00:36:51,994 --> 00:36:54,795
we're not even asking
Republicans to vote for a tax

734
00:36:54,795 --> 00:36:57,328
hike on the top 2%.

735
00:36:57,328 --> 00:37:00,528
We're asking them to simply
acknowledge that rates should --

736
00:37:00,528 --> 00:37:05,593
as legislated by Congress in
bills written by Republicans

737
00:37:05,594 --> 00:37:09,194
allow those tax cuts to expire
because we can't afford

738
00:37:09,194 --> 00:37:10,194
them anymore.

739
00:37:10,194 --> 00:37:13,227
I mean, you don't need
the economic lecture.

740
00:37:13,227 --> 00:37:14,261
You and I both covered it.

741
00:37:14,261 --> 00:37:18,328
Look at what happened to our
economy, at least in part,

742
00:37:18,328 --> 00:37:20,861
because of the economic policies
that were put in place including

743
00:37:20,861 --> 00:37:25,361
two massive -- greater
than $1 trillion each --

744
00:37:25,361 --> 00:37:28,227
tax cuts that largely
went to the wealthiest.

745
00:37:28,227 --> 00:37:30,528
That's not the economic policy
we can afford to pursue

746
00:37:30,528 --> 00:37:31,993
any longer.

747
00:37:31,994 --> 00:37:34,861
The President is very
clear: Rates have to go up.

748
00:37:34,861 --> 00:37:36,993
I think we all
acknowledge now --

749
00:37:36,994 --> 00:37:38,628
Democrats and Republicans
and the White House --

750
00:37:38,628 --> 00:37:42,161
that a process has to be in
place here that envisions two

751
00:37:42,161 --> 00:37:46,194
stages, because there's interest
in entitlement reform by all

752
00:37:46,194 --> 00:37:49,194
sides, there's interest in
tax reform by all sides,

753
00:37:49,194 --> 00:37:52,061
but that is not likely to be
achieved between now and the end

754
00:37:52,061 --> 00:37:53,194
of the year.

755
00:37:53,194 --> 00:37:57,394
But there is an agreement that
can be reached that is balanced,

756
00:37:57,394 --> 00:38:04,528
that's fair, that commits
all sides to tough choices,

757
00:38:04,528 --> 00:38:05,794
and the President is
very interested in

758
00:38:05,795 --> 00:38:07,127
achieving that deal.

759
00:38:07,127 --> 00:38:07,828
The Press:
Last thing.

760
00:38:07,828 --> 00:38:10,294
On the debt ceiling, you sounded
a bit harder today than you

761
00:38:10,294 --> 00:38:11,261
did last week.

762
00:38:11,261 --> 00:38:13,961
You said, the preference or
demand the debt ceiling be

763
00:38:13,961 --> 00:38:16,761
adjudicated and dealt with
in this cliff deal before

764
00:38:16,761 --> 00:38:17,695
December 31st.

765
00:38:17,695 --> 00:38:21,728
Mr. Carney:
It is Congress's responsibility
to pay the bills that it incurs.

766
00:38:21,728 --> 00:38:24,294
The Press:
Those bills don't come due in
this context until February.

767
00:38:24,294 --> 00:38:25,328
The White House knows that.

768
00:38:25,328 --> 00:38:28,227
Mr. Carney:
The Congress should do its job.

769
00:38:28,227 --> 00:38:38,828
We're not going to entertain the
kind of brinksmanship that some

770
00:38:38,828 --> 00:38:43,728
in Congress preferred to
engage in back in 2011.

771
00:38:43,728 --> 00:38:51,061
And I think that Republicans
in Congress have heard not just

772
00:38:51,061 --> 00:38:52,528
from us and not
just from Democrats,

773
00:38:52,528 --> 00:38:56,727
but from business leaders of
businesses large and small,

774
00:38:56,728 --> 00:39:06,961
that that kind of behavior is so
antithetical to what we need in

775
00:39:06,961 --> 00:39:09,060
terms of helping the economy
grow and helping the American

776
00:39:09,061 --> 00:39:15,861
people get back to work, that
we certainly expect it will not

777
00:39:15,861 --> 00:39:20,928
happen again, and we certainly
expect that leaders in Congress

778
00:39:20,928 --> 00:39:22,761
will acknowledge that
and simply do their job.

779
00:39:22,761 --> 00:39:31,261
It is part of Congress's routine
responsibility to pay the bills

780
00:39:31,261 --> 00:39:35,161
of the United States, bills that
are incurred through legislation

781
00:39:35,161 --> 00:39:36,828
passed by Congress.

782
00:39:36,828 --> 00:39:40,027
And Congress ought
to get on with it.

783
00:39:40,027 --> 00:39:41,094
The Press:
Thanks, Jay.

784
00:39:41,094 --> 00:39:41,994
Two questions.

785
00:39:41,994 --> 00:39:44,961
One, is the President planning
to do anything to throw any

786
00:39:44,961 --> 00:39:46,727
weight behind the
Violence Against Women Act

787
00:39:46,728 --> 00:39:49,261
reauthorization
in the lame duck?

788
00:39:49,261 --> 00:39:52,094
Mr. Carney:
I don't have any scheduling
announcements or events to read

789
00:39:52,094 --> 00:39:54,561
out to you, but the President
is very interested in this and

790
00:39:54,561 --> 00:39:55,561
wants it done.

791
00:39:55,561 --> 00:39:56,561
And the Vice
President, as you know,

792
00:39:56,561 --> 00:40:01,027
is an author of the original
Violence Against Women Act,

793
00:40:01,027 --> 00:40:03,227
is keenly focused on this.

794
00:40:03,227 --> 00:40:07,694
I just don't have any events
or meetings to read out to you,

795
00:40:07,695 --> 00:40:11,661
but it is our position and
we urge Congress to act.

796
00:40:11,661 --> 00:40:13,761
The Press:
So as far as you know,
there's no specific --

797
00:40:13,761 --> 00:40:15,661
Mr. Carney:
I just don't have any
information to read out to you,

798
00:40:15,661 --> 00:40:16,761
but I'm happy to
get back to you.

799
00:40:16,761 --> 00:40:17,394
The Press:
Okay.

800
00:40:17,394 --> 00:40:20,761
Second of all, I saw that the
Obama administration has put the

801
00:40:20,761 --> 00:40:25,161
payroll tax cut extension back
on the table in its proposal.

802
00:40:25,161 --> 00:40:29,561
I know that the White House
is doing these "my2K" hashtag

803
00:40:29,561 --> 00:40:31,194
tweets to engage the public --

804
00:40:31,194 --> 00:40:33,861
Mr. Carney:
You say that like
it's just the kids.

805
00:40:33,861 --> 00:40:35,560
(laughter)

806
00:40:35,561 --> 00:40:37,127
The Press:
-- but to engage the public
in getting involved in the

807
00:40:37,127 --> 00:40:38,027
middle-class tax cut.

808
00:40:38,027 --> 00:40:40,661
So why wouldn't you change it to
"my3K" now that you're putting

809
00:40:40,661 --> 00:40:43,294
the payroll tax cut back in it?

810
00:40:43,294 --> 00:40:45,261
Mr. Carney:
Well, that's a
very good question.

811
00:40:45,261 --> 00:40:48,561
And I appreciate the
contribution to our

812
00:40:48,561 --> 00:40:49,695
communications thinking.

813
00:40:49,695 --> 00:40:50,961
(laughter)

814
00:40:50,961 --> 00:40:54,660
The fact of the matter is we
have been very clear that we

815
00:40:54,661 --> 00:40:56,861
believe unemployment
insurance has to be extended,

816
00:40:56,861 --> 00:41:00,094
and we believe that all of the
provisions that are expiring at

817
00:41:00,094 --> 00:41:02,061
the end of the year need to be
part of the conversation here

818
00:41:02,061 --> 00:41:03,127
and part of the discussion.

819
00:41:03,127 --> 00:41:09,061
And we are interested in payroll
tax cut being very much part of

820
00:41:09,061 --> 00:41:10,528
that discussion.

821
00:41:10,528 --> 00:41:13,493
I'm not going to get into the
specifics of our negotiations,

822
00:41:13,494 --> 00:41:15,795
but I would say two things.

823
00:41:15,795 --> 00:41:19,194
One is we fought very hard, the
President fought very hard for

824
00:41:19,194 --> 00:41:22,461
the payroll tax cut and the
payroll tax cut extension.

825
00:41:22,461 --> 00:41:24,227
Right around this
time last year,

826
00:41:24,227 --> 00:41:26,027
I think I was entertaining
similar questions,

827
00:41:26,027 --> 00:41:28,094
which is "why isn't the
President meeting right now with

828
00:41:28,094 --> 00:41:30,895
"Speaker Boehner; this deal
won't get done if he doesn't."

829
00:41:30,895 --> 00:41:32,561
And the deal was done.

830
00:41:32,561 --> 00:41:37,161
And American families benefited
enormously from it during a time

831
00:41:37,161 --> 00:41:40,561
when it was important
economically.

832
00:41:40,561 --> 00:41:43,661
And we will evaluate that as
part of the broader discussions

833
00:41:43,661 --> 00:41:46,261
we're having about taxes.

834
00:41:46,261 --> 00:41:50,628
But I'm not going to get into
the specifics of what will be

835
00:41:50,628 --> 00:41:53,161
part of a final deal if we
can get there once Republicans

836
00:41:53,161 --> 00:41:56,227
acknowledge some of the
realities that confront them.

837
00:41:56,227 --> 00:41:57,528
The Press:
What about the hashtag?

838
00:41:57,528 --> 00:42:00,261
Mr. Carney:
Well, I'll bring that up in
our next communications meeting.

839
00:42:00,261 --> 00:42:01,294
Roger.

840
00:42:01,294 --> 00:42:02,428
The Press:
Thanks.

841
00:42:02,428 --> 00:42:03,895
The President tomorrow
is speaking to the

842
00:42:03,895 --> 00:42:05,194
Business Roundtable?

843
00:42:05,194 --> 00:42:06,094
Mr. Carney:
Yes.

844
00:42:06,094 --> 00:42:08,127
The Press:
Can you give us a bit of a
preview of what he's going to --

845
00:42:08,127 --> 00:42:11,061
Mr. Carney:
I think you heard the President
gave you an excellent preview on

846
00:42:11,061 --> 00:42:14,361
your network just moments ago.

847
00:42:14,361 --> 00:42:16,194
The Press:
Okay, then to follow
up, would you say,

848
00:42:16,194 --> 00:42:21,328
or is it fair to say that a
majority of the BRT members are

849
00:42:21,328 --> 00:42:23,695
largely onboard
with his proposals?

850
00:42:23,695 --> 00:42:25,828
Mr. Carney:
I would not want to speak
for them or characterize

851
00:42:25,828 --> 00:42:26,561
their positions.

852
00:42:26,561 --> 00:42:27,661
I think you ought
to speak to them.

853
00:42:27,661 --> 00:42:32,861
I think, broadly speaking, that
business leaders have a lot of

854
00:42:32,861 --> 00:42:36,694
interest in some of the items
that the President is pushing

855
00:42:36,695 --> 00:42:39,394
hardest, which is extension
of the middle-class tax cut,

856
00:42:39,394 --> 00:42:44,026
dealing with our deficits in a
responsible and balanced way,

857
00:42:44,027 --> 00:42:46,695
making targeted investments
-- specifically going to the

858
00:42:46,695 --> 00:42:51,161
proposal that we proffered this
week -- in infrastructure,

859
00:42:51,161 --> 00:42:52,728
putting people to work
building our roads and

860
00:42:52,728 --> 00:42:56,127
bridges and schools.

861
00:42:56,127 --> 00:42:58,695
This is an agenda that I think
is very business friendly,

862
00:42:58,695 --> 00:43:01,628
and it's also very
middle-class friendly.

863
00:43:01,628 --> 00:43:02,795
That's the point.

864
00:43:02,795 --> 00:43:08,961
It is the kind of agenda that
has a broad consensus behind it

865
00:43:08,961 --> 00:43:13,961
and is designed specifically
to help the economy grow,

866
00:43:13,961 --> 00:43:16,593
both in the near term
and in the long term.

867
00:43:16,594 --> 00:43:19,928
The Press:
Quick follow-up on something
else, Hurricane Sandy.

868
00:43:19,928 --> 00:43:23,361
Governor Cuomo, acting
for the other governors,

869
00:43:23,361 --> 00:43:29,493
is asking for a package of
-- it's about $83 billion.

870
00:43:29,494 --> 00:43:32,528
Have they actually made a
proposal to the President,

871
00:43:32,528 --> 00:43:34,928
or has it been just
the Budget Director?

872
00:43:34,928 --> 00:43:37,528
And will there be a
supplemental coming from the

873
00:43:37,528 --> 00:43:40,528
administration this week?

874
00:43:40,528 --> 00:43:43,993
Mr. Carney:
Well, as you note, yesterday
Governor Cuomo was here and met

875
00:43:43,994 --> 00:43:46,761
with senior members of the
President's team to discuss

876
00:43:46,761 --> 00:43:49,328
ongoing response and recovery
activities related to

877
00:43:49,328 --> 00:43:50,328
Hurricane Sandy.

878
00:43:50,328 --> 00:43:52,661
And along with the governor,
the meeting included Housing and

879
00:43:52,661 --> 00:43:54,628
Urban Development
Secretary Donovan,

880
00:43:54,628 --> 00:43:58,761
Chief of Staff Lew and other
members of the President's team.

881
00:43:58,761 --> 00:44:00,661
On the issue of
the supplemental --

882
00:44:00,661 --> 00:44:03,761
or a supplemental, we expect to
discuss the ongoing support that

883
00:44:03,761 --> 00:44:06,828
the federal government continues
to provide for affected

884
00:44:06,828 --> 00:44:08,561
communities and our
state and local partners.

885
00:44:08,561 --> 00:44:11,227
The administration has already
obligated more than $2.1 billion

886
00:44:11,227 --> 00:44:14,361
to support response
and recovery efforts,

887
00:44:14,361 --> 00:44:17,361
which includes roughly $1
billion already approved in

888
00:44:17,361 --> 00:44:20,560
direct assistance to hundreds
of thousands of individuals

889
00:44:20,561 --> 00:44:22,061
affected by the storm.

890
00:44:22,061 --> 00:44:24,227
As for a supplemental, we
are working closely with our

891
00:44:24,227 --> 00:44:26,728
partners in the states
and in Congress,

892
00:44:26,728 --> 00:44:30,094
but I don't have any more
details for you at this time.

893
00:44:30,094 --> 00:44:31,361
Ari.

894
00:44:31,361 --> 00:44:32,394
And then Christi.

895
00:44:32,394 --> 00:44:33,593
The Press:
You and the President have both
described the use of chemical

896
00:44:33,594 --> 00:44:36,695
weapons by Syria as a bright
line that must not be crossed

897
00:44:36,695 --> 00:44:39,294
without incurring
serious consequences.

898
00:44:39,294 --> 00:44:41,428
Tens of thousands of civilians
have already been killed

899
00:44:41,428 --> 00:44:42,294
in Syria.

900
00:44:42,294 --> 00:44:45,594
Why wasn't the bright line way
back in the rearview mirror?

901
00:44:45,594 --> 00:44:49,661
Mr. Carney:
Look, we have been very clear
about our policy towards Syria.

902
00:44:49,661 --> 00:44:52,394
We have engaged internationally
and directly, unilaterally,

903
00:44:52,394 --> 00:44:55,328
in support of the Syrian people
and the Syrian opposition.

904
00:44:55,328 --> 00:44:58,394
We've provided humanitarian
support to the Syrian people and

905
00:44:58,394 --> 00:45:01,227
non-lethal support
to the opposition.

906
00:45:01,227 --> 00:45:04,127
We have worked with our
international partners to help

907
00:45:04,127 --> 00:45:09,127
the Syrian opposition form
itself and to take steps to

908
00:45:09,127 --> 00:45:16,027
prepare for a post-Assad Syria
in which there is a government

909
00:45:16,027 --> 00:45:20,127
that reflects the will and
wishes of the Syrian people,

910
00:45:20,127 --> 00:45:25,394
and respects the liberties
of the Syrian people.

911
00:45:25,394 --> 00:45:30,026
The fact of the matter is that
Assad's brutality has earned him

912
00:45:30,027 --> 00:45:35,394
a dismal place in history, and
we continue to work with our

913
00:45:35,394 --> 00:45:42,093
partners to help hasten the day
when that regime is no longer in

914
00:45:42,094 --> 00:45:44,161
any control of
any part of Syria.

915
00:45:44,161 --> 00:45:47,928
In the meantime, on the issue
of Syria's chemical weapons,

916
00:45:47,928 --> 00:45:50,060
we have been -- and the
President has been --

917
00:45:50,061 --> 00:45:54,261
exceedingly clear about the
red line that you mentioned.

918
00:45:54,261 --> 00:45:57,494
And we continue to
make clear that,

919
00:45:57,494 --> 00:46:01,761
if the Assad regime were to use
chemical weapons in response to

920
00:46:01,761 --> 00:46:06,361
the fact that the opposition has
been making gains and that their

921
00:46:06,361 --> 00:46:11,493
brutal crackdown has not worked,
or if they were to engage in

922
00:46:11,494 --> 00:46:14,127
proliferation, there
will be consequences.

923
00:46:14,127 --> 00:46:18,628
And this is a grave matter, and
one that the President takes

924
00:46:18,628 --> 00:46:23,294
very seriously as do our many
international partners on

925
00:46:23,294 --> 00:46:24,961
this issue.

926
00:46:24,961 --> 00:46:25,828
Christi.

927
00:46:25,828 --> 00:46:27,328
The Press:
On those warnings
to Assad yesterday,

928
00:46:27,328 --> 00:46:29,528
can you say more about
what prompted them?

929
00:46:29,528 --> 00:46:32,627
What preparations has the
administration picked up on to

930
00:46:32,628 --> 00:46:34,294
cause concern?

931
00:46:34,294 --> 00:46:40,060
Mr. Carney:
I would simply say that
we closely monitor Syria's

932
00:46:40,061 --> 00:46:41,861
proliferation-sensitive
materials and facilities,

933
00:46:41,861 --> 00:46:45,928
and we believe as of now that
Syria's chemical stockpiles --

934
00:46:45,928 --> 00:46:48,227
chemical weapon stockpile
remains under Syrian control,

935
00:46:48,227 --> 00:46:49,361
but we closely monitor them.

936
00:46:49,361 --> 00:46:52,761
And beyond that, I can't really
discuss matters of intelligence.

937
00:46:52,761 --> 00:46:54,828
The Press:
Could you also just say
that as the rebels advance,

938
00:46:54,828 --> 00:46:57,561
is there concern on the part
of the administration that --

939
00:46:57,561 --> 00:46:58,461
Mr. Carney:
Yes --

940
00:46:58,461 --> 00:47:00,627
The Press:
-- weapons of mass
destruction could go volatile?

941
00:47:00,628 --> 00:47:03,895
Mr. Carney:
Sorry, I said "yes" before I
let you finish your question and

942
00:47:03,895 --> 00:47:04,895
I apologize.

943
00:47:04,895 --> 00:47:06,494
I thought your question
was going to be,

944
00:47:06,494 --> 00:47:10,728
as the opposition
makes advances,

945
00:47:10,728 --> 00:47:13,494
do we have concerns about the
possibility that the Assad

946
00:47:13,494 --> 00:47:17,027
regime, in desperation, might
use chemical weapons and the

947
00:47:17,027 --> 00:47:18,728
answer to that is yes.

948
00:47:18,728 --> 00:47:21,661
Broadly speaking, we have
concerns about the disposition

949
00:47:21,661 --> 00:47:23,961
of chemical weapons,
but as I noted earlier,

950
00:47:23,961 --> 00:47:26,493
it is our belief based
on our monitoring,

951
00:47:26,494 --> 00:47:30,928
that those weapons remain in
control of the Syrian regime.

952
00:47:30,928 --> 00:47:31,828
The Press:
Just a quick follow-up?

953
00:47:31,828 --> 00:47:32,628
Mr. Carney:
Okay.

954
00:47:32,628 --> 00:47:35,094
The Press:
The red line --

955
00:47:35,094 --> 00:47:38,294
Mr. Carney:
I've got to go after -- I'll
take one more after Goyal.

956
00:47:38,294 --> 00:47:39,694
The Press:
Thank you, Jay.

957
00:47:39,695 --> 00:47:45,061
A red line -- Syria has two big
supporters, China and Russia.

958
00:47:45,061 --> 00:47:49,127
And they are -- both are
holding veto powers at the

959
00:47:49,127 --> 00:47:50,161
United Nations.

960
00:47:50,161 --> 00:47:55,994
So where do Syrian people go or
expect to if China and Russia

961
00:47:55,994 --> 00:48:00,227
continue to support
the Assad regime?

962
00:48:00,227 --> 00:48:04,027
Mr. Carney:
Well, I think we've noted that
the opposition has made gains

963
00:48:04,027 --> 00:48:06,328
that the Assad regime
continues to lose --

964
00:48:06,328 --> 00:48:08,227
having lost all credibility
with its people,

965
00:48:08,227 --> 00:48:11,828
continues to lose
control over Syria.

966
00:48:11,828 --> 00:48:18,294
It is no mystery that we were
very disappointed in the failure

967
00:48:18,294 --> 00:48:23,227
of the Security Council because
of a lack of agreement by some

968
00:48:23,227 --> 00:48:26,861
members to take concerted action
through the Security Council

969
00:48:26,861 --> 00:48:28,361
against Assad.

970
00:48:28,361 --> 00:48:30,895
But we continue to work through
the Friends of Syria and with

971
00:48:30,895 --> 00:48:36,328
our other international partners
to pressure Assad to assist the

972
00:48:36,328 --> 00:48:38,828
people of Syria
and the opposition,

973
00:48:38,828 --> 00:48:41,161
and that work continues.

974
00:48:41,161 --> 00:48:43,728
The Press:
-- with Russia and China?

975
00:48:43,728 --> 00:48:45,994
Mr. Carney:
I think I've addressed
that question.

976
00:48:45,994 --> 00:48:46,928
The Press:
Thank you, sir.

977
00:48:46,928 --> 00:48:47,694
Mr. Carney:
Jon Christopher.

978
00:48:47,695 --> 00:48:48,594
The Press:
Thank you.

979
00:48:48,594 --> 00:48:50,795
The world financial community
is watching this fiscal cliff

980
00:48:50,795 --> 00:48:53,294
process very, very
closely with real concern.

981
00:48:53,294 --> 00:48:56,394
If the parties fail to reach
a deal before January 1,

982
00:48:56,394 --> 00:48:59,493
what assurances can you give
U.S. investor nations like

983
00:48:59,494 --> 00:49:01,328
China, Japan, Great
Britain, Brazil,

984
00:49:01,328 --> 00:49:04,594
that America will not
default on its debt?

985
00:49:04,594 --> 00:49:07,828
Mr. Carney:
Well, we addressed the issue
of the debt ceiling and the

986
00:49:07,828 --> 00:49:11,761
President's firm belief
that it is inconceivable and

987
00:49:11,761 --> 00:49:16,194
unacceptable that leaders in
Congress would want to engage in

988
00:49:16,194 --> 00:49:21,061
the kind of brinksmanship that
we witnessed in 2011 on the

989
00:49:21,061 --> 00:49:25,328
issue of making sure that the
United States continues to pay

990
00:49:25,328 --> 00:49:27,361
its bills and does not default.

991
00:49:27,361 --> 00:49:33,560
The President calls on Congress
to do its job and to take care

992
00:49:33,561 --> 00:49:38,928
of raising the debt ceiling as
part of an end-of-the-year deal

993
00:49:38,928 --> 00:49:41,461
because this is not something
that the greatest nation on

994
00:49:41,461 --> 00:49:45,993
Earth should be engaged in, in
a regular way where the whole

995
00:49:45,994 --> 00:49:50,928
world has to hold its breath to
find out whether a faction in

996
00:49:50,928 --> 00:49:54,528
the House of Representatives is
going to force us into default.

997
00:49:54,528 --> 00:49:57,294
It's just not the way we
should be doing business.

998
00:49:57,294 --> 00:49:58,294
Thank you all.