English subtitles for clip: File:2-19-13- White House Press Briefing.webm
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1 00:00:01,233 --> 00:00:03,133 Mr. Carney: Good day, everyone. 2 00:00:03,133 --> 00:00:04,133 Thanks for being here. 3 00:00:04,133 --> 00:00:05,700 Welcome to your White House briefing. 4 00:00:05,700 --> 00:00:08,000 I have no announcements to make, so we'll go straight to the 5 00:00:08,000 --> 00:00:09,000 Associated Press. 6 00:00:09,000 --> 00:00:10,000 The Press: Thank you. 7 00:00:10,000 --> 00:00:12,934 The President outlined some pretty dire consequences for the 8 00:00:12,934 --> 00:00:14,899 economy today if the sequester takes effect. 9 00:00:14,900 --> 00:00:19,333 I'm wondering, though, if those consequences are so dire why has 10 00:00:19,333 --> 00:00:23,734 he not picked up the phone to talk to Senator McConnell about 11 00:00:23,734 --> 00:00:25,266 supporting the Senate Democrats plan, 12 00:00:25,266 --> 00:00:29,032 and why are the two staffs not in any communication about 13 00:00:29,033 --> 00:00:30,000 this deadline? 14 00:00:30,000 --> 00:00:32,900 Mr. Carney: Well, we are in regular communication with Congress 15 00:00:32,900 --> 00:00:36,500 about a variety of topics that are high priorities for the 16 00:00:36,500 --> 00:00:41,100 President, including the need to ensure that Washington does not 17 00:00:41,100 --> 00:00:44,700 manufacture a crisis that puts hundreds of thousands of 18 00:00:44,700 --> 00:00:47,700 people's jobs at risk, as you heard the President talk 19 00:00:47,700 --> 00:00:49,767 about today. 20 00:00:49,767 --> 00:00:52,400 This is a simple thing. 21 00:00:52,400 --> 00:00:53,867 Over all, it's a complicated subject, 22 00:00:53,867 --> 00:00:59,199 but it's a simple thing: Congress needs to act to make 23 00:00:59,200 --> 00:01:02,433 sure we do not allow the so-called sequester to 24 00:01:02,433 --> 00:01:03,467 take effect. 25 00:01:03,467 --> 00:01:06,433 It's wholly unnecessary and would be a self-inflicted wound 26 00:01:06,433 --> 00:01:08,000 on the economy. 27 00:01:08,000 --> 00:01:10,500 There are ample ways to do this. 28 00:01:10,500 --> 00:01:13,567 The Democrats in the Senate and the House have tabled 29 00:01:13,567 --> 00:01:17,232 legislation that -- put forward legislation that would buy down 30 00:01:17,233 --> 00:01:19,333 the deficit -- buy down the sequester, 31 00:01:19,333 --> 00:01:23,200 postpone it to the end of the year in a balanced way. 32 00:01:23,200 --> 00:01:25,934 And as the President made clear, there should -- 33 00:01:25,934 --> 00:01:29,500 we've done this before, just a few months ago. 34 00:01:29,500 --> 00:01:31,066 Republicans supported it then. 35 00:01:31,066 --> 00:01:33,700 There's no reason why we can't do it again in order to allow 36 00:01:33,700 --> 00:01:37,400 Congress to have the time to work on the regular budgetary 37 00:01:37,400 --> 00:01:39,900 process so that we can achieve the larger goal, 38 00:01:39,900 --> 00:01:42,333 which is further significant deficit reduction in a 39 00:01:42,333 --> 00:01:43,500 balanced way. 40 00:01:43,500 --> 00:01:44,367 It can't be -- 41 00:01:44,367 --> 00:01:46,100 The Press: But that doesn't really answer the question about why he's not, 42 00:01:46,100 --> 00:01:49,333 or his staff is not apparently in communication with the top 43 00:01:49,333 --> 00:01:51,300 Republican in the Senate on this issue. 44 00:01:51,300 --> 00:01:53,800 Mr. Carney: Well, look, we are in regular communication with Congress on a 45 00:01:53,800 --> 00:01:55,834 variety of issues, including this. 46 00:01:55,834 --> 00:01:57,467 The Press: Are you in communication with McConnell on this? 47 00:01:57,467 --> 00:01:59,667 Mr. Carney: I don't have any calls or communications to read 48 00:01:59,667 --> 00:02:00,800 out to you. 49 00:02:00,800 --> 00:02:03,100 But this is not a complicated piece of business. 50 00:02:03,100 --> 00:02:06,166 The broader issue of further deficit reduction in a balanced 51 00:02:06,166 --> 00:02:10,233 way will require time, and that's why it's so important for 52 00:02:10,233 --> 00:02:14,700 Congress to move forward with a temporary postponement of the 53 00:02:14,700 --> 00:02:18,767 sequester, because the consequences of not doing that 54 00:02:18,767 --> 00:02:21,066 would be catastrophic, as the President made clear in his 55 00:02:21,066 --> 00:02:22,467 event just this morning. 56 00:02:22,467 --> 00:02:24,133 The Press: Should the sequester take effect -- 57 00:02:24,133 --> 00:02:27,533 and we are only 10 days away -- I know the President and the 58 00:02:27,533 --> 00:02:29,966 government have outlined some severe consequences, 59 00:02:29,967 --> 00:02:33,233 but does the White House think the economy could handle 60 00:02:33,233 --> 00:02:34,934 the sequester? 61 00:02:34,934 --> 00:02:38,367 Mr. Carney: No, we believe that the economy would be negatively affected. 62 00:02:38,367 --> 00:02:41,399 Outside economists have made clear that the economy would be 63 00:02:41,400 --> 00:02:42,800 negatively affected. 64 00:02:42,800 --> 00:02:47,133 There is no question that this would set back the recovery and 65 00:02:47,133 --> 00:02:50,934 slow down job creation. 66 00:02:50,934 --> 00:02:53,100 If we have one fundamental goal here in Washington, 67 00:02:53,100 --> 00:02:57,000 it should be to work towards growing the economy and 68 00:02:57,000 --> 00:03:00,333 increasing job creation, not doing unnecessary, 69 00:03:00,333 --> 00:03:03,900 arbitrary things to halt or reverse that process. 70 00:03:03,900 --> 00:03:09,133 So we, having calculated specific effects of the 71 00:03:09,133 --> 00:03:10,500 sequester if it were to take effect -- 72 00:03:10,500 --> 00:03:13,066 a lot of others outside have done that and I don't think you 73 00:03:13,066 --> 00:03:17,967 can find anyone that I've seen anyway that suggests that the 74 00:03:17,967 --> 00:03:19,433 effects would not be negative. 75 00:03:19,433 --> 00:03:20,566 The Press: And quickly on immigration. 76 00:03:20,567 --> 00:03:25,400 Does the White House have a target timeline for when you 77 00:03:25,400 --> 00:03:29,033 would put forward the President's immigration bill? 78 00:03:29,033 --> 00:03:31,966 Mr. Carney: We haven't identified a specific date, Julie. 79 00:03:31,967 --> 00:03:36,400 The President has made clear that he is focused on the Senate 80 00:03:36,400 --> 00:03:41,700 moving forward on a bipartisan effort to enact comprehensive 81 00:03:41,700 --> 00:03:42,899 immigration reform. 82 00:03:42,900 --> 00:03:44,600 He supports that effort. 83 00:03:44,600 --> 00:03:48,966 He's also made clear that if that effort stalls or fails, 84 00:03:48,967 --> 00:03:53,200 if progress halts, that he is prepared to submit his own 85 00:03:53,200 --> 00:03:55,299 legislation for the Senate to act on. 86 00:03:55,300 --> 00:03:59,967 But his preference overwhelmingly is for the good 87 00:03:59,967 --> 00:04:03,133 progress that's been made by that bipartisan group to 88 00:04:03,133 --> 00:04:08,633 continue; for it to move forward to a point where a bill is 89 00:04:08,633 --> 00:04:11,834 produced that can be voted on and can win support of Democrats 90 00:04:11,834 --> 00:04:13,934 and Republicans, move to the House, 91 00:04:13,934 --> 00:04:17,266 win support of Democrats and Republicans and get to his desk 92 00:04:17,266 --> 00:04:18,533 for his signature. 93 00:04:18,533 --> 00:04:22,000 One of the things we've seen over the last weeks and months 94 00:04:22,000 --> 00:04:27,767 is that there's a real convergence of positions between 95 00:04:27,767 --> 00:04:31,834 the President and both Democrats and Republicans in the Senate 96 00:04:31,834 --> 00:04:33,567 about how we should move forward. 97 00:04:33,567 --> 00:04:37,600 The blueprint that the President has had online since 2011 that 98 00:04:37,600 --> 00:04:41,567 outlined his principles for comprehensive immigration reform 99 00:04:41,567 --> 00:04:45,233 is reflected very much in the proposals and ideas that Senator 100 00:04:45,233 --> 00:04:48,934 Rubio, for example, has discussed and the so-called Gang 101 00:04:48,934 --> 00:04:51,700 of Eight, the bipartisan group in the Senate has been 102 00:04:51,700 --> 00:04:52,700 working on. 103 00:04:52,700 --> 00:04:56,366 So the President remains hopeful that the Senate will move 104 00:04:56,367 --> 00:04:59,233 forward because is it absolutely his preference that that's 105 00:04:59,233 --> 00:05:00,300 what happens. 106 00:05:00,300 --> 00:05:01,967 The Press: There had been some talk -- I think the President even raised 107 00:05:01,967 --> 00:05:04,667 this and some of his senior advisors have raised early March 108 00:05:04,667 --> 00:05:08,667 as a possible benchmark for when he might move forward -- 109 00:05:08,667 --> 00:05:10,232 when he wants to see the Senate at least move forward. 110 00:05:10,233 --> 00:05:12,033 Is that not the deadline you're seeing? 111 00:05:12,033 --> 00:05:15,400 Mr. Carney: Well, we have not actually set a date because we're looking 112 00:05:15,400 --> 00:05:16,700 for progress. 113 00:05:16,700 --> 00:05:18,967 I think that what we have seen and I think you have seen is 114 00:05:18,967 --> 00:05:21,467 reports that the senators themselves who are involved in 115 00:05:21,467 --> 00:05:23,866 this effort have talked about March. 116 00:05:23,867 --> 00:05:26,367 That would certainly be a good thing and a welcomed thing, 117 00:05:26,367 --> 00:05:29,033 because the President is very interested in progress being 118 00:05:29,033 --> 00:05:33,967 made and interested in this process moving forward quickly, 119 00:05:33,967 --> 00:05:36,866 even though it is important and significant work that needs 120 00:05:36,867 --> 00:05:37,867 to be done. 121 00:05:37,867 --> 00:05:39,400 But we have not set a deadline. 122 00:05:39,400 --> 00:05:42,532 We are focused on working with the Senate, 123 00:05:42,533 --> 00:05:46,500 working with those members who want to put together a package 124 00:05:46,500 --> 00:05:49,767 that can earn broad bipartisan support. 125 00:05:49,767 --> 00:05:52,300 And as long as that progress continues, 126 00:05:52,300 --> 00:05:55,000 we will remain hopeful that it will produce a bill that the 127 00:05:55,000 --> 00:05:57,567 President can ultimately sign and we can get this very 128 00:05:57,567 --> 00:06:00,700 important piece of business done. 129 00:06:00,700 --> 00:06:02,567 The Press: Simpson and Bowles struck again. 130 00:06:02,567 --> 00:06:03,633 (laughter) 131 00:06:03,633 --> 00:06:07,532 Today, they rolled out a new, updated plan for $2.4 trillion 132 00:06:07,533 --> 00:06:09,767 in deficit reduction over 10 years and that includes spending 133 00:06:09,767 --> 00:06:12,700 cuts and health care reforms and tax reforms. 134 00:06:12,700 --> 00:06:17,800 And where does the President stand on this new package? 135 00:06:17,800 --> 00:06:21,700 Mr. Carney: Alan Simpson and Erskine Bowles, the chairmen -- 136 00:06:21,700 --> 00:06:23,967 the co-chairmen of the President's fiscal commission, 137 00:06:23,967 --> 00:06:29,366 today, once again, obliterated the argument put forward by 138 00:06:29,367 --> 00:06:34,900 Republicans that we should pursue further deficit reduction 139 00:06:34,900 --> 00:06:37,133 in an unbalanced way. 140 00:06:37,133 --> 00:06:41,467 Nobody who has addressed this issue credibly and seriously has 141 00:06:41,467 --> 00:06:45,032 come up with a plan that does not include the essential 142 00:06:45,033 --> 00:06:47,166 balance that the President supports. 143 00:06:47,166 --> 00:06:51,500 And that certainly includes Erskine Bowles and Alan Simpson, 144 00:06:51,500 --> 00:06:55,734 and it includes both the work they did on the commission and 145 00:06:55,734 --> 00:06:57,599 what they put forward again today. 146 00:06:57,600 --> 00:07:02,934 So the President believes, outside economists believe, 147 00:07:02,934 --> 00:07:05,467 bipartisan panels and commissions and groups and 148 00:07:05,467 --> 00:07:09,467 gatherings and salons agree, that we need to do this in a 149 00:07:09,467 --> 00:07:13,000 balanced way, that that's the responsible way to reduce our 150 00:07:13,000 --> 00:07:18,000 deficit, to reach that goal of at least $4 trillion in deficit 151 00:07:18,000 --> 00:07:22,100 reduction over 10 years that stabilizes our fiscal situation, 152 00:07:22,100 --> 00:07:26,400 puts us on a fiscally sustainable path in terms of the 153 00:07:26,400 --> 00:07:30,734 relationship between deficits and debt to GDP. 154 00:07:30,734 --> 00:07:34,599 And that's why the President, in every effort with the Speaker of 155 00:07:34,600 --> 00:07:37,967 the House and in his budgets and in his submission to the super 156 00:07:37,967 --> 00:07:40,967 committee, has put forward a balanced deficit reduction plan 157 00:07:40,967 --> 00:07:43,300 that includes more spending cuts than revenues, 158 00:07:43,300 --> 00:07:48,467 but insists that we do this in a way that's fair to senior 159 00:07:48,467 --> 00:07:53,366 citizens and middle-class families and others so that we 160 00:07:53,367 --> 00:07:57,834 don't ask those groups of Americans to bear the burden 161 00:07:57,834 --> 00:08:01,567 solely of deficit reduction while saying that wealthy 162 00:08:01,567 --> 00:08:04,467 individuals and corporations can be held harmless. 163 00:08:04,467 --> 00:08:07,099 That, unfortunately, is the approach that Republicans have 164 00:08:07,100 --> 00:08:09,900 taken all along, and it's the approach they're taking right 165 00:08:09,900 --> 00:08:12,532 now with regards to the sequester. 166 00:08:12,533 --> 00:08:15,967 They would rather, if their position holds, 167 00:08:15,967 --> 00:08:19,834 see hundreds of thousands of Americans have their jobs 168 00:08:19,834 --> 00:08:24,367 threatened, have our national security endangered, 169 00:08:24,367 --> 00:08:28,834 than ask wealthy corporations and individuals to forsake some 170 00:08:28,834 --> 00:08:30,000 loopholes in the tax code. 171 00:08:30,000 --> 00:08:33,734 That is a very tough position to sell, we believe. 172 00:08:33,734 --> 00:08:37,000 The Press: Does the President support the specifics of this updated 173 00:08:37,000 --> 00:08:38,066 Simpson-Bowles plan? 174 00:08:38,066 --> 00:08:41,433 Mr. Carney: The President has his own plan, and it has been very clear, 175 00:08:41,433 --> 00:08:43,734 again, going back to the submission to the super 176 00:08:43,734 --> 00:08:46,700 committee, the submission of the President's budget, 177 00:08:46,700 --> 00:08:49,800 the proposals and counteroffers that the President made in his 178 00:08:49,800 --> 00:08:53,867 negotiations with the Speaker of the House late last year, 179 00:08:53,867 --> 00:08:57,132 the leftover portions of which remain on the table and are 180 00:08:57,133 --> 00:09:01,133 available for action today, including the very tough choices 181 00:09:01,133 --> 00:09:04,800 the President was willing to make when it came to further 182 00:09:04,800 --> 00:09:07,934 spending cuts and entitlement reform. 183 00:09:07,934 --> 00:09:08,967 But there has to be balance. 184 00:09:08,967 --> 00:09:15,699 It has to include the kind of tax reform that produces revenue 185 00:09:15,700 --> 00:09:19,600 that Speaker Boehner himself embraced just a few months ago 186 00:09:19,600 --> 00:09:23,500 but suddenly now has decided is bad policy or unnecessary -- 187 00:09:23,500 --> 00:09:29,100 that they would rather seniors foot the bill, 188 00:09:29,100 --> 00:09:31,967 or middle-class families trying to send their kids to college, 189 00:09:31,967 --> 00:09:34,867 or in the case of the impact of the sequester, 190 00:09:34,867 --> 00:09:37,666 see first responders lose their jobs. 191 00:09:37,667 --> 00:09:43,100 That's just bad policy, and the President doesn't support it. 192 00:09:43,100 --> 00:09:45,633 The Press: I understand your not wanting to announce anything about -- 193 00:09:45,633 --> 00:09:47,767 any calls to announce, but I want to make sure I understand 194 00:09:47,767 --> 00:09:50,166 what the President is willing to do to help get a deal done. 195 00:09:50,166 --> 00:09:52,200 He said his door is open. 196 00:09:52,200 --> 00:09:55,567 What kind of direct presidential involvement does the White House 197 00:09:55,567 --> 00:09:57,467 think would be helpful here? 198 00:09:57,467 --> 00:10:00,734 Phone calls, meetings, getting the Vice President involved? 199 00:10:00,734 --> 00:10:04,400 I just want to see what's in the universe of possibility. 200 00:10:04,400 --> 00:10:05,867 Mr. Carney: The President, the Vice President, 201 00:10:05,867 --> 00:10:07,967 the senior members of the administration both in the 202 00:10:07,967 --> 00:10:10,766 Cabinet and at the White House are actively engaged with 203 00:10:10,767 --> 00:10:13,667 Congress, with congressional offices and congressional 204 00:10:13,667 --> 00:10:17,734 members, on a variety of legislative priorities, 205 00:10:17,734 --> 00:10:19,734 including the need to avoid the sequester, 206 00:10:19,734 --> 00:10:24,533 including the need to achieve significant further balanced 207 00:10:24,533 --> 00:10:27,033 deficit reduction, including comprehensive immigration 208 00:10:27,033 --> 00:10:29,333 reform, including reducing gun violence, 209 00:10:29,333 --> 00:10:31,199 and those efforts will continue. 210 00:10:31,200 --> 00:10:33,367 We don't read out every phone call or every meeting, 211 00:10:33,367 --> 00:10:35,934 but we are working with Congress on all of these priorities. 212 00:10:35,934 --> 00:10:39,266 When it comes to avoiding the sequester, there are really -- 213 00:10:39,266 --> 00:10:40,632 we are down to 10 days here. 214 00:10:40,633 --> 00:10:45,433 The options here are pretty clear: Do what Senate Democrats 215 00:10:45,433 --> 00:10:47,066 and House Democrats have proposed, 216 00:10:47,066 --> 00:10:52,166 which is postpone the sequester by a certain amount of time 217 00:10:52,166 --> 00:10:56,367 through reductions in the deficit that are achieved in a 218 00:10:56,367 --> 00:11:00,800 balanced way through both revenues and cuts; 219 00:11:00,800 --> 00:11:04,000 or embrace the Republican position that they have held 220 00:11:04,000 --> 00:11:08,500 thus far, which is to say that it's better for all those 221 00:11:08,500 --> 00:11:11,166 negative effects to take place when the sequester is 222 00:11:11,166 --> 00:11:17,767 implemented than to ask corporate jet owners or oil and 223 00:11:17,767 --> 00:11:21,467 gas companies to give up their special tax breaks that average 224 00:11:21,467 --> 00:11:23,766 Americans don't enjoy. 225 00:11:23,767 --> 00:11:25,100 And that's just bad policy. 226 00:11:25,100 --> 00:11:27,000 The Press: Well, why not say the President is going to have a meeting or 227 00:11:27,000 --> 00:11:30,133 going to call Speaker Boehner or Senator McConnell? 228 00:11:30,133 --> 00:11:31,834 Mr. Carney: But we will -- the President has made clear his door is open. 229 00:11:31,834 --> 00:11:34,733 What we've heard from the Republicans thus far is a 230 00:11:34,734 --> 00:11:37,800 categorical refusal at least at the leadership level to accept 231 00:11:37,800 --> 00:11:40,165 the basic principle that balance is necessary. 232 00:11:40,166 --> 00:11:45,867 They would rather adopt a position that says seniors have 233 00:11:45,867 --> 00:11:48,967 to bear the burden, middle-class families have to bear the 234 00:11:48,967 --> 00:11:53,133 burden, the wealthiest individuals and corporations 235 00:11:53,133 --> 00:11:56,633 will be held harmless; and if you don't adopt that extremist 236 00:11:56,633 --> 00:12:00,166 position, then the sequester goes into effect with all of the 237 00:12:00,166 --> 00:12:04,533 harmful impacts that the President detailed today. 238 00:12:04,533 --> 00:12:07,900 The door is open, but balance is absolutely essential. 239 00:12:07,900 --> 00:12:10,266 Balance is what -- again, going back to Matt's question -- 240 00:12:10,266 --> 00:12:14,632 is what bipartisan panels have always recommended. 241 00:12:14,633 --> 00:12:17,734 It's what economists say is necessary. 242 00:12:17,734 --> 00:12:23,066 We should not allow our economy to be held hostage to sort of 243 00:12:23,066 --> 00:12:25,800 reckless partisan agendas. 244 00:12:25,800 --> 00:12:26,800 That's bad for the economy. 245 00:12:26,800 --> 00:12:27,834 It's bad for the middle class. 246 00:12:27,834 --> 00:12:30,834 The Press: And lastly, everyone agrees that the sequester is a bad idea, 247 00:12:30,834 --> 00:12:33,834 but didn't it originate -- the idea for the sequester originate 248 00:12:33,834 --> 00:12:35,199 here at the White House? 249 00:12:35,200 --> 00:12:36,533 Mr. Carney: Well, we've been through this a lot -- 250 00:12:36,533 --> 00:12:40,066 I know you're filling in -- but here's the fundamental fact. 251 00:12:40,066 --> 00:12:43,100 During the deficit reduction of the debt ceiling negotiations, 252 00:12:43,100 --> 00:12:46,033 because the Republicans refused to embrace balance, 253 00:12:46,033 --> 00:12:51,967 refused in the end to join hands with the President and pursue a 254 00:12:51,967 --> 00:12:55,500 grand bargain, there was an absolute necessity to avoid 255 00:12:55,500 --> 00:12:59,567 default, and both sides were looking for trigger mechanisms 256 00:12:59,567 --> 00:13:01,867 -- this is complicated budget-speak -- 257 00:13:01,867 --> 00:13:05,500 to help make this package possible. 258 00:13:05,500 --> 00:13:08,166 The sequester was something that was discussed, 259 00:13:08,166 --> 00:13:13,700 and as has been reported, it was an idea that the White House put 260 00:13:13,700 --> 00:13:17,734 forward because it was put forward by Republican Senator 261 00:13:17,734 --> 00:13:21,667 Gramm and Rudman back in the '80s as part of the Gramm-Rudman 262 00:13:21,667 --> 00:13:23,800 deal -- there is a history here to this. 263 00:13:23,800 --> 00:13:28,567 But let's be clear: Republicans embraced it. 264 00:13:28,567 --> 00:13:30,500 Every member of the House Republican leadership 265 00:13:30,500 --> 00:13:31,967 voted for it. 266 00:13:31,967 --> 00:13:35,300 Nearly two to one in the House Republicans voted for it 267 00:13:35,300 --> 00:13:36,300 over Democrats. 268 00:13:36,300 --> 00:13:38,967 And on the day it passed, the Speaker of the House said he got 269 00:13:38,967 --> 00:13:44,266 98% of what he wanted and that he was pretty happy. 270 00:13:44,266 --> 00:13:48,099 The issue here is the sequester was designed never to take 271 00:13:48,100 --> 00:13:51,633 effect because it was supposed to force Congress to do 272 00:13:51,633 --> 00:13:55,000 responsible, difficult things, make choices about how we reduce 273 00:13:55,000 --> 00:13:59,266 our deficit in a way that would allow us to avoid the sequester, 274 00:13:59,266 --> 00:14:01,900 the indiscriminate, across-the-board, 275 00:14:01,900 --> 00:14:05,433 devastating cuts that the sequester represents. 276 00:14:05,433 --> 00:14:09,867 Unfortunately, Republicans have thus far all along the way 277 00:14:09,867 --> 00:14:12,599 refused to go along with the fundamental principle of 278 00:14:12,600 --> 00:14:15,400 balance, that we need to do this with spending cuts -- 279 00:14:15,400 --> 00:14:17,733 tough spending cuts, with entitlement reforms and 280 00:14:17,734 --> 00:14:18,734 with revenues. 281 00:14:18,734 --> 00:14:19,800 I want to jump around. 282 00:14:19,800 --> 00:14:21,433 Lynn Sweet in the back -- how are you? 283 00:14:21,433 --> 00:14:22,633 The Press: Fine, thank you. 284 00:14:22,633 --> 00:14:25,834 There was another tragic shooting in Chicago just a few 285 00:14:25,834 --> 00:14:26,834 days ago. 286 00:14:26,834 --> 00:14:30,566 It was a young girl whose sister was at the Obama 287 00:14:30,567 --> 00:14:31,767 speech last week. 288 00:14:31,767 --> 00:14:34,600 I'm wondering if there's any reaching out from the White 289 00:14:34,600 --> 00:14:35,667 House to her family. 290 00:14:35,667 --> 00:14:37,433 The funeral hasn't happened yet. 291 00:14:37,433 --> 00:14:40,600 Any particular message in the wake of another horrific 292 00:14:40,600 --> 00:14:44,166 shooting with this close connection to the Obama speech 293 00:14:44,166 --> 00:14:46,266 with her sister being there? 294 00:14:46,266 --> 00:14:49,132 Mr. Carney: I don't have any communications to report to you, Lynn. 295 00:14:49,133 --> 00:14:54,266 This is another example, tragic example of a young life being 296 00:14:54,266 --> 00:14:59,967 taken away by the scourge of gun violence in this country, 297 00:14:59,967 --> 00:15:05,000 and is a reminder of why we need to act together here in 298 00:15:05,000 --> 00:15:10,600 Washington to do everything we can to reduce gun violence, 299 00:15:10,600 --> 00:15:14,600 to do it in a way that, as the President has insisted, 300 00:15:14,600 --> 00:15:17,700 respects our Second Amendment rights, 301 00:15:17,700 --> 00:15:22,033 but to take necessary action to reduce this scourge, 302 00:15:22,033 --> 00:15:25,467 because it is taking too many young lives in America. 303 00:15:25,467 --> 00:15:27,567 The Press: Is there some communication since there was -- 304 00:15:27,567 --> 00:15:29,900 Mr. Carney: I don't have anything on that right now. 305 00:15:29,900 --> 00:15:32,100 Jackie. 306 00:15:32,100 --> 00:15:33,533 The Press: Back to the sequester. 307 00:15:33,533 --> 00:15:36,100 When you say, and the President says his door is open, 308 00:15:36,100 --> 00:15:38,600 that's a rather passive construction. 309 00:15:38,600 --> 00:15:42,467 Is there anything -- why doesn't he go to their door, 310 00:15:42,467 --> 00:15:43,367 knock on their door? 311 00:15:43,367 --> 00:15:44,367 And also -- 312 00:15:44,367 --> 00:15:46,900 Mr. Carney: We've been clear, Jackie, about what our position is. 313 00:15:46,900 --> 00:15:52,433 We have supported the bills that have been put forward by Senate 314 00:15:52,433 --> 00:15:54,800 Democrats and House Democrats. 315 00:15:54,800 --> 00:15:58,500 And when we talk here about leadership and doing the 316 00:15:58,500 --> 00:15:59,934 responsible thing, let's be clear, 317 00:15:59,934 --> 00:16:07,867 as the President said if you accept the basic premise that 318 00:16:07,867 --> 00:16:12,033 Democrats are more resistant than Republicans to savings from 319 00:16:12,033 --> 00:16:14,834 entitlements or spending cuts, and Republicans are more 320 00:16:14,834 --> 00:16:17,766 resistant to savings through revenues, 321 00:16:17,767 --> 00:16:18,834 what have the Democrats done? 322 00:16:18,834 --> 00:16:20,199 What has the President done? 323 00:16:20,200 --> 00:16:23,066 Consistently put forward proposals that include not just 324 00:16:23,066 --> 00:16:27,066 revenues; they haven't put forward proposals that reduce 325 00:16:27,066 --> 00:16:30,633 our deficits solely through raising taxes or increasing 326 00:16:30,633 --> 00:16:31,800 revenues or tax reform. 327 00:16:31,800 --> 00:16:32,800 No. 328 00:16:32,800 --> 00:16:35,099 The President has put forward proposals that have cut 329 00:16:35,100 --> 00:16:38,033 spending, including through entitlement reforms, 330 00:16:38,033 --> 00:16:40,000 by more than two to one. 331 00:16:40,000 --> 00:16:44,000 Thus far, the President -- and Senator Simpson and Erskine 332 00:16:44,000 --> 00:16:46,000 Bowles noted this I think today in their presentation -- 333 00:16:46,000 --> 00:16:49,367 the President has overseen more than $2.5 trillion in 334 00:16:49,367 --> 00:16:50,433 deficit reduction. 335 00:16:50,433 --> 00:16:53,967 It hasn't always been pretty, but the fact is this President 336 00:16:53,967 --> 00:16:56,900 has signed into law more than $2.5 trillion in 337 00:16:56,900 --> 00:16:57,900 deficit reduction. 338 00:16:57,900 --> 00:17:00,199 And thus far, more than two-thirds of that has come 339 00:17:00,200 --> 00:17:01,500 through spending cuts. 340 00:17:01,500 --> 00:17:02,567 We need balance. 341 00:17:02,567 --> 00:17:06,099 And the President's door is open. 342 00:17:06,099 --> 00:17:09,199 What we haven't seen from Republicans thus far is a 343 00:17:09,200 --> 00:17:14,800 proposal that reflects the essential ingredient of balance. 344 00:17:14,800 --> 00:17:17,165 We know that they want to voucherize Medicare. 345 00:17:17,165 --> 00:17:21,000 We know that they want to ask seniors to bear the burden, 346 00:17:21,000 --> 00:17:24,400 or middle-class families to foot the bill. 347 00:17:24,400 --> 00:17:26,734 But that is bad policy. 348 00:17:26,733 --> 00:17:28,332 And it's bad for the middle class. 349 00:17:28,333 --> 00:17:30,400 And it's not acceptable to this President. 350 00:17:30,400 --> 00:17:34,266 What they should do is take their cue from Senator Simpson 351 00:17:34,266 --> 00:17:38,834 and Mr. Bowles and from others who have said balance is the way 352 00:17:38,834 --> 00:17:40,100 we have to move forward. 353 00:17:40,100 --> 00:17:42,533 And we would welcome that in the short-term buy-down of the 354 00:17:42,533 --> 00:17:46,033 sequester and in the overall tackling of the problem. 355 00:17:46,033 --> 00:17:47,966 The Press: You also said, we're working with Congress on all 356 00:17:47,967 --> 00:17:49,567 these priorities. 357 00:17:49,567 --> 00:17:51,834 That just means congressional Democrats, right? 358 00:17:51,834 --> 00:17:52,767 Mr. Carney: No. 359 00:17:52,767 --> 00:17:55,100 The Press: Like last week's meeting with Senate Democrats? 360 00:17:55,100 --> 00:17:57,033 Where have you worked with Republicans? 361 00:17:57,033 --> 00:18:00,100 Mr. Carney: We have been -- going to the question I had earlier about 362 00:18:00,100 --> 00:18:05,300 immigration reform -- we've been working with every member's 363 00:18:05,300 --> 00:18:08,265 office that's involved in the Gang of Eight process. 364 00:18:08,266 --> 00:18:10,867 The President, as you know, met with the Democrats associated 365 00:18:10,867 --> 00:18:12,966 with the Gang of Eight on immigration reform. 366 00:18:12,967 --> 00:18:17,367 Our communications with every interested party in that group 367 00:18:17,367 --> 00:18:18,667 will continue. 368 00:18:18,667 --> 00:18:22,533 And we are engaged with Congress, 369 00:18:22,533 --> 00:18:25,233 members of both parties, offices from both parties, 370 00:18:25,233 --> 00:18:27,466 on a variety of issues and all of the priorities that the 371 00:18:27,467 --> 00:18:28,734 President has put forward. 372 00:18:28,734 --> 00:18:30,533 But let's be clear. 373 00:18:30,533 --> 00:18:33,833 The problem here isn't a lack of meetings around the table in the 374 00:18:33,834 --> 00:18:35,834 Roosevelt Room or the Cabinet Room. 375 00:18:35,834 --> 00:18:39,500 We saw that in the summer of 2011, 376 00:18:39,500 --> 00:18:44,000 when the Speaker of the House decided not to pursue the 377 00:18:44,000 --> 00:18:45,000 grand bargain. 378 00:18:45,000 --> 00:18:49,233 We saw it again in December in the exhaustively reported fact 379 00:18:49,233 --> 00:18:54,433 that the Speaker walked away from what was, by any measure, 380 00:18:54,433 --> 00:18:58,266 a fair compromise that the President put forward that 381 00:18:58,266 --> 00:19:00,800 represented a willingness to come more than halfway towards 382 00:19:00,800 --> 00:19:04,300 the Republicans on both revenue and spending, and unfortunately, 383 00:19:04,300 --> 00:19:07,399 the Speaker walked away from that effort. 384 00:19:07,400 --> 00:19:12,000 So we have put forward a number of proposals. 385 00:19:12,000 --> 00:19:16,400 We will continue to work with members of Congress. 386 00:19:16,400 --> 00:19:17,367 The Senate needs to act. 387 00:19:17,367 --> 00:19:18,033 The House needs to act. 388 00:19:18,033 --> 00:19:21,899 We need to avoid this sequester because those who are affected 389 00:19:21,900 --> 00:19:26,000 most are middle-class families across the country. 390 00:19:26,000 --> 00:19:27,500 Jon, then Major. 391 00:19:27,500 --> 00:19:29,500 The Press: You said that you've talked to the members of -- 392 00:19:29,500 --> 00:19:31,633 the Republicans on immigration. 393 00:19:31,633 --> 00:19:34,734 Senator Rubio's office just put something out saying, 394 00:19:34,734 --> 00:19:37,800 "Senator Rubio's office has never discussed immigration 395 00:19:37,800 --> 00:19:40,332 "policy with anyone in the White House." 396 00:19:40,333 --> 00:19:41,100 Who's telling the truth? 397 00:19:41,100 --> 00:19:44,934 Mr. Carney: We have been in contact with everybody involved in this 398 00:19:44,934 --> 00:19:46,200 effort on Capitol Hill. 399 00:19:46,200 --> 00:19:47,767 The Press: So they're not telling the truth? 400 00:19:47,767 --> 00:19:49,066 Mr. Carney: You're reading to me from a BlackBerry. 401 00:19:49,066 --> 00:19:52,066 I can tell you what I know about the White House's efforts. 402 00:19:52,066 --> 00:19:53,233 Actually it's an iPhone. 403 00:19:53,233 --> 00:19:54,133 The Press: It's an iPhone. 404 00:19:54,133 --> 00:19:54,934 Mr. Carney: Is that a 5? 405 00:19:54,934 --> 00:19:56,100 (laughter) 406 00:19:56,100 --> 00:19:56,966 The Press: It's a 4S. 407 00:19:56,967 --> 00:20:00,433 On the question of the sequester, 408 00:20:00,433 --> 00:20:03,500 has the President had a single face-to-face meeting with 409 00:20:03,500 --> 00:20:05,967 Republican leaders since January 1st about averting these 410 00:20:05,967 --> 00:20:07,667 spending cuts? 411 00:20:07,667 --> 00:20:09,300 Mr. Carney: I don't have any meetings to read out to you. 412 00:20:09,300 --> 00:20:11,367 Again, we don't report every meeting, every conversation. 413 00:20:11,367 --> 00:20:14,265 I would note that in the summer of 2011 and again at the end of 414 00:20:14,266 --> 00:20:17,400 last year, the negotiations and consultations that took place 415 00:20:17,400 --> 00:20:19,033 with Republican leaders, in particular the Speaker of the 416 00:20:19,033 --> 00:20:20,332 House, some of which were secret, 417 00:20:20,333 --> 00:20:22,567 were secret not because we called for them to be 418 00:20:22,567 --> 00:20:23,967 secret, okay? 419 00:20:23,967 --> 00:20:26,367 Let's just be clear about our history here and about how -- 420 00:20:26,367 --> 00:20:27,300 The Press: You're suggesting there have been meetings. 421 00:20:27,300 --> 00:20:28,600 Mr. Carney: I'm not suggesting anything about what's happening now. 422 00:20:28,600 --> 00:20:30,166 I'm just saying that we don't always read out every 423 00:20:30,166 --> 00:20:33,200 conversation or meeting we have with members of Congress. 424 00:20:33,200 --> 00:20:38,000 And in taking that approach, we're mindful of the requests of 425 00:20:38,000 --> 00:20:39,934 others as well as our own interests. 426 00:20:39,934 --> 00:20:42,033 Our interests here, the President's interest here is 427 00:20:42,033 --> 00:20:47,233 making sure that Congress acts to avoid the wholly unnecessary, 428 00:20:47,233 --> 00:20:51,300 indiscriminate, across-the-board cuts that are represented by the 429 00:20:51,300 --> 00:20:55,466 sequester; that Congress do the responsible thing, 430 00:20:55,467 --> 00:21:00,166 adopt a balanced package that postpones the sequester so that 431 00:21:00,166 --> 00:21:05,033 Congress can then work on a broader deficit reduction plan 432 00:21:05,033 --> 00:21:06,934 that is part of the budget process. 433 00:21:06,934 --> 00:21:10,800 And there is no reason to do this in a different manner. 434 00:21:10,800 --> 00:21:12,899 There is no reason to inflict this wound on our 435 00:21:12,900 --> 00:21:17,333 economy unnecessarily. 436 00:21:17,333 --> 00:21:18,633 This deadline is manufactured. 437 00:21:18,633 --> 00:21:24,233 It can be postponed as it was in December, and by doing that, 438 00:21:24,233 --> 00:21:26,767 we would allow ourselves more time to pursue the ultimate 439 00:21:26,767 --> 00:21:31,300 goal, which is achieving -- finishing the job of at least 440 00:21:31,300 --> 00:21:35,533 the $4 trillion goal outlined for many years by many 441 00:21:35,533 --> 00:21:38,033 economists as what we need to do over 10 years in terms of 442 00:21:38,033 --> 00:21:39,265 deficit reduction. 443 00:21:39,266 --> 00:21:40,166 We can do that. 444 00:21:40,166 --> 00:21:42,833 The President has put forward a plan that does that. 445 00:21:42,834 --> 00:21:46,600 The President has put forward a plan that includes revenues and 446 00:21:46,600 --> 00:21:48,300 also spending cuts and entitlement reforms. 447 00:21:48,300 --> 00:21:50,700 What we have not seen from Republicans is a plan that 448 00:21:50,700 --> 00:21:53,767 includes revenues, as well as spending cuts and 449 00:21:53,767 --> 00:21:54,767 entitlement reforms. 450 00:21:54,767 --> 00:21:56,467 I mean, you guys have to understand the basic 451 00:21:56,467 --> 00:21:57,433 nature here. 452 00:21:57,433 --> 00:22:00,166 If you're talking about compromise and leadership, 453 00:22:00,166 --> 00:22:02,667 and you accept the premise that it's harder for Democrats to go 454 00:22:02,667 --> 00:22:05,033 along with entitlement reforms and harder for Democrats to go 455 00:22:05,033 --> 00:22:07,300 with cuts to spending programs -- 456 00:22:07,300 --> 00:22:08,834 let's just accept that premise -- 457 00:22:08,834 --> 00:22:10,767 what has the President done? 458 00:22:10,767 --> 00:22:12,033 What have the Democrats done? 459 00:22:12,033 --> 00:22:15,199 They have put forward and embraced proposals that have 460 00:22:15,200 --> 00:22:19,433 more spending cuts -- more savings from cuts than they have 461 00:22:19,433 --> 00:22:20,600 increases in revenue. 462 00:22:20,600 --> 00:22:23,433 What we haven't seen from the Republicans in anything like a 463 00:22:23,433 --> 00:22:24,867 commensurate action by them. 464 00:22:24,867 --> 00:22:28,734 And the American people insist that we compromise here 465 00:22:28,734 --> 00:22:29,466 in Washington. 466 00:22:29,467 --> 00:22:32,567 The Press: But when we hear about these draconian cuts in Border Patrol 467 00:22:32,567 --> 00:22:34,767 agents being furloughed, FBI agents, 468 00:22:34,767 --> 00:22:36,967 and kids getting thrown off Head Start, 469 00:22:36,967 --> 00:22:40,734 is there really no way to find $85 billion in cuts in a 470 00:22:40,734 --> 00:22:46,100 $3.8 trillion budget without those kind of draconian cuts? 471 00:22:46,100 --> 00:22:49,533 Mr. Carney: Well, let's be clear, as Danny Werfel was when he briefed you 472 00:22:49,533 --> 00:22:51,699 guys last week. 473 00:22:51,700 --> 00:22:54,300 There is no way to do this -- $85 billion over that short 474 00:22:54,300 --> 00:22:57,800 window of time -- there is no way if you follow the law 475 00:22:57,800 --> 00:23:01,300 written by Congress, that implementation of these cuts 476 00:23:01,300 --> 00:23:03,767 would not have the draconian, drastic effects that the 477 00:23:03,767 --> 00:23:05,467 President talked about today, and that everybody who has 478 00:23:05,467 --> 00:23:06,633 written about this has talked about, 479 00:23:06,633 --> 00:23:10,900 or everybody who has spoken about this has made clear 480 00:23:10,900 --> 00:23:12,300 will happen. 481 00:23:12,300 --> 00:23:18,033 The fact is that the sequester was written, as I've noted, 482 00:23:18,033 --> 00:23:21,399 precisely because the cuts would be onerous and unacceptable to 483 00:23:21,400 --> 00:23:23,033 both sides -- to all sides. 484 00:23:23,033 --> 00:23:27,000 And they were supposed to -- the looming nature of the sequester 485 00:23:27,000 --> 00:23:31,233 was supposed to compel Congress to act responsibly and to 486 00:23:31,233 --> 00:23:34,399 compromise, and to achieve the kind of deficit reduction 487 00:23:34,400 --> 00:23:36,867 through compromise that is necessary to help put us on a 488 00:23:36,867 --> 00:23:38,567 fiscally sustainable path. 489 00:23:38,567 --> 00:23:41,567 The obstacle thus far to compromise has been the adamant 490 00:23:41,567 --> 00:23:46,900 refusal by Republicans to agree to a balanced approach to 491 00:23:46,900 --> 00:23:49,900 deficit reduction, a balanced approach that the American 492 00:23:49,900 --> 00:23:51,967 people support, that Democrats, independents and even 493 00:23:51,967 --> 00:23:54,767 Republicans outside of Washington support. 494 00:23:54,767 --> 00:23:55,600 Major. 495 00:23:55,600 --> 00:23:56,699 The Press: Reaction to the Speaker. 496 00:23:56,700 --> 00:23:58,767 He released a statement right after the President spoke: "The 497 00:23:58,767 --> 00:24:00,700 "American people understand," quoting him directly, 498 00:24:00,700 --> 00:24:02,500 "that the revenue debate is now closed." 499 00:24:02,500 --> 00:24:03,900 That's from the Speaker. 500 00:24:03,900 --> 00:24:06,633 "We should close loopholes and carve-outs in the tax code, 501 00:24:06,633 --> 00:24:08,800 "but that revenue should be used to lower rates across the board. 502 00:24:08,800 --> 00:24:10,899 "Tax reform is a once-in-a-generation opportunity 503 00:24:10,900 --> 00:24:12,300 "to boost job creation in America. 504 00:24:12,300 --> 00:24:14,500 "It should not be squandered," the Speaker's words, 505 00:24:14,500 --> 00:24:15,867 "to enable more Washington spending. 506 00:24:15,867 --> 00:24:16,667 "Spending is the problem. 507 00:24:16,667 --> 00:24:18,132 "Spending must be the focus." 508 00:24:18,133 --> 00:24:22,533 Mr. Carney: Well, the Speaker is I guess misunderstanding the proposition 509 00:24:22,533 --> 00:24:26,065 here, which is to use tax reform and revenue gleaned from it to 510 00:24:26,066 --> 00:24:28,767 help reduce the deficit, which, as I understand it, 511 00:24:28,767 --> 00:24:33,100 at least in the aftermath of a Republican President holding 512 00:24:33,100 --> 00:24:37,100 power, is the number-one goal of Republicans in Congress. 513 00:24:37,100 --> 00:24:40,399 What the Speaker put forward or said he was willing to put 514 00:24:40,400 --> 00:24:43,934 forward at the end of last year was up to $800 billion in 515 00:24:43,934 --> 00:24:46,934 revenue that would go towards deficit reduction, 516 00:24:46,934 --> 00:24:51,899 achieved from the wealthiest Americans and businesses by tax 517 00:24:51,900 --> 00:24:54,433 reform, closing loopholes, capping deductions. 518 00:24:54,433 --> 00:24:57,400 The President agrees with him that we ought to close those 519 00:24:57,400 --> 00:25:00,133 loopholes and cap those deductions and reform our tax 520 00:25:00,133 --> 00:25:04,967 code in a way that makes it more balanced and more fair, 521 00:25:04,967 --> 00:25:09,867 that ends some of these taxpayer subsidies to companies and 522 00:25:09,867 --> 00:25:14,500 individuals that have, because of their armies of accountants, 523 00:25:14,500 --> 00:25:17,100 have a different relationship with the tax code than average 524 00:25:17,100 --> 00:25:19,265 Americans and small businesses. 525 00:25:19,266 --> 00:25:21,166 The goal here is deficit reduction. 526 00:25:21,166 --> 00:25:25,200 The goal here is achieving it in a balanced way. 527 00:25:25,200 --> 00:25:27,900 The President has signed into law over $2.5 trillion in 528 00:25:27,900 --> 00:25:28,900 deficit reduction. 529 00:25:28,900 --> 00:25:32,667 The ratio of spending cuts to revenues, more than two to one. 530 00:25:32,667 --> 00:25:34,667 If you take the President's proposal that's still on the 531 00:25:34,667 --> 00:25:37,300 table to Speaker Boehner, if he were to take that, 532 00:25:37,300 --> 00:25:40,600 if Speaker Boehner were suddenly to embrace the consensus that 533 00:25:40,600 --> 00:25:42,833 has built around the idea of balance and say, 534 00:25:42,834 --> 00:25:45,000 I'll take that deal, that would, again, 535 00:25:45,000 --> 00:25:47,200 be more spending cuts than revenues. 536 00:25:47,200 --> 00:25:49,033 We need to get this done. 537 00:25:49,033 --> 00:25:50,734 And we need to do it in a way that the American people 538 00:25:50,734 --> 00:25:52,466 support, that bipartisan commissions support, 539 00:25:52,467 --> 00:25:56,133 that everybody -- even Republicans who aren't elected 540 00:25:56,133 --> 00:25:58,900 and sent to Washington -- seems to agree is the right way to go. 541 00:25:58,900 --> 00:26:00,600 The Press: I'm also going to read you something from Alan Simpson. 542 00:26:00,600 --> 00:26:01,800 He said many things this morning, 543 00:26:01,800 --> 00:26:05,466 but this is a direct quote, regarding entitlement reform: 544 00:26:05,467 --> 00:26:07,033 "It will happen in four years, or he" -- 545 00:26:07,033 --> 00:26:08,766 meaning the President -- "will have no legacy at all. 546 00:26:08,767 --> 00:26:11,000 "If he" -- the President -- "can't cut the mustard in the 547 00:26:11,000 --> 00:26:14,200 "solvency of Social Security under honest appraisals of the 548 00:26:14,200 --> 00:26:17,200 "trustees and he can't get a handle on automatic pilot rate 549 00:26:17,200 --> 00:26:20,834 "of health care spending, he will have a failed presidency." 550 00:26:20,834 --> 00:26:21,767 Mr. Carney: What's your question? 551 00:26:21,767 --> 00:26:22,867 The Press: Do you agree or disagree? 552 00:26:22,867 --> 00:26:24,367 Mr. Carney: The President has put forward entitlement reforms. 553 00:26:24,367 --> 00:26:27,265 He has passed an Affordable Care Act that -- 554 00:26:27,266 --> 00:26:28,800 The Press: This is Alan Simpson talking about what's already been 555 00:26:28,800 --> 00:26:29,800 proposed by the President. 556 00:26:29,800 --> 00:26:31,433 Sounds to me like he doesn't think it's enough. 557 00:26:31,433 --> 00:26:36,000 Mr. Carney: Well, what he has said -- you're quoting to me from something 558 00:26:36,000 --> 00:26:38,767 that I will take at your word for it is accurate. 559 00:26:38,767 --> 00:26:43,133 But the President agrees we need to pass further 560 00:26:43,133 --> 00:26:43,967 entitlement reform. 561 00:26:43,967 --> 00:26:45,800 We need to do it in a way that reduce, 562 00:26:45,800 --> 00:26:47,265 when it comes to our health care entitlements -- 563 00:26:47,266 --> 00:26:50,100 which, by the way, everybody agrees is the main drive of our 564 00:26:50,100 --> 00:26:51,899 long-term deficit and debt challenge -- 565 00:26:51,900 --> 00:26:55,734 that does it in a way that reduces our health care costs, 566 00:26:55,734 --> 00:26:58,033 doesn't just shift costs to seniors. 567 00:26:58,033 --> 00:27:00,166 I mean, that has been the approach through voucherization 568 00:27:00,166 --> 00:27:03,399 or other proposals by Republicans that is wholly 569 00:27:03,400 --> 00:27:05,633 unfair to seniors and doesn't make sense economically. 570 00:27:05,633 --> 00:27:08,367 We need to take actions that reduce health care costs. 571 00:27:08,367 --> 00:27:10,367 That's what the Affordable Care Act does. 572 00:27:10,367 --> 00:27:12,966 In the second 10 years after its implementation, as you know, 573 00:27:12,967 --> 00:27:15,467 or after its passage, there are enormous savings, 574 00:27:15,467 --> 00:27:18,900 as scored by CBO, from the implementation of the 575 00:27:18,900 --> 00:27:21,367 Affordable Care Act. 576 00:27:21,367 --> 00:27:25,767 And one of the purposes of that priority that the President 577 00:27:25,767 --> 00:27:29,834 successfully signed into law in his first term was addressing 578 00:27:29,834 --> 00:27:33,500 the need to reduce our overall health care costs going forward. 579 00:27:33,500 --> 00:27:34,533 More work needs to be done. 580 00:27:34,533 --> 00:27:37,000 The President again -- let's go back to the simple principle, 581 00:27:37,000 --> 00:27:38,633 when it comes to further deficit reduction, 582 00:27:38,633 --> 00:27:41,000 the President hasn't just proposed revenues. 583 00:27:41,000 --> 00:27:44,166 In fact, he's signed into law two-to-one more spending cuts 584 00:27:44,166 --> 00:27:45,600 than revenue increases. 585 00:27:45,600 --> 00:27:51,734 He has proposed in his various submissions to Congress and his 586 00:27:51,734 --> 00:27:54,600 negotiations with the Speaker of the House entitlement reforms, 587 00:27:54,600 --> 00:27:57,533 including decisions that represent very tough calls 588 00:27:57,533 --> 00:27:58,533 for Democrats. 589 00:27:58,533 --> 00:28:01,567 But he is leading on this issue because he understands that 590 00:28:01,567 --> 00:28:02,567 it's important. 591 00:28:02,567 --> 00:28:04,066 But he also understands that we need to do it in a way, 592 00:28:04,066 --> 00:28:07,000 as he said today, that ensures that our economy can continue to 593 00:28:07,000 --> 00:28:09,800 grow, that ensures that our economy is receiving the 594 00:28:09,800 --> 00:28:12,867 necessary investments in education and research and 595 00:28:12,867 --> 00:28:17,000 development and innovation and infrastructure that make sure 596 00:28:17,000 --> 00:28:20,533 that five, 10, 20 and 40 years from now, 597 00:28:20,533 --> 00:28:23,833 we still have that powerful economic engine in this country 598 00:28:23,834 --> 00:28:26,166 that has been the envy of the world for so many years and so 599 00:28:26,166 --> 00:28:28,166 many decades. 600 00:28:28,166 --> 00:28:30,667 As you know, because you and I both covered it in the '90s, 601 00:28:30,667 --> 00:28:36,332 when we achieved as a nation budget surpluses for the first 602 00:28:36,333 --> 00:28:40,066 time in decades, it was a result of tough choices, 603 00:28:40,066 --> 00:28:43,033 leadership by President Clinton, tough choices by Congress, 604 00:28:43,033 --> 00:28:45,667 and significant economic growth. 605 00:28:45,667 --> 00:28:50,265 And that's why we cannot lose sight of the overall goal here, 606 00:28:50,266 --> 00:28:53,467 which is a growing economy and an economy that's creating good, 607 00:28:53,467 --> 00:28:54,400 middle-class jobs. 608 00:28:54,400 --> 00:28:57,000 The Press: On immigration, Senator Rubio said if what was released or 609 00:28:57,000 --> 00:28:59,767 leaked this weekend were sent to Congress, it would be DOA, 610 00:28:59,767 --> 00:29:03,700 and that its very release politicized the process and 611 00:29:03,700 --> 00:29:06,100 damaged the possibilities of achieving reform. 612 00:29:06,100 --> 00:29:07,667 Would you react to both of those? 613 00:29:07,667 --> 00:29:10,867 Mr. Carney: Well, I would say a couple of things which I think most of you 614 00:29:10,867 --> 00:29:13,367 should be aware of, which is that this was not an 615 00:29:13,367 --> 00:29:15,000 intentional release. 616 00:29:15,000 --> 00:29:19,300 That was clear by the fact that the White House reached out to 617 00:29:19,300 --> 00:29:22,066 the offices of those who are leading the effort on 618 00:29:22,066 --> 00:29:26,100 immigration reform in the Senate to make clear that our focus 619 00:29:26,100 --> 00:29:29,833 continues to be and our hopes continue to lie with the 620 00:29:29,834 --> 00:29:33,667 bipartisan effort underway in the Senate to achieve 621 00:29:33,667 --> 00:29:35,065 comprehensive immigration reform. 622 00:29:35,066 --> 00:29:38,800 It is by far the President's preference that the Senate 623 00:29:38,800 --> 00:29:42,767 process move forward, that the bipartisan Group of Eight have 624 00:29:42,767 --> 00:29:46,300 success and that they produce a bill that wins the support of 625 00:29:46,300 --> 00:29:49,934 Democrats and Republicans in the Senate, then in the House, 626 00:29:49,934 --> 00:29:52,533 and that it arrives at his desk for his signature. 627 00:29:52,533 --> 00:29:57,667 What I would note is that in the blueprint the President has had 628 00:29:57,667 --> 00:30:01,132 on WhiteHouse.gov for a couple of years, 629 00:30:01,133 --> 00:30:06,533 there is a remarkable convergence of policy specifics 630 00:30:06,533 --> 00:30:09,632 between what the President supports and has supported since 631 00:30:09,633 --> 00:30:12,166 there was legislation in the Senate and what the Group of 632 00:30:12,166 --> 00:30:14,667 Eight has been working on, including the Republican 633 00:30:14,667 --> 00:30:16,233 senators who are part of that group. 634 00:30:16,233 --> 00:30:20,033 So we're very hopeful that, as Denis McDonough said this 635 00:30:20,033 --> 00:30:23,399 weekend, the Senate will move forward. 636 00:30:23,400 --> 00:30:26,700 We believe that's the best way for this to happen. 637 00:30:26,700 --> 00:30:31,734 We've also said -- made clear that we will prepare legislation 638 00:30:31,734 --> 00:30:34,867 and submit it if that process in the Senate fails. 639 00:30:34,867 --> 00:30:37,533 But we want the process in the Senate to succeed. 640 00:30:37,533 --> 00:30:40,766 The Press: Will you release and propose legislation that includes what 641 00:30:40,767 --> 00:30:44,266 was not visible this weekend which was any mention of a 642 00:30:44,266 --> 00:30:47,667 future legal immigration system also dealing with guest workers 643 00:30:47,667 --> 00:30:50,367 and a lot of the complex areas of immigration reform that are 644 00:30:50,367 --> 00:30:53,265 unrelated to dealing with legalization or border security? 645 00:30:53,266 --> 00:30:55,867 Mr. Carney: Well, first of all, our goal is, as Denis McDonough said on one 646 00:30:55,867 --> 00:30:59,100 of the shows this Sunday, to not propose -- 647 00:30:59,100 --> 00:31:04,600 to our own Jon Karl -- to not propose or submit legislation -- 648 00:31:04,600 --> 00:31:06,800 The Press: Are you committed to future flow reform? 649 00:31:06,800 --> 00:31:10,133 Mr. Carney: I think we've said that we will work with Congress, 650 00:31:10,133 --> 00:31:11,433 and with the Senate in particular, 651 00:31:11,433 --> 00:31:14,000 as they undertake this effort on those issues. 652 00:31:14,000 --> 00:31:16,667 If you look at the blueprint, the President's ideas on this 653 00:31:16,667 --> 00:31:18,899 are pretty detailed and specific in terms of broader 654 00:31:18,900 --> 00:31:20,333 comprehensive immigration reform. 655 00:31:20,333 --> 00:31:25,767 But further to my point, in answer to your first question, 656 00:31:25,767 --> 00:31:27,667 our interest is in seeing the Senate process, 657 00:31:27,667 --> 00:31:30,000 the bipartisan process succeed. 658 00:31:30,000 --> 00:31:31,000 Ed. 659 00:31:31,000 --> 00:31:32,400 The Press: Did you have a nice weekend? 660 00:31:32,400 --> 00:31:33,667 (laughter) 661 00:31:33,667 --> 00:31:38,332 Mr. Carney: I had a great weekend sledding with my children. 662 00:31:38,333 --> 00:31:39,266 The Press: Where? 663 00:31:39,266 --> 00:31:40,967 Mr. Carney: Up where there's snow. 664 00:31:40,967 --> 00:31:43,533 The Press: A couple questions, one on cybersecurity. 665 00:31:43,533 --> 00:31:46,867 There's an independent report out today suggesting that there 666 00:31:46,867 --> 00:31:49,633 are billions of trade secrets that we're losing to China. 667 00:31:49,633 --> 00:31:51,900 The President addressed this in the State of the Union, 668 00:31:51,900 --> 00:31:54,467 put out an executive order last Tuesday as I recall. 669 00:31:54,467 --> 00:31:56,500 Can the White House assure the American people that this 670 00:31:56,500 --> 00:31:59,333 executive order is going to actually put a dent in that so 671 00:31:59,333 --> 00:32:02,333 that we're not losing billions of trade secrets a year? 672 00:32:02,333 --> 00:32:06,233 Mr. Carney: Well, first of all, we're aware of the Mandiant report that you 673 00:32:06,233 --> 00:32:08,233 are referring to and we're aware of its contents, 674 00:32:08,233 --> 00:32:10,966 but I am not going to talk about assessments -- 675 00:32:10,967 --> 00:32:15,567 intelligence assessments that we make or may be making. 676 00:32:15,567 --> 00:32:18,367 But you're correct in noting the President's keen focus on 677 00:32:18,367 --> 00:32:19,367 this issue. 678 00:32:19,367 --> 00:32:24,066 It is a major challenge for us in the national security arena. 679 00:32:24,066 --> 00:32:26,133 The United States has substantial and growing concerns 680 00:32:26,133 --> 00:32:29,333 about the threats to U.S. economic and national security 681 00:32:29,333 --> 00:32:32,767 posed by cyber intrusions, including the theft of 682 00:32:32,767 --> 00:32:34,166 commercial information. 683 00:32:34,166 --> 00:32:36,066 As the President said in the State of the Union, 684 00:32:36,066 --> 00:32:39,000 "We know foreign countries and companies swipe our 685 00:32:39,000 --> 00:32:40,567 "corporate secrets." 686 00:32:40,567 --> 00:32:43,100 The President also said, "We cannot look back years from now 687 00:32:43,100 --> 00:32:45,934 and wonder why we did nothing in the face of real threats to our 688 00:32:45,934 --> 00:32:47,800 security and our economy. 689 00:32:47,800 --> 00:32:49,834 That's why the United States government is taking an active 690 00:32:49,834 --> 00:32:52,166 approach to addressing the issue of cyber theft. 691 00:32:52,166 --> 00:32:56,300 We have urged Congress to pass legislation, 692 00:32:56,300 --> 00:33:01,233 and the President is taking all steps he can through the 693 00:33:01,233 --> 00:33:05,500 executive branch to make sure that we're safeguarding 694 00:33:05,500 --> 00:33:08,467 government networks and providing helpful and useful and 695 00:33:08,467 --> 00:33:10,600 relevant information to the private sector to help them 696 00:33:10,600 --> 00:33:12,233 safeguard their networks. 697 00:33:12,233 --> 00:33:14,000 The Press: On the sequester, we went back and checked the record. 698 00:33:14,000 --> 00:33:16,266 On November 21, 2011, the President, 699 00:33:16,266 --> 00:33:19,133 after the super committee failed, came into this room -- 700 00:33:19,133 --> 00:33:22,033 and Republicans on the Hill were talking about coming up with 701 00:33:22,033 --> 00:33:24,667 other cuts to deal with, as the President calls it, 702 00:33:24,667 --> 00:33:26,065 draconian cuts from the sequester -- 703 00:33:26,066 --> 00:33:28,233 they were trying to come up with other ways to deal with this. 704 00:33:28,233 --> 00:33:30,800 The President came in this room and immediately said he would 705 00:33:30,800 --> 00:33:33,633 veto such a bill to come up with other cuts. 706 00:33:33,633 --> 00:33:36,233 So how does he now have the credibility to say the sequester 707 00:33:36,233 --> 00:33:38,767 would be so awful if the Republicans were saying over a 708 00:33:38,767 --> 00:33:40,767 year ago let's find another way to deal with it, 709 00:33:40,767 --> 00:33:42,734 and he said I'll veto that? 710 00:33:42,734 --> 00:33:44,433 Mr. Carney: Well, Ed, I know, because you were here, 711 00:33:44,433 --> 00:33:46,633 that you know that's not an actual account of what he was 712 00:33:46,633 --> 00:33:47,633 talking about. 713 00:33:47,633 --> 00:33:50,233 There were efforts underway by Republicans in Congress to 714 00:33:50,233 --> 00:33:53,834 replace the sequester, which was half defense, half non-defense, 715 00:33:53,834 --> 00:33:56,133 with cuts only in non-defense. 716 00:33:56,133 --> 00:33:59,200 And that was basically saying Republicans were crossing their 717 00:33:59,200 --> 00:34:01,867 fingers when they all voted overwhelmingly for the 718 00:34:01,867 --> 00:34:05,800 sequester, when every Republican leader in the House voted for 719 00:34:05,800 --> 00:34:08,400 the sequester, including Chairman Ryan, Speaker Boehner, 720 00:34:08,400 --> 00:34:11,367 and others -- Eric Cantor and Kevin McCarthy. 721 00:34:11,367 --> 00:34:15,300 The fact is that that is an unfair and unbalanced approach. 722 00:34:15,300 --> 00:34:20,600 So, yes, we do not support undoing the sequester in a way 723 00:34:20,600 --> 00:34:24,533 that says, you know what, we'll throw double the number of kids 724 00:34:24,533 --> 00:34:27,600 out of Head Start; we'll make double the amount of cuts to 725 00:34:27,600 --> 00:34:30,333 education, to investments in research and development; 726 00:34:30,333 --> 00:34:34,967 we'll cut double the number of security guards on our border. 727 00:34:34,967 --> 00:34:39,400 That is completely inappropriate to the task and the need here. 728 00:34:39,400 --> 00:34:41,800 The President believes that Congress needs to act in a 729 00:34:41,800 --> 00:34:45,867 balanced, responsible way, first to buy down the sequester so 730 00:34:45,867 --> 00:34:47,667 that it can then move forward with broader, 731 00:34:47,667 --> 00:34:48,866 balanced deficit reduction. 732 00:34:48,867 --> 00:34:52,100 But it's a canard, and we've been through this -- 733 00:34:52,100 --> 00:34:54,467 that Republicans use this quote as though it represents 734 00:34:54,467 --> 00:34:56,266 something that everybody in this room knows it does 735 00:34:56,266 --> 00:34:57,233 not represent. 736 00:34:57,233 --> 00:34:57,967 The Press: So if you do want a balanced approach, 737 00:34:57,967 --> 00:34:59,867 the last time the President had a chance on deficit reduction 738 00:34:59,867 --> 00:35:02,000 was the fiscal cliff talks just a few weeks back, 739 00:35:02,000 --> 00:35:04,633 and he signed into law $600 billion in tax increases and 740 00:35:04,633 --> 00:35:06,933 something like $10 or $15 billion in spending cuts. 741 00:35:06,934 --> 00:35:08,233 So does the White House really -- 742 00:35:08,233 --> 00:35:10,867 can you tell the American people that's balanced? 743 00:35:10,867 --> 00:35:11,767 Mr. Carney: Ed, you were here. 744 00:35:11,767 --> 00:35:15,600 The President put forward a proposal that represented 745 00:35:15,600 --> 00:35:22,633 significant compromise that was judged by outsiders as coming 746 00:35:22,633 --> 00:35:24,899 and meeting the Republicans more than halfway on revenues, 747 00:35:24,900 --> 00:35:27,266 more than halfway on spending cuts and entitlement reforms, 748 00:35:27,266 --> 00:35:29,567 and the Speaker of the House walked away from that deal -- 749 00:35:29,567 --> 00:35:30,767 walked away from it. 750 00:35:30,767 --> 00:35:32,667 But guess what, that deal is still on the table, 751 00:35:32,667 --> 00:35:35,266 and it includes, as you know, very tough choices by this 752 00:35:35,266 --> 00:35:38,266 President for Democrats when it comes to entitlements and 753 00:35:38,266 --> 00:35:39,600 spending cuts. 754 00:35:39,600 --> 00:35:44,533 So, again, we have -- the President has always sought a 755 00:35:44,533 --> 00:35:50,900 bigger deal, has always sought a bill or legislation that's 756 00:35:50,900 --> 00:35:53,967 balanced, that would achieve that goal of $400 [sic] 757 00:35:53,967 --> 00:35:56,834 trillion-plus over 10 years. 758 00:35:56,834 --> 00:36:00,866 He continues to have hope that Congress, 759 00:36:00,867 --> 00:36:04,867 that Republicans will take him up on the remainder of that 760 00:36:04,867 --> 00:36:08,333 proposal that he offered to the Speaker that the Speaker walked 761 00:36:08,333 --> 00:36:09,633 away from. 762 00:36:09,633 --> 00:36:12,933 In the meantime, we need to make sure that we don't let this 763 00:36:12,934 --> 00:36:16,633 sequester take effect with all of its devastating effects on 764 00:36:16,633 --> 00:36:22,033 first responders and kids in Head Start and our 765 00:36:22,033 --> 00:36:23,333 national security. 766 00:36:23,333 --> 00:36:26,433 It's just mindless and reckless -- 767 00:36:26,433 --> 00:36:29,767 it's a mindless and reckless approach to policy in Washington 768 00:36:29,767 --> 00:36:33,700 for Congress not to do the responsible thing. 769 00:36:33,700 --> 00:36:35,734 The Press: Okay, last thing I do want to ask you about is access around 770 00:36:35,734 --> 00:36:36,967 here to the President. 771 00:36:36,967 --> 00:36:38,834 There's obviously been a lot of commentary about the 772 00:36:38,834 --> 00:36:39,834 golf situation. 773 00:36:39,834 --> 00:36:41,633 This Friday, though, the President has -- 774 00:36:41,633 --> 00:36:43,633 I think it's Friday that he has the Japanese Prime Minister 775 00:36:43,633 --> 00:36:45,600 coming in for a meeting. 776 00:36:45,600 --> 00:36:47,799 There's a lot going on with the Japanese economy that obviously 777 00:36:47,800 --> 00:36:49,000 has international implications. 778 00:36:49,000 --> 00:36:51,900 There are island disputes between China and Japan that 779 00:36:51,900 --> 00:36:53,500 have a lot of people nervous. 780 00:36:53,500 --> 00:36:55,667 When the President meets with the Japanese Prime Minister, 781 00:36:55,667 --> 00:36:57,767 will the White House Press Corps come in and get a chance to 782 00:36:57,767 --> 00:36:59,133 actually ask questions of the President? 783 00:36:59,133 --> 00:37:00,633 Is that your plan on Friday? 784 00:37:00,633 --> 00:37:03,265 Mr. Carney: Look, Ed, I am completely sympathetic, 785 00:37:03,266 --> 00:37:08,600 having covered two White Houses, to the difficulties of the job 786 00:37:08,600 --> 00:37:12,967 covering any White House, and the desire for more and 787 00:37:12,967 --> 00:37:13,967 more access. 788 00:37:13,967 --> 00:37:17,333 And I am -- we work every day with you and others to 789 00:37:17,333 --> 00:37:18,734 provide that. 790 00:37:18,734 --> 00:37:20,933 And we will continue to do that. 791 00:37:20,934 --> 00:37:23,100 I don't have a scheduling announcement for an event 792 00:37:23,100 --> 00:37:23,866 on Friday. 793 00:37:23,867 --> 00:37:25,133 The Press: But you're sympathetic to us as a former correspondent, 794 00:37:25,133 --> 00:37:26,667 do you think the President should take questions -- 795 00:37:26,667 --> 00:37:30,165 Mr. Carney: Well, I would note that -- and this is important to note, given 796 00:37:30,166 --> 00:37:31,633 some of the coverage of this issue -- 797 00:37:31,633 --> 00:37:33,933 that when it comes to solo news conferences where the President 798 00:37:33,934 --> 00:37:36,300 of the United States stands up and for 40 minutes, 799 00:37:36,300 --> 00:37:38,400 50 minutes or an hour takes your questions, 800 00:37:38,400 --> 00:37:41,967 allowing reporters to go deep on issues -- 801 00:37:41,967 --> 00:37:45,200 President Obama has given 35 of those. 802 00:37:45,200 --> 00:37:48,366 President Bush, his immediate predecessor, gave 19. 803 00:37:48,367 --> 00:37:49,400 So also, when it comes to interviews, 804 00:37:49,400 --> 00:37:56,300 the President has given 591 interviews since he took office. 805 00:37:56,300 --> 00:37:58,867 So I think that it is clear that we are making an effort to 806 00:37:58,867 --> 00:38:03,100 provide access to make sure that the President is being 807 00:38:03,100 --> 00:38:05,600 questioned by reporters, and anchors, and others, 808 00:38:05,600 --> 00:38:06,834 and we'll continue to do that. 809 00:38:06,834 --> 00:38:07,500 The Press: And what reporters? 810 00:38:07,500 --> 00:38:08,367 That's the question. 811 00:38:08,367 --> 00:38:10,000 You're saying interviews -- there's 500 interviews. 812 00:38:10,000 --> 00:38:12,133 Mr. Carney: A hundred and four of those interviews were with major 813 00:38:12,133 --> 00:38:15,466 networks -- television networks. 814 00:38:15,467 --> 00:38:16,567 Kristen, did you have anything? 815 00:38:16,567 --> 00:38:19,600 The Press: Yes, Jay, does the President have a reaction to the criticism 816 00:38:19,600 --> 00:38:23,165 that his administration has not been transparent? 817 00:38:23,166 --> 00:38:25,066 Mr. Carney: He deputizes me to have that reaction. 818 00:38:25,066 --> 00:38:28,700 And I would say, again, having been where you are, 819 00:38:28,700 --> 00:38:30,933 I understand -- and I doubt that there's ever been a White House 820 00:38:30,934 --> 00:38:34,066 press corps that's ever been wholly satisfied with the level 821 00:38:34,066 --> 00:38:36,265 of access that they've been afforded -- 822 00:38:36,266 --> 00:38:39,900 but we work very closely with all of you to try to provide 823 00:38:39,900 --> 00:38:41,734 access to the President. 824 00:38:41,734 --> 00:38:45,834 I would note that when I was covering President Bush -- 825 00:38:45,834 --> 00:38:49,633 George W. Bush, I was on his first trip on Air Force One. 826 00:38:49,633 --> 00:38:51,332 It was a short trip down to Norfolk, I believe, 827 00:38:51,333 --> 00:38:52,967 and he came back and spoke to the pool. 828 00:38:52,967 --> 00:38:56,133 That was his first trip. 829 00:38:56,133 --> 00:38:58,567 For the next three years that I covered the President, 830 00:38:58,567 --> 00:39:00,266 he never came back again. 831 00:39:00,266 --> 00:39:02,734 The Press: What did you ask? 832 00:39:02,734 --> 00:39:05,266 (laughter) 833 00:39:05,266 --> 00:39:07,433 Mr. Carney: Very hard questions, tough questions. 834 00:39:07,433 --> 00:39:12,667 But the point is -- my only point is that I've been there. 835 00:39:12,667 --> 00:39:15,100 When I covered President Clinton, 836 00:39:15,100 --> 00:39:18,000 there were periods of immense frustration. 837 00:39:18,000 --> 00:39:21,467 When I came to this room in the spring of 1993, 838 00:39:21,467 --> 00:39:23,667 the White House Press Corps, as those of you who were here 839 00:39:23,667 --> 00:39:26,900 remember, was in a state of rebellion over the situation 840 00:39:26,900 --> 00:39:28,567 here in terms of press relations. 841 00:39:28,567 --> 00:39:29,567 This is not uncommon. 842 00:39:29,567 --> 00:39:30,867 I certainly don't think we have that here, 843 00:39:30,867 --> 00:39:33,767 and we are working every day to provide the kind of access that 844 00:39:33,767 --> 00:39:36,466 we believe is an essential part of the work you do. 845 00:39:36,467 --> 00:39:38,767 The Press: Well, and I guess more broadly, did the events of this weekend 846 00:39:38,767 --> 00:39:41,033 make you rethink the level of transparency within 847 00:39:41,033 --> 00:39:41,767 this administration? 848 00:39:41,767 --> 00:39:42,799 And can we expect to see -- 849 00:39:42,800 --> 00:39:43,867 Mr. Carney: You mean the events of this weekend -- 850 00:39:43,867 --> 00:39:45,333 the fact that the President wanted to play golf with 851 00:39:45,333 --> 00:39:46,900 a golf pro? 852 00:39:46,900 --> 00:39:48,967 The Press: Well, and some of the criticism that you got in the wake of not 853 00:39:48,967 --> 00:39:52,266 just what happened this weekend, but also some of the meetings 854 00:39:52,266 --> 00:39:54,433 that haven't been read out to the press as of later that we 855 00:39:54,433 --> 00:39:56,367 haven't been made aware of in advance. 856 00:39:56,367 --> 00:39:59,367 Mr. Carney: Well, again, you would have to be more specific about the 857 00:39:59,367 --> 00:40:00,934 question on the issue of this weekend. 858 00:40:00,934 --> 00:40:05,600 I mean, the President had some downtime; he was playing golf. 859 00:40:05,600 --> 00:40:10,700 I understand that there was a desire to have access or a 860 00:40:10,700 --> 00:40:13,399 photograph of that, but the President was having -- 861 00:40:13,400 --> 00:40:14,467 The Press: Well, a confirmation of what was happening -- 862 00:40:14,467 --> 00:40:16,233 Mr. Carney: We did provide you the first official confirmation of that -- 863 00:40:16,233 --> 00:40:17,300 The Press: It took several hours. 864 00:40:17,300 --> 00:40:19,266 Mr. Carney: The first official confirmation that anybody in this room 865 00:40:19,266 --> 00:40:22,800 received of that event and the people that the President was 866 00:40:22,800 --> 00:40:27,266 playing golf with was from the White House press office. 867 00:40:27,266 --> 00:40:31,233 We don't control everybody who's around and purporting to be 868 00:40:31,233 --> 00:40:32,166 reporting on the event. 869 00:40:32,166 --> 00:40:35,800 But nobody -- no reporter had any access that was different 870 00:40:35,800 --> 00:40:37,800 from the White House Press Corps on that matter. 871 00:40:37,800 --> 00:40:40,567 The Press: Just shifting to Simpson and Bowles -- 872 00:40:40,567 --> 00:40:42,000 Mr. Carney: Go ahead, Kristen. 873 00:40:42,000 --> 00:40:43,967 The Press: One more on Simpson-Bowles. 874 00:40:43,967 --> 00:40:45,900 Specifically to look at the issue of entitlements, 875 00:40:45,900 --> 00:40:48,700 they're calling for $600 billion in entitlement reform, 876 00:40:48,700 --> 00:40:52,033 which I believe is about $200 billion more than what you have 877 00:40:52,033 --> 00:40:52,967 said you're willing to offer. 878 00:40:52,967 --> 00:40:55,834 So will the President move on that issue of entitlements? 879 00:40:55,834 --> 00:40:57,265 Will he give more? 880 00:40:57,266 --> 00:40:58,900 Mr. Carney: Well, first of all, the President has put forward -- 881 00:40:58,900 --> 00:41:01,500 unlike any Republicans -- a balanced approach to deficit 882 00:41:01,500 --> 00:41:03,967 reduction that includes entitlement reforms, 883 00:41:03,967 --> 00:41:06,834 tax reform, and spending cuts. 884 00:41:06,834 --> 00:41:10,433 He has signed into law over $2.5 trillion in deficit reduction 885 00:41:10,433 --> 00:41:13,033 thus far with a ratio of more than 2 to 1 -- 886 00:41:13,033 --> 00:41:16,500 spending cuts to revenue increases. 887 00:41:16,500 --> 00:41:19,233 The President agrees with outside economists that have 888 00:41:19,233 --> 00:41:21,734 been saying this for a number of years now that we need to 889 00:41:21,734 --> 00:41:25,266 achieve in deficit reduction the target of $4 trillion over 10 890 00:41:25,266 --> 00:41:28,734 years that will help put us on a fiscally sustainable path that 891 00:41:28,734 --> 00:41:33,366 will reduce the size of our deficits and debt as a ratio to 892 00:41:33,367 --> 00:41:38,033 GDP that will give us that fiscal sustainability. 893 00:41:38,033 --> 00:41:40,500 Obviously, this is an issue that, as a country, 894 00:41:40,500 --> 00:41:43,133 we will continue to have to deal with. 895 00:41:43,133 --> 00:41:46,366 But the President believes that the proposals he's made -- 896 00:41:46,367 --> 00:41:47,967 he knows that the proposals he's made, 897 00:41:47,967 --> 00:41:52,633 if Congress were to adopt them, would achieve that goal and 898 00:41:52,633 --> 00:41:55,799 would do it in a way that allows our economy to continue to grow, 899 00:41:55,800 --> 00:41:59,500 that doesn't punish seniors or ask seniors or middle-class 900 00:41:59,500 --> 00:42:03,166 families to bear the burden of deficit reduction alone, 901 00:42:03,166 --> 00:42:08,533 and that makes our tax code fairer and simpler for everyone 902 00:42:08,533 --> 00:42:09,567 in the country. 903 00:42:09,567 --> 00:42:12,667 The Press: I've spoken to some economists who say it appears likely at 904 00:42:12,667 --> 00:42:15,400 this point that the sequester is going to kick in. 905 00:42:15,400 --> 00:42:18,967 Does the administration share that view that it's likely it 906 00:42:18,967 --> 00:42:21,033 will kick in, at least for a week or two? 907 00:42:21,033 --> 00:42:23,866 Mr. Carney: I don't have a prediction to make. 908 00:42:23,867 --> 00:42:26,500 What the President made clear today is that it should 909 00:42:26,500 --> 00:42:27,500 not happen. 910 00:42:27,500 --> 00:42:29,100 There is no reason for it to happen. 911 00:42:29,100 --> 00:42:31,467 Congress has within its power, Republicans have it within their 912 00:42:31,467 --> 00:42:36,367 power to agree to the basic principle that we should buy 913 00:42:36,367 --> 00:42:40,834 down the sequester for a certain amount of time to allow Congress 914 00:42:40,834 --> 00:42:42,933 to then move forward with broader deficit reduction 915 00:42:42,934 --> 00:42:44,166 through the budget process. 916 00:42:44,166 --> 00:42:48,100 If they do not do that, they will be making a choice -- 917 00:42:48,100 --> 00:42:50,799 Republicans will be making a choice to allow the sequester to 918 00:42:50,800 --> 00:42:53,967 take effect with all of the negative impacts that we've 919 00:42:53,967 --> 00:42:59,467 talked about, rather than accept the principle that corporate jet 920 00:42:59,467 --> 00:43:02,400 owners should give up their tax break; 921 00:43:02,400 --> 00:43:05,800 that oil and gas companies should no longer be subsidized 922 00:43:05,800 --> 00:43:08,800 through the massive amount that they're subsidized by the 923 00:43:08,800 --> 00:43:13,100 taxpayer anymore, that that doesn't make good policy; 924 00:43:13,100 --> 00:43:15,933 that we ought to do things in a way that are balanced -- 925 00:43:15,934 --> 00:43:19,000 in ways that are balanced so that we don't ask seniors and 926 00:43:19,000 --> 00:43:21,567 others to bear the burden of deficit reduction alone. 927 00:43:21,567 --> 00:43:23,233 Stephen, and then Roger. 928 00:43:23,233 --> 00:43:25,700 The Press: The President says often when he meets with Chinese leaders that 929 00:43:25,700 --> 00:43:28,834 China should submit to the rules of the road of the 930 00:43:28,834 --> 00:43:30,433 international economy. 931 00:43:30,433 --> 00:43:34,033 If the government is sponsoring a PLA unit to steal U.S. company 932 00:43:34,033 --> 00:43:37,967 secrets, does that suggest that approach is not working? 933 00:43:37,967 --> 00:43:41,200 And does the White House countenance having any 934 00:43:41,200 --> 00:43:42,933 firmer measures? 935 00:43:42,934 --> 00:43:46,300 Mr. Carney: First of all, I don't have any comment on that report and the 936 00:43:46,300 --> 00:43:47,300 specific allegations. 937 00:43:47,300 --> 00:43:53,734 I can tell you that we have repeatedly raised our concerns 938 00:43:53,734 --> 00:43:57,700 at the highest levels about cyber theft with senior Chinese 939 00:43:57,700 --> 00:44:00,100 officials, including in the military, 940 00:44:00,100 --> 00:44:02,133 and we will continue to do so. 941 00:44:02,133 --> 00:44:05,700 This is a very important challenge. 942 00:44:05,700 --> 00:44:10,066 It is one the President has been working on and urging Congress 943 00:44:10,066 --> 00:44:13,232 to take action on for quite some time, 944 00:44:13,233 --> 00:44:14,367 and he'll continue to do that. 945 00:44:14,367 --> 00:44:18,533 The United States and China are among the world's largest cyber 946 00:44:18,533 --> 00:44:21,200 actors, and it is vital that we continue a sustained, 947 00:44:21,200 --> 00:44:23,799 meaningful dialogue and work together to develop an 948 00:44:23,800 --> 00:44:27,166 understanding of acceptable behavior in cyberspace. 949 00:44:27,166 --> 00:44:27,934 Roger. 950 00:44:27,934 --> 00:44:29,233 The Press: Same topic. 951 00:44:29,233 --> 00:44:32,367 The President did his executive order on cybersecurity on 952 00:44:32,367 --> 00:44:33,900 February 12th. 953 00:44:33,900 --> 00:44:36,533 The New York Times reported today that the administration is 954 00:44:36,533 --> 00:44:40,533 going to be taking a more aggressive defense 955 00:44:40,533 --> 00:44:42,767 beginning today. 956 00:44:42,767 --> 00:44:44,667 Is there more that you -- 957 00:44:44,667 --> 00:44:46,700 Mr. Carney: I have no initiatives to announce today. 958 00:44:46,700 --> 00:44:52,100 This is an issue that has the attention of the President and 959 00:44:52,100 --> 00:44:54,299 senior levels of the national security team. 960 00:44:54,300 --> 00:44:56,400 It's something that we are working on constantly, 961 00:44:56,400 --> 00:45:02,567 and we will of course take necessary measures to enhance 962 00:45:02,567 --> 00:45:06,100 our cybersecurity and to assist the private sector in enhancing 963 00:45:06,100 --> 00:45:07,100 their cybersecurity. 964 00:45:07,100 --> 00:45:09,165 But I have no new measures to give you. 965 00:45:09,166 --> 00:45:13,166 The Press: Will there be any reaction at all to the report from the -- 966 00:45:13,166 --> 00:45:14,934 Mr. Carney: Again, it's a private report. 967 00:45:14,934 --> 00:45:19,900 I've given you an assessment of our view of the problem and the 968 00:45:19,900 --> 00:45:22,233 fact that we, when it comes to China, 969 00:45:22,233 --> 00:45:25,200 regularly raise this issue with Chinese officials, 970 00:45:25,200 --> 00:45:27,299 including officials in the military. 971 00:45:27,300 --> 00:45:28,500 Scott. 972 00:45:28,500 --> 00:45:30,600 The Press: Jay, Senator McConnell put out a statement after the President's 973 00:45:30,600 --> 00:45:34,333 event this morning suggesting that he could move money around 974 00:45:34,333 --> 00:45:37,700 to hold first responders harmless by maybe hitting green 975 00:45:37,700 --> 00:45:39,866 energy programs or something like that. 976 00:45:39,867 --> 00:45:42,166 That seemed to be at odds with what Danny Werfel said about the 977 00:45:42,166 --> 00:45:44,033 government's flexibility. 978 00:45:44,033 --> 00:45:46,567 Is he mischaracterizing how much flexibility the 979 00:45:46,567 --> 00:45:47,734 government has to -- 980 00:45:47,734 --> 00:45:48,467 The Press: I haven't seen the statement. 981 00:45:48,467 --> 00:45:52,367 There is not the flexibility that some would suggest exists 982 00:45:52,367 --> 00:45:53,867 because the law is written the way it is, 983 00:45:53,867 --> 00:45:58,300 and it's a lot of money in a short period of time not dealing 984 00:45:58,300 --> 00:46:03,133 with our entire $3.4 trillion, as Jon said, 985 00:46:03,133 --> 00:46:04,899 but with just defense and non-defense 986 00:46:04,900 --> 00:46:07,867 discretionary spending. 987 00:46:07,867 --> 00:46:12,300 The fact of the matter is you cannot do this in a way that 988 00:46:12,300 --> 00:46:14,533 would not have tremendously harmful effects. 989 00:46:14,533 --> 00:46:16,066 Again, I haven't seen the quote that you've mentioned. 990 00:46:16,066 --> 00:46:18,133 But let's say you were to do that, 991 00:46:18,133 --> 00:46:20,700 does that mean you add another 50,000 people -- 992 00:46:20,700 --> 00:46:23,133 kids that you're going to throw off of Head Start? 993 00:46:23,133 --> 00:46:26,600 Does it mean another 100 border security -- 994 00:46:26,600 --> 00:46:29,500 Border agents that you furlough? 995 00:46:29,500 --> 00:46:33,166 The fact is the impacts are highly harmful to the economy. 996 00:46:33,166 --> 00:46:37,800 They would result in hundreds of thousands of people having their 997 00:46:37,800 --> 00:46:44,200 jobs put at risk and would, by outside economists' assessments, 998 00:46:44,200 --> 00:46:47,767 do severe harm to the recovery that's been underway now for 999 00:46:47,767 --> 00:46:50,299 quite some time from the Great Recession. 1000 00:46:50,300 --> 00:46:51,934 The Press: Just aside from the merits of whatever you might substitute, 1001 00:46:51,934 --> 00:46:56,233 it sounded like from what Werfel said, the money is by account, 1002 00:46:56,233 --> 00:46:57,767 and you can't even move it among accounts. 1003 00:46:57,767 --> 00:46:59,834 Mr. Carney: Well, Scott, I think I would rely on the experts here, 1004 00:46:59,834 --> 00:47:01,866 and Danny Werfel is an expert. 1005 00:47:01,867 --> 00:47:02,667 Mark. 1006 00:47:02,667 --> 00:47:06,299 The Press: Jay, the whole point of the sequester, if I'm not mistaken, 1007 00:47:06,300 --> 00:47:10,133 was to come up with a plan that was so painful that no way would 1008 00:47:10,133 --> 00:47:13,000 anybody want it to go into effect. 1009 00:47:13,000 --> 00:47:15,900 Does it now look as though it's not painful enough? 1010 00:47:15,900 --> 00:47:18,967 Mr. Carney: Well, I would point you to numerous statements by numerous 1011 00:47:18,967 --> 00:47:21,266 Republicans, including leading Republicans last year, 1012 00:47:21,266 --> 00:47:25,500 about the devastating effect of sequester and how it would have 1013 00:47:25,500 --> 00:47:27,400 -- we should avoid it at all costs. 1014 00:47:27,400 --> 00:47:30,934 And then I would point you to an article in The Wall Street 1015 00:47:30,934 --> 00:47:34,767 Journal in which recently the Speaker of the House boasted 1016 00:47:34,767 --> 00:47:38,933 that he had the support of Republicans in the House to 1017 00:47:38,934 --> 00:47:43,867 allow sequester to take effect with all of its harmful impacts, 1018 00:47:43,867 --> 00:47:48,367 and that he "has it in his pocket," as a play, 1019 00:47:48,367 --> 00:47:51,767 a political play in his negotiations with Democrats and 1020 00:47:51,767 --> 00:47:53,399 the White House. 1021 00:47:53,400 --> 00:47:56,967 The leverage that he's discussing in that article 1022 00:47:56,967 --> 00:47:59,667 sounds abstract and esoteric. 1023 00:47:59,667 --> 00:48:05,700 It's about the political battle here in Washington. 1024 00:48:05,700 --> 00:48:09,533 But the leverage really has to do with people in the country 1025 00:48:09,533 --> 00:48:12,400 who will lose their jobs, people -- 1026 00:48:12,400 --> 00:48:15,734 families in the country who will be affected if our economy 1027 00:48:15,734 --> 00:48:17,567 stops growing. 1028 00:48:17,567 --> 00:48:18,934 That's the leverage. 1029 00:48:18,934 --> 00:48:22,767 Those are the -- that's the collateral damage to the kind of 1030 00:48:22,767 --> 00:48:28,200 reckless partisanship that allowing the sequester to take 1031 00:48:28,200 --> 00:48:33,600 effect represents; and partisanship in the service of 1032 00:48:33,600 --> 00:48:36,000 trying to achieve an ideological goal, 1033 00:48:36,000 --> 00:48:38,467 a goal that is not supported by the country, 1034 00:48:38,467 --> 00:48:43,367 that was much debated during the election campaign last year, 1035 00:48:43,367 --> 00:48:46,233 and an issue on which the American people spoke 1036 00:48:46,233 --> 00:48:47,467 very clearly. 1037 00:48:47,467 --> 00:48:49,200 The Press: Thanks, Jay. 1038 00:48:49,200 --> 00:48:51,100 Mr. Carney: Sam Stein, last one. 1039 00:48:51,100 --> 00:48:54,133 The Press: Yes, can you give a little bit more specific on how the White 1040 00:48:54,133 --> 00:48:56,734 House defines a balanced replacement to the sequester? 1041 00:48:56,734 --> 00:48:58,900 If it's not 50/50 revenues, taxes, 1042 00:48:58,900 --> 00:49:01,066 what percentage would you qualify as balanced? 1043 00:49:01,066 --> 00:49:03,734 And on the spending cuts side, if some of those cuts didn't 1044 00:49:03,734 --> 00:49:07,799 include defense, would the White House consider that balanced? 1045 00:49:07,800 --> 00:49:12,500 Mr. Carney: Balanced means revenues as well as cuts, spending cuts, 1046 00:49:12,500 --> 00:49:13,500 first of all. 1047 00:49:13,500 --> 00:49:16,934 And then I would note that we support the proposals put 1048 00:49:16,934 --> 00:49:20,033 forward by Senate Democrats and House Democrats, 1049 00:49:20,033 --> 00:49:22,734 and you can evaluate them in terms of ratios. 1050 00:49:22,734 --> 00:49:26,967 But balance here means adopting the basic principle that was 1051 00:49:26,967 --> 00:49:30,967 reiterated again by Erskine Bowles and Alan Simpson today, 1052 00:49:30,967 --> 00:49:33,467 that is embraced by bipartisan groups, 1053 00:49:33,467 --> 00:49:37,200 by outside economists and by average Americans across the 1054 00:49:37,200 --> 00:49:39,667 country regardless of their political affiliation, 1055 00:49:39,667 --> 00:49:42,033 and that is that we should not ask seniors alone to bear the 1056 00:49:42,033 --> 00:49:43,400 burden of deficit reduction. 1057 00:49:43,400 --> 00:49:45,900 We should not ask middle-class families alone to bear the 1058 00:49:45,900 --> 00:49:48,266 burden of deficit reduction; that everybody ought to do 1059 00:49:48,266 --> 00:49:49,400 their fair share. 1060 00:49:49,400 --> 00:49:51,567 And the way to achieve that is through balance. 1061 00:49:51,567 --> 00:49:54,333 Balance that, in every one of the President's proposals, 1062 00:49:54,333 --> 00:49:58,133 has included more in spending cuts than in revenues. 1063 00:49:58,133 --> 00:50:01,265 Again, going back to the fundamental disconnect here 1064 00:50:01,266 --> 00:50:04,066 between what Republicans have demonstrated themselves willing 1065 00:50:04,066 --> 00:50:07,366 to do and what the President has shown himself willing to do and 1066 00:50:07,367 --> 00:50:12,233 the leadership that he has shown in putting forward plans that 1067 00:50:12,233 --> 00:50:13,834 represent significant spending cuts, 1068 00:50:13,834 --> 00:50:17,232 represent significant savings through entitlement reforms. 1069 00:50:17,233 --> 00:50:19,734 The Press: But there's no specific ratio of spending cuts to tax revenues 1070 00:50:19,734 --> 00:50:22,600 that you would consider is balanced versus not balanced? 1071 00:50:22,600 --> 00:50:24,667 Same with cuts as defense and non-defense? 1072 00:50:24,667 --> 00:50:26,633 Mr. Carney: There is an overall approach here to the broader package of 1073 00:50:26,633 --> 00:50:28,966 $4 trillion in deficit reduction that the President has 1074 00:50:28,967 --> 00:50:29,900 talked about. 1075 00:50:29,900 --> 00:50:31,367 When you're talking about the buy-down, 1076 00:50:31,367 --> 00:50:34,734 we support the legislation put forward by Senate and 1077 00:50:34,734 --> 00:50:35,834 House Democrats. 1078 00:50:35,834 --> 00:50:36,834 Thanks, guys.