English subtitles for clip: File:2-20-13- White House Press Briefing.webm

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Mr. Carney:
Hello, everyone.

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Welcome to the White House.

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It's very good to have you here.

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I hope you are as excited
to be here as I am.

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I mean that.

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It's always an honor
and a privilege.

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We'll give a special
dispensation to Bill.

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I don't have anything
long at the top.

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I would just note that the issue
of the sequester continues to

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drive a lot of conversation here
in Washington, understandably.

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The potential implementation
of the sequester is upon us.

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You heard the President
speak about it yesterday.

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And what is essential to
understand is that the effect

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of the sequester would be
severe and it would go right

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to American families --
middle-class Americans --

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people who receive
vital health services;

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there are people working today
who will lose their jobs if the

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sequester goes into effect.

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And it's wholly unnecessary that
the sequester goes into effect

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because the option for Congress
is to do what it did just a few

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months ago, which is come to
an agreement on a reasonable

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package, a balanced package
of spending cuts and revenue

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increases to buy the sequester
down for enough time to allow

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Congress to do the important
work of writing a budget that

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reduces our deficit further
in a responsible way for the

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long term.

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Republicans thus far
have refused to do this.

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They've refused to go along
with the American public on

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the simple notion that balance
is the right approach to dealing

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with this problem.

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And it's important to understand
that if they hold that position

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and the sequester
goes into effect,

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it will go into effect and those
Americans will lose their jobs

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because Republicans made a
choice for that to happen.

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There was an interesting piece
some of you may have seen --

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well, first of all, the Wall
Street Journal op/ed by the

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Speaker of the House yesterday
and then a piece that I just saw

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not too long ago that begins:
"In a Wall Street Journal op/ed

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Wednesday, House Speaker John
Boehner describes the upcoming

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sequester as a policy that
'threatens U.S. national

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security, thousands
of jobs, and more' --

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continuing with the piece --
"which leads to the question,

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why would Republicans support a
measure that threatens national

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security and thousands of jobs?

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The effect of Boehner's
argument is to make President

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Obama seem reasonable.

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After all, the President
certainly agrees with Boehner

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that the sequester cuts threaten
national security and jobs.

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The difference is that
Obama wants to avoid them."

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Couldn't have said it better.

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That was Byron York.

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The President believes
it is essential that we

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avoid these cuts.

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It is bad policy.

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The Speaker himself
says it is bad policy.

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We -- the Congress, rather,
must act to make sure it

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doesn't happen.

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Jim.

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The Press:
Thank you, Jay.

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To that point, the sequester
would hit the government to

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$85 billion in the first year.

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But CBO says that actually
the hit this year would be

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half that.

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Discretionary outlays
would drop by $35 billion,

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mandatory by $9 billion; the
rest would occur in later years.

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And on Sunday, a
Republican senator said,

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we're talking about 2.5% of what
we spend this year and this is

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our first year of 10-year cuts.

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Families all across the country
have had their budgets cut by

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larger than that as a result
of the economic downturn.

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Is the lack of urgency to deal
with this somewhat justified

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given those numbers?

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I mean, even when we were
dealing with the debt ceiling,

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or you were dealing
with the fiscal cliff,

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there was a lot more activity
going on out of this White House

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10 days before
than there is now.

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Mr. Carney:
Well, there's a great deal of
activity in this White House

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with regards to the sequester,
and there will continue to be.

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You saw the President and heard
the President yesterday urge

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Congress to take the necessary
action to avoid these

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across-the-board,
indiscriminate cuts that --

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quoting Speaker Boehner --
"would do harm to our national

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security and cost jobs."

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These are not jobs
in the abstract.

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These are men and women
patrolling our borders.

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These are teachers.

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These are first responders.

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These are real people whose
futures hang in the balance,

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depending on a decision that
Republicans in Congress will

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or will not make.

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Secondly, if you cite the CBO,
the CBO estimates that the

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sequester, if it takes place in
2013, will reduce growth by .6

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percentage points during 2013.

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That is a significant hit.

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We've already seen impacts
from the sequester,

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as all of you wrote and analysts
made clear back in January.

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The fourth quarter GDP number
for 2012 came in where it was

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in large part because of
-- in the Defense Sector in

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particular, and anticipation
of the sequester drove down

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defense spending.

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And we will see only more of
that happen if this sequester

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kicks in.

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The CBO number on GDP growth,
what would happen if the

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sequester happened is
mirrored by estimates

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by private sector firms.

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Moody's Analytics
says the reduction

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would be .5%.

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Macroeconomics Advisers,
I think you saw today,

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is .6%.

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CBO estimates that job losses
resulting from the sequester

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could reach -- would
reach, rather --

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750,000 by the fourth
quarter of this year.

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And the Bipartisan Policy Center
estimates that over two years

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the effect would
be a million jobs.

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This is real.

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It is not -- it is urgent.

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And it is important
that Congress act.

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And the choice is clear.

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The American people
support a balanced approach

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to deficit reduction.

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Out in the country,
Democrats, independents,

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and Republicans support
a balanced approach to

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deficit reduction.

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And if you ask the American
people if the choice is that

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those 70,000 kids get
thrown off of Head Start,

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or those border security
guards lose their jobs,

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or those teachers have
their jobs threatened,

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on the one hand -- or we
ask corporate jet owners

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to give up their
special tax loophole,

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what do you think they'll
say, overwhelmingly?

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This is an
indefensible position.

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The choice that Republicans are
making is preserve these special

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tax breaks for oil
and gas companies,

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for corporate jet
owners in order --

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or -- I'm sorry -- throw these
people out of work in order to

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protect these special tax break
for corporate jet owners and oil

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and gas companies.

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It makes no sense
and it's bad policy.

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And when the Speaker says the
discussion about revenue is

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closed, again, ask Americans
around the country whether

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they agree that it is better
economic policy for middle-class

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Americans to lose their jobs,
or oil and gas companies to

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have their subsidies reduced
or corporate jet owners to

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have their loophole closed.

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I think we all know that
the answer would be.

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The Press:
If a House plan can't win in
the Senate and a Senate plan

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can't win in the House, what is
the White House doing to foster

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negotiations right now?

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Is anybody talking?

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Mr. Carney:
Well, I think we
always make these --

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we hear these declarative
statements from Capitol Hill

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and also from the press about
what can and cannot pass.

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We heard them last year
about how revenue would

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never be allowed.

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We would never go along --
this is a Republican speaking --

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we would never allow
tax rates to go up.

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We would never allow
them to go up --

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again, the next
line of defense was,

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we'll never allow them to go
up on anybody making less than

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a million dollars.

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And we'll never let the top rate
go back to the Clinton-era top

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rate of 39.6.

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All of those things happened.

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You know why they happened?

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Because the American people
supported those positions

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that the President
took and in the end,

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Congress responded to the
will of the American people.

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And we hope that's what's going
to happen again this time.

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The Press:
But there were talks
going on right up until

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those decisions were made.

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Mr. Carney:
I am entirely sure that we
will continue to engage with

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Congress, including the
leaders in Congress,

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on this issue at every level.

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But the issue here isn't,
as I said yesterday,

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sitting around the table or
sitting in some chairs here

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in the West Wing.

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It's Congress and
congressional leaders,

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congressional Republicans making
a choice between allowing the

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sequester to kick in with all of
the negative effects that would

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come from that, or postponing
the sequester in a reasonable

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way with a balanced
package of spending cuts

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and revenue increases.

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The Press:
Jay, the President has inveighed
against this process of lurching

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from crisis to crisis, and yet
he's been in the forefront of

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describing the dire
consequences that would

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result from the sequester.

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Doesn't he contribute to the
crisis atmosphere by being so

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outspoken about that?

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Wouldn't it be more productive
for him to sit down with the

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other party and try
to work this out?

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Mr. Carney:
Again, the fact is, as I
think Jim just pointed out,

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the President has spent an
enormous amount of time sitting

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down with congressional
leaders to try to resolve

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these stalemates over our
budget policy again and

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again and again.

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And he will continue to engage
with Congress on these matters.

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But it is nonsensical,
in our view,

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to suggest that that is the
only approach to take --

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because would that it were so
that simply persuasion from the

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President or anyone else sitting
in a room about the right course

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to take would be enough to
convince Republicans that it

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is better to ask corporate jet
owners to forego their special

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interest loophole in the tax
code than to throw all these

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people out of work.

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If that's what were required,
we would do just that.

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But the fact of the matter is
congressional Republicans are

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going to listen to
the American people,

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and that's why it's important
to engage the American people

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and not just speak to
members of Congress.

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You have to do both, and
we have always done both,

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and will continue to do both.

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The Press:
Do you see the likelihood
of sequester increasingly

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greater now?

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Mr. Carney:
I don't want to
make predictions.

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I would note that
Congress is out this week,

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which says something, I suppose.

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But the fact of the matter
is the March 1st deadline is

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looming, and Congress
has an option --

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a very simple option -- which
is to take up the proposals put

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forward by Senate Democrats
and House Democrats that would

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do what Congress did
collectively -- Republicans

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and Democrats -- at the end of
last year, first of this year,

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and that is delay the
implementation of the sequester

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by buying it down through
spending cuts and revenue

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increases so that Congress can
then get on with regular order

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-- which goes to the other
issue that you raised in your

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question, which is the need to
stop this practice of engaging

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in manufactured crises.

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We need to return to a
process that has Congress,

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the House and the Senate,
working on budget proposals,

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the President
submitting his budget,

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and compromise emerging
from that process.

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And compromise in this case
means deficit reduction through

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entitlement reforms,
spending cuts,

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and tax reform that
produces more revenues.

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That's how we've
gotten to where we are,

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which is over $2.5 trillion in
deficit reduction under this

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President, and it's how we will
get to the goal of $4 trillion

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in further -- in total
deficit reduction over

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10 years if Congress does
the right thing, avoids this

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unnecessary crisis and all of
the negative effects that would

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come from it, passes a
short-term buy-down of

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00:12:07,800 --> 00:12:11,500
the sequester, and proceeds
with regular order and the

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00:12:11,500 --> 00:12:12,867
budgetary process.

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00:12:12,867 --> 00:12:15,000
The Press:
And lastly, the Japanese Prime
Minister is due in town at the

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00:12:15,000 --> 00:12:16,333
end of the week.

247
00:12:16,333 --> 00:12:20,567
Japan is eager for U.S.
natural gas exports,

248
00:12:20,567 --> 00:12:23,066
but U.S. manufacturers are
worried that they could be

249
00:12:23,066 --> 00:12:24,667
adversely impacted.

250
00:12:24,667 --> 00:12:26,834
Is the administration open
to allowing more exports of

251
00:12:26,834 --> 00:12:28,233
natural gas to Japan?

252
00:12:28,233 --> 00:12:29,967
What are some of the other
topics the President hopes

253
00:12:29,967 --> 00:12:31,934
to raise with the Japanese
Prime Minister?

254
00:12:31,934 --> 00:12:33,132
Mr. Carney:
You know, Mark, I
appreciate the questions.

255
00:12:33,133 --> 00:12:36,000
I'm sure we will have a preview
for you of the meeting with the

256
00:12:36,000 --> 00:12:37,033
Prime Minister.

257
00:12:37,033 --> 00:12:40,967
I don't want to negotiate from
here with our very important

258
00:12:40,967 --> 00:12:44,433
allies, so why don't -- I'm
sure we'll have more to say

259
00:12:44,433 --> 00:12:46,700
about this tomorrow
and certainly Friday.

260
00:12:46,700 --> 00:12:49,300
The Press:
Jay, what is the
President's plan to

261
00:12:49,300 --> 00:12:52,333
prevent the sequestration
from happening?

262
00:12:52,333 --> 00:12:53,100
Mr. Carney:
The President has put
forward a plan --

263
00:12:53,100 --> 00:12:55,133
The Press:
Yesterday he talked
about budget cuts.

264
00:12:55,133 --> 00:12:57,934
What are those cuts
that he is proposing?

265
00:12:57,934 --> 00:13:00,300
Mr. Carney:
Well, you can go to
WhiteHouse.gov and look

266
00:13:00,300 --> 00:13:01,967
at the President's budget,
look at his submission to

267
00:13:01,967 --> 00:13:04,667
the sequester and look
at all the reporting --

268
00:13:04,667 --> 00:13:07,367
ample reporting done and
information that we provided

269
00:13:07,367 --> 00:13:10,300
on the offer that the President
made to the Speaker of the House

270
00:13:10,300 --> 00:13:15,766
in December that in great detail
put forward the spending cuts

271
00:13:15,767 --> 00:13:19,166
that the President
supported and put forward,

272
00:13:19,166 --> 00:13:22,033
as well as the savings
from entitlement reforms --

273
00:13:22,033 --> 00:13:23,967
significant savings from
entitlement reforms.

274
00:13:23,967 --> 00:13:26,834
Here's to me a fundamental
aspect of this --

275
00:13:26,834 --> 00:13:30,766
like if we all agree that
in Washington, Republicans,

276
00:13:30,767 --> 00:13:33,233
if they lived in a perfect
world and there were nothing but

277
00:13:33,233 --> 00:13:35,834
Republicans in Washington
and in the country,

278
00:13:35,834 --> 00:13:39,199
they would only cut spending
and never raise revenue to

279
00:13:39,200 --> 00:13:40,200
reduce our deficit.

280
00:13:40,200 --> 00:13:42,200
And Democrats -- let's
just say this were true --

281
00:13:42,200 --> 00:13:45,100
Democrats would only raise
revenue and never cut spending,

282
00:13:45,100 --> 00:13:46,633
especially not
entitlement spending.

283
00:13:46,633 --> 00:13:47,967
So what's the test
of leadership?

284
00:13:47,967 --> 00:13:50,266
What's the test of
making tough choices?

285
00:13:50,266 --> 00:13:54,000
You might say it's Republicans
agreeing to go along with some

286
00:13:54,000 --> 00:13:56,233
revenue and Democrats agreeing
to go along with some spending

287
00:13:56,233 --> 00:13:58,065
cuts and entitlement savings.

288
00:13:58,066 --> 00:13:59,633
Well, what has happened?

289
00:13:59,633 --> 00:14:02,734
The President has led and put
forward repeatedly proposals

290
00:14:02,734 --> 00:14:04,867
that are balanced, that
include spending cuts --

291
00:14:04,867 --> 00:14:07,132
tough spending cuts for
Democrats to agree to --

292
00:14:07,133 --> 00:14:08,834
that include savings from
entitlement reforms --

293
00:14:08,834 --> 00:14:11,300
very tough decisions
for Democrats --

294
00:14:11,300 --> 00:14:17,266
including we've talked about a
technical change in our CPI that

295
00:14:17,266 --> 00:14:19,834
is a tough pill to swallow
for a lot of Democrats,

296
00:14:19,834 --> 00:14:23,500
but in the context of a bigger
deal that includes revenue,

297
00:14:23,500 --> 00:14:26,967
reasonable revenue that
asks the wealthiest and

298
00:14:26,967 --> 00:14:28,734
large corporations to
pay their fair share,

299
00:14:28,734 --> 00:14:30,133
the President is willing
to go along with it.

300
00:14:30,133 --> 00:14:31,500
What have seen from Republicans?

301
00:14:31,500 --> 00:14:35,767
Not a single, similar
kind of tough choice.

302
00:14:35,767 --> 00:14:39,333
All we've seen is no revenue,
no revenue, no revenue.

303
00:14:39,333 --> 00:14:41,033
We'd rather see those jobs lost.

304
00:14:41,033 --> 00:14:42,967
We'd rather see the
border less secure.

305
00:14:42,967 --> 00:14:45,367
We'd rather see our national
security undermined than

306
00:14:45,367 --> 00:14:48,000
corporate jet owners, God
forbid, give up their tax break.

307
00:14:48,000 --> 00:14:50,166
That is not a position
that represents courage,

308
00:14:50,166 --> 00:14:51,900
leadership or common sense.

309
00:14:51,900 --> 00:14:53,699
The Press:
So why not have the
President come out and say,

310
00:14:53,700 --> 00:14:55,433
here's my plan -- prevent
this from happening?

311
00:14:55,433 --> 00:14:56,367
Mr. Carney:
He has.

312
00:14:56,367 --> 00:15:00,666
The Press:
It seems that what you're
driving at is more revenue

313
00:15:00,667 --> 00:15:02,900
in the form of closing these
loopholes and deductions.

314
00:15:02,900 --> 00:15:04,967
You just went through the
fiscal cliff process where

315
00:15:04,967 --> 00:15:07,500
you extracted these concessions
from the Republicans in raising

316
00:15:07,500 --> 00:15:08,400
the rate.

317
00:15:08,400 --> 00:15:11,667
Isn't it a bit much to expect
that kind of concession again

318
00:15:11,667 --> 00:15:12,700
just a couple of months later?

319
00:15:12,700 --> 00:15:15,033
Mr. Carney:
Let's be clear.

320
00:15:15,033 --> 00:15:18,233
Thus far, there's been $2.5
trillion at least achieved

321
00:15:18,233 --> 00:15:19,867
in deficit reduction.

322
00:15:19,867 --> 00:15:21,900
It hasn't always been pretty,
but under this President's

323
00:15:21,900 --> 00:15:24,632
leadership, working with
Congress, that has happened.

324
00:15:24,633 --> 00:15:27,767
By a margin of more than 2 to 1,
that deficit reduction has been

325
00:15:27,767 --> 00:15:31,467
achieved through spending
cuts over revenues.

326
00:15:31,467 --> 00:15:35,133
The idea that we're done with
revenue suggests that the

327
00:15:35,133 --> 00:15:38,934
proposals that the Speaker of
the House said he was willing to

328
00:15:38,934 --> 00:15:42,699
embrace last year that included
up to $800 billion in revenue

329
00:15:42,700 --> 00:15:46,266
from tax reform are
no longer worthwhile;

330
00:15:46,266 --> 00:15:48,400
that those loopholes that
should be closed, well,

331
00:15:48,400 --> 00:15:50,132
that's not good policy anymore.

332
00:15:50,133 --> 00:15:51,133
Why?

333
00:15:51,133 --> 00:15:55,166
Why was it good policy back in
December to eliminate special

334
00:15:55,166 --> 00:15:58,667
interest tax breaks for the
wealthiest individuals and large

335
00:15:58,667 --> 00:16:02,133
corporations, tax breaks,
advantages in the tax code that

336
00:16:02,133 --> 00:16:04,367
regular folks don't get and
small businesses don't get --

337
00:16:04,367 --> 00:16:07,199
why was it good policy then in
the name of deficit reduction

338
00:16:07,200 --> 00:16:08,200
but not now?

339
00:16:08,200 --> 00:16:13,333
Why is it better to preserve
those tax breaks now than to

340
00:16:13,333 --> 00:16:17,467
preserve the jobs of average
Americans around the country who

341
00:16:17,467 --> 00:16:20,633
would lose those jobs if the
sequester goes into effect?

342
00:16:20,633 --> 00:16:22,433
And when you ask, where's
the President's plan --

343
00:16:22,433 --> 00:16:23,200
it's been there.

344
00:16:23,200 --> 00:16:24,333
It's on WhiteHouse.gov.

345
00:16:24,333 --> 00:16:27,233
It is in the proposal that he
submitted to the Speaker of the

346
00:16:27,233 --> 00:16:28,867
House, that the Speaker
walked away from,

347
00:16:28,867 --> 00:16:30,132
that everyone here
represented as --

348
00:16:30,133 --> 00:16:32,900
or most people here
understood to be --

349
00:16:32,900 --> 00:16:35,132
The Press:
That's a budget plan
for the long term.

350
00:16:35,133 --> 00:16:35,600
Where --

351
00:16:35,600 --> 00:16:36,300
Mr. Carney:
That's the big deal.

352
00:16:36,300 --> 00:16:37,032
And the President --

353
00:16:37,033 --> 00:16:38,500
The Press:
Where is the plan to prevent
sequestration from happening

354
00:16:38,500 --> 00:16:39,033
next week?

355
00:16:39,033 --> 00:16:39,734
Mr. Carney:
The President supports --

356
00:16:39,734 --> 00:16:41,266
The Press:
Shouldn't the President take
the lead and present that plan?

357
00:16:41,266 --> 00:16:42,967
Mr. Carney:
The President -- well, first
of all, Congress has to act.

358
00:16:42,967 --> 00:16:45,967
If it were otherwise and the
President could do this himself,

359
00:16:45,967 --> 00:16:46,967
I'm sure he would.

360
00:16:46,967 --> 00:16:49,633
Congress has to pass the
law to avoid sequestration.

361
00:16:49,633 --> 00:16:52,734
Senate Democrats have put
a proposal on the table,

362
00:16:52,734 --> 00:16:54,867
House Democrats have put a
proposal on the table that

363
00:16:54,867 --> 00:16:56,766
achieves the balance
that we support.

364
00:16:56,767 --> 00:16:59,000
And that's all we're talking
about here is a small package

365
00:16:59,000 --> 00:17:02,600
to buy down the sequester to the
end of the year so that Congress

366
00:17:02,600 --> 00:17:07,934
can then come together and
achieve the big goal here,

367
00:17:07,934 --> 00:17:10,200
which is the further work that
needs to be done to get to that

368
00:17:10,200 --> 00:17:13,133
$4 trillion figure that
economists have said is

369
00:17:13,133 --> 00:17:16,633
what we need to get our fiscal
house in order and our economy

370
00:17:16,633 --> 00:17:20,266
on a fiscally sustainable
path for the coming decade.

371
00:17:20,266 --> 00:17:21,767
That's what the President
has been talking about.

372
00:17:21,767 --> 00:17:24,200
But I cannot emphasize enough
how important it is when you

373
00:17:24,200 --> 00:17:27,433
talk about the
comparisons here --

374
00:17:27,433 --> 00:17:30,734
the President has consistently
put forward proposals that

375
00:17:30,734 --> 00:17:32,632
include spending cuts.

376
00:17:32,633 --> 00:17:34,467
He has consistently put
forward proposals that

377
00:17:34,467 --> 00:17:37,667
include entitlement
reforms, not just revenues.

378
00:17:37,667 --> 00:17:40,332
What we have not seen from
Republicans in any detail

379
00:17:40,333 --> 00:17:42,333
and in any sincere way
-- certainly not in the

380
00:17:42,333 --> 00:17:46,266
legislative form -- is a
proposal that is similar

381
00:17:46,266 --> 00:17:50,266
in its request of Republicans
that they compromise and make

382
00:17:50,266 --> 00:17:51,266
some tough choices.

383
00:17:51,266 --> 00:17:52,767
The public wants that.

384
00:17:52,767 --> 00:17:55,066
The President
certainly wants it.

385
00:17:55,066 --> 00:17:55,834
Kristen.

386
00:17:55,834 --> 00:17:56,500
The Press:
Jay, thanks.

387
00:17:56,500 --> 00:17:58,800
Given that -- most
realistically, given the

388
00:17:58,800 --> 00:18:02,133
handful of days that are left,
the best option is a short-term

389
00:18:02,133 --> 00:18:03,333
buy-down plan.

390
00:18:03,333 --> 00:18:06,567
Isn't there any value of
going over the sequester,

391
00:18:06,567 --> 00:18:09,834
letting it kick in, and actually
working toward a long-term

392
00:18:09,834 --> 00:18:12,400
deficit reduction plan, instead
of just kicking the can down the

393
00:18:12,400 --> 00:18:14,066
road one more time?

394
00:18:14,066 --> 00:18:16,700
Mr. Carney:
Well, here's what
I would say to that.

395
00:18:16,700 --> 00:18:21,333
It may sound okay
in the abstract,

396
00:18:21,333 --> 00:18:27,767
but it doesn't sound okay around
the kitchen table in the homes

397
00:18:27,767 --> 00:18:31,333
of those families who would
be affected by the job cuts,

398
00:18:31,333 --> 00:18:34,600
by the furloughs and the layoff
notices that will come if the

399
00:18:34,600 --> 00:18:35,966
sequester kicks in.

400
00:18:35,967 --> 00:18:40,233
It doesn't sound okay
to the children who --

401
00:18:40,233 --> 00:18:43,700
and the parents of the children
who will have to give up mental

402
00:18:43,700 --> 00:18:47,667
health services, or to seniors
who would lose services,

403
00:18:47,667 --> 00:18:51,600
or to those who, understandably,
worry about our border being

404
00:18:51,600 --> 00:18:56,166
protected who would then see a
reduction in the Border Patrol

405
00:18:56,166 --> 00:18:58,233
because the sequester
goes into effect.

406
00:18:58,233 --> 00:19:03,399
The President firmly believes
we ought to continue seeking and

407
00:19:03,400 --> 00:19:07,166
striving for completion of the
so-called grand bargain or big

408
00:19:07,166 --> 00:19:09,166
deal, the $4 trillion figure.

409
00:19:09,166 --> 00:19:13,433
Congress has demonstrated an
interest in pursuing regular

410
00:19:13,433 --> 00:19:16,300
budget order, in pursuing a
budgetary process that could

411
00:19:16,300 --> 00:19:20,066
lead to that end and
achievement of that goal.

412
00:19:20,066 --> 00:19:24,333
But it is wholly unnecessary
to throw up to 750,000 people

413
00:19:24,333 --> 00:19:26,400
out of work just to get there.

414
00:19:26,400 --> 00:19:28,233
They can pass an extension
of the sequester,

415
00:19:28,233 --> 00:19:31,633
a delay of the sequester, just
like they did at the end of last

416
00:19:31,633 --> 00:19:35,567
year so that Congress can get
the work that it wants to get

417
00:19:35,567 --> 00:19:36,834
done, done.

418
00:19:36,834 --> 00:19:39,266
The Press:
But at what point does
it get done if not now?

419
00:19:39,266 --> 00:19:42,367
And at what point does the
President and Congress really

420
00:19:42,367 --> 00:19:45,966
try to avert these manufactured
crises the President talked

421
00:19:45,967 --> 00:19:46,700
about yesterday?

422
00:19:46,700 --> 00:19:50,100
Mr. Carney:
Well, there's legislature that
has been submitted that would

423
00:19:50,100 --> 00:19:54,500
avert the sequester
implementation by House

424
00:19:54,500 --> 00:19:55,967
and Senate Democrats.

425
00:19:55,967 --> 00:19:58,000
The President supports
that legislation.

426
00:19:58,000 --> 00:20:01,367
It represents the balance
that the American people

427
00:20:01,367 --> 00:20:03,667
overwhelmingly support.

428
00:20:03,667 --> 00:20:09,600
These are the kinds of both cuts
and revenue increases that have

429
00:20:09,600 --> 00:20:14,332
in the past been acceptable
to both sides in the name of

430
00:20:14,333 --> 00:20:16,967
avoiding something as
draconian as the sequester.

431
00:20:16,967 --> 00:20:18,367
And that's what
Congress should do,

432
00:20:18,367 --> 00:20:19,466
and the President
would sign that,

433
00:20:19,467 --> 00:20:21,834
and then continue
with the process --

434
00:20:21,834 --> 00:20:23,133
the President will
submit his budget;

435
00:20:23,133 --> 00:20:25,567
the Senate will come up with
a budget and pass a budget;

436
00:20:25,567 --> 00:20:28,700
and then we can return to
a process that, hopefully,

437
00:20:28,700 --> 00:20:31,000
if there is compromise, if
there is a willingness --

438
00:20:31,000 --> 00:20:32,900
going back to
earlier questions --

439
00:20:32,900 --> 00:20:37,433
by Republicans to make the same
kinds of touch choices from

440
00:20:37,433 --> 00:20:39,533
their perspective that Democrats
and the President have been

441
00:20:39,533 --> 00:20:43,033
willing to make, that we can
then get this business done --

442
00:20:43,033 --> 00:20:46,367
achieve the $4 trillion in total
deficit reduction over a decade

443
00:20:46,367 --> 00:20:48,767
that has been the goal
since this process started.

444
00:20:48,767 --> 00:20:50,800
The Press:
The President reached out to key
Republicans who were working on

445
00:20:50,800 --> 00:20:52,667
immigration reform yesterday.

446
00:20:52,667 --> 00:20:54,500
Does this represent a
shift in his strategy?

447
00:20:54,500 --> 00:20:57,600
Can we expect him to reach out
to Leader McConnell and Speaker

448
00:20:57,600 --> 00:21:00,600
Boehner on the sequester
today or in the coming days?

449
00:21:00,600 --> 00:21:05,600
Mr. Carney:
Well, I don't have any calls or
meetings to announce or preview

450
00:21:05,600 --> 00:21:06,500
for you today.

451
00:21:06,500 --> 00:21:10,600
But I think it represents the
regular engagement on the top

452
00:21:10,600 --> 00:21:15,332
priorities that the President
has and that the country has

453
00:21:15,333 --> 00:21:17,934
with members of Congress,
and that will continue.

454
00:21:17,934 --> 00:21:19,567
As I think we learned
yesterday, yes,

455
00:21:19,567 --> 00:21:23,700
the President reached out to
some of the Republican leaders

456
00:21:23,700 --> 00:21:25,700
of the Gang of Eight
on immigration reform.

457
00:21:25,700 --> 00:21:29,867
That is in keeping with the
regular outreach that has been

458
00:21:29,867 --> 00:21:32,399
done at a staff level
by the White House.

459
00:21:32,400 --> 00:21:33,600
The Press:
Republicans have said they
haven't had regular engagement

460
00:21:33,600 --> 00:21:35,166
with the President and they say
they haven't heard from him in

461
00:21:35,166 --> 00:21:36,600
months on the sequester.

462
00:21:36,600 --> 00:21:39,233
Mr. Carney:
Well, again, the
President is the President,

463
00:21:39,233 --> 00:21:42,300
and he has working for him here
a substantial staff that engages

464
00:21:42,300 --> 00:21:44,100
and works with Congress
on these issues.

465
00:21:44,100 --> 00:21:47,766
As the President has made clear,
he is encouraged by and hopeful

466
00:21:47,767 --> 00:21:50,066
about the process
underway in the Senate,

467
00:21:50,066 --> 00:21:54,100
the bipartisan process led by
the so-called Gang of Eight,

468
00:21:54,100 --> 00:21:56,500
towards achieving a
comprehensive immigration

469
00:21:56,500 --> 00:21:59,533
reform bill that could
pass the Senate -- hopefully

470
00:21:59,533 --> 00:22:01,867
overwhelmingly -- and pass
the House, and land on his

471
00:22:01,867 --> 00:22:02,899
desk for his signature.

472
00:22:02,900 --> 00:22:05,667
He prefers that
option to any other,

473
00:22:05,667 --> 00:22:07,800
and he is very encouraged
by the progress that's been

474
00:22:07,800 --> 00:22:08,500
made thus far.

475
00:22:08,500 --> 00:22:11,467
He thought his conversations
with Senate Democrats involved

476
00:22:11,467 --> 00:22:13,900
in this process last week
were very productive,

477
00:22:13,900 --> 00:22:16,133
and he felt the same about
his conversations with Senate

478
00:22:16,133 --> 00:22:17,600
Republicans yesterday.

479
00:22:17,600 --> 00:22:20,100
The Press:
Jay, on the sequester, you said
repeatedly today and yesterday

480
00:22:20,100 --> 00:22:22,567
that these are real and
urgent cuts that would

481
00:22:22,567 --> 00:22:23,367
take place quickly.

482
00:22:23,367 --> 00:22:25,166
But The New York Times points
out today that when the

483
00:22:25,166 --> 00:22:27,567
President was saying yesterday
in his remarks that tens of

484
00:22:27,567 --> 00:22:30,367
thousands of parents will have
to scramble to find childcare

485
00:22:30,367 --> 00:22:33,466
for their kids, that that's not
really going to happen on March

486
00:22:33,467 --> 00:22:34,200
1st, is it?

487
00:22:34,200 --> 00:22:36,533
I mean, how do you back up that
tens of thousands of parents

488
00:22:36,533 --> 00:22:39,500
will be searching for
childcare immediately?

489
00:22:39,500 --> 00:22:40,433
Mr. Carney:
Well, look, whether
these cuts --

490
00:22:40,433 --> 00:22:45,800
whether that search begins on
March 1st or in the near future,

491
00:22:45,800 --> 00:22:48,200
the impact on our economy,
the impact on people's

492
00:22:48,200 --> 00:22:49,567
lives is real.

493
00:22:49,567 --> 00:22:50,934
Again, don't take
my word for it.

494
00:22:50,934 --> 00:22:52,800
Macroeconomics
Advisers, Moody's,

495
00:22:52,800 --> 00:22:56,767
the CBO all estimate massive
job loss if the sequester is

496
00:22:56,767 --> 00:22:58,233
allowed to take effect.

497
00:22:58,233 --> 00:22:59,500
That's just a fact.

498
00:22:59,500 --> 00:23:00,834
The Press:
So what happens on March 1st?

499
00:23:00,834 --> 00:23:01,834
What happens on March 2nd?

500
00:23:01,834 --> 00:23:03,433
How quickly does this --
because when you say --

501
00:23:03,433 --> 00:23:04,600
the President said
that yesterday, too --

502
00:23:04,600 --> 00:23:06,600
hundreds of thousands of jobs.

503
00:23:06,600 --> 00:23:08,934
There's not going to be hundreds
of thousands of job losses the

504
00:23:08,934 --> 00:23:09,834
first week, are there?

505
00:23:09,834 --> 00:23:11,900
Mr. Carney:
No, but there will be job
losses, and that's been clear.

506
00:23:11,900 --> 00:23:12,667
Look, we have already --

507
00:23:12,667 --> 00:23:14,265
The Press:
But people want to quantify
this because you're making --

508
00:23:14,266 --> 00:23:15,834
you're scaring the public
that this is going to happen,

509
00:23:15,834 --> 00:23:16,700
it's going to be horrible --

510
00:23:16,700 --> 00:23:19,467
Mr. Carney:
So these outside economic
firms are scaring the public?

511
00:23:19,467 --> 00:23:21,333
And the CBO is
scaring the public?

512
00:23:21,333 --> 00:23:23,767
The Press:
I'm just saying, how do you back
up that this is urgent and that

513
00:23:23,767 --> 00:23:25,667
hundreds of thousands of
jobs are going to be lost?

514
00:23:25,667 --> 00:23:27,833
Mr. Carney:
I'd love to rewind to the
questions I got the day that

515
00:23:27,834 --> 00:23:30,800
the GDP figure came out
for the fourth quarter.

516
00:23:30,800 --> 00:23:33,700
And those questions
were pretty alarming.

517
00:23:33,700 --> 00:23:35,700
And maybe you guys were trying
to scare the public, but,

518
00:23:35,700 --> 00:23:37,867
in fact, I think you guys were
asking sensible questions about

519
00:23:37,867 --> 00:23:39,500
why we got the number we got.

520
00:23:39,500 --> 00:23:41,533
And one of the reasons we got
the number we got in the fourth

521
00:23:41,533 --> 00:23:44,567
quarter, despite all the other
positive economic news we had

522
00:23:44,567 --> 00:23:47,166
been getting, was
because industries,

523
00:23:47,166 --> 00:23:48,767
especially in the
defense sector,

524
00:23:48,767 --> 00:23:51,033
were anticipating the
implementation of the sequester,

525
00:23:51,033 --> 00:23:54,265
which, at the time, of
course, was due January 1st.

526
00:23:54,266 --> 00:23:56,433
But Congress did the
sensible thing --

527
00:23:56,433 --> 00:23:59,500
something it could do again --
which is passed an extension,

528
00:23:59,500 --> 00:24:02,934
a delay of the sequester, by
buying it down with a reasonable,

529
00:24:02,934 --> 00:24:05,800
balanced package of
spending cuts and revenues.

530
00:24:05,800 --> 00:24:07,300
That's what they
ought to do again.

531
00:24:07,300 --> 00:24:11,033
It is easy to stand
in Washington,

532
00:24:11,033 --> 00:24:12,800
whether you're a
congressman on Capitol Hill,

533
00:24:12,800 --> 00:24:15,066
or a reporter here, or an
administration official,

534
00:24:15,066 --> 00:24:17,700
and suggest that
this is all abstract.

535
00:24:17,700 --> 00:24:20,033
But it's not abstract to
the people who are affected.

536
00:24:20,033 --> 00:24:21,734
And there will be
people affected.

537
00:24:21,734 --> 00:24:23,367
I think we heard today
that there's a process --

538
00:24:23,367 --> 00:24:26,734
the process begins, essentially,
at the Defense Department for

539
00:24:26,734 --> 00:24:29,132
furlough notices, the process
that leads to furlough notices.

540
00:24:29,133 --> 00:24:34,400
Those are people who are working
to protect our country every day

541
00:24:34,400 --> 00:24:38,467
who will be affected by the
implementation of the sequester.

542
00:24:38,467 --> 00:24:39,967
Those are real people
with real jobs.

543
00:24:39,967 --> 00:24:41,166
The Press:
Before the election, though, the
White House tried to stop those

544
00:24:41,166 --> 00:24:43,833
furlough notices --
right before the election.

545
00:24:43,834 --> 00:24:46,333
Mr. Carney:
We were hopeful -- well, first
of all, before the election --

546
00:24:46,333 --> 00:24:49,000
the election was, what,
November 6th, November 8th?

547
00:24:49,000 --> 00:24:51,900
That was not 10 days before
implementation of the sequester.

548
00:24:51,900 --> 00:24:52,867
That's one.

549
00:24:52,867 --> 00:24:56,600
Two, the fact is we're
doing reasonable planning --

550
00:24:56,600 --> 00:24:57,966
the administration has
reasonable planning in

551
00:24:57,967 --> 00:25:00,066
anticipation of a
sequester that, again,

552
00:25:00,066 --> 00:25:01,600
depending on the
day of the week,

553
00:25:01,600 --> 00:25:05,233
the Speaker of the House either
says is a good thing that he's

554
00:25:05,233 --> 00:25:08,399
convinced his fellow Republicans
in the House to support because

555
00:25:08,400 --> 00:25:11,166
he's got it in his back
pocket as leverage against the

556
00:25:11,166 --> 00:25:14,567
President and Democrats, or is a
bad thing because the cuts would

557
00:25:14,567 --> 00:25:19,100
hurt our national
defense and cost us jobs.

558
00:25:19,100 --> 00:25:22,500
Both can't be true unless
you're highly cynical.

559
00:25:22,500 --> 00:25:26,734
And we agree that the sequester
implementation would be a bad

560
00:25:26,734 --> 00:25:30,132
thing for jobs, for
middle-class families,

561
00:25:30,133 --> 00:25:32,567
and for our national defense.

562
00:25:32,567 --> 00:25:34,066
Bill.

563
00:25:34,066 --> 00:25:37,533
The Press:
Since the general wisdom in
Washington is that it's probably

564
00:25:37,533 --> 00:25:38,367
going to happen --

565
00:25:38,367 --> 00:25:41,633
Mr. Carney:
How often is it right?

566
00:25:41,633 --> 00:25:45,700
The Press:
-- why shouldn't we suspect that
you're willing to take a few

567
00:25:45,700 --> 00:25:51,533
weeks of this until it begins
to bite and you have to then get

568
00:25:51,533 --> 00:25:55,065
some more money, the CR
runs out end of the month --

569
00:25:55,066 --> 00:26:00,233
I mean, work it all
together to your advantage?

570
00:26:00,233 --> 00:26:02,133
Mr. Carney:
I think you should pay
attention to what we have

571
00:26:02,133 --> 00:26:03,400
been doing and saying.

572
00:26:03,400 --> 00:26:06,867
And in contrast to,
unfortunately, Republicans,

573
00:26:06,867 --> 00:26:08,466
including the leadership,
including the Speaker of the

574
00:26:08,467 --> 00:26:10,934
House, who have been suggesting
that implementation of the

575
00:26:10,934 --> 00:26:13,233
sequester would
not be a bad thing,

576
00:26:13,233 --> 00:26:14,966
that it would give them
political leverage --

577
00:26:14,967 --> 00:26:15,867
The Press:
Oh, I hear what you're saying --

578
00:26:15,867 --> 00:26:18,100
Mr. Carney:
-- but we have been I think --

579
00:26:18,100 --> 00:26:20,367
the question I just got a moment
ago was that we're being too

580
00:26:20,367 --> 00:26:22,399
alarmist about the
implementation of the sequester.

581
00:26:22,400 --> 00:26:24,767
Again, we don't want
the sequester to happen.

582
00:26:24,767 --> 00:26:26,934
The impact would be
negative on our economy,

583
00:26:26,934 --> 00:26:29,633
would be terrible for
American families.

584
00:26:29,633 --> 00:26:30,700
We don't want it.

585
00:26:30,700 --> 00:26:33,200
We think that it's bad policy.

586
00:26:33,200 --> 00:26:36,467
It was designed
to be bad policy.

587
00:26:36,467 --> 00:26:37,767
That was the whole point.

588
00:26:37,767 --> 00:26:41,333
The sequester was written in
a way that would assure that

589
00:26:41,333 --> 00:26:42,600
Congress would
never let it happen.

590
00:26:42,600 --> 00:26:45,766
The Press:
But by putting it off to the
point where it was put off,

591
00:26:45,767 --> 00:26:48,967
it conflates to your
advantage, perhaps.

592
00:26:48,967 --> 00:26:52,600
Mr. Carney:
Look, we're not -- I think
you're misunderstanding.

593
00:26:52,600 --> 00:26:54,699
Maybe we're not doing a good
enough job of trying to convince

594
00:26:54,700 --> 00:26:59,033
you that we wholly support
efforts in Congress to buy

595
00:26:59,033 --> 00:27:01,433
down the sequester.

596
00:27:01,433 --> 00:27:03,367
They should come back and
do it tomorrow, and if not,

597
00:27:03,367 --> 00:27:05,834
come back and do it next
week -- buy it down so that

598
00:27:05,834 --> 00:27:07,800
the sequester does
not have an effect --

599
00:27:07,800 --> 00:27:11,300
an immediate effect, and that
Congress can get back to work

600
00:27:11,300 --> 00:27:16,633
on long-term deficit reduction
so we can get that $4 trillion

601
00:27:16,633 --> 00:27:19,400
in deficit reduction that
economists have long called

602
00:27:19,400 --> 00:27:22,633
for and that we have
been working towards,

603
00:27:22,633 --> 00:27:25,567
the President and the Congress,
not always in pretty fashion.

604
00:27:25,567 --> 00:27:27,934
But the fact is,
$2.5 trillion --

605
00:27:27,934 --> 00:27:32,800
up to $2.7 in deficit reduction
has been achieved thus far.

606
00:27:32,800 --> 00:27:35,533
We have seen a situation where
our deficits are coming down,

607
00:27:35,533 --> 00:27:37,567
but we need to do more
work to make sure that

608
00:27:37,567 --> 00:27:38,867
process continues.

609
00:27:38,867 --> 00:27:40,332
And that's what we want.

610
00:27:40,333 --> 00:27:41,834
That's what the President wants.

611
00:27:41,834 --> 00:27:44,700
The Press:
Can I ask you a question about
the USTR announcement this

612
00:27:44,700 --> 00:27:49,934
afternoon about cybercrime,
among other things;

613
00:27:49,934 --> 00:27:51,367
trade protection?

614
00:27:51,367 --> 00:27:53,700
What can we expect?

615
00:27:53,700 --> 00:28:01,500
Mr. Carney:
Well, I think if you're talking
about the issue of trade secrets --

616
00:28:01,500 --> 00:28:02,066
The Press:
Yes.

617
00:28:02,066 --> 00:28:03,867
Mr. Carney:
Right. I mean, there are two
things that I think have been

618
00:28:03,867 --> 00:28:05,934
conflated, and I want to make
sure that everybody understands.

619
00:28:05,934 --> 00:28:12,000
There were a series of stories
in the last 48 hours or so about

620
00:28:12,000 --> 00:28:17,033
hackers, cybersecurity issues,
and I addressed that in the

621
00:28:17,033 --> 00:28:18,399
briefing yesterday.

622
00:28:18,400 --> 00:28:22,066
And this is a very large
concern of the President's.

623
00:28:22,066 --> 00:28:25,100
He's made this an
issue repeatedly.

624
00:28:25,100 --> 00:28:29,332
He pressed Congress last
year to pass legislation,

625
00:28:29,333 --> 00:28:34,133
and as you know, just the other
day issued an executive order

626
00:28:34,133 --> 00:28:35,633
addressing cybersecurity.

627
00:28:35,633 --> 00:28:38,533
But the fact of the matter is
an executive order is not a

628
00:28:38,533 --> 00:28:40,966
substitute for new
cyber legislation.

629
00:28:40,967 --> 00:28:44,667
So we, again, call on Congress
to take up cybersecurity

630
00:28:44,667 --> 00:28:48,166
legislation because it's
important for our national

631
00:28:48,166 --> 00:28:51,734
security and our
economic security.

632
00:28:51,734 --> 00:28:53,199
The other issue, which I
think you're talking about,

633
00:28:53,200 --> 00:28:58,133
is that today there is a
launch of the administration's

634
00:28:58,133 --> 00:29:01,166
strategy to -- I
almost said "strategery,"

635
00:29:01,166 --> 00:29:01,867
which would be pretty funny --

636
00:29:01,867 --> 00:29:02,867
(laughter)

637
00:29:02,867 --> 00:29:05,332
-- to mitigate the theft
of U.S. trade secrets.

638
00:29:05,333 --> 00:29:07,900
We know that trade secret
theft can cripple a company's

639
00:29:07,900 --> 00:29:09,900
competitive advantage
in foreign markets,

640
00:29:09,900 --> 00:29:12,200
diminish export prospects
around the globe,

641
00:29:12,200 --> 00:29:14,333
and put American
jobs in jeopardy.

642
00:29:14,333 --> 00:29:16,900
And that strategy we are
releasing today coordinates

643
00:29:16,900 --> 00:29:19,200
and improves U.S. government
efforts to protect the

644
00:29:19,200 --> 00:29:21,834
innovation that drives the
American economy and supports

645
00:29:21,834 --> 00:29:23,500
jobs in the United States.

646
00:29:23,500 --> 00:29:27,800
So these are understandably
related issues, but separate.

647
00:29:27,800 --> 00:29:28,567
Jon.

648
00:29:28,567 --> 00:29:32,700
The Press:
Jay, you said repeatedly this is
a choice between tax breaks for

649
00:29:32,700 --> 00:29:36,467
corporate jet owners and
devastating spending cuts.

650
00:29:36,467 --> 00:29:39,500
Can you tell me how much money
closing that loophole for

651
00:29:39,500 --> 00:29:41,266
corporate jet owners would save?

652
00:29:41,266 --> 00:29:42,000
Mr. Carney:
I don't have that figure.

653
00:29:42,000 --> 00:29:44,200
I know -- I remember from when
we talked about this and called

654
00:29:44,200 --> 00:29:47,333
on Congress to do it that we're
talking in terms of subsidies to

655
00:29:47,333 --> 00:29:49,667
oil and gas companies something
like $4 billion a year,

656
00:29:49,667 --> 00:29:50,500
if I remember.

657
00:29:50,500 --> 00:29:51,800
We can get those
figures for you.

658
00:29:51,800 --> 00:29:52,367
Here's the thing.

659
00:29:52,367 --> 00:29:54,033
Here's the point
I'm making, Jon,

660
00:29:54,033 --> 00:29:57,667
is the President has never
said, we have never said that

661
00:29:57,667 --> 00:30:00,466
we should close our deficit
through revenue increases alone.

662
00:30:00,467 --> 00:30:02,667
In fact, the President has
always said that we should have

663
00:30:02,667 --> 00:30:04,800
a ratio of spending
cuts that is --

664
00:30:04,800 --> 00:30:08,567
ratio of spending cuts to
revenues that is higher in

665
00:30:08,567 --> 00:30:09,567
spending cuts than revenues.

666
00:30:09,567 --> 00:30:11,033
And that's what he's pursued.

667
00:30:11,033 --> 00:30:12,199
But we have to do it
in a balanced way,

668
00:30:12,200 --> 00:30:14,166
because if you don't, you end
up with something like the Ryan

669
00:30:14,166 --> 00:30:18,265
budget, which, in the name of
deficit reduction and also tax

670
00:30:18,266 --> 00:30:20,633
breaks for the wealthy,
voucherized Medicare.

671
00:30:20,633 --> 00:30:23,266
Well, that was bad
policy and unnecessary.

672
00:30:23,266 --> 00:30:25,900
The Press:
But can we acknowledge here
that closing the tax loophole

673
00:30:25,900 --> 00:30:27,834
for corporate jet owners
-- which, as far as I know,

674
00:30:27,834 --> 00:30:30,700
I think is about $300 million
a year or a little less --

675
00:30:30,700 --> 00:30:32,633
that that is not going to
solve your sequester problem?

676
00:30:32,633 --> 00:30:34,100
I mean, you keep
pointing to it as --

677
00:30:34,100 --> 00:30:35,000
Mr. Carney:
We can acknowledge it, but --

678
00:30:35,000 --> 00:30:37,100
The Press:
It's a tiny sliver,
it's nothing.

679
00:30:37,100 --> 00:30:38,300
Mr. Carney:
-- implicit in your
suggestion is that we've

680
00:30:38,300 --> 00:30:39,633
ever suggested it would.

681
00:30:39,633 --> 00:30:41,834
The Press:
Well, you've said multiple
times today that they want

682
00:30:41,834 --> 00:30:44,633
to project -- they want to
protect corporate jet owners'

683
00:30:44,633 --> 00:30:45,600
loophole instead of --

684
00:30:45,600 --> 00:30:48,166
Mr. Carney:
Can you tell me a
single tax loophole,

685
00:30:48,166 --> 00:30:51,200
special-interest tax breaks that
Republicans have identified that

686
00:30:51,200 --> 00:30:55,133
they are willing to close
to reduce the deficit?

687
00:30:55,133 --> 00:30:56,500
I take your silence as no.

688
00:30:56,500 --> 00:30:58,467
The Press:
Well, I'll let them
make their case for that.

689
00:30:58,467 --> 00:31:00,533
I'm just saying it's going to
take more than corporate --

690
00:31:00,533 --> 00:31:01,632
Mr. Carney:
Although the Speaker
of the House did --

691
00:31:01,633 --> 00:31:03,000
the Speaker of the House
-- let's give him a little

692
00:31:03,000 --> 00:31:06,200
credit here -- did, late last
year, suggest without giving any

693
00:31:06,200 --> 00:31:10,233
details, that he could come up
with $800 billion in revenue

694
00:31:10,233 --> 00:31:13,466
from wealthy Americans and
corporations to reduce the

695
00:31:13,467 --> 00:31:18,066
deficit by closing loopholes
and capping deductions.

696
00:31:18,066 --> 00:31:21,633
We think he's right,
or he was right then.

697
00:31:21,633 --> 00:31:22,633
We can do that.

698
00:31:22,633 --> 00:31:24,433
It's not going to do the
job alone -- absolutely not.

699
00:31:24,433 --> 00:31:27,300
That's why the President has
signed into law more than $2.5

700
00:31:27,300 --> 00:31:30,600
trillion in deficit reduction,
2-to-1 spending cuts over

701
00:31:30,600 --> 00:31:31,766
revenue increases.

702
00:31:31,767 --> 00:31:35,000
And that's why he continues to
have on the table an offer to

703
00:31:35,000 --> 00:31:37,333
the Republicans, an offer
to the Speaker of the House,

704
00:31:37,333 --> 00:31:40,600
that includes spending cuts,
including savings from revenue

705
00:31:40,600 --> 00:31:42,699
-- I mean, savings from
entitlement programs that

706
00:31:42,700 --> 00:31:46,166
are very tough for
Democrats to accept.

707
00:31:46,166 --> 00:31:47,533
But as part of a
balanced package,

708
00:31:47,533 --> 00:31:49,833
he has put it forward and
the offer still stands.

709
00:31:49,834 --> 00:31:51,233
The Press:
So on a totally
different subject,

710
00:31:51,233 --> 00:31:53,233
why does the Vice President
keep suggesting that people

711
00:31:53,233 --> 00:31:54,133
buy shotguns?

712
00:31:54,133 --> 00:31:54,900
(laughter)

713
00:31:54,900 --> 00:31:58,266
Mr. Carney:
The point the Vice President
was making yesterday is one

714
00:31:58,266 --> 00:31:59,767
that he's made before.

715
00:31:59,767 --> 00:32:02,500
And that is, first, that
this administration,

716
00:32:02,500 --> 00:32:03,834
this President and
this Vice President,

717
00:32:03,834 --> 00:32:06,233
this administration firmly
supports our Second Amendment

718
00:32:06,233 --> 00:32:08,800
rights upheld by
the Constitution.

719
00:32:08,800 --> 00:32:12,332
And that includes the
right of homeowners,

720
00:32:12,333 --> 00:32:15,834
law-abiding American citizens to
have a firearm at their home to

721
00:32:15,834 --> 00:32:17,266
protect themselves
and their home.

722
00:32:17,266 --> 00:32:18,433
The point he was
making yesterday --

723
00:32:18,433 --> 00:32:20,166
again, a point that
he's made in the past --

724
00:32:20,166 --> 00:32:24,700
is that in his view, you do not
need a military-style assault

725
00:32:24,700 --> 00:32:26,533
weapon to protect your home.

726
00:32:26,533 --> 00:32:29,667
In fact, you would be better
off with a shotgun, including --

727
00:32:29,667 --> 00:32:30,833
The Press:
Double-barrel.

728
00:32:30,834 --> 00:32:31,967
Mr. Carney:
-- I think that is what he said.

729
00:32:31,967 --> 00:32:35,734
And as I understand it,
he has a double-barrel --

730
00:32:35,734 --> 00:32:38,100
he has a 12-gauge
and a 20-gauge.

731
00:32:38,100 --> 00:32:40,132
The Press:
But does the President agree
with him -- and this is a direct

732
00:32:40,133 --> 00:32:42,533
quote from the Vice President
-- "If you want to protect

733
00:32:42,533 --> 00:32:45,399
yourself, get a
double-barreled shotgun."

734
00:32:45,400 --> 00:32:46,900
(laughter)

735
00:32:46,900 --> 00:32:49,266
Mr. Carney:
I think the Vice President --
the President does agree with

736
00:32:49,266 --> 00:32:53,000
the Vice President that
homeowners who are interested

737
00:32:53,000 --> 00:32:55,600
in utilizing their Second
Amendment rights to own a

738
00:32:55,600 --> 00:32:58,332
firearm to protect themselves in
their home, and their families

739
00:32:58,333 --> 00:33:01,567
in their home, do not need a
military-style assault weapon,

740
00:33:01,567 --> 00:33:04,066
and that a shotgun would
be a logical choice.

741
00:33:04,066 --> 00:33:06,367
The Press:
And going out onto the balcony
and firing a couple shots in the

742
00:33:06,367 --> 00:33:09,567
air, is that -- I mean, that was
the other thing he suggested.

743
00:33:09,567 --> 00:33:11,700
Mr. Carney:
Again, that was what the
Vice President recommended.

744
00:33:11,700 --> 00:33:14,100
I think the point he was
making is that you do not

745
00:33:14,100 --> 00:33:16,567
need a military-style assault
weapon, and that a shotgun would

746
00:33:16,567 --> 00:33:18,266
do the trick.

747
00:33:18,266 --> 00:33:19,800
Roger.

748
00:33:19,800 --> 00:33:23,367
The Press:
Back to the theft of trade
secrets report coming out later

749
00:33:23,367 --> 00:33:26,600
this afternoon -- how much
of that is aimed at China?

750
00:33:26,600 --> 00:33:31,233
Mr. Carney:
Again, I think we need to
separate reports yesterday

751
00:33:31,233 --> 00:33:35,399
about hacking -- and I
addressed this yesterday

752
00:33:35,400 --> 00:33:37,967
and I think I made clear
that with regard to China,

753
00:33:37,967 --> 00:33:41,300
the United States and China are
among the world's largest cyber

754
00:33:41,300 --> 00:33:44,834
actors, and it is vital that we
continue a sustained, meaningful

755
00:33:44,834 --> 00:33:48,133
dialogue and work together
to develop an understanding

756
00:33:48,133 --> 00:33:50,834
of acceptable
behavior in cyberspace.

757
00:33:50,834 --> 00:33:55,900
We repeatedly and will continue
to raise our concerns at the

758
00:33:55,900 --> 00:33:59,433
highest levels about cyber theft
with senior Chinese officials,

759
00:33:59,433 --> 00:34:01,266
including in the military.

760
00:34:01,266 --> 00:34:02,633
And that is that issue.

761
00:34:02,633 --> 00:34:06,967
On trade secrets, again, I would
refer you to the rollout later

762
00:34:06,967 --> 00:34:11,033
today that the OMB's Office
of the Intellectual Property

763
00:34:11,033 --> 00:34:15,500
Enforcement Coordinator will
be releasing as part of the

764
00:34:15,500 --> 00:34:18,300
administration's strategy to
mitigate the theft of U.S.

765
00:34:18,300 --> 00:34:19,300
trade secrets.

766
00:34:19,300 --> 00:34:20,800
So more details on that
will be forthcoming.

767
00:34:20,800 --> 00:34:21,900
I don't really have them.

768
00:34:21,900 --> 00:34:22,734
The Press:
Understood.

769
00:34:22,734 --> 00:34:29,232
Does the administration favor
fines or trade retaliation for

770
00:34:29,233 --> 00:34:32,133
countries that are engaged
in this sort of thing?

771
00:34:32,132 --> 00:34:35,065
Mr. Carney:
Again, I think that's a broad
question that would have to be

772
00:34:35,065 --> 00:34:36,966
addressed by the
experts on this issue,

773
00:34:36,967 --> 00:34:39,300
so I would refer you to
the rollout later today.

774
00:34:39,300 --> 00:34:40,567
The Press:
Okay, one other.

775
00:34:40,567 --> 00:34:43,500
Any number of companies, and
according to court cases, GM,

776
00:34:43,500 --> 00:34:50,100
DuPont, others have been
victims of such espionage.

777
00:34:50,100 --> 00:34:54,699
What does the administration
want companies to do as a result

778
00:34:54,699 --> 00:34:57,332
of this report coming
out this afternoon?

779
00:34:57,333 --> 00:35:00,567
Mr. Carney:
Well, again, with regards
to the trade secrets report,

780
00:35:00,567 --> 00:35:04,400
I would urge you to seek
information from those who

781
00:35:04,400 --> 00:35:06,200
are rolling out the strategy.

782
00:35:06,200 --> 00:35:08,500
I can tell you that
as a general matter,

783
00:35:08,500 --> 00:35:14,400
this administration has been
focused on protecting government

784
00:35:14,400 --> 00:35:17,567
cybersecurity as well as
assisting and providing

785
00:35:17,567 --> 00:35:20,300
information to the private
sector to help the private

786
00:35:20,300 --> 00:35:24,133
sector protect itself when
it comes to cybercrime.

787
00:35:24,133 --> 00:35:26,533
This is especially important
when it comes to private

788
00:35:26,533 --> 00:35:30,066
companies that deal with the
national infrastructure --

789
00:35:30,066 --> 00:35:33,633
the electric grid and other
types of infrastructure that

790
00:35:33,633 --> 00:35:35,299
is vital in this country.

791
00:35:35,300 --> 00:35:37,500
So this is a very serious issue.

792
00:35:37,500 --> 00:35:40,433
And you've heard John
Brennan and others address

793
00:35:40,433 --> 00:35:41,433
it in the past.

794
00:35:41,433 --> 00:35:43,934
It is something that is very
much on the President's mind.

795
00:35:43,934 --> 00:35:47,934
It is why the President
has urged Congress to act

796
00:35:47,934 --> 00:35:51,800
appropriately on cybersecurity
legislation and why, again,

797
00:35:51,800 --> 00:35:53,867
today we're calling
on Congress to act.

798
00:35:53,867 --> 00:35:54,800
April.

799
00:35:54,800 --> 00:35:59,233
The Press:
Jay, I want to go back to a
question I asked you yesterday.

800
00:35:59,233 --> 00:36:02,867
We know CBO has the
numbers for those --

801
00:36:02,867 --> 00:36:05,500
the job losses
through sequestration.

802
00:36:05,500 --> 00:36:06,834
What are the White
House numbers?

803
00:36:07,400 --> 00:36:09,033
Have you, the numbers
crunchers here,

804
00:36:09,033 --> 00:36:12,567
calculated the exact numbers
that you think if sequestration

805
00:36:12,567 --> 00:36:16,133
were to happen, how many
people would lose their jobs?

806
00:36:16,133 --> 00:36:18,899
Mr. Carney:
I don't have any specific
numbers done by White

807
00:36:18,900 --> 00:36:19,667
House economists.

808
00:36:19,667 --> 00:36:25,567
I think you can assume that
my citation of CBO, Moody's,

809
00:36:25,567 --> 00:36:31,266
and Macroeconomics Advisers to
outside private economic firms

810
00:36:31,266 --> 00:36:35,967
suggests that we believe that
they are in the ballpark of

811
00:36:35,967 --> 00:36:39,734
accuracy over here when we
talk about massive job loss

812
00:36:39,734 --> 00:36:42,633
that would result from
implementation of the sequester.

813
00:36:42,633 --> 00:36:45,466
The Press:
So when the President said
hundreds of thousands yesterday,

814
00:36:45,467 --> 00:36:49,100
he was talking about Moody's,
he was talking about --

815
00:36:49,100 --> 00:36:49,866
or was he talking about CBO?

816
00:36:49,867 --> 00:36:52,600
Mr. Carney:
We agree with the consensus
estimates here, again,

817
00:36:52,600 --> 00:36:54,266
from private outside
economic firms,

818
00:36:54,266 --> 00:36:57,567
from the Congressional Budget
Office that say that we would

819
00:36:57,567 --> 00:37:00,734
lose -- the country
would lose up to 750,000

820
00:37:00,734 --> 00:37:03,866
jobs if the sequester were
allowed to be implemented.

821
00:37:03,867 --> 00:37:05,533
The Press:
And I want to kind
of follow up --

822
00:37:05,533 --> 00:37:06,667
back up on what Jon said.

823
00:37:06,667 --> 00:37:08,500
It was kind of striking
what the Vice President

824
00:37:08,500 --> 00:37:11,633
said yesterday about the
double-barreled shotgun.

825
00:37:11,633 --> 00:37:13,834
How long has he been
an owner of a shotgun?

826
00:37:13,834 --> 00:37:15,767
And what does he
-- is he a hunter?

827
00:37:15,767 --> 00:37:17,265
Is it just for protection?

828
00:37:17,266 --> 00:37:18,467
What?

829
00:37:18,467 --> 00:37:21,400
Mr. Carney:
I would refer you to the
Vice President's comments.

830
00:37:21,400 --> 00:37:24,000
This is a comment he has
made on several occasions,

831
00:37:24,000 --> 00:37:26,433
and I would refer you to
the Vice President's office.

832
00:37:26,433 --> 00:37:30,767
He does own and keeps in a
safe at his home in Delaware

833
00:37:30,767 --> 00:37:32,866
a .12-gauge and a
.20-gauge shotgun.

834
00:37:32,867 --> 00:37:34,834
He is a law-abiding gun owner.

835
00:37:34,834 --> 00:37:40,000
And I think that reflects
the fact that he,

836
00:37:40,000 --> 00:37:42,633
as Vice President
and as a senator,

837
00:37:42,633 --> 00:37:45,500
and this President
fully supports Second

838
00:37:45,500 --> 00:37:46,700
Amendment rights.

839
00:37:46,700 --> 00:37:48,399
A point that I've tried to
make again and again when we

840
00:37:48,400 --> 00:37:51,166
talk about the President's
comprehensive package of

841
00:37:51,166 --> 00:37:56,066
proposals to address the problem
of gun violence in America would

842
00:37:56,066 --> 00:37:58,200
not -- if all of them were
implemented, the executive

843
00:37:58,200 --> 00:38:01,165
actions and the legislation
-- if it all happened tomorrow,

844
00:38:01,166 --> 00:38:05,266
not a single law-abiding
American citizen would lose

845
00:38:05,266 --> 00:38:09,533
his or her weapon,
or his or her firearm.

846
00:38:09,533 --> 00:38:11,266
And that's because we believe
in Second Amendment rights.

847
00:38:11,266 --> 00:38:13,166
But we need to take
action -- sensible action,

848
00:38:13,166 --> 00:38:17,133
common-sense action to try
to reduce the scourge of gun

849
00:38:17,133 --> 00:38:18,567
violence in this country.

850
00:38:18,567 --> 00:38:20,500
The Press:
And I want to follow
up on that real quick.

851
00:38:20,500 --> 00:38:24,433
I mean, he did bring the Second
Lady into the conversation with

852
00:38:24,433 --> 00:38:26,033
that, and he was
talking about --

853
00:38:26,033 --> 00:38:28,165
he said, you know, Jill, if
-- and I'm just paraphrasing --

854
00:38:28,166 --> 00:38:30,266
if there's a problem,
just fire it off twice.

855
00:38:30,266 --> 00:38:33,333
So is she -- do you have
any information on her?

856
00:38:33,333 --> 00:38:35,900
Mr. Carney:
I would refer you to the
Vice President's office.

857
00:38:35,900 --> 00:38:36,600
Donovan.

858
00:38:36,600 --> 00:38:39,700
Oh, sorry, and then Jim.

859
00:38:39,700 --> 00:38:41,399
The Press:
Two quick questions.

860
00:38:41,400 --> 00:38:44,266
Does the White House have any
estimate about White House jobs

861
00:38:44,266 --> 00:38:47,066
that may be lost or furloughed?

862
00:38:47,066 --> 00:38:49,767
Mr. Carney:
I'll have to take the
question and refer you to OMB.

863
00:38:49,767 --> 00:38:51,466
The Press:
If you can get
back to us on that?

864
00:38:51,467 --> 00:38:52,233
Mr. Carney:
Sure.

865
00:38:52,233 --> 00:38:53,066
The Press:
Really get back to us.

866
00:38:53,066 --> 00:38:54,600
Mr. Carney:
I'm looking forward to -- no.

867
00:38:54,600 --> 00:38:56,000
(laughter)

868
00:38:56,000 --> 00:38:57,867
I'll have to take that question.

869
00:38:57,867 --> 00:39:00,834
The Press:
And would he cancel his trip
to the Middle East if the --

870
00:39:00,834 --> 00:39:01,700
Mr. Carney:
I'm not going to speculate.

871
00:39:01,700 --> 00:39:04,265
The Press:
Well, you have to plan.

872
00:39:04,266 --> 00:39:05,700
Mr. Carney:
I'm not going to speculate.

873
00:39:05,700 --> 00:39:07,165
We believe Congress
should act next week

874
00:39:07,166 --> 00:39:09,567
to avoid the sequester.

875
00:39:09,567 --> 00:39:13,567
It is inherently the right
thing to do, using --

876
00:39:13,567 --> 00:39:15,500
if you just look at what the
Speaker of the House himself has

877
00:39:15,500 --> 00:39:19,800
said all on different occasions
about the terrible consequences

878
00:39:19,800 --> 00:39:23,033
of the sequester to our
national defense and to jobs,

879
00:39:23,033 --> 00:39:27,033
it makes the point -- he makes
the point, as the President has

880
00:39:27,033 --> 00:39:30,400
made and others have made,
that Congress should take

881
00:39:30,400 --> 00:39:34,133
the appropriate action to avoid
the sequester so that Congress

882
00:39:34,133 --> 00:39:38,866
can then proceed to deal with
our larger budget challenges.

883
00:39:38,867 --> 00:39:39,233
Donovan.

884
00:39:39,233 --> 00:39:40,166
The Press:
But you don't rule
out canceling the trip?

885
00:39:40,166 --> 00:39:41,633
The Press:
Yes, if you could
get back to me --

886
00:39:41,633 --> 00:39:44,433
Mr. Carney:
We have no schedule
changes to make or announce.

887
00:39:44,433 --> 00:39:46,367
The Press:
If you could get back to
me about the White House

888
00:39:46,367 --> 00:39:49,200
job numbers and planning
process, that would be great.

889
00:39:49,200 --> 00:39:51,667
Separately, North
Korea has released --

890
00:39:51,667 --> 00:39:56,799
Mr. Carney:
I could also encourage you to
call OMB, but we'll do both.

891
00:39:56,800 --> 00:39:58,133
The Press:
Thank you.

892
00:39:58,133 --> 00:40:01,433
North Korea has released a video
showing the President surrounded

893
00:40:01,433 --> 00:40:08,567
by flames and is suggesting --
the official state news agency

894
00:40:08,567 --> 00:40:15,767
said that it was a computer
visualization of their nuclear

895
00:40:15,767 --> 00:40:17,466
attack -- their
threatened nuclear attack,

896
00:40:17,467 --> 00:40:19,800
and it's directed obviously
at the President of the

897
00:40:19,800 --> 00:40:21,233
United States.

898
00:40:21,233 --> 00:40:22,800
And I was wondering if
you guys had seen that,

899
00:40:22,800 --> 00:40:24,934
and if you had a reaction.

900
00:40:24,934 --> 00:40:26,100
Mr. Carney:
I read about it. I haven't seen it.

901
00:40:26,100 --> 00:40:28,933
I would simply say that
provocative propaganda

902
00:40:28,934 --> 00:40:34,867
is far less concerning to us and
to our allies than provocative

903
00:40:34,867 --> 00:40:40,734
actions that violate North
Korea's commitments to the

904
00:40:40,734 --> 00:40:42,667
United Nations and the
international community,

905
00:40:42,667 --> 00:40:46,533
its flagrant violations of its
commitments when it comes to its

906
00:40:46,533 --> 00:40:47,967
nuclear weapons program.

907
00:40:47,967 --> 00:40:51,667
And we are working with our
allies to isolate and pressure

908
00:40:51,667 --> 00:40:59,232
North Korea appropriately, given
its continuing defiance of its

909
00:40:59,233 --> 00:41:00,567
international obligations.

910
00:41:00,567 --> 00:41:01,567
Jim.

911
00:41:01,567 --> 00:41:04,433
The Press:
Jay, on the issue of immigration
again, Senator John McCain,

912
00:41:04,433 --> 00:41:07,100
in his home state at
a town meeting today,

913
00:41:07,100 --> 00:41:10,467
said that obviously the
borders are not secure,

914
00:41:10,467 --> 00:41:14,734
that Arizona remains the main
drug pipeline for drugs coming

915
00:41:14,734 --> 00:41:17,834
from Mexico, and that until this
issue is resolved there will be

916
00:41:17,834 --> 00:41:19,133
no path to citizenship.

917
00:41:20,500 --> 00:41:24,667
Understanding the numbers there
that have happened recently,

918
00:41:24,667 --> 00:41:26,967
still how would the
White House certify --

919
00:41:26,967 --> 00:41:29,567
how would the White House
propose to convince those

920
00:41:29,567 --> 00:41:34,300
along the borders that what
they're saying is not true,

921
00:41:34,300 --> 00:41:36,467
that the borders are secure?

922
00:41:36,467 --> 00:41:38,967
Mr. Carney:
I think we have made the point
very clearly that's backed up

923
00:41:38,967 --> 00:41:42,734
by independent data that our
borders are significantly more

924
00:41:42,734 --> 00:41:44,366
secure than when the
President took office;

925
00:41:44,367 --> 00:41:48,800
that we have made great strides
in border security in the last

926
00:41:48,800 --> 00:41:52,033
several years; that we have
dedicated significant resources

927
00:41:52,033 --> 00:41:55,834
to that effort and that
statistics bear out the

928
00:41:55,834 --> 00:42:07,366
fact that that effort is
resulting in fewer -- producing

929
00:42:07,367 --> 00:42:13,166
positive results in terms of
migration and interdictions.

930
00:42:13,166 --> 00:42:18,300
We have never said that the work
is done, that the job is done.

931
00:42:18,300 --> 00:42:20,333
That is why when the President
talks about comprehensive

932
00:42:20,333 --> 00:42:22,066
immigration reform, when
the President lays out

933
00:42:22,066 --> 00:42:25,533
his blueprint -- as he has
now for more than a year on

934
00:42:25,533 --> 00:42:29,165
WhiteHouse.gov -- one
of the priorities --

935
00:42:29,166 --> 00:42:32,433
the number-one priority is
continuing to take necessary

936
00:42:32,433 --> 00:42:35,333
action to enhance
our border security,

937
00:42:35,333 --> 00:42:37,767
following on the work
that's been done thus far.

938
00:42:37,767 --> 00:42:40,633
I would point to
previous quotes,

939
00:42:40,633 --> 00:42:43,399
very recent quotes from Senator
McCain in which he acknowledged

940
00:42:43,400 --> 00:42:46,900
the significant improvements in
border security that have been

941
00:42:46,900 --> 00:42:48,633
made over the last
several years.

942
00:42:48,633 --> 00:42:52,600
And we share his commitment to
taking further action as part of

943
00:42:52,600 --> 00:42:54,133
comprehensive
immigration reform.

944
00:42:54,133 --> 00:42:56,899
So I don't think there's a lot
of disagreement here when it

945
00:42:56,900 --> 00:43:01,333
comes to the need to pursue
enhanced border security as

946
00:43:01,333 --> 00:43:03,367
part of comprehensive
immigration reform.

947
00:43:03,367 --> 00:43:05,633
That's part of why it's
called comprehensive.

948
00:43:05,633 --> 00:43:09,767
So we look forward,
as the President --

949
00:43:09,767 --> 00:43:12,433
as we said in the aftermath of
the President's conversations

950
00:43:12,433 --> 00:43:15,700
with Republican senators,
to continuing to work with

951
00:43:15,700 --> 00:43:19,332
Congress, work with the Senate
as they pursue bipartisan

952
00:43:19,333 --> 00:43:21,500
comprehensive immigration
reform legislation.

953
00:43:21,500 --> 00:43:24,900
The President is encouraged by
the progress that's been made.

954
00:43:24,900 --> 00:43:27,200
We saw comments from Senator
Rubio and others that talked

955
00:43:27,200 --> 00:43:30,767
about the positive progress
that's been made and the

956
00:43:30,767 --> 00:43:34,933
optimism that I think those
engaged in the process generally

957
00:43:34,934 --> 00:43:38,266
share about the
prospects of success.

958
00:43:38,266 --> 00:43:40,834
But we encourage the Senate
to keep working because this

959
00:43:40,834 --> 00:43:43,799
is a significant priority.

960
00:43:43,800 --> 00:43:47,433
It's a priority that has in the
past enjoyed broad bipartisan

961
00:43:47,433 --> 00:43:50,333
support, and that we
believe is, once again,

962
00:43:50,333 --> 00:43:52,000
enjoying broad
bipartisan support.

963
00:43:52,000 --> 00:43:54,533
I mean, don't forget that the
legislation that then-Senator

964
00:43:54,533 --> 00:44:01,834
Obama supported back in 2006 was
co-authored by Senator McCain.

965
00:44:01,834 --> 00:44:04,200
It had the support of
President George W. Bush,

966
00:44:04,200 --> 00:44:06,000
Republican President.

967
00:44:06,000 --> 00:44:09,400
And that I think represents
and reflects what should be the

968
00:44:09,400 --> 00:44:13,600
bipartisan consensus behind
this very important policy goal.

969
00:44:13,600 --> 00:44:17,000
The Press:
But if they are saying -- if
John McCain is saying that the

970
00:44:17,000 --> 00:44:19,467
path to citizenship will not
happen until the borders are

971
00:44:19,467 --> 00:44:22,467
secure, and there still remains
this disagreement about whether

972
00:44:22,467 --> 00:44:27,834
or not they are secure, what is
the White House's idea to certify?

973
00:44:27,834 --> 00:44:28,933
Is it going to be a commission?

974
00:44:28,934 --> 00:44:30,367
Is it going to be some
kind of statement?

975
00:44:30,367 --> 00:44:31,600
Is there going to
be a certain number?

976
00:44:31,600 --> 00:44:33,467
Mr. Carney:
I haven't seen the
specific comments that

977
00:44:33,467 --> 00:44:34,166
you've talked about.

978
00:44:34,166 --> 00:44:39,133
We've talked a lot about
the interplay between border

979
00:44:39,133 --> 00:44:42,734
security as part of a broader --
and other measures that are part

980
00:44:42,734 --> 00:44:44,933
of comprehensive
immigration reform.

981
00:44:44,934 --> 00:44:48,533
We wait to see what the
bipartisan group produces and

982
00:44:48,533 --> 00:44:51,767
the legislation that's written
and produced by this effort.

983
00:44:51,767 --> 00:44:57,100
We insist -- and this reflects
views of both Republicans and

984
00:44:57,100 --> 00:44:59,866
Democrats -- that comprehensive
immigration reform provide a

985
00:44:59,867 --> 00:45:03,266
clear path to citizenship that
includes getting in the back of

986
00:45:03,266 --> 00:45:07,667
the line and paying
taxes and the like.

987
00:45:07,667 --> 00:45:08,799
And I think that
is a goal, again,

988
00:45:08,800 --> 00:45:10,667
shared by Republicans
and Democrats.

989
00:45:10,667 --> 00:45:12,433
But I'm not going to
prejudge legislation that

990
00:45:12,433 --> 00:45:13,400
we haven't seen yet.

991
00:45:13,400 --> 00:45:14,266
Scott.

992
00:45:14,266 --> 00:45:17,166
The Press:
Jay, you said that Republicans
will ultimately be swayed by

993
00:45:17,166 --> 00:45:18,300
the American public.

994
00:45:18,300 --> 00:45:20,667
I was looking at a bunch of
polling results from the last

995
00:45:20,667 --> 00:45:23,567
few months that showed that
Americans are pretty complacent

996
00:45:23,567 --> 00:45:25,633
about defense cuts
in particular.

997
00:45:25,633 --> 00:45:28,299
They see more room for
cutting the Pentagon budget.

998
00:45:28,300 --> 00:45:31,533
Does that make it harder to
sway Republicans on that part

999
00:45:31,533 --> 00:45:33,333
of the sequester?

1000
00:45:33,333 --> 00:45:36,400
Mr. Carney:
Well, I would point you to what
Republicans have said about the

1001
00:45:36,400 --> 00:45:40,266
effects of sequester --
sequestration on national

1002
00:45:40,266 --> 00:45:43,567
security, on our
defense readiness.

1003
00:45:43,567 --> 00:45:47,467
It is a fact that it
affects deployment.

1004
00:45:49,700 --> 00:45:52,500
It would have impacts
on Army readiness.

1005
00:45:52,500 --> 00:45:57,767
It would impose cuts to
Air Force flying hours.

1006
00:45:57,767 --> 00:46:00,600
And I think that would be a
concern to all Americans who

1007
00:46:00,600 --> 00:46:03,433
worry about our
national defense.

1008
00:46:03,433 --> 00:46:07,266
But it would also,
again, result in 70,000

1009
00:46:07,266 --> 00:46:09,367
kids getting kicked
off of Head Start.

1010
00:46:09,367 --> 00:46:12,967
It would result in cuts to
mental health services for

1011
00:46:12,967 --> 00:46:17,467
children, and to
schools and teachers,

1012
00:46:17,467 --> 00:46:19,533
to the border patrols
I've mentioned,

1013
00:46:19,533 --> 00:46:22,333
and to military
mental health care --

1014
00:46:22,333 --> 00:46:24,934
to just name a few; to the
jobs of first responders,

1015
00:46:24,934 --> 00:46:28,600
to others who would
be affected by this.

1016
00:46:28,600 --> 00:46:32,400
So this is -- the reason why
the list is so long is because

1017
00:46:32,400 --> 00:46:35,734
the sequester was written to
be broad and indiscriminate,

1018
00:46:35,734 --> 00:46:39,165
and therefore not
to become policy.

1019
00:46:39,166 --> 00:46:42,767
So we call on Congress to take
reasonable and appropriate

1020
00:46:42,767 --> 00:46:47,399
action to pass legislation that
would buy down the sequester;

1021
00:46:47,400 --> 00:46:53,066
postpone the sequester with a
package of spending cuts and

1022
00:46:53,066 --> 00:46:59,100
revenue increases that make sure
that we're not asking people to

1023
00:46:59,100 --> 00:47:05,165
lose their jobs rather than ask
corporate jet owners to give up

1024
00:47:05,166 --> 00:47:08,367
their tax breaks, or oil and
gas companies to give up their

1025
00:47:08,367 --> 00:47:16,266
taxpayer subsidies achieved
through special lines in the tax

1026
00:47:16,266 --> 00:47:20,533
code that reflect the influence
they have in Washington through

1027
00:47:20,533 --> 00:47:22,933
lobbyists that regular
folks don't have,

1028
00:47:22,934 --> 00:47:25,266
that small business
owners don't have.

1029
00:47:25,266 --> 00:47:30,300
And that's why this
choice is so stark.

1030
00:47:30,300 --> 00:47:32,400
It's why we have
to have balance.

1031
00:47:32,400 --> 00:47:36,367
And to go to Jon's point,
we have never suggested that

1032
00:47:36,367 --> 00:47:39,633
revenues alone would do the job.

1033
00:47:39,633 --> 00:47:42,799
We have always suggested that
balance is the right approach;

1034
00:47:42,800 --> 00:47:44,500
that spending cuts,
entitlement reforms,

1035
00:47:44,500 --> 00:47:47,633
and revenues taken together
produce the kind of package --

1036
00:47:47,633 --> 00:47:50,700
as every bipartisan group that's
looked at this has said -- that

1037
00:47:50,700 --> 00:47:53,433
does the job that's fair -- in
a fair way, and does it in a way

1038
00:47:53,433 --> 00:47:56,133
that helps our economy
grow and create jobs.

1039
00:47:56,133 --> 00:47:59,232
The Press:
The political calculation,
though -- it was that the

1040
00:47:59,233 --> 00:48:01,934
Pentagon cuts would be
toxic to Republicans,

1041
00:48:01,934 --> 00:48:04,100
not the Head Start cuts
or something like that.

1042
00:48:04,100 --> 00:48:07,133
Are you surprised that
Republicans don't seem

1043
00:48:07,133 --> 00:48:08,700
as put off by that kind of cut?

1044
00:48:08,700 --> 00:48:10,567
Mr. Carney:
Well, I feel like I'm
suffering from whiplash,

1045
00:48:10,567 --> 00:48:14,767
because what Republicans said
about how these cuts would be

1046
00:48:14,767 --> 00:48:20,265
devastating and unacceptable
last year they then seemed to

1047
00:48:20,266 --> 00:48:21,967
recant earlier this year.

1048
00:48:21,967 --> 00:48:25,066
But then we have the Speaker
saying again today that the cuts

1049
00:48:25,066 --> 00:48:28,667
would be devastating and deep,
and would result in job loss.

1050
00:48:28,667 --> 00:48:33,799
And for some reason, rather than
focusing on solutions to this

1051
00:48:33,800 --> 00:48:36,567
problem, they seem to be
obsessed with whose idea

1052
00:48:36,567 --> 00:48:37,934
it was in the first place.

1053
00:48:37,934 --> 00:48:40,967
And, I mean, you know
my point about that,

1054
00:48:40,967 --> 00:48:43,333
which is it's
irrelevant, first of all,

1055
00:48:43,333 --> 00:48:45,767
because the policy was never
supposed to be implemented.

1056
00:48:45,767 --> 00:48:49,767
That was the purpose that both
Democrats and Republicans had

1057
00:48:49,767 --> 00:48:52,633
in mind when they wrote
the legislation, A.

1058
00:48:52,633 --> 00:48:58,000
And then, B, if they had nothing
to do with it and never liked it

1059
00:48:58,000 --> 00:49:01,266
in the first place, why, as a
Republican congressman has said,

1060
00:49:01,266 --> 00:49:02,967
did they vote for
it, overwhelmingly?

1061
00:49:02,967 --> 00:49:05,033
One hundred and seventy-one
Republicans in the House voted

1062
00:49:05,033 --> 00:49:07,633
for it, compared to
I think 95 Democrats.

1063
00:49:07,633 --> 00:49:09,700
Every Republican leader
in the House voted for it,

1064
00:49:09,700 --> 00:49:11,399
including Speaker Boehner.

1065
00:49:11,400 --> 00:49:13,767
And on the day it passed, the
Speaker of the House said,

1066
00:49:13,767 --> 00:49:16,600
I got 98% of what I wanted
and I'm pretty pleased.

1067
00:49:16,600 --> 00:49:20,433
So this is a
ridiculous argument.

1068
00:49:20,433 --> 00:49:21,967
We should be focusing
on solutions.

1069
00:49:21,967 --> 00:49:24,166
We should be focusing on
resolving this so that people

1070
00:49:24,166 --> 00:49:25,600
don't lose their jobs.

1071
00:49:25,600 --> 00:49:27,299
Alexis -- last one.

1072
00:49:27,300 --> 00:49:30,467
The Press:
Just related to this -- can
you clarify, is the President

1073
00:49:30,467 --> 00:49:33,533
calling on the Senate next week
to vote on the alternative to

1074
00:49:33,533 --> 00:49:36,266
the sequester, the postponement,
the mini deal that they pull

1075
00:49:36,266 --> 00:49:39,000
together as time is ticking by?

1076
00:49:39,000 --> 00:49:41,300
I'm just not sure, when you were
saying vote on the alternative,

1077
00:49:41,300 --> 00:49:42,300
is a date set?

1078
00:49:42,300 --> 00:49:44,500
Does he want them
to vote next week?

1079
00:49:44,500 --> 00:49:47,166
Mr. Carney:
We want Congress to act
before March 1st to avert

1080
00:49:47,166 --> 00:49:47,900
the sequester.

1081
00:49:47,900 --> 00:49:49,867
There is legislation that has
been put forward by Senate

1082
00:49:49,867 --> 00:49:52,166
Democrats and House Democrats
that would do that in a balanced

1083
00:49:52,166 --> 00:49:54,734
way, a way that the
President supports.

1084
00:49:54,734 --> 00:49:58,266
He would certainly welcome a
congressional package of that

1085
00:49:58,266 --> 00:50:00,734
legislation to achieve
the goal he set out,

1086
00:50:00,734 --> 00:50:03,133
which is to avoid the
sequester so that Congress,

1087
00:50:03,133 --> 00:50:06,799
working with the administration,
can take action to further

1088
00:50:06,800 --> 00:50:09,700
reduce our deficit in a way
that helps our economy grow,

1089
00:50:09,700 --> 00:50:13,332
that helps expand the middle
class and create ladders of

1090
00:50:13,333 --> 00:50:16,800
opportunity for Americans who
aspire to the middle class.

1091
00:50:16,800 --> 00:50:18,600
I mean, that's the
simple formula here.

1092
00:50:18,600 --> 00:50:20,533
And, again, it shouldn't
be that difficult.

1093
00:50:20,533 --> 00:50:25,366
We should not have these kind of
crises where some folks seem to

1094
00:50:25,367 --> 00:50:30,967
see it as leverage and political
advantage to drive our economy

1095
00:50:30,967 --> 00:50:33,266
off a cliff, whichever
cliff you choose,

1096
00:50:33,266 --> 00:50:35,133
in this case the
so-called sequester,

1097
00:50:35,133 --> 00:50:38,466
in order to try to
advance ideological goals.

1098
00:50:38,467 --> 00:50:41,967
We should be working towards
common-sense solutions here.

1099
00:50:41,967 --> 00:50:43,734
And common sense means balance.

1100
00:50:43,734 --> 00:50:46,033
It means tough
choices by Democrats,

1101
00:50:46,033 --> 00:50:48,700
tough choices by Republicans,
nobody gets everything that

1102
00:50:48,700 --> 00:50:51,834
they want, and we get something
done for the American people.

1103
00:50:51,834 --> 00:50:53,033
The Press:
One other quick budget question.

1104
00:50:53,033 --> 00:50:55,600
Somewhere between
March 1 and March 27th,

1105
00:50:55,600 --> 00:50:57,567
the President's next
fiscal blueprint,

1106
00:50:57,567 --> 00:50:59,233
his budget blueprint
will come out,

1107
00:50:59,233 --> 00:51:00,934
presumably before he
goes to the Middle East.

1108
00:51:00,934 --> 00:51:05,500
So my question is, how does the
President want that new budget

1109
00:51:05,500 --> 00:51:09,133
-- including his revenue
ideas, his list of cuts,

1110
00:51:09,133 --> 00:51:12,734
his list of investments -- how
does he want that to shape the

1111
00:51:12,734 --> 00:51:16,266
discussion that will either
come after sequester or precede

1112
00:51:16,266 --> 00:51:18,066
the CR debate?

1113
00:51:18,066 --> 00:51:21,734
How will that help
or hurt the debate?

1114
00:51:21,734 --> 00:51:24,799
Mr. Carney:
Well, we certainly hope it
doesn't hurt the debate.

1115
00:51:24,800 --> 00:51:26,900
Our expectation -- well, I
mean, I would say first off,

1116
00:51:26,900 --> 00:51:28,734
I'm sure the President will be
enormously pleased if Congress

1117
00:51:28,734 --> 00:51:30,200
just passed it as written.

1118
00:51:30,200 --> 00:51:32,232
That I don't think
has ever happened,

1119
00:51:32,233 --> 00:51:34,000
so we don't expect it will.

1120
00:51:34,000 --> 00:51:42,100
But a presidential budget is
essentially a detailed outline

1121
00:51:42,100 --> 00:51:44,734
for Congress of what the
President's priorities are.

1122
00:51:44,734 --> 00:51:46,866
And we would
certainly hope that,

1123
00:51:46,867 --> 00:51:49,233
as has been the
case in the past,

1124
00:51:49,233 --> 00:51:52,700
that the balance represented
in his approach to deficit

1125
00:51:52,700 --> 00:51:56,567
reduction, the key investments
that he insists we make in

1126
00:51:56,567 --> 00:52:01,734
infrastructure, in education,
in research and development

1127
00:52:01,734 --> 00:52:04,667
are adopted by Congress, because
that's the way we can ensure not

1128
00:52:04,667 --> 00:52:06,900
only that people are working
now and that the middle class

1129
00:52:06,900 --> 00:52:10,533
is growing now, but that the
American economy is strong in

1130
00:52:10,533 --> 00:52:14,366
the future and that we do that,
we put into place these policies

1131
00:52:14,367 --> 00:52:16,967
in a way that
reduces our deficit,

1132
00:52:16,967 --> 00:52:18,533
gets our fiscal house
in order and allows us

1133
00:52:18,533 --> 00:52:19,834
to continue to grow.

1134
00:52:19,834 --> 00:52:21,799
Dan, I feel like I've
been -- neglected you.

1135
00:52:21,800 --> 00:52:22,300
Go ahead.

1136
00:52:22,300 --> 00:52:23,333
Last one.

1137
00:52:23,333 --> 00:52:25,367
The Press:
The President is
going to Israel.

1138
00:52:25,367 --> 00:52:27,867
There is a lot of concern there
about impact from the sequester

1139
00:52:27,867 --> 00:52:31,734
on the Iron Dome project, maybe
visiting an Iron Dome battery.

1140
00:52:31,734 --> 00:52:35,033
Can he go there with the intent
on assuring Israelis that there

1141
00:52:35,033 --> 00:52:37,400
will be no severe
impact on support of --

1142
00:52:37,400 --> 00:52:38,967
Mr. Carney:
Well, I don't have the
specificity required to

1143
00:52:38,967 --> 00:52:42,300
address the question about
those kinds of impacts.

1144
00:52:42,300 --> 00:52:44,934
I think the Pentagon would
be the place to go for that.

1145
00:52:44,934 --> 00:52:48,667
But I can say broadly that
the President believes,

1146
00:52:48,667 --> 00:52:50,066
and agrees with the
Speaker of the House,

1147
00:52:50,066 --> 00:52:55,200
that the sequester
should not become fact.

1148
00:52:55,200 --> 00:53:00,265
It was never meant to become
implemented policy because,

1149
00:53:00,266 --> 00:53:04,900
in part, the cuts to our
defense are too severe and

1150
00:53:04,900 --> 00:53:07,233
would adversely affect
our national security.

1151
00:53:07,233 --> 00:53:10,333
But the specifics would
have to be addressed over

1152
00:53:10,333 --> 00:53:11,066
at the Pentagon.

1153
00:53:11,066 --> 00:53:12,299
Thanks, everybody.

1154
00:53:12,300 --> 00:53:14,800
The Press:
Can you take a question
from a local affiliate?

1155
00:53:14,800 --> 00:53:17,000
The Press:
Oh, yes. We want to hear.

1156
00:53:17,000 --> 00:53:18,400
Mr. Carney:
Okay, I'll take a question.

1157
00:53:18,400 --> 00:53:19,800
Yes, I'm sorry, I didn't
even see you guys here.

1158
00:53:19,800 --> 00:53:20,533
Yes.

1159
00:53:20,533 --> 00:53:23,667
The Press:
About the tax-exempt status
of the corporate jets --

1160
00:53:23,667 --> 00:53:26,967
there are tens of thousands
of people who are middle-class

1161
00:53:26,967 --> 00:53:31,033
workers who work in
corporate aviation.

1162
00:53:31,033 --> 00:53:35,834
My question is -- including
several tens of thousands in

1163
00:53:35,834 --> 00:53:39,533
Kansas, Washington, Oklahoma.

1164
00:53:39,533 --> 00:53:44,200
They are very worried about
the President's comments about

1165
00:53:44,200 --> 00:53:50,866
eliminating the tax exemption
because in their words,

1166
00:53:50,867 --> 00:53:53,500
every time it's been eliminated
before, there has been layoffs.

1167
00:53:53,500 --> 00:53:56,667
And there have been thousands
of layoffs in Kansas since the

1168
00:53:56,667 --> 00:53:59,633
President started
mentioning this in the

1169
00:53:59,633 --> 00:54:01,767
corporate aviation area.

1170
00:54:01,767 --> 00:54:05,734
These are middle-class workers.

1171
00:54:05,734 --> 00:54:08,467
What would you say to them?

1172
00:54:08,467 --> 00:54:11,934
Mr. Carney:
I would say that making
budgets and choices about

1173
00:54:11,934 --> 00:54:15,000
deficit reduction always
involves difficult choices,

1174
00:54:15,000 --> 00:54:18,100
and that when it's a choice
between laying teachers off or

1175
00:54:18,100 --> 00:54:21,266
affecting our national security
or, in the broader scheme,

1176
00:54:21,266 --> 00:54:24,266
reforming our tax code in a
way that eliminates these tax

1177
00:54:24,266 --> 00:54:26,700
breaks -- special interest
tax breaks or subsidies,

1178
00:54:26,700 --> 00:54:32,600
that is a better option than
voucherizing Medicare or cutting

1179
00:54:32,600 --> 00:54:35,600
education investment
or throwing people --

1180
00:54:35,600 --> 00:54:37,799
kids off of Head Start.

1181
00:54:37,800 --> 00:54:39,867
I think that --

1182
00:54:39,867 --> 00:54:42,567
The Press:
The guy that lost his job
last week -- or last June --

1183
00:54:42,567 --> 00:54:43,200
Mr. Carney:
No, I understand --

1184
00:54:43,200 --> 00:54:46,033
The Press:
-- he left me a message
and said, I lost my job

1185
00:54:46,033 --> 00:54:46,967
because of this.

1186
00:54:46,967 --> 00:54:49,033
I'm sure -- I mean,
he supports a family.

1187
00:54:49,033 --> 00:54:53,467
Mr. Carney:
Again, I think that the question
here is what choices do we make,

1188
00:54:53,467 --> 00:54:57,200
and do we choose
to protect narrow,

1189
00:54:57,200 --> 00:54:59,399
special interest loopholes
that, by the way,

1190
00:54:59,400 --> 00:55:03,133
the Speaker of the House
said just late last year,

1191
00:55:03,133 --> 00:55:05,399
there were so many of them
that he could come up with $800

1192
00:55:05,400 --> 00:55:09,233
billion in revenues that he
would direct towards deficit

1193
00:55:09,233 --> 00:55:12,066
reduction just by closing
loopholes like that and capping

1194
00:55:12,066 --> 00:55:15,265
deductions like the
ones we've discussed.

1195
00:55:15,266 --> 00:55:18,767
I don't doubt that there are
benefits that are enjoyed by

1196
00:55:18,767 --> 00:55:24,332
companies and others that flow
from these loopholes and special

1197
00:55:24,333 --> 00:55:25,967
provisions in the tax code.

1198
00:55:25,967 --> 00:55:28,600
But the broader interest here
is in making choices that are

1199
00:55:28,600 --> 00:55:31,834
fair for everyone in the way
that we reduce our deficit.

1200
00:55:31,834 --> 00:55:32,466
And closing --

1201
00:55:32,467 --> 00:55:36,500
The Press:
-- the middle class is employed,
so it will affect them.

1202
00:55:36,500 --> 00:55:37,100
Mr. Carney:
I take your point.

1203
00:55:37,100 --> 00:55:38,133
I think I've answered
the question,

1204
00:55:38,133 --> 00:55:40,000
which is that we have
to make choices here.

1205
00:55:40,000 --> 00:55:41,767
And I think that,
overwhelmingly,

1206
00:55:41,767 --> 00:55:46,933
a decision to close a special
interest tax break as opposed to

1207
00:55:46,934 --> 00:55:52,333
throwing 70,000 kids off of Head
Start is a pretty clear choice.

1208
00:55:52,333 --> 00:55:55,300
None of these are cost-free,
but it's a pretty clear choice.

1209
00:55:55,300 --> 00:55:56,000
Thank you.