English subtitles for clip: File:2-20-13- White House Press Briefing.webm
Jump to navigation
Jump to search
1 00:00:00,767 --> 00:00:01,533 Mr. Carney: Hello, everyone. 2 00:00:01,533 --> 00:00:02,333 Welcome to the White House. 3 00:00:02,333 --> 00:00:03,800 It's very good to have you here. 4 00:00:03,800 --> 00:00:06,567 I hope you are as excited to be here as I am. 5 00:00:06,567 --> 00:00:08,734 I mean that. 6 00:00:08,734 --> 00:00:10,500 It's always an honor and a privilege. 7 00:00:10,500 --> 00:00:13,200 We'll give a special dispensation to Bill. 8 00:00:15,266 --> 00:00:17,567 I don't have anything long at the top. 9 00:00:17,567 --> 00:00:23,500 I would just note that the issue of the sequester continues to 10 00:00:23,500 --> 00:00:26,700 drive a lot of conversation here in Washington, understandably. 11 00:00:26,700 --> 00:00:31,767 The potential implementation of the sequester is upon us. 12 00:00:31,767 --> 00:00:35,533 You heard the President speak about it yesterday. 13 00:00:35,533 --> 00:00:41,033 And what is essential to understand is that the effect 14 00:00:41,033 --> 00:00:46,100 of the sequester would be severe and it would go right 15 00:00:46,100 --> 00:00:50,700 to American families -- middle-class Americans -- 16 00:00:50,700 --> 00:00:55,133 people who receive vital health services; 17 00:00:55,133 --> 00:01:00,100 there are people working today who will lose their jobs if the 18 00:01:00,100 --> 00:01:03,066 sequester goes into effect. 19 00:01:03,066 --> 00:01:08,333 And it's wholly unnecessary that the sequester goes into effect 20 00:01:08,333 --> 00:01:11,900 because the option for Congress is to do what it did just a few 21 00:01:11,900 --> 00:01:14,266 months ago, which is come to an agreement on a reasonable 22 00:01:14,266 --> 00:01:19,900 package, a balanced package of spending cuts and revenue 23 00:01:19,900 --> 00:01:25,767 increases to buy the sequester down for enough time to allow 24 00:01:25,767 --> 00:01:30,066 Congress to do the important work of writing a budget that 25 00:01:30,066 --> 00:01:32,633 reduces our deficit further in a responsible way for the 26 00:01:32,633 --> 00:01:34,934 long term. 27 00:01:34,934 --> 00:01:37,633 Republicans thus far have refused to do this. 28 00:01:37,633 --> 00:01:40,699 They've refused to go along with the American public on 29 00:01:40,700 --> 00:01:43,400 the simple notion that balance is the right approach to dealing 30 00:01:43,400 --> 00:01:45,800 with this problem. 31 00:01:45,800 --> 00:01:49,166 And it's important to understand that if they hold that position 32 00:01:49,166 --> 00:01:51,066 and the sequester goes into effect, 33 00:01:51,066 --> 00:01:54,000 it will go into effect and those Americans will lose their jobs 34 00:01:54,000 --> 00:01:56,033 because Republicans made a choice for that to happen. 35 00:02:00,266 --> 00:02:04,133 There was an interesting piece some of you may have seen -- 36 00:02:04,133 --> 00:02:07,633 well, first of all, the Wall Street Journal op/ed by the 37 00:02:07,633 --> 00:02:12,132 Speaker of the House yesterday and then a piece that I just saw 38 00:02:12,133 --> 00:02:16,300 not too long ago that begins: "In a Wall Street Journal op/ed 39 00:02:16,300 --> 00:02:18,800 Wednesday, House Speaker John Boehner describes the upcoming 40 00:02:18,800 --> 00:02:21,533 sequester as a policy that 'threatens U.S. national 41 00:02:21,533 --> 00:02:26,065 security, thousands of jobs, and more' -- 42 00:02:26,066 --> 00:02:28,000 continuing with the piece -- "which leads to the question, 43 00:02:28,000 --> 00:02:30,400 why would Republicans support a measure that threatens national 44 00:02:30,400 --> 00:02:33,100 security and thousands of jobs? 45 00:02:33,100 --> 00:02:35,733 The effect of Boehner's argument is to make President 46 00:02:35,734 --> 00:02:37,734 Obama seem reasonable. 47 00:02:37,734 --> 00:02:39,900 After all, the President certainly agrees with Boehner 48 00:02:39,900 --> 00:02:42,567 that the sequester cuts threaten national security and jobs. 49 00:02:42,567 --> 00:02:45,467 The difference is that Obama wants to avoid them." 50 00:02:45,467 --> 00:02:46,834 Couldn't have said it better. 51 00:02:46,834 --> 00:02:48,200 That was Byron York. 52 00:02:48,200 --> 00:02:50,700 The President believes it is essential that we 53 00:02:50,700 --> 00:02:52,200 avoid these cuts. 54 00:02:52,200 --> 00:02:53,767 It is bad policy. 55 00:02:53,767 --> 00:02:57,233 The Speaker himself says it is bad policy. 56 00:02:57,233 --> 00:03:00,900 We -- the Congress, rather, must act to make sure it 57 00:03:00,900 --> 00:03:01,700 doesn't happen. 58 00:03:01,700 --> 00:03:02,667 Jim. 59 00:03:02,667 --> 00:03:03,767 The Press: Thank you, Jay. 60 00:03:03,767 --> 00:03:11,466 To that point, the sequester would hit the government to 61 00:03:11,467 --> 00:03:14,133 $85 billion in the first year. 62 00:03:14,133 --> 00:03:18,166 But CBO says that actually the hit this year would be 63 00:03:18,166 --> 00:03:19,166 half that. 64 00:03:19,166 --> 00:03:21,667 Discretionary outlays would drop by $35 billion, 65 00:03:21,667 --> 00:03:25,800 mandatory by $9 billion; the rest would occur in later years. 66 00:03:25,800 --> 00:03:28,800 And on Sunday, a Republican senator said, 67 00:03:28,800 --> 00:03:32,800 we're talking about 2.5% of what we spend this year and this is 68 00:03:32,800 --> 00:03:36,000 our first year of 10-year cuts. 69 00:03:36,000 --> 00:03:38,500 Families all across the country have had their budgets cut by 70 00:03:38,500 --> 00:03:41,567 larger than that as a result of the economic downturn. 71 00:03:41,567 --> 00:03:44,700 Is the lack of urgency to deal with this somewhat justified 72 00:03:44,700 --> 00:03:46,899 given those numbers? 73 00:03:46,900 --> 00:03:52,767 I mean, even when we were dealing with the debt ceiling, 74 00:03:52,767 --> 00:03:55,799 or you were dealing with the fiscal cliff, 75 00:03:55,800 --> 00:03:58,233 there was a lot more activity going on out of this White House 76 00:03:58,233 --> 00:04:02,467 10 days before than there is now. 77 00:04:02,467 --> 00:04:04,433 Mr. Carney: Well, there's a great deal of activity in this White House 78 00:04:04,433 --> 00:04:08,867 with regards to the sequester, and there will continue to be. 79 00:04:08,867 --> 00:04:11,700 You saw the President and heard the President yesterday urge 80 00:04:11,700 --> 00:04:15,700 Congress to take the necessary action to avoid these 81 00:04:15,700 --> 00:04:18,000 across-the-board, indiscriminate cuts that -- 82 00:04:18,000 --> 00:04:20,433 quoting Speaker Boehner -- "would do harm to our national 83 00:04:20,433 --> 00:04:23,066 security and cost jobs." 84 00:04:23,066 --> 00:04:24,833 These are not jobs in the abstract. 85 00:04:24,834 --> 00:04:29,767 These are men and women patrolling our borders. 86 00:04:29,767 --> 00:04:31,367 These are teachers. 87 00:04:31,367 --> 00:04:34,233 These are first responders. 88 00:04:34,233 --> 00:04:38,166 These are real people whose futures hang in the balance, 89 00:04:38,166 --> 00:04:42,600 depending on a decision that Republicans in Congress will 90 00:04:42,600 --> 00:04:44,200 or will not make. 91 00:04:44,200 --> 00:04:47,467 Secondly, if you cite the CBO, the CBO estimates that the 92 00:04:47,467 --> 00:04:56,000 sequester, if it takes place in 2013, will reduce growth by .6 93 00:04:56,000 --> 00:04:59,266 percentage points during 2013. 94 00:04:59,266 --> 00:05:01,000 That is a significant hit. 95 00:05:01,000 --> 00:05:03,567 We've already seen impacts from the sequester, 96 00:05:03,567 --> 00:05:09,333 as all of you wrote and analysts made clear back in January. 97 00:05:09,333 --> 00:05:14,533 The fourth quarter GDP number for 2012 came in where it was 98 00:05:14,533 --> 00:05:17,567 in large part because of -- in the Defense Sector in 99 00:05:17,567 --> 00:05:22,066 particular, and anticipation of the sequester drove down 100 00:05:22,066 --> 00:05:23,566 defense spending. 101 00:05:23,567 --> 00:05:29,367 And we will see only more of that happen if this sequester 102 00:05:29,367 --> 00:05:31,200 kicks in. 103 00:05:31,200 --> 00:05:34,767 The CBO number on GDP growth, what would happen if the 104 00:05:34,767 --> 00:05:37,400 sequester happened is mirrored by estimates 105 00:05:37,400 --> 00:05:39,400 by private sector firms. 106 00:05:39,400 --> 00:05:41,500 Moody's Analytics says the reduction 107 00:05:41,500 --> 00:05:43,100 would be .5%. 108 00:05:43,100 --> 00:05:45,233 Macroeconomics Advisers, I think you saw today, 109 00:05:45,233 --> 00:05:46,734 is .6%. 110 00:05:46,734 --> 00:05:50,133 CBO estimates that job losses resulting from the sequester 111 00:05:50,133 --> 00:05:52,332 could reach -- would reach, rather -- 112 00:05:52,333 --> 00:05:56,133 750,000 by the fourth quarter of this year. 113 00:05:56,133 --> 00:05:58,667 And the Bipartisan Policy Center estimates that over two years 114 00:05:58,667 --> 00:06:02,265 the effect would be a million jobs. 115 00:06:02,266 --> 00:06:03,266 This is real. 116 00:06:03,266 --> 00:06:04,700 It is not -- it is urgent. 117 00:06:04,700 --> 00:06:06,200 And it is important that Congress act. 118 00:06:06,200 --> 00:06:08,767 And the choice is clear. 119 00:06:08,767 --> 00:06:11,266 The American people support a balanced approach 120 00:06:11,266 --> 00:06:13,033 to deficit reduction. 121 00:06:13,033 --> 00:06:15,467 Out in the country, Democrats, independents, 122 00:06:15,467 --> 00:06:18,866 and Republicans support a balanced approach to 123 00:06:18,867 --> 00:06:19,867 deficit reduction. 124 00:06:19,867 --> 00:06:23,300 And if you ask the American people if the choice is that 125 00:06:23,300 --> 00:06:26,667 those 70,000 kids get thrown off of Head Start, 126 00:06:26,667 --> 00:06:29,166 or those border security guards lose their jobs, 127 00:06:29,166 --> 00:06:31,433 or those teachers have their jobs threatened, 128 00:06:31,433 --> 00:06:36,233 on the one hand -- or we ask corporate jet owners 129 00:06:36,233 --> 00:06:39,100 to give up their special tax loophole, 130 00:06:39,100 --> 00:06:41,567 what do you think they'll say, overwhelmingly? 131 00:06:41,567 --> 00:06:43,133 This is an indefensible position. 132 00:06:43,133 --> 00:06:46,200 The choice that Republicans are making is preserve these special 133 00:06:46,200 --> 00:06:50,667 tax breaks for oil and gas companies, 134 00:06:50,667 --> 00:06:54,799 for corporate jet owners in order -- 135 00:06:54,800 --> 00:07:00,266 or -- I'm sorry -- throw these people out of work in order to 136 00:07:00,266 --> 00:07:02,800 protect these special tax break for corporate jet owners and oil 137 00:07:02,800 --> 00:07:04,100 and gas companies. 138 00:07:04,100 --> 00:07:05,867 It makes no sense and it's bad policy. 139 00:07:05,867 --> 00:07:08,333 And when the Speaker says the discussion about revenue is 140 00:07:08,333 --> 00:07:11,533 closed, again, ask Americans around the country whether 141 00:07:11,533 --> 00:07:16,033 they agree that it is better economic policy for middle-class 142 00:07:16,033 --> 00:07:23,266 Americans to lose their jobs, or oil and gas companies to 143 00:07:23,266 --> 00:07:25,767 have their subsidies reduced or corporate jet owners to 144 00:07:25,767 --> 00:07:27,467 have their loophole closed. 145 00:07:27,467 --> 00:07:30,633 I think we all know that the answer would be. 146 00:07:30,633 --> 00:07:33,166 The Press: If a House plan can't win in the Senate and a Senate plan 147 00:07:33,166 --> 00:07:37,200 can't win in the House, what is the White House doing to foster 148 00:07:37,200 --> 00:07:38,332 negotiations right now? 149 00:07:38,333 --> 00:07:39,567 Is anybody talking? 150 00:07:39,567 --> 00:07:40,900 Mr. Carney: Well, I think we always make these -- 151 00:07:40,900 --> 00:07:43,233 we hear these declarative statements from Capitol Hill 152 00:07:43,233 --> 00:07:45,633 and also from the press about what can and cannot pass. 153 00:07:45,633 --> 00:07:48,633 We heard them last year about how revenue would 154 00:07:48,633 --> 00:07:49,799 never be allowed. 155 00:07:49,800 --> 00:07:52,533 We would never go along -- this is a Republican speaking -- 156 00:07:52,533 --> 00:07:55,800 we would never allow tax rates to go up. 157 00:07:55,800 --> 00:07:57,266 We would never allow them to go up -- 158 00:07:57,266 --> 00:07:58,934 again, the next line of defense was, 159 00:07:58,934 --> 00:08:01,433 we'll never allow them to go up on anybody making less than 160 00:08:01,433 --> 00:08:02,433 a million dollars. 161 00:08:02,433 --> 00:08:05,266 And we'll never let the top rate go back to the Clinton-era top 162 00:08:05,266 --> 00:08:06,567 rate of 39.6. 163 00:08:06,567 --> 00:08:09,100 All of those things happened. 164 00:08:09,100 --> 00:08:10,100 You know why they happened? 165 00:08:10,100 --> 00:08:13,500 Because the American people supported those positions 166 00:08:13,500 --> 00:08:17,000 that the President took and in the end, 167 00:08:17,000 --> 00:08:20,467 Congress responded to the will of the American people. 168 00:08:20,467 --> 00:08:22,734 And we hope that's what's going to happen again this time. 169 00:08:22,734 --> 00:08:24,633 The Press: But there were talks going on right up until 170 00:08:24,633 --> 00:08:26,366 those decisions were made. 171 00:08:26,367 --> 00:08:29,734 Mr. Carney: I am entirely sure that we will continue to engage with 172 00:08:29,734 --> 00:08:31,834 Congress, including the leaders in Congress, 173 00:08:31,834 --> 00:08:34,600 on this issue at every level. 174 00:08:34,600 --> 00:08:36,867 But the issue here isn't, as I said yesterday, 175 00:08:39,232 --> 00:08:43,132 sitting around the table or sitting in some chairs here 176 00:08:43,133 --> 00:08:44,133 in the West Wing. 177 00:08:44,133 --> 00:08:46,266 It's Congress and congressional leaders, 178 00:08:46,266 --> 00:08:51,065 congressional Republicans making a choice between allowing the 179 00:08:51,066 --> 00:08:54,600 sequester to kick in with all of the negative effects that would 180 00:08:54,600 --> 00:08:58,467 come from that, or postponing the sequester in a reasonable 181 00:08:58,467 --> 00:09:00,934 way with a balanced package of spending cuts 182 00:09:00,934 --> 00:09:03,000 and revenue increases. 183 00:09:03,000 --> 00:09:06,266 The Press: Jay, the President has inveighed against this process of lurching 184 00:09:06,266 --> 00:09:09,533 from crisis to crisis, and yet he's been in the forefront of 185 00:09:09,533 --> 00:09:11,567 describing the dire consequences that would 186 00:09:11,567 --> 00:09:13,834 result from the sequester. 187 00:09:13,834 --> 00:09:16,632 Doesn't he contribute to the crisis atmosphere by being so 188 00:09:16,633 --> 00:09:17,967 outspoken about that? 189 00:09:17,967 --> 00:09:20,333 Wouldn't it be more productive for him to sit down with the 190 00:09:20,333 --> 00:09:22,100 other party and try to work this out? 191 00:09:22,100 --> 00:09:25,166 Mr. Carney: Again, the fact is, as I think Jim just pointed out, 192 00:09:25,166 --> 00:09:28,533 the President has spent an enormous amount of time sitting 193 00:09:28,533 --> 00:09:31,633 down with congressional leaders to try to resolve 194 00:09:31,633 --> 00:09:35,300 these stalemates over our budget policy again and 195 00:09:35,300 --> 00:09:36,300 again and again. 196 00:09:36,300 --> 00:09:39,699 And he will continue to engage with Congress on these matters. 197 00:09:39,700 --> 00:09:42,834 But it is nonsensical, in our view, 198 00:09:42,834 --> 00:09:45,400 to suggest that that is the only approach to take -- 199 00:09:45,400 --> 00:09:49,333 because would that it were so that simply persuasion from the 200 00:09:49,333 --> 00:09:52,433 President or anyone else sitting in a room about the right course 201 00:09:52,433 --> 00:09:55,667 to take would be enough to convince Republicans that it 202 00:09:55,667 --> 00:10:00,367 is better to ask corporate jet owners to forego their special 203 00:10:00,367 --> 00:10:03,800 interest loophole in the tax code than to throw all these 204 00:10:03,800 --> 00:10:05,000 people out of work. 205 00:10:05,000 --> 00:10:09,100 If that's what were required, we would do just that. 206 00:10:09,100 --> 00:10:11,700 But the fact of the matter is congressional Republicans are 207 00:10:11,700 --> 00:10:14,667 going to listen to the American people, 208 00:10:14,667 --> 00:10:17,333 and that's why it's important to engage the American people 209 00:10:17,333 --> 00:10:20,433 and not just speak to members of Congress. 210 00:10:20,433 --> 00:10:22,433 You have to do both, and we have always done both, 211 00:10:22,433 --> 00:10:24,033 and will continue to do both. 212 00:10:24,033 --> 00:10:26,400 The Press: Do you see the likelihood of sequester increasingly 213 00:10:26,400 --> 00:10:27,367 greater now? 214 00:10:27,367 --> 00:10:28,300 Mr. Carney: I don't want to make predictions. 215 00:10:28,300 --> 00:10:31,433 I would note that Congress is out this week, 216 00:10:31,433 --> 00:10:36,233 which says something, I suppose. 217 00:10:36,233 --> 00:10:41,199 But the fact of the matter is the March 1st deadline is 218 00:10:41,200 --> 00:10:45,633 looming, and Congress has an option -- 219 00:10:45,633 --> 00:10:49,266 a very simple option -- which is to take up the proposals put 220 00:10:49,266 --> 00:10:53,367 forward by Senate Democrats and House Democrats that would 221 00:10:53,367 --> 00:10:56,233 do what Congress did collectively -- Republicans 222 00:10:56,233 --> 00:10:59,266 and Democrats -- at the end of last year, first of this year, 223 00:10:59,266 --> 00:11:03,199 and that is delay the implementation of the sequester 224 00:11:03,200 --> 00:11:08,200 by buying it down through spending cuts and revenue 225 00:11:08,200 --> 00:11:11,600 increases so that Congress can then get on with regular order 226 00:11:11,600 --> 00:11:13,934 -- which goes to the other issue that you raised in your 227 00:11:13,934 --> 00:11:18,199 question, which is the need to stop this practice of engaging 228 00:11:18,200 --> 00:11:19,433 in manufactured crises. 229 00:11:19,433 --> 00:11:24,800 We need to return to a process that has Congress, 230 00:11:24,800 --> 00:11:26,567 the House and the Senate, working on budget proposals, 231 00:11:26,567 --> 00:11:28,266 the President submitting his budget, 232 00:11:28,266 --> 00:11:31,165 and compromise emerging from that process. 233 00:11:31,166 --> 00:11:37,500 And compromise in this case means deficit reduction through 234 00:11:37,500 --> 00:11:39,166 entitlement reforms, spending cuts, 235 00:11:39,166 --> 00:11:43,033 and tax reform that produces more revenues. 236 00:11:43,033 --> 00:11:45,700 That's how we've gotten to where we are, 237 00:11:45,700 --> 00:11:49,867 which is over $2.5 trillion in deficit reduction under this 238 00:11:49,867 --> 00:11:54,099 President, and it's how we will get to the goal of $4 trillion 239 00:11:54,100 --> 00:11:56,200 in further -- in total deficit reduction over 240 00:11:56,200 --> 00:12:01,600 10 years if Congress does the right thing, avoids this 241 00:12:01,600 --> 00:12:05,133 unnecessary crisis and all of the negative effects that would 242 00:12:05,133 --> 00:12:07,800 come from it, passes a short-term buy-down of 243 00:12:07,800 --> 00:12:11,500 the sequester, and proceeds with regular order and the 244 00:12:11,500 --> 00:12:12,867 budgetary process. 245 00:12:12,867 --> 00:12:15,000 The Press: And lastly, the Japanese Prime Minister is due in town at the 246 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.