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1 00:00:01,200 --> 00:00:02,400 Mr. Carney: Good afternoon, ladies and gentlemen. 2 00:00:02,400 --> 00:00:06,900 Thanks for coming to the White House for your daily briefing. 3 00:00:06,900 --> 00:00:10,133 The Press: New glasses -- again? 4 00:00:10,133 --> 00:00:11,133 Mr. Carney: You think these are new? 5 00:00:11,133 --> 00:00:12,133 (laughter) 6 00:00:12,133 --> 00:00:13,367 The Press: Yeah. 7 00:00:13,367 --> 00:00:14,600 (laughter) 8 00:00:14,600 --> 00:00:16,600 Mr. Carney: Maybe. 9 00:00:16,600 --> 00:00:19,567 The Press: Did you leave them on the bumper again? 10 00:00:19,567 --> 00:00:22,133 Mr. Carney: Not this time. Not this time. 11 00:00:22,133 --> 00:00:26,767 These could be old; they could be new. 12 00:00:26,767 --> 00:00:29,533 Before I get started I wanted, on a serious note, 13 00:00:29,533 --> 00:00:32,767 to say something about two journalists who were killed 14 00:00:32,767 --> 00:00:34,667 yesterday in Syria. 15 00:00:34,667 --> 00:00:39,567 As you know, last week I, aboard Air Force One, 16 00:00:39,567 --> 00:00:41,033 said something about Anthony Shadid, 17 00:00:41,033 --> 00:00:42,633 who died last week in Syria. 18 00:00:42,633 --> 00:00:51,433 These tragic deaths underscore something that I think we all -- 19 00:00:51,433 --> 00:00:53,400 all of us in this room, since we participate in -- 20 00:00:53,400 --> 00:00:55,667 I did once and you do now -- in this profession -- 21 00:00:55,667 --> 00:00:58,367 it's a reminder of the incredible risks that 22 00:00:58,367 --> 00:01:01,367 journalists take -- Marie Colvin, Anthony Shadid, 23 00:01:01,367 --> 00:01:04,467 and the French photojournalist who was killed yesterday as well 24 00:01:04,467 --> 00:01:08,467 -- in order to bring the truth about what's happening in a 25 00:01:08,467 --> 00:01:12,266 country like Syria to those of us at home and in countries 26 00:01:12,266 --> 00:01:13,667 around the world. 27 00:01:13,667 --> 00:01:16,867 And our thoughts and prayers go out to the 28 00:01:16,867 --> 00:01:18,867 families of those journalists. 29 00:01:18,867 --> 00:01:28,533 And it's a reminder, too, that the victims are many, 30 00:01:28,533 --> 00:01:30,600 and overwhelmingly, in this case, 31 00:01:30,600 --> 00:01:33,667 they are innocent Syrian civilians. 32 00:01:33,667 --> 00:01:38,200 The brutality of the Assad regime becomes ever more 33 00:01:38,200 --> 00:01:42,934 apparent each day -- as each day goes by. 34 00:01:42,934 --> 00:01:46,100 So I just wanted to mention that -- and go to questions. 35 00:01:46,100 --> 00:01:46,833 Julie. 36 00:01:46,834 --> 00:01:47,500 The Press: Thank you. 37 00:01:47,500 --> 00:01:50,567 Sticking with Syria, you said yesterday that international 38 00:01:50,567 --> 00:01:53,199 action is needed before the situation in Syria 39 00:01:53,200 --> 00:01:54,834 becomes too chaotic. 40 00:01:54,834 --> 00:01:58,033 But given this latest incident and the continued shelling in 41 00:01:58,033 --> 00:02:01,200 Syria, how much more chaotic can things get? 42 00:02:01,200 --> 00:02:03,367 What exactly is the international community 43 00:02:03,367 --> 00:02:05,834 waiting for at this point? 44 00:02:05,834 --> 00:02:10,300 Mr. Carney: Well, the international community has acted through 45 00:02:10,300 --> 00:02:12,400 the resolution passed by the United Nations 46 00:02:12,400 --> 00:02:13,400 General Assembly. 47 00:02:13,400 --> 00:02:17,934 Unfortunately, Russia and China vetoed a resolution that would 48 00:02:17,934 --> 00:02:21,233 have passed through the Security Council. 49 00:02:21,233 --> 00:02:24,000 But there is overwhelming international support for the 50 00:02:24,000 --> 00:02:29,367 condemnation of Assad and his regime's atrocities and actions, 51 00:02:29,367 --> 00:02:32,466 and overwhelming support for the Syrian people. 52 00:02:32,467 --> 00:02:37,500 There's an ever-growing coalition of nations, 53 00:02:37,500 --> 00:02:42,834 if you will, who are part of the "Friends of Syria" that the 54 00:02:42,834 --> 00:02:47,233 United States is part of, and together we will continue to 55 00:02:47,233 --> 00:02:52,467 enhance the pressure on Assad, continue to help the opposition 56 00:02:52,467 --> 00:02:57,934 become more functional, continue to work to bring humanitarian 57 00:02:57,934 --> 00:03:02,567 assistance to the Syrian people, and continue to call on the 58 00:03:02,567 --> 00:03:05,400 international community collectively to take greater 59 00:03:05,400 --> 00:03:10,133 action to pressure Assad and to force him to relinquish power so 60 00:03:10,133 --> 00:03:12,133 that the Syrian people can have the democratic future 61 00:03:12,133 --> 00:03:13,166 that they deserve. 62 00:03:13,166 --> 00:03:15,033 The Press: When you talk about helping the opposition, 63 00:03:15,033 --> 00:03:18,399 the main opposition group said today that foreign military 64 00:03:18,400 --> 00:03:22,233 intervention may be necessary in order for humanitarian aid 65 00:03:22,233 --> 00:03:23,800 to make it into Syria. 66 00:03:23,800 --> 00:03:26,400 I know you said yesterday that humanitarian aid is needed. 67 00:03:26,400 --> 00:03:29,767 Would the U.S. support foreign military intervention for the 68 00:03:29,767 --> 00:03:33,466 purpose of getting humanitarian aid into Syria? 69 00:03:33,467 --> 00:03:36,500 Mr. Carney: Well, I think there's a useful comparative 70 00:03:36,500 --> 00:03:37,500 here to Libya. 71 00:03:37,500 --> 00:03:41,600 I'm often asked this question in the -- using that comparison. 72 00:03:41,600 --> 00:03:45,567 And what we had in Libya when there was outside military 73 00:03:45,567 --> 00:03:49,066 intervention was a unified international community, 74 00:03:49,066 --> 00:03:53,133 a call for intervention by the Libyan people, 75 00:03:53,133 --> 00:03:59,400 the prospect of an immediate assault by Qaddafi's forces on 76 00:03:59,400 --> 00:04:04,367 an entire city, Benghazi, and the possibility that 77 00:04:04,367 --> 00:04:06,934 international military action could have -- could halt that 78 00:04:06,934 --> 00:04:11,734 and could limit or prevent the deaths of many, 79 00:04:11,734 --> 00:04:14,467 many thousands of Libyans. 80 00:04:14,467 --> 00:04:17,734 Each country in the region where we have had this kind of unrest 81 00:04:17,733 --> 00:04:21,332 is different, and certainly Syria is different from Libya 82 00:04:21,333 --> 00:04:25,166 in many of those particulars that I just laid out. 83 00:04:25,166 --> 00:04:28,066 We will work with the international community to 84 00:04:28,066 --> 00:04:29,467 provide humanitarian assistance. 85 00:04:29,467 --> 00:04:33,000 We will continue to press the international community to 86 00:04:33,000 --> 00:04:39,600 condemn Assad and his actions, and to take action to further 87 00:04:39,600 --> 00:04:41,767 pressure and sanction his regime. 88 00:04:41,767 --> 00:04:43,967 Right now -- and I was asked this yesterday, 89 00:04:43,967 --> 00:04:47,166 and I just want to make clear that we do not believe that 90 00:04:47,166 --> 00:04:51,933 adding to the militarization of Syria is the right approach. 91 00:04:51,934 --> 00:04:55,767 We believe that the right approach is for the 92 00:04:55,767 --> 00:05:00,166 international community to speak with one voice to pressure Assad 93 00:05:00,166 --> 00:05:05,066 and get him to relinquish power and to cease the brutal assault 94 00:05:05,066 --> 00:05:06,032 on his own people. 95 00:05:06,033 --> 00:05:08,734 The Press: Does that apply also to military intervention for 96 00:05:08,734 --> 00:05:09,933 the purpose of -- 97 00:05:09,934 --> 00:05:12,100 Mr. Carney: Well, right now we believe that the appropriate action 98 00:05:12,100 --> 00:05:15,333 is a diplomatic, economic approach, 99 00:05:15,333 --> 00:05:17,200 the likes of which we're taking. 100 00:05:17,200 --> 00:05:19,834 The Press: If I could switch briefly over to the corporate tax proposal -- 101 00:05:19,834 --> 00:05:22,533 when the President has rolled out other proposals from his 102 00:05:22,533 --> 00:05:25,033 State of the Union address, he's been out front in doing so, 103 00:05:25,033 --> 00:05:27,667 but today's proposal came from the Treasury Department and 104 00:05:27,667 --> 00:05:29,000 Secretary Geithner. 105 00:05:29,000 --> 00:05:31,066 Why not have the President out front? 106 00:05:31,066 --> 00:05:34,000 Why put this distance between he and the proposal today? 107 00:05:34,000 --> 00:05:36,734 Mr. Carney: Well, I certainly disagree that there is distance between 108 00:05:36,734 --> 00:05:39,667 the President and his Secretary of the Treasury. 109 00:05:39,667 --> 00:05:41,734 Tim Geithner has developed this proposal, 110 00:05:41,734 --> 00:05:43,799 working with his team and the economic team here in 111 00:05:43,800 --> 00:05:44,800 the White House. 112 00:05:44,800 --> 00:05:47,433 The President -- you should have by now -- if not, 113 00:05:47,433 --> 00:05:51,834 you'll have it momentarily -- has put out a full statement 114 00:05:51,834 --> 00:05:58,867 laying out why he believes this corporate tax reform that he and 115 00:05:58,867 --> 00:06:01,533 his administration is putting forward today is so important; 116 00:06:01,533 --> 00:06:05,166 why it fits into his overall blueprint for an "America Built 117 00:06:05,166 --> 00:06:11,633 to Last," where everyone gets a fair shot and plays 118 00:06:11,633 --> 00:06:12,734 by the same rules. 119 00:06:12,734 --> 00:06:16,299 So the President is very committed to corporate tax 120 00:06:16,300 --> 00:06:20,033 reform, as he made clear at the State of the Union address last 121 00:06:20,033 --> 00:06:21,533 year in 2011. 122 00:06:21,533 --> 00:06:26,667 And he believes that this is an area where an opportunity 123 00:06:26,667 --> 00:06:33,200 exists, an opportunity to disprove the conventional wisdom 124 00:06:33,200 --> 00:06:39,633 that nothing can get done in an election year between a White 125 00:06:39,633 --> 00:06:42,332 House held by one party and a Congress largely controlled by 126 00:06:42,333 --> 00:06:43,600 the other. 127 00:06:43,600 --> 00:06:46,166 After all, there is a fair amount of consensus that 128 00:06:46,166 --> 00:06:48,266 simplifying the corporate tax code is a good idea, 129 00:06:48,266 --> 00:06:50,734 that broadening the base and lowering the rate is 130 00:06:50,734 --> 00:06:51,734 a good idea. 131 00:06:51,734 --> 00:06:56,933 The President has put forward a proposal that does that; 132 00:06:56,934 --> 00:07:02,500 that in doing that eliminates unnecessary and expensive 133 00:07:02,500 --> 00:07:07,834 subsidies and carved-out special provisions for corporations like 134 00:07:07,834 --> 00:07:09,700 oil and gas companies that don't need them; 135 00:07:09,700 --> 00:07:14,233 that eliminates the carried interest rule that allows hedge 136 00:07:14,233 --> 00:07:18,767 fund managers and private equity investors to -- or managers -- 137 00:07:18,767 --> 00:07:23,867 to pay a far lower tax rate on their income than firefighters 138 00:07:23,867 --> 00:07:28,400 and teachers -- and everyone probably in this room -- and 139 00:07:28,400 --> 00:07:32,799 thereby creates a corporate tax code that allows American 140 00:07:32,800 --> 00:07:34,834 businesses to be more competitive globally, 141 00:07:34,834 --> 00:07:39,600 that incentivizes manufacturing in the United States, 142 00:07:39,600 --> 00:07:44,734 that takes away the incentive for companies to relocate 143 00:07:44,734 --> 00:07:49,200 overseas and reverses that and creates incentives for companies 144 00:07:49,200 --> 00:07:52,866 to insource again in the United States -- a trend the President 145 00:07:52,867 --> 00:07:54,633 believes is very important to our economic future. 146 00:07:54,633 --> 00:07:59,166 So he's very supportive of this proposal and hopes that Congress 147 00:07:59,166 --> 00:08:04,533 will see in this an opportunity to prove the critics wrong, 148 00:08:04,533 --> 00:08:08,500 to show that we can get things done this year for 149 00:08:08,500 --> 00:08:11,533 the American people. 150 00:08:11,533 --> 00:08:12,433 Reuters. 151 00:08:12,433 --> 00:08:13,467 The Press: Thank you, Jay. 152 00:08:13,467 --> 00:08:16,800 Picking up on the discussion of gas prices from yesterday, 153 00:08:16,800 --> 00:08:21,133 is it fair for the American voter or the American public 154 00:08:21,133 --> 00:08:23,265 to blame any President -- in this case, 155 00:08:23,266 --> 00:08:25,700 this President and his administration -- when gas 156 00:08:25,700 --> 00:08:28,166 prices start going up so high? 157 00:08:28,166 --> 00:08:31,834 Mr. Carney: Look, I think this President, as I said yesterday, 158 00:08:31,834 --> 00:08:38,166 fully appreciates the impact of higher gas prices on average 159 00:08:38,166 --> 00:08:41,033 Americans trying to make ends meet. 160 00:08:41,033 --> 00:08:44,300 He talked about that yesterday in the event where he discussed 161 00:08:44,300 --> 00:08:45,733 the extension of the payroll tax cut. 162 00:08:45,734 --> 00:08:50,266 One of the reasons in both 2011 and now this year that cutting 163 00:08:50,266 --> 00:08:54,433 the payroll tax for 160 million Americans is so important is 164 00:08:54,433 --> 00:08:57,600 because it gives the average American family an extra $40 165 00:08:57,600 --> 00:09:03,567 per paycheck, close to $1,000 per year, 166 00:09:03,567 --> 00:09:08,066 to pay for things like gasoline, to fill up their tanks. 167 00:09:08,066 --> 00:09:12,467 So he's very aware of the impact that it has and fully 168 00:09:12,467 --> 00:09:15,199 understands the anxiety it creates. 169 00:09:15,200 --> 00:09:20,100 And he understood that when he was running for President back 170 00:09:20,100 --> 00:09:24,367 in 2008 when there was a spike in the price of oil. 171 00:09:24,367 --> 00:09:25,733 There has since been, as you know, 172 00:09:25,734 --> 00:09:31,533 last year and again this year -- this is a recurrent problem and 173 00:09:31,533 --> 00:09:35,033 it's a problem that reinforces the need that he identified back 174 00:09:35,033 --> 00:09:37,900 when he was a candidate for a comprehensive energy strategy, 175 00:09:37,900 --> 00:09:40,900 one that takes an all-of-the-above approach 176 00:09:40,900 --> 00:09:45,266 to the development of our energy -- sources of energy; 177 00:09:45,266 --> 00:09:49,599 one that insists that we can safely and responsibly expand 178 00:09:49,600 --> 00:09:53,233 our domestic oil and gas production, which he has. 179 00:09:53,233 --> 00:09:54,699 Every year since he's been President, 180 00:09:54,700 --> 00:09:57,333 we've increased our oil and gas production. 181 00:09:57,333 --> 00:09:58,800 Every year since he's been President, 182 00:09:58,800 --> 00:10:03,800 we've decreased our reliance on foreign oil imports. 183 00:10:03,800 --> 00:10:05,567 And certainly, every year since he's been President, 184 00:10:05,567 --> 00:10:10,200 he has made a focus of the importance of investing in 185 00:10:10,200 --> 00:10:16,300 alternative energy technology, because that combination is the 186 00:10:16,300 --> 00:10:18,800 one that will build a foundation for energy security in the 187 00:10:18,800 --> 00:10:26,934 future, so that we are not as vulnerable to the kinds of price 188 00:10:26,934 --> 00:10:31,533 shocks that we get when oil climbs, as it is now. 189 00:10:31,533 --> 00:10:34,133 And as I said yesterday, we need to do the things that we can 190 00:10:34,133 --> 00:10:38,934 control to insulate ourselves from the things that we can't. 191 00:10:38,934 --> 00:10:43,699 And that includes oil prices that are going up in spite of 192 00:10:43,700 --> 00:10:46,166 the fact that domestic oil production is going up; 193 00:10:46,166 --> 00:10:48,934 oil prices that are going up globally in spite of the fact 194 00:10:48,934 --> 00:10:53,834 that the President has made clear -- put in place policies 195 00:10:53,834 --> 00:10:58,000 that will dramatically expand the amount of exploration in the 196 00:10:58,000 --> 00:11:02,500 Gulf of Mexico, will expand the amount of exploration in Alaska, 197 00:11:02,500 --> 00:11:05,333 will expand the amount of natural gas production here 198 00:11:05,333 --> 00:11:06,433 in the United States. 199 00:11:06,433 --> 00:11:08,133 And yet, these prices are going up. 200 00:11:08,133 --> 00:11:11,533 And that tells you that there are other things beyond our 201 00:11:11,533 --> 00:11:13,867 control, like unrest in the Middle East, 202 00:11:13,867 --> 00:11:17,400 or other factors like the growth of emerging countries 203 00:11:17,400 --> 00:11:18,834 such as China and India. 204 00:11:18,834 --> 00:11:22,266 So in that kind of environment, in that kind of world, 205 00:11:22,266 --> 00:11:24,666 we need to do everything we can here at home to insulate 206 00:11:24,667 --> 00:11:26,867 ourselves from these price shocks. 207 00:11:26,867 --> 00:11:28,834 And that's what the President's been doing since he took office. 208 00:11:28,834 --> 00:11:31,800 The Press: Does the President accept any responsibility for the 209 00:11:31,800 --> 00:11:33,333 fact that the prices are going up, 210 00:11:33,333 --> 00:11:37,333 especially -- or has any response to things -- 211 00:11:37,333 --> 00:11:39,467 Mr. Carney: Well, the President accepts responsibility 212 00:11:39,467 --> 00:11:43,667 that he identified the next President should accept back 213 00:11:43,667 --> 00:11:46,400 in 2008, which is the need to develop a comprehensive energy 214 00:11:46,400 --> 00:11:51,300 policy that protects Americans in the long run from these kinds 215 00:11:51,300 --> 00:11:54,867 of situations, and that makes America more secure 216 00:11:54,867 --> 00:11:56,567 and energy independent. 217 00:11:56,567 --> 00:11:58,300 And that's the policy he's proposed. 218 00:11:58,300 --> 00:12:02,099 I think that if you're suggesting that there's 219 00:12:02,100 --> 00:12:05,633 responsibility for price hikes in the global -- I mean, 220 00:12:05,633 --> 00:12:10,000 a rise in the global price of oil, 221 00:12:10,000 --> 00:12:15,233 it's certainly not because of anything he hasn't done 222 00:12:15,233 --> 00:12:17,199 to expand domestic oil and gas production, 223 00:12:17,200 --> 00:12:21,266 because he has done -- taken significant action to expand 224 00:12:21,266 --> 00:12:23,599 American gas and oil production. 225 00:12:23,600 --> 00:12:25,333 And he will continue to do that. 226 00:12:25,333 --> 00:12:29,333 He will continue to do that as he takes action to, for example, 227 00:12:29,333 --> 00:12:35,934 as I mentioned yesterday, allow for the first nuclear reactor to 228 00:12:35,934 --> 00:12:37,433 be built in this country in 30 years; 229 00:12:37,433 --> 00:12:42,934 to increase our investments in alternative energy like 230 00:12:42,934 --> 00:12:44,600 biodiesel and wind and solar. 231 00:12:44,600 --> 00:12:47,400 I mean he's an all-of-the-above -- his is an all-of-the-above 232 00:12:47,400 --> 00:12:50,766 approach, and you'll hear a lot about that from him in coming 233 00:12:50,767 --> 00:12:51,900 days and weeks. 234 00:12:51,900 --> 00:12:54,132 The Press: But if a candidate like Rick Santorum says the 235 00:12:54,133 --> 00:12:57,066 reason these things are going -- these prices are going up 236 00:12:57,066 --> 00:12:59,633 is because of the President's dedication to the radical 237 00:12:59,633 --> 00:13:01,834 environmentalist movement -- 238 00:13:01,834 --> 00:13:06,099 Mr. Carney: Again, I think it's incumbent upon those who report on random 239 00:13:06,100 --> 00:13:10,767 statements by politicians seeking office to compare 240 00:13:10,767 --> 00:13:16,800 them to the facts, and the facts are as I've stated. 241 00:13:16,800 --> 00:13:19,467 Oil and gas production in the United States has risen every 242 00:13:19,467 --> 00:13:22,233 year since the President has been in office. 243 00:13:22,233 --> 00:13:26,065 Oil production is now higher than it's been in eight years. 244 00:13:26,066 --> 00:13:30,800 And this President is taking action to ensure that it 245 00:13:30,800 --> 00:13:32,900 continues to go up. 246 00:13:32,900 --> 00:13:34,500 Not least -- and I think it's important to mention, 247 00:13:34,500 --> 00:13:38,867 and I don't know where various candidates for office are on 248 00:13:38,867 --> 00:13:42,900 this issue, but the President last year through an agreement 249 00:13:42,900 --> 00:13:46,900 with major automobile manufacturers have put into 250 00:13:46,900 --> 00:13:51,834 effect enhanced fuel-efficiency standards that will save 251 00:13:51,834 --> 00:13:55,400 American families $1.7 trillion at the pump, 252 00:13:55,400 --> 00:13:58,766 and cut oil consumption by 12 billion -- I think yesterday 253 00:13:58,767 --> 00:14:02,867 I said 12 million because 12 billion sounded like so much, 254 00:14:02,867 --> 00:14:03,867 and it is. 255 00:14:03,867 --> 00:14:07,934 And the fact is that action alone did more to enhance our 256 00:14:07,934 --> 00:14:12,867 long-term energy independence than almost anything any 257 00:14:12,867 --> 00:14:14,467 President could do. 258 00:14:14,467 --> 00:14:15,467 Yes. 259 00:14:15,467 --> 00:14:17,165 The Press: In the briefing on the tax proposal, 260 00:14:17,166 --> 00:14:19,667 Secretary Geithner said that they're using this proposal 261 00:14:19,667 --> 00:14:22,367 today to move the process along, which, as you know, 262 00:14:22,367 --> 00:14:23,367 can take time. 263 00:14:23,367 --> 00:14:26,533 And he said it's designed so corporate tax reform could be 264 00:14:26,533 --> 00:14:29,633 done alone, but it might have to be done with individual tax 265 00:14:29,633 --> 00:14:33,633 reform, which will come after the presidential election. 266 00:14:33,633 --> 00:14:37,600 Given that, what is your timeframe for really getting 267 00:14:37,600 --> 00:14:38,700 this done? 268 00:14:38,700 --> 00:14:40,500 Mr. Carney: Well, I would simply agree with Secretary 269 00:14:40,500 --> 00:14:46,200 Geithner that there is an opportunity here to do it 270 00:14:46,200 --> 00:14:48,734 alone or singularly with just corporate tax reform. 271 00:14:48,734 --> 00:14:53,767 The President has put forward a very specific framework of his 272 00:14:53,767 --> 00:14:56,633 approach -- that explains his approach to corporate reform. 273 00:14:56,633 --> 00:14:58,066 There is an opportunity, as I just said, 274 00:14:58,066 --> 00:15:02,567 because of apparent interest by both Democrats and Republicans 275 00:15:02,567 --> 00:15:05,300 to reform our corporate tax code, to take action now. 276 00:15:05,300 --> 00:15:08,699 There's no reason why Congress couldn't take this up. 277 00:15:08,700 --> 00:15:12,333 It is also the case that if Congress were to feel itself 278 00:15:12,333 --> 00:15:14,733 particularly bullish about the possibility of bipartisan 279 00:15:14,734 --> 00:15:17,200 cooperation that they could take up individual tax reform. 280 00:15:17,200 --> 00:15:19,800 And the President's principles on individual tax reform are 281 00:15:19,800 --> 00:15:21,132 pretty clear as well. 282 00:15:21,133 --> 00:15:27,567 So there is -- it's absolutely the case that you could do this 283 00:15:27,567 --> 00:15:31,600 by itself or you could do it with individual tax reform. 284 00:15:31,600 --> 00:15:34,100 We would welcome action by Congress, 285 00:15:34,100 --> 00:15:36,700 in accordance with the President's principles, 286 00:15:36,700 --> 00:15:38,000 in either case. 287 00:15:38,000 --> 00:15:40,600 The Press: So what is the President himself doing to encourage 288 00:15:40,600 --> 00:15:43,200 the Congress to feel bullish about bipartisan progress? 289 00:15:43,200 --> 00:15:45,033 Mr. Carney: Well, I think Secretary Geithner himself, 290 00:15:45,033 --> 00:15:47,667 who is obviously the President's Treasury Secretary, 291 00:15:47,667 --> 00:15:51,500 has already spoken with leaders in Congress about this. 292 00:15:51,500 --> 00:15:52,934 The Press: But the President hasn't? 293 00:15:52,934 --> 00:15:53,699 Or has he? 294 00:15:53,700 --> 00:15:56,133 Mr. Carney: Well, I don't have any calls or conversations 295 00:15:56,133 --> 00:15:59,266 of the President to report, but I'm sure the President will be 296 00:15:59,266 --> 00:16:00,333 having these discussions. 297 00:16:00,333 --> 00:16:03,300 And, look, if there is interest in pursuing this corporate tax 298 00:16:03,300 --> 00:16:07,467 reform plan by Republicans and Democrats in Congress, 299 00:16:07,467 --> 00:16:09,600 the President is very interested in doing that. 300 00:16:09,600 --> 00:16:12,200 And that goes along -- that also applies 301 00:16:12,200 --> 00:16:13,600 to individual tax reform. 302 00:16:13,600 --> 00:16:17,333 So I think as Secretary Geithner made clear, 303 00:16:17,333 --> 00:16:19,433 he's already begun this conversation with Republicans 304 00:16:19,433 --> 00:16:22,333 and Democrats on the Hill with regards to corporate tax reform. 305 00:16:22,333 --> 00:16:24,900 And we hope that conversation continues and that we can 306 00:16:24,900 --> 00:16:27,667 produce a result for the American people and for American 307 00:16:27,667 --> 00:16:32,300 businesses that will have -- that will create the result of 308 00:16:32,300 --> 00:16:36,300 a lower tax rate for American businesses that will -- and that 309 00:16:36,300 --> 00:16:39,367 will make them more competitive; a broader base to ensure that 310 00:16:39,367 --> 00:16:42,834 this reform doesn't add a dime to the deficit; 311 00:16:42,834 --> 00:16:46,733 and a situation where the American manufacturing sector, 312 00:16:46,734 --> 00:16:49,333 and in particular, the advanced manufacturing sector, 313 00:16:49,333 --> 00:16:54,666 is further incentivized to grow, and where small businesses are 314 00:16:54,667 --> 00:16:57,300 -- where the environment is made easier for small businesses to 315 00:16:57,300 --> 00:17:00,532 deal with the tax code by simplifying the tax code 316 00:17:00,533 --> 00:17:03,433 for them, allowing them to, for example, 317 00:17:03,433 --> 00:17:07,233 expense up to $1 million. 318 00:17:07,233 --> 00:17:09,165 And there are a variety of other measures that are part of this 319 00:17:09,165 --> 00:17:12,399 corporate tax reform that would make American businesses much 320 00:17:12,400 --> 00:17:13,400 more competitive. 321 00:17:13,400 --> 00:17:15,100 The Press: Have you gotten any feedback from the CEOs 322 00:17:15,099 --> 00:17:18,733 that the administration talks to about the plan already today 323 00:17:18,733 --> 00:17:19,733 that you can share with us? 324 00:17:19,733 --> 00:17:20,934 Mr. Carney: I don't have anything to share with you. 325 00:17:20,934 --> 00:17:27,066 I think that we believe that the reception so far has been 326 00:17:27,066 --> 00:17:31,834 positive and will be positive because it does what so many 327 00:17:31,834 --> 00:17:34,667 people say is important to do, which is -- and this is 328 00:17:34,667 --> 00:17:37,533 Democrats and Republicans -- which is lower the rate, 329 00:17:37,533 --> 00:17:42,166 broaden the base, eliminate the underbrush of unnecessary 330 00:17:42,166 --> 00:17:45,899 subsidies and loopholes and special provisions that 331 00:17:45,900 --> 00:17:51,400 complicate the tax code and basically have the taxpayer 332 00:17:51,400 --> 00:17:54,867 subsidizing oil and gas companies, for example, 333 00:17:54,867 --> 00:17:59,399 which enjoyed record profits last year and certainly seem to 334 00:17:59,400 --> 00:18:03,066 be on track to enjoy significant profits this year and don't need 335 00:18:03,066 --> 00:18:05,367 those kinds of subsidies. 336 00:18:05,367 --> 00:18:10,066 That money can then be used to pay for an action that would 337 00:18:10,066 --> 00:18:12,133 lower the rates for everybody. 338 00:18:12,133 --> 00:18:13,567 Yes, Jake. 339 00:18:13,567 --> 00:18:16,633 The Press: The White House keeps praising these journalists who are -- 340 00:18:16,633 --> 00:18:19,700 who have been killed -- 341 00:18:19,700 --> 00:18:20,300 Mr. Carney: I don't know about "keeps." 342 00:18:20,300 --> 00:18:21,200 I think -- 343 00:18:21,200 --> 00:18:25,333 The Press: You've commented, Vice President Biden did it in a statement. 344 00:18:25,333 --> 00:18:28,200 How does that square with the fact that this administration 345 00:18:28,200 --> 00:18:31,166 has been so aggressively trying to stop aggressive journalism in 346 00:18:31,166 --> 00:18:37,066 the United States by using the Espionage Act to take 347 00:18:37,066 --> 00:18:38,700 whistle blowers to court? 348 00:18:38,700 --> 00:18:42,166 You're currently -- I think that you've evoked it the sixth time 349 00:18:42,166 --> 00:18:43,966 -- and before the Obama administration it had only 350 00:18:43,967 --> 00:18:46,967 been used three times in history. 351 00:18:46,967 --> 00:18:50,300 This is the sixth time you're suing a CIA officer for 352 00:18:50,300 --> 00:18:55,332 allegedly providing information in 2009 about CIA torture. 353 00:18:55,333 --> 00:18:57,133 Certainly that's something that's in the public interest 354 00:18:57,133 --> 00:18:59,533 of the United States; his administration is taking 355 00:18:59,533 --> 00:19:00,466 this person to court. 356 00:19:00,467 --> 00:19:01,900 There just seems to be a disconnect here. 357 00:19:01,900 --> 00:19:04,100 You want aggressive journalism abroad -- you just don't want 358 00:19:04,100 --> 00:19:05,000 it in the United States. 359 00:19:05,000 --> 00:19:10,300 Mr. Carney: Well, I would hesitate to speak to any particular case 360 00:19:10,300 --> 00:19:12,233 for obvious reasons and I would refer you to the 361 00:19:12,233 --> 00:19:14,633 Department of Justice for more on that. 362 00:19:14,633 --> 00:19:20,734 I think that we absolutely honor and praise the bravery 363 00:19:20,734 --> 00:19:26,132 of reporters who are placing themselves in extremely 364 00:19:26,133 --> 00:19:30,333 dangerous situations in order to bring the story of oppression 365 00:19:30,333 --> 00:19:33,166 and brutality to the world. 366 00:19:33,166 --> 00:19:40,600 I think that is commendable and it's certainly worth 367 00:19:40,600 --> 00:19:42,533 noting by us. 368 00:19:42,533 --> 00:19:45,734 And as somebody who knew both Anthony and Marie, 369 00:19:45,734 --> 00:19:51,632 I particularly appreciate what they did to bring that story to 370 00:19:51,633 --> 00:19:54,400 the American people. 371 00:19:54,400 --> 00:19:57,834 As for other cases, again, without addressing any specific 372 00:19:57,834 --> 00:20:02,000 case, I think that there are issues here that involve 373 00:20:02,000 --> 00:20:03,834 highly-sensitive, classified information, 374 00:20:03,834 --> 00:20:11,033 and I think that those are -- divulging that kind of 375 00:20:11,033 --> 00:20:13,867 information is a serious issue and always has been. 376 00:20:13,867 --> 00:20:15,466 The Press: So the truth should come out abroad; 377 00:20:15,467 --> 00:20:17,133 it shouldn't come out here? 378 00:20:17,133 --> 00:20:18,533 Mr. Carney: Well, that's not at all what I'm saying, Jake, 379 00:20:18,533 --> 00:20:19,533 and you know it's not. 380 00:20:19,533 --> 00:20:20,399 Again I can't specific -- 381 00:20:20,400 --> 00:20:21,700 The Press: Well, that's what the Justice Department is doing. 382 00:20:21,700 --> 00:20:23,800 Mr. Carney: Well, you're making a judgment about a broad 383 00:20:23,800 --> 00:20:27,000 array of cases and I can't address those specifically. 384 00:20:27,000 --> 00:20:28,533 The Press: It's a judgment that a lot of whistle blowers 385 00:20:28,533 --> 00:20:30,300 organizations and good government groups are 386 00:20:30,300 --> 00:20:31,600 making as well. 387 00:20:31,600 --> 00:20:33,934 Mr. Carney: It's not one that I'm going to make. 388 00:20:33,934 --> 00:20:34,633 Yes, Ed. 389 00:20:34,633 --> 00:20:37,133 The Press: Can we go back to gas prices because I wanted to ask about 390 00:20:37,133 --> 00:20:39,533 what -- the President's case seems to be to deal 391 00:20:39,533 --> 00:20:41,399 with this issue now is we've really 392 00:20:41,400 --> 00:20:43,000 increased oil production. 393 00:20:43,000 --> 00:20:45,700 When you go back to 2008, the President repeatedly mocked 394 00:20:45,700 --> 00:20:49,266 Senator McCain and this whole "drill here, drill now," "drill, 395 00:20:49,266 --> 00:20:52,367 baby, drill" -- all of that was mocked, that it was a dumb idea. 396 00:20:52,367 --> 00:20:54,567 Now, you're holding it up as a really great idea. 397 00:20:54,567 --> 00:20:55,800 How do you square those two? 398 00:20:55,800 --> 00:21:00,466 Mr. Carney: Well, Ed, there's a distinction here that you're missing. 399 00:21:00,467 --> 00:21:04,300 The President's approach has been to responsibly increase 400 00:21:04,300 --> 00:21:06,633 domestic oil and gas production. 401 00:21:06,633 --> 00:21:10,033 What he has never said, and what I attempted, I thought, 402 00:21:10,033 --> 00:21:13,399 to appropriately mock yesterday, was the idea that there are 403 00:21:13,400 --> 00:21:18,467 magic solutions, that you can put forward a proposal to cut 404 00:21:18,467 --> 00:21:22,433 the price at the pump in half on a piece of paper with a couple 405 00:21:22,433 --> 00:21:23,467 of magic beans. 406 00:21:23,467 --> 00:21:24,967 It's just not realistic. 407 00:21:24,967 --> 00:21:27,467 The fact is oil and gas production in this country has 408 00:21:27,467 --> 00:21:30,734 been increasing, and even as it has been increasing the price of 409 00:21:30,734 --> 00:21:32,833 oil has been going up globally. 410 00:21:32,834 --> 00:21:35,767 That tells you that there are factors that are not entirely 411 00:21:35,767 --> 00:21:37,200 within our control. 412 00:21:37,200 --> 00:21:41,133 And putting forward to the American people that simply 413 00:21:41,133 --> 00:21:44,734 by drilling more you're going to resolve this problem for the 414 00:21:44,734 --> 00:21:47,332 long term is not being honest with the American people. 415 00:21:47,333 --> 00:21:49,567 That's why you need a comprehensive energy strategy. 416 00:21:49,567 --> 00:21:51,633 That's why you need an all-of-the-above approach. 417 00:21:51,633 --> 00:21:55,133 That's why you need to invest in clean energy technologies, 418 00:21:55,133 --> 00:21:59,300 as well as open up millions of acres -- of new acres in the 419 00:21:59,300 --> 00:22:04,867 Gulf of Mexico to exploration; as well as allow for the 420 00:22:04,867 --> 00:22:08,633 building and permitting of the first nuclear reactor in this 421 00:22:08,633 --> 00:22:09,633 country in 30 years. 422 00:22:09,633 --> 00:22:10,934 You need to do it all. 423 00:22:10,934 --> 00:22:16,332 And that's the only approach that is responsible. 424 00:22:16,333 --> 00:22:20,100 And to suggest to Americans that there is some other way, 425 00:22:20,100 --> 00:22:24,399 that you can wave a magic wand and cut oil prices and cut gas 426 00:22:24,400 --> 00:22:28,600 prices, is simply not treating the American people with the 427 00:22:28,600 --> 00:22:30,567 kind of respect they deserve -- because they know better. 428 00:22:30,567 --> 00:22:32,800 The Press: He didn't mock John McCain in 2008 on this issue? 429 00:22:32,800 --> 00:22:33,934 He didn't repeatedly say -- 430 00:22:33,934 --> 00:22:34,867 Mr. Carney: I didn't say that. 431 00:22:34,867 --> 00:22:37,834 I said that, then and now, the President believed that there is 432 00:22:37,834 --> 00:22:44,834 not -- that drilling alone was the way to resolve our energy 433 00:22:44,834 --> 00:22:45,934 security problems. 434 00:22:45,934 --> 00:22:49,667 It's not, as evidenced by the fact that domestic oil and gas 435 00:22:49,667 --> 00:22:54,667 production has increased every year that he's been in office, 436 00:22:54,667 --> 00:23:00,332 and yet oil prices -- we experience these spikes 437 00:23:00,333 --> 00:23:01,834 in oil prices. 438 00:23:01,834 --> 00:23:04,867 And I think that tells you that the way to insulate ourselves, 439 00:23:04,867 --> 00:23:08,633 the way to insulate the American people from these kind of price 440 00:23:08,633 --> 00:23:12,033 shocks, is to increase our energy independence, 441 00:23:12,033 --> 00:23:15,399 to reduce our reliance on foreign oil, 442 00:23:15,400 --> 00:23:20,367 to increase our capacity for alternative energy production 443 00:23:20,367 --> 00:23:23,300 as well as traditional fossil fuel production. 444 00:23:23,300 --> 00:23:24,834 And that's the approach the President's taking. 445 00:23:24,834 --> 00:23:29,567 But it's not -- drilling alone will not solve this problem. 446 00:23:29,567 --> 00:23:32,633 That was true in 2008; it's true in 2012. 447 00:23:32,633 --> 00:23:34,400 The Press: Last thing. In '08 and then throughout his presidency, 448 00:23:34,400 --> 00:23:36,066 he's talked about a comprehensive plan, 449 00:23:36,066 --> 00:23:37,066 as you mentioned. 450 00:23:37,066 --> 00:23:38,900 But at the end of last year, when White House officials were 451 00:23:38,900 --> 00:23:42,433 talking about the 2012 agenda, it was suggested that the only 452 00:23:42,433 --> 00:23:45,233 must-pass legislation -- you were talking about this earlier 453 00:23:45,233 --> 00:23:49,200 -- by a Democratic White House working with a Republican House 454 00:23:49,200 --> 00:23:53,233 -- the only real must-pass was the payroll tax cut extension. 455 00:23:53,233 --> 00:23:58,133 So how can you now say that dealing with an energy plan 456 00:23:58,133 --> 00:24:01,333 now is something the President really wants to do, 457 00:24:01,333 --> 00:24:03,200 when in December you weren't talking about it? 458 00:24:03,200 --> 00:24:05,367 Mr. Carney: Well, that's -- he has been talking about this 459 00:24:05,367 --> 00:24:08,399 consistently since he was sworn into office. 460 00:24:08,400 --> 00:24:12,266 And the point about extending the payroll tax cut was the fact 461 00:24:12,266 --> 00:24:14,700 that Congress, which had not shown a great deal of interest 462 00:24:14,700 --> 00:24:19,233 -- Republicans -- in bipartisan cooperation on difficult issues, 463 00:24:19,233 --> 00:24:24,667 that the one issue that we felt confident was a must-do piece 464 00:24:24,667 --> 00:24:28,433 for them, as well as us, because of the political price they 465 00:24:28,433 --> 00:24:31,333 would pay for raising taxes on 160 million Americans, 466 00:24:31,333 --> 00:24:32,734 was extending the payroll tax cut. 467 00:24:32,734 --> 00:24:36,233 But we fully hope and expect that Congress will 468 00:24:36,233 --> 00:24:38,734 do more than that. 469 00:24:38,734 --> 00:24:41,867 And we look forward to Congress taking action on the President's 470 00:24:41,867 --> 00:24:44,200 refinance proposal which could put up to $3,000 in 471 00:24:44,200 --> 00:24:47,300 the pockets of average, responsible American homeowners; 472 00:24:47,300 --> 00:24:50,367 taking action on an infrastructure investment 473 00:24:50,367 --> 00:24:53,133 bill that could put hundreds of thousands of construction 474 00:24:53,133 --> 00:24:56,734 workers back to work and allow for the building of -- 475 00:24:56,734 --> 00:24:58,699 rebuilding of our infrastructure in this country -- roads, 476 00:24:58,700 --> 00:25:05,300 bridges, schools, highways, ports; and taking action to, 477 00:25:05,300 --> 00:25:11,166 if they felt really emboldened by this bipartisan potential, 478 00:25:11,166 --> 00:25:13,033 putting teachers back to work, taking action on some of the 479 00:25:13,033 --> 00:25:15,233 other provisions in the American Jobs Act, 480 00:25:15,233 --> 00:25:19,100 as well as corporate tax reform, as well as measures that would 481 00:25:19,100 --> 00:25:21,000 enhance our energy security. 482 00:25:21,000 --> 00:25:24,934 The point is, is that the sky is the limit here if Congress is 483 00:25:24,934 --> 00:25:27,934 willing to work with this administration, 484 00:25:27,934 --> 00:25:29,800 if Democrats and Republicans are willing to work together 485 00:25:29,800 --> 00:25:31,834 on the Hill. 486 00:25:31,834 --> 00:25:35,734 All the way in the back, yes, ma'am. 487 00:25:35,734 --> 00:25:36,734 Nice to see you. 488 00:25:36,734 --> 00:25:37,734 Welcome. 489 00:25:37,734 --> 00:25:38,734 The Press: Thank you. 490 00:25:38,734 --> 00:25:40,934 I would like to know if you know of any educational initiatives 491 00:25:40,934 --> 00:25:43,399 the President has in place to better prepare students 492 00:25:43,400 --> 00:25:46,700 for success at college or university level? 493 00:25:46,700 --> 00:25:49,400 Mr. Carney: Well, the President has pursued since he took office 494 00:25:49,400 --> 00:25:51,000 comprehensive education reform. 495 00:25:51,000 --> 00:25:57,200 Race to the Top has been one of the unheralded -- by the media 496 00:25:57,200 --> 00:26:01,233 largely -- bipartisan successes that this President has pushed 497 00:26:01,233 --> 00:26:03,233 forward, working with the Secretary of Education. 498 00:26:03,233 --> 00:26:10,734 He has also expanded access to Pell grants to allow for more 499 00:26:10,734 --> 00:26:15,734 Americans to attend college, and he will push forward with broad 500 00:26:15,734 --> 00:26:16,734 education initiatives. 501 00:26:16,734 --> 00:26:21,632 Because if you may remember -- I know folks in this room do -- 502 00:26:21,633 --> 00:26:24,133 his State of the Union address last year, in 2011, 503 00:26:24,133 --> 00:26:29,433 he talked about the need for the United States to out-educate and 504 00:26:29,433 --> 00:26:32,033 out-innovate the competition globally. 505 00:26:32,033 --> 00:26:35,966 We can't -- we cannot win economically in the 21st 506 00:26:35,967 --> 00:26:38,934 century if we don't have the best-educated workforce. 507 00:26:38,934 --> 00:26:41,533 That's our competitive advantage. 508 00:26:41,533 --> 00:26:45,500 Even though -- one of the reasons why we've seen a trend 509 00:26:45,500 --> 00:26:48,667 towards insourcing, American companies bringing jobs back to 510 00:26:48,667 --> 00:26:51,934 the United States, is when they look at all of the factors that 511 00:26:51,934 --> 00:26:54,934 go into deciding where to locate a factory or where to locate a 512 00:26:54,934 --> 00:26:59,300 business, other countries may have lower labor prices, 513 00:26:59,300 --> 00:27:05,700 but we have a skilled, educated workforce that can bring great 514 00:27:05,700 --> 00:27:07,934 value to American businesses, as well 515 00:27:07,934 --> 00:27:08,934 as international businesses. 516 00:27:08,934 --> 00:27:09,934 We have to keep that up. 517 00:27:09,934 --> 00:27:11,667 So he's very committed to education. 518 00:27:11,667 --> 00:27:12,433 Yes, Norah. 519 00:27:12,433 --> 00:27:13,400 The Press: Can I return to Syria? 520 00:27:13,400 --> 00:27:15,033 You were talking about the "Friends of Syria" meeting that 521 00:27:15,033 --> 00:27:18,399 will happen later this week, and part of the goal is making the 522 00:27:18,400 --> 00:27:21,667 opposition more "functional" is the word you used. 523 00:27:21,667 --> 00:27:23,600 What do you mean, and how would we help make 524 00:27:23,600 --> 00:27:24,800 the opposition more functional? 525 00:27:24,800 --> 00:27:28,800 Mr. Carney: Well, we would work with the "Friends of Syria" to 526 00:27:28,800 --> 00:27:34,767 help stand them up, to cement its organizational capacity, 527 00:27:34,767 --> 00:27:41,867 its unity, so that there is an entity in place as this 528 00:27:41,867 --> 00:27:44,533 inevitable transition occurs -- because, 529 00:27:44,533 --> 00:27:47,600 as we've said in the past, it's not a question of if, 530 00:27:47,600 --> 00:27:54,199 but when Assad gives up the reins of power in the Syria. 531 00:27:54,200 --> 00:27:58,300 So we will do that, working with the "Friends of Syria," 532 00:27:58,300 --> 00:28:03,867 working with this broad coalition of members of the 533 00:28:03,867 --> 00:28:08,000 international community who are committed to the Syrian people, 534 00:28:08,000 --> 00:28:10,467 to their right to a democratic transition, 535 00:28:10,467 --> 00:28:14,533 and strongly condemn and oppose the brutality of 536 00:28:14,533 --> 00:28:15,766 the Assad regime. 537 00:28:15,767 --> 00:28:19,700 The Press: So some NGOs are calling for recognizing the opposition as 538 00:28:19,700 --> 00:28:21,066 a transitional government. 539 00:28:21,066 --> 00:28:23,166 Is that something that the U.S. supports? 540 00:28:23,166 --> 00:28:26,700 Mr. Carney: Well, I don't want to get ahead of the process here. 541 00:28:26,700 --> 00:28:31,800 I think that helping to organize and unify the opposition is 542 00:28:31,800 --> 00:28:35,233 something that we are doing in cooperation with our 543 00:28:35,233 --> 00:28:38,300 international partners. 544 00:28:38,300 --> 00:28:45,466 This is an entity that is emerging as the brutality of the 545 00:28:45,467 --> 00:28:50,867 Assad regime continues, and so I don't have a timeframe on if or 546 00:28:50,867 --> 00:28:52,265 when something like that would happen. 547 00:28:52,266 --> 00:28:54,533 But right now we're just working with the "Friends of Syria" to 548 00:28:54,533 --> 00:28:58,100 help them organize, help them unify. 549 00:28:58,100 --> 00:29:01,033 The Press: Can I get you to clarify remarks out of both the White House and 550 00:29:01,033 --> 00:29:02,533 the State Department yesterday -- 551 00:29:02,533 --> 00:29:07,199 if pressure on Assad does not work, 552 00:29:07,200 --> 00:29:10,233 are we considering arming the opposition? 553 00:29:10,233 --> 00:29:13,066 Mr. Carney: I want to be clear that our position is that it 554 00:29:13,066 --> 00:29:15,200 is not appropriate now to contribute to the 555 00:29:15,200 --> 00:29:21,734 militarization, the further militarization of Syria. 556 00:29:21,734 --> 00:29:24,734 What I said and I think what was said in the State Department was 557 00:29:24,734 --> 00:29:28,966 simply to make clear that we don't rule out additional 558 00:29:28,967 --> 00:29:32,100 measures if the international community waits too long and 559 00:29:32,100 --> 00:29:34,199 doesn't act decisively. 560 00:29:34,200 --> 00:29:38,600 But that is not -- I'm not hinting at imminent 561 00:29:38,600 --> 00:29:39,800 action or change. 562 00:29:39,800 --> 00:29:42,734 Our position is that it is not appropriate to contribute to the 563 00:29:42,734 --> 00:29:46,332 militarization of Syria, that there is opportunity still now 564 00:29:46,333 --> 00:29:54,600 for this process to result in the departure from power of 565 00:29:54,600 --> 00:29:56,699 Assad and a democratic transition to begin 566 00:29:56,700 --> 00:29:57,867 to take place. 567 00:29:57,867 --> 00:29:59,966 The Press: There are estimated 100 civilians that were killed 568 00:29:59,967 --> 00:30:02,033 in the city of Homs yesterday. 569 00:30:02,033 --> 00:30:06,100 Why would we intervene on behalf of the rebels in Libya and not 570 00:30:06,100 --> 00:30:07,600 help those in Syria? 571 00:30:07,600 --> 00:30:10,533 Mr. Carney: Well, that's an excellent question and I attempted to 572 00:30:10,533 --> 00:30:11,600 answer that a little bit earlier, 573 00:30:11,600 --> 00:30:15,367 but you ask it more directly, so I'll try to address it. 574 00:30:15,367 --> 00:30:18,734 The comparative is useful in that it demonstrates why it 575 00:30:18,734 --> 00:30:21,966 is important to not have a one-size-fits-all approach, 576 00:30:21,967 --> 00:30:24,734 because the situations can be different even though the 577 00:30:24,734 --> 00:30:33,867 broader unrest in the region obviously is similar or reflects 578 00:30:33,867 --> 00:30:36,466 an overall trend in the region. 579 00:30:36,467 --> 00:30:42,166 In Libya, as you recall, there was support at the international 580 00:30:42,166 --> 00:30:43,767 level, broad support of the United Nations 581 00:30:43,767 --> 00:30:44,900 Security Council resolution. 582 00:30:44,900 --> 00:30:47,867 There was a request from the Libyan opposition and the Libyan 583 00:30:47,867 --> 00:30:50,899 people for direct military intervention, 584 00:30:50,900 --> 00:30:52,600 outside military intervention. 585 00:30:52,600 --> 00:30:57,300 And, most importantly, there was the opportunity identified by 586 00:30:57,300 --> 00:31:01,300 the President and other leaders, and military leaders of NATO, 587 00:31:01,300 --> 00:31:05,567 to have the dramatic impact of preventing 588 00:31:05,567 --> 00:31:07,800 a massacre in Benghazi. 589 00:31:07,800 --> 00:31:12,934 There was a city coming under assault by Qaddafi forces. 590 00:31:12,934 --> 00:31:16,166 And the situation in Syria is different in all of those 591 00:31:16,166 --> 00:31:18,233 particulars that I just laid out. 592 00:31:18,233 --> 00:31:22,200 Again, we're not ruling stuff out in the future, 593 00:31:22,200 --> 00:31:23,300 ruling actions out in the future. 594 00:31:23,300 --> 00:31:25,667 But right now, we believe that the right approach is not to 595 00:31:25,667 --> 00:31:27,033 contribute to the militarization, 596 00:31:27,033 --> 00:31:31,367 and to pursue a path of pressuring Assad, 597 00:31:31,367 --> 00:31:37,100 isolating Assad, and furthering along the process that will 598 00:31:37,100 --> 00:31:42,567 ultimately lead to him stepping down or no longer 599 00:31:42,567 --> 00:31:43,433 being in power. 600 00:31:43,433 --> 00:31:46,100 The Press: And then finally, would we support and help establish a 601 00:31:46,100 --> 00:31:48,265 safe haven? 602 00:31:48,266 --> 00:31:49,367 Mr. Carney: For? 603 00:31:49,367 --> 00:31:50,466 The Press: Within Syria? 604 00:31:50,467 --> 00:31:54,600 Mr. Carney: Well, again, we don't believe that military action is the 605 00:31:54,600 --> 00:31:58,966 right course -- contributing to the militarization of Syria is 606 00:31:58,967 --> 00:32:01,433 the right path right now. 607 00:32:01,433 --> 00:32:05,533 We are, through humanitarian assistance and pursuing the 608 00:32:05,533 --> 00:32:07,199 provision of humanitarian assistance, 609 00:32:07,200 --> 00:32:11,900 pursuing the international effort to assist the opposition 610 00:32:11,900 --> 00:32:14,333 in organizing itself and unifying itself. 611 00:32:14,333 --> 00:32:19,100 But in terms of a military action to secure a part of the 612 00:32:19,100 --> 00:32:23,367 country, that is not currently a policy we're pursuing. 613 00:32:23,367 --> 00:32:24,200 Yes. 614 00:32:24,200 --> 00:32:24,967 The Press: Jay, thanks. 615 00:32:24,967 --> 00:32:28,367 On Iran, as you know, the IAEA inspectors returned, 616 00:32:28,367 --> 00:32:31,399 basically saying that they felt their trip was unsuccessful. 617 00:32:31,400 --> 00:32:32,934 What's the White House's reaction? 618 00:32:32,934 --> 00:32:37,300 And to what extent does this compound or add to the tensions 619 00:32:37,300 --> 00:32:38,934 that are already there with Iran? 620 00:32:38,934 --> 00:32:43,066 Mr. Carney: Well, we regret the failure of Iran to reach an agreement this 621 00:32:43,066 --> 00:32:46,300 week with the IAEA that would permit the agency to fully 622 00:32:46,300 --> 00:32:49,300 investigate the serious allegation raised -- 623 00:32:49,300 --> 00:32:53,332 allegations, rather, raised in its November report. 624 00:32:53,333 --> 00:32:59,500 It's important to note that the IAEA maintains regular access to 625 00:32:59,500 --> 00:33:02,967 both of Iran's enrichment facilities at Qom and Natanz. 626 00:33:02,967 --> 00:33:06,100 The IAEA was seeking additional access -- that's what this visit 627 00:33:06,100 --> 00:33:10,833 was about -- in line with Iran's safeguards obligations, 628 00:33:10,834 --> 00:33:13,900 to sites and facilities where Iran is suspected of conducting 629 00:33:13,900 --> 00:33:16,367 work related to weaponization activity. 630 00:33:16,367 --> 00:33:20,332 So, unfortunately, this is another demonstration of Iran's 631 00:33:20,333 --> 00:33:26,066 refusal to abide by its international obligations. 632 00:33:26,066 --> 00:33:33,066 We will continue to evaluate, working with our P5-plus-1 633 00:33:33,066 --> 00:33:37,533 partners, the letter in response -- that we received from the 634 00:33:37,533 --> 00:33:41,632 Iranians in response to Lady Ashton's letter about the 635 00:33:41,633 --> 00:33:46,800 possibility of engaging in talks. 636 00:33:46,800 --> 00:33:53,533 But this particular action by Iran suggests that they have not 637 00:33:53,533 --> 00:33:55,966 changed their behavior when it comes to abiding by their 638 00:33:55,967 --> 00:33:58,300 international obligations. 639 00:33:58,300 --> 00:33:59,934 The Press: On the tax reform plan, as you know, 640 00:33:59,934 --> 00:34:02,834 Republican presidential candidate Mitt Romney is giving 641 00:34:02,834 --> 00:34:05,734 his own economic speech today in which he's going to talk about 642 00:34:05,734 --> 00:34:07,233 his tax reform plan. 643 00:34:07,233 --> 00:34:10,000 He was initially going to give that speech on Friday and he 644 00:34:10,000 --> 00:34:10,900 moved it up. 645 00:34:10,900 --> 00:34:13,567 But was the timing of today's announcement in any way meant to 646 00:34:13,567 --> 00:34:16,766 preempt the unveiling of that speech? 647 00:34:16,766 --> 00:34:17,332 Mr. Carney: Well, no. 648 00:34:17,333 --> 00:34:21,734 In fact, I think we've been saying for quite some time now 649 00:34:21,734 --> 00:34:26,500 that our corporate tax reform proposal would be put forward at 650 00:34:26,500 --> 00:34:31,467 the end of the month, roughly within the timeframe of the 651 00:34:31,467 --> 00:34:32,467 submission of the budget. 652 00:34:32,467 --> 00:34:38,834 So we've kept to that schedule. 653 00:34:38,833 --> 00:34:41,265 Perhaps others are timing their announcements around ours. 654 00:34:41,266 --> 00:34:45,467 But this is something that Secretary Geithner has been 655 00:34:45,467 --> 00:34:48,300 working on with the White House economic team and the Treasury 656 00:34:48,300 --> 00:34:52,533 team for quite some time, and we identified this time period as a 657 00:34:52,533 --> 00:34:55,266 time to release it a number of weeks ago. 658 00:34:55,266 --> 00:34:59,767 The Press: And also, tonight is the 20th Republican presidential debate, 659 00:34:59,767 --> 00:35:01,366 potentially the last presidential debate. 660 00:35:01,367 --> 00:35:04,200 Given that, will the President watch tonight? 661 00:35:04,200 --> 00:35:05,834 I know you've said he hasn't in the past. 662 00:35:05,834 --> 00:35:08,500 Does he have any plans to watch this final -- 663 00:35:08,500 --> 00:35:10,367 Mr. Carney: So the question is why is this night so different from 664 00:35:10,367 --> 00:35:11,300 any other? 665 00:35:11,300 --> 00:35:12,934 (laughter) 666 00:35:12,934 --> 00:35:16,467 The Press: Exactly. 667 00:35:16,467 --> 00:35:19,700 Mr. Carney: I didn't ask him today, this morning if he planned 668 00:35:19,700 --> 00:35:20,700 to watch it. 669 00:35:20,700 --> 00:35:26,200 I suspect, knowing him, knowing his viewing habits, 670 00:35:26,200 --> 00:35:28,299 that he will not watch it. 671 00:35:28,300 --> 00:35:29,900 He has a family at home. 672 00:35:29,900 --> 00:35:36,266 He tends to, when he watches TV at all, 673 00:35:36,266 --> 00:35:37,900 it's either sports or a movie. 674 00:35:37,900 --> 00:35:39,133 So I don't expect he will. 675 00:35:39,133 --> 00:35:44,366 But the President obviously keeps up with what's in the news 676 00:35:44,367 --> 00:35:50,700 and will, I'm sure, be aware of the general back-and-forth in 677 00:35:50,700 --> 00:35:52,399 the debate come tomorrow morning. 678 00:35:52,400 --> 00:35:54,266 The Press: Given that the President is going to face off with one of 679 00:35:54,266 --> 00:35:58,200 these candidates, isn't it important for him to see the 680 00:35:58,200 --> 00:36:00,633 debate and not just -- I know you said he's read about 681 00:36:00,633 --> 00:36:01,533 the debates. 682 00:36:01,533 --> 00:36:04,066 But I mean, isn't that a part of understanding the strategy -- 683 00:36:04,066 --> 00:36:08,433 Mr. Carney: Well, I think there is ample time between now and early 684 00:36:08,433 --> 00:36:18,333 November for him to prepare for what will be debates with his 685 00:36:18,333 --> 00:36:21,867 opponent once that opponent emerges from this process. 686 00:36:21,867 --> 00:36:27,000 I think -- we're not pushing up against a deadline here. 687 00:36:27,000 --> 00:36:30,867 I think he'll be prepared when that time comes. 688 00:36:30,867 --> 00:36:33,033 He might look at a little tape when that time comes. 689 00:36:33,033 --> 00:36:38,299 But for now, I think he'll continue his practice of finding 690 00:36:38,300 --> 00:36:40,500 something better to do. 691 00:36:40,500 --> 00:36:41,533 Yes. 692 00:36:41,533 --> 00:36:42,533 How are you, Mara? 693 00:36:42,533 --> 00:36:44,232 The Press: Just to clarify what you said to Norah, 694 00:36:44,233 --> 00:36:47,166 you said Syria is different, and then you listed all the criteria 695 00:36:47,166 --> 00:36:49,667 that made Libyan opposition the correct choice. 696 00:36:49,667 --> 00:36:53,467 So if there was an imminent massacre in Syria, 697 00:36:53,467 --> 00:36:55,500 then you'd be considering -- 698 00:36:55,500 --> 00:36:58,834 Mr. Carney: There are ways to speculate about individual things, 699 00:36:58,834 --> 00:37:00,133 conditions that might be in place. 700 00:37:00,133 --> 00:37:04,899 What was the case in Libya is that all those conditions were 701 00:37:04,900 --> 00:37:09,667 in place that created an opportunity where international, 702 00:37:09,667 --> 00:37:15,165 outside military action to prevent the slaughter of 703 00:37:15,166 --> 00:37:19,333 civilians, to enforce a no-fly zone, 704 00:37:19,333 --> 00:37:21,533 was an option that the international 705 00:37:21,533 --> 00:37:22,533 community could take. 706 00:37:22,533 --> 00:37:26,933 So my point in making that comparison is that it was those 707 00:37:26,934 --> 00:37:31,567 -- that set of circumstances that made that option 708 00:37:31,567 --> 00:37:37,934 achievable, and that is the one the President pursued with many, 709 00:37:37,934 --> 00:37:39,667 many international partners, very importantly, 710 00:37:39,667 --> 00:37:42,333 including countries from the region. 711 00:37:42,333 --> 00:37:45,867 So I'm just making the distinction because it's easy to 712 00:37:45,867 --> 00:37:47,900 say, well, you did this in that country why don't you do 713 00:37:47,900 --> 00:37:48,767 it in this? 714 00:37:48,767 --> 00:37:50,700 And it's important to recognize the different circumstances. 715 00:37:50,700 --> 00:37:52,366 The Press: You're saying right now none of those things are -- 716 00:37:52,367 --> 00:37:54,333 Mr. Carney: Well, there was not a United Nations Security Council 717 00:37:54,333 --> 00:37:55,300 resolution passed. 718 00:37:55,300 --> 00:38:00,066 There's a different military situation on the ground, 719 00:38:00,066 --> 00:38:03,767 if you will, and just different circumstances in general. 720 00:38:03,767 --> 00:38:07,366 The Press: And also to follow up on Jessica's question about tax 721 00:38:07,367 --> 00:38:09,767 reform -- you said that the President's principles on 722 00:38:09,767 --> 00:38:12,033 individual tax reform are as clear as well. 723 00:38:12,033 --> 00:38:14,165 Does that mean he also wants to lower rates and broaden the 724 00:38:14,166 --> 00:38:15,600 base there, too? 725 00:38:15,600 --> 00:38:17,433 Mr. Carney: Well, his principles are clear. 726 00:38:17,433 --> 00:38:21,633 They are the Buffett Rule, as you know and you've heard him 727 00:38:21,633 --> 00:38:25,265 and I and others talk about. 728 00:38:25,266 --> 00:38:26,533 You haven't heard "I" talk about it, 729 00:38:26,533 --> 00:38:27,533 you've heard "me" talk about it -- 730 00:38:27,533 --> 00:38:29,165 let me just correct my grammar here. 731 00:38:29,166 --> 00:38:30,266 The Press: That's not really tax reform, though. 732 00:38:30,266 --> 00:38:30,934 Mr. Carney: Well, certainly it is. 733 00:38:30,934 --> 00:38:31,700 It's -- 734 00:38:31,700 --> 00:38:33,200 The Press: -- raising taxes on one individual -- 735 00:38:33,200 --> 00:38:34,100 Mr. Carney: No, no, no. 736 00:38:34,100 --> 00:38:36,033 It's ensuring that millionaires and billionaires don't pay a 737 00:38:36,033 --> 00:38:38,567 lower effective tax rate than average, working Americans. 738 00:38:38,567 --> 00:38:43,900 He has made clear that his approach to tax reform would 739 00:38:43,900 --> 00:38:47,767 ensure that those making under $250,000 a year will not see 740 00:38:47,767 --> 00:38:48,767 their taxes go up. 741 00:38:48,767 --> 00:38:49,767 That is a principle. 742 00:38:49,767 --> 00:38:56,033 He is committed to the expiration of the high-end 743 00:38:56,033 --> 00:38:57,834 Bush tax cuts. 744 00:38:57,834 --> 00:39:01,299 So the set of principles that he has put in place in terms of the 745 00:39:01,300 --> 00:39:08,367 individual tax code could very well be translated into 746 00:39:08,367 --> 00:39:09,400 individual tax reform. 747 00:39:09,400 --> 00:39:14,533 So he's spoken at length about the individual tax code and he 748 00:39:14,533 --> 00:39:19,433 has put forward a framework for corporate tax reform. 749 00:39:19,433 --> 00:39:22,467 Obviously, this is the kind of thing when people ask me about 750 00:39:22,467 --> 00:39:24,700 why executive actions and "We Can't Wait," 751 00:39:24,700 --> 00:39:26,933 this is the kind of thing that a President can't do on his own. 752 00:39:26,934 --> 00:39:28,834 He needs congressional cooperation, 753 00:39:28,834 --> 00:39:30,433 and he looks forward to having it. 754 00:39:30,433 --> 00:39:34,166 The Press: Well, what I'm confused about -- you just listed the President's 755 00:39:34,166 --> 00:39:35,767 views on certain tax policies. 756 00:39:35,767 --> 00:39:38,399 When people say tax reform, they generally mean broadening the 757 00:39:38,400 --> 00:39:39,834 base and lowering rates. 758 00:39:39,834 --> 00:39:41,734 That's not what you're talking about when you talk about 759 00:39:41,734 --> 00:39:43,600 individual tax reform the way you are with corporate 760 00:39:43,600 --> 00:39:44,900 tax reform. 761 00:39:44,900 --> 00:39:49,600 Mr. Carney: Well, I'm not sure I agree with your premise that tax reform 762 00:39:49,600 --> 00:39:50,633 follows that formula. 763 00:39:50,633 --> 00:39:52,433 The Press: -- the President is less progressive -- 764 00:39:52,433 --> 00:39:57,333 Mr. Carney: That is the formula that applies to the President's approach, 765 00:39:57,333 --> 00:39:59,166 which is an approach shared by many others to corporate 766 00:39:59,166 --> 00:40:00,200 tax reform. 767 00:40:00,200 --> 00:40:04,165 The approach that the President has taken on individual tax 768 00:40:04,166 --> 00:40:09,367 rates is that we should not have a tax code that's skewed to 769 00:40:09,367 --> 00:40:15,100 benefit -- through the carried interest rule or other itemized 770 00:40:15,100 --> 00:40:18,900 deductions, other means that allow for millionaires and 771 00:40:18,900 --> 00:40:20,934 billionaires to pay a lower effective tax rate than 772 00:40:20,934 --> 00:40:22,333 average Americans. 773 00:40:22,333 --> 00:40:26,700 He does not believe that folks earning up $250,000 -- 774 00:40:26,700 --> 00:40:29,799 families earning up to $250,000 should see their taxes go up. 775 00:40:29,800 --> 00:40:33,767 He does believe that those making more than $250,000 should 776 00:40:33,767 --> 00:40:40,734 see their taxes go up because the unaffordable Bush tax cuts 777 00:40:40,734 --> 00:40:42,734 for high-income Americans need to expire at the end 778 00:40:42,734 --> 00:40:43,533 of the year. 779 00:40:43,533 --> 00:40:44,100 The Press: Right. 780 00:40:44,100 --> 00:40:48,567 But even those principles, does he believe in broadening the 781 00:40:48,567 --> 00:40:50,667 base and lowering rates in general? 782 00:40:50,667 --> 00:40:53,200 Keeping all the progressivity you just mentioned, 783 00:40:53,200 --> 00:40:54,899 does he believe that that is what we should do -- 784 00:40:54,900 --> 00:40:56,367 Mr. Carney: Well, I think that progressivity is an important principle here, 785 00:40:56,367 --> 00:41:02,700 and that's one that is reflected in his embrace of the Buffett 786 00:41:02,700 --> 00:41:05,633 Rule and his embrace of expiring -- 787 00:41:05,633 --> 00:41:09,100 making sure that the higher-end Bush tax cuts expire at the end 788 00:41:09,100 --> 00:41:10,000 of the year. 789 00:41:10,000 --> 00:41:11,834 The Press: What about broadening the base and getting rid of deductions? 790 00:41:11,834 --> 00:41:12,834 Because the President has -- 791 00:41:12,834 --> 00:41:13,767 Mr. Carney: Well, the President has put -- 792 00:41:13,767 --> 00:41:15,066 The Press: -- take another question. 793 00:41:15,066 --> 00:41:16,399 Mr. Carney: Yes, let me get some others here. 794 00:41:16,400 --> 00:41:19,300 I think, Mara, you know we have put forward proposals in the 795 00:41:19,300 --> 00:41:24,400 past -- last summer and fall -- that included limiting itemized 796 00:41:24,400 --> 00:41:26,633 deductions for high-income Americans. 797 00:41:26,633 --> 00:41:28,100 That's a way of a broadening the base. 798 00:41:28,100 --> 00:41:32,734 Eliminating the carried interest rule is a way of broadening the 799 00:41:32,734 --> 00:41:36,633 base so that hedge fund managers who are simply earning income 800 00:41:36,633 --> 00:41:42,232 don't pay a capital gains rate, they pay at an income tax rate. 801 00:41:42,233 --> 00:41:48,300 So I think this President has put forward both on paper and 802 00:41:48,300 --> 00:41:51,300 through speeches quite a bit of information about his approach 803 00:41:51,300 --> 00:41:52,300 to individual taxes. 804 00:41:52,300 --> 00:41:53,367 Laura. 805 00:41:53,367 --> 00:41:56,233 The Press: On corporate tax reform, are you comfortable with the idea that 806 00:41:56,233 --> 00:41:58,734 while you are closing certain corporate loopholes, 807 00:41:58,734 --> 00:42:01,799 this -- your proposal does in its own way pick winners and 808 00:42:01,800 --> 00:42:03,867 losers in the sense that there are new advantages for 809 00:42:03,867 --> 00:42:08,734 manufacturers and clean energy makers? 810 00:42:08,734 --> 00:42:13,600 Mr. Carney: We are comfortable with an approach that eliminates a huge 811 00:42:13,600 --> 00:42:19,200 amount of the complications, loopholes, special provisions, 812 00:42:19,200 --> 00:42:27,734 subsidies from the tax code, and focuses the tax code on growing 813 00:42:27,734 --> 00:42:30,533 the American manufacturing sector, 814 00:42:30,533 --> 00:42:34,100 growing the advanced manufacturing sector, 815 00:42:34,100 --> 00:42:37,533 and assisting small businesses, which are, after all, 816 00:42:37,533 --> 00:42:41,366 an important engine of economic growth and a hugely important 817 00:42:41,367 --> 00:42:43,367 engine of job growth in this country. 818 00:42:43,367 --> 00:42:46,433 So, yes, we believe that we need to eliminate a lot of the 819 00:42:46,433 --> 00:42:50,900 existing complexities from the tax code, 820 00:42:50,900 --> 00:42:54,934 and then identify very clearly what our priorities are when it 821 00:42:54,934 --> 00:42:56,800 comes to manufacturing, advanced manufacturing and 822 00:42:56,800 --> 00:42:59,033 small businesses. 823 00:42:59,033 --> 00:43:02,133 The Press: So you kept saying, in response to the questions about gas 824 00:43:02,133 --> 00:43:05,165 prices, that we need to insulate ourselves against these higher 825 00:43:05,166 --> 00:43:08,433 prices and world events, et cetera. 826 00:43:08,433 --> 00:43:13,133 Yet you've explained how domestic production is at a high 827 00:43:13,133 --> 00:43:17,433 level and it's doing apparently very little to insulate us on 828 00:43:17,433 --> 00:43:18,800 the world oil market. 829 00:43:18,800 --> 00:43:24,066 So my question is, are you -- if we do continue to pursue Obama's 830 00:43:24,066 --> 00:43:27,799 sort of all-of-the-above policies and accomplish the 831 00:43:27,800 --> 00:43:29,400 things that the President is seeking, 832 00:43:29,400 --> 00:43:37,934 will that be enough to counter what's happening in the world 833 00:43:37,934 --> 00:43:38,934 oil markets? 834 00:43:38,934 --> 00:43:41,567 Will what he's suggesting lead to lower gas prices? 835 00:43:41,567 --> 00:43:44,567 Mr. Carney: Well, what this President is pursuing -- 836 00:43:44,567 --> 00:43:46,934 the policies that he's already put in place and the policies 837 00:43:46,934 --> 00:43:52,066 that he is pursuing will do is reduce our dependence on foreign 838 00:43:52,066 --> 00:43:53,533 sources of energy. 839 00:43:53,533 --> 00:43:56,200 And by definition, that will create a situation where we have 840 00:43:56,200 --> 00:43:59,265 greater energy security in the future than we have had 841 00:43:59,266 --> 00:44:00,400 in the past. 842 00:44:00,400 --> 00:44:05,600 I can't predict what oil prices will be in a year or two years 843 00:44:05,600 --> 00:44:06,600 or even six months. 844 00:44:06,600 --> 00:44:10,533 I would be careful of anyone who says they can. 845 00:44:10,533 --> 00:44:17,400 But what we can do through policy is increase our domestic 846 00:44:17,400 --> 00:44:22,467 production of oil and gas, increase our overall domestic 847 00:44:22,467 --> 00:44:25,800 sources of energy, including alternative energy, 848 00:44:25,800 --> 00:44:29,367 and thereby insulate ourselves from some of the shocks that 849 00:44:29,367 --> 00:44:30,367 come in the future. 850 00:44:30,367 --> 00:44:30,967 But that doesn't mean -- 851 00:44:30,967 --> 00:44:31,800 The Press: That doesn't take care -- 852 00:44:31,800 --> 00:44:34,500 Mr. Carney: -- that doesn't -- what we know, for example, 853 00:44:34,500 --> 00:44:39,000 if through the car rule, the enhanced fuel efficiency 854 00:44:39,000 --> 00:44:40,333 standards that the President put into place, 855 00:44:40,333 --> 00:44:45,400 is that we will save $12 billion of oil because of that. 856 00:44:45,400 --> 00:44:46,266 The Press: Barrels. 857 00:44:46,266 --> 00:44:48,500 Mr. Carney: Barrels, sorry -- 12 billion barrels of -- 858 00:44:48,500 --> 00:44:49,333 this is the second time I've blown it. 859 00:44:49,333 --> 00:44:51,867 Thank you, Mr. Henry -- 12 billion barrels of oil. 860 00:44:51,867 --> 00:44:53,734 That is a heck of a lot of oil. 861 00:44:53,734 --> 00:44:56,633 And absent those fuel efficiency standards, 862 00:44:56,633 --> 00:44:59,667 we know that we would be paying for that oil, 863 00:44:59,667 --> 00:45:03,567 and we would be paying for a certain portion of that we would 864 00:45:03,567 --> 00:45:06,867 be paying foreign providers of that oil. 865 00:45:06,867 --> 00:45:10,533 So these are important steps that we can take to insulate 866 00:45:10,533 --> 00:45:16,133 ourselves from energy shocks in the future. 867 00:45:16,133 --> 00:45:19,899 You're shaking your head, but it's absolutely logical here. 868 00:45:19,900 --> 00:45:22,066 The more -- the less we rely on foreign oil, 869 00:45:22,066 --> 00:45:25,265 the less dependence we have, the more energy security we have. 870 00:45:25,266 --> 00:45:27,333 The Press: But is that true? 871 00:45:27,333 --> 00:45:30,367 Do you -- if we increase domestic oil production, 872 00:45:30,367 --> 00:45:33,000 doesn't it just go onto the world market with all the rest 873 00:45:33,000 --> 00:45:33,900 of the oil? 874 00:45:33,900 --> 00:45:34,900 It does very little to -- 875 00:45:34,900 --> 00:45:38,133 Mr. Carney: The more that we increase domestic oil and gas production, 876 00:45:38,133 --> 00:45:41,165 understanding that increasing domestic oil and gas production 877 00:45:41,166 --> 00:45:45,166 alone won't solve our energy challenges, 878 00:45:45,166 --> 00:45:49,100 it will mean that we can continue to reduce, hopefully, 879 00:45:49,100 --> 00:45:52,567 our imports of foreign oil, reduce our reliance on 880 00:45:52,567 --> 00:45:53,567 foreign oil. 881 00:45:53,567 --> 00:45:58,000 And thereby, when you have problems in a region of the 882 00:45:58,000 --> 00:46:02,033 world that produces oil, you are -- 883 00:46:02,033 --> 00:46:05,266 the effect on your own production -- 884 00:46:05,266 --> 00:46:07,934 your own dependence on that -- the reduction in your dependence 885 00:46:07,934 --> 00:46:10,200 on that insulates you from some of that shock. 886 00:46:10,200 --> 00:46:11,265 The Press: Will that lead to lower gas prices? 887 00:46:11,266 --> 00:46:12,834 Mr. Carney: I'm not going to predict gas prices. 888 00:46:12,834 --> 00:46:16,133 What I know is that it increases our energy security. 889 00:46:16,133 --> 00:46:16,767 Yes. 890 00:46:16,767 --> 00:46:19,734 The Press: Jay, you took a question yesterday about Secretary 891 00:46:19,734 --> 00:46:23,700 Vilsack's comment about getting the oil companies, 892 00:46:23,700 --> 00:46:27,366 in his words, "to help ensure that the recovery that we're now 893 00:46:27,367 --> 00:46:29,700 seeing is not jeopardized by energy costs that get out 894 00:46:29,700 --> 00:46:30,366 of control." 895 00:46:30,367 --> 00:46:31,600 What did you find out about that? 896 00:46:31,600 --> 00:46:34,933 Mr. Carney: You know what, I would refer you to the Department 897 00:46:34,934 --> 00:46:35,600 of Agriculture. 898 00:46:35,600 --> 00:46:41,333 I think what our approach has been is to, 899 00:46:41,333 --> 00:46:43,667 through the policies that I've been describing several times 900 00:46:43,667 --> 00:46:48,400 now, to work with domestic oil and gas companies to ensure that 901 00:46:48,400 --> 00:46:52,367 more -- millions and millions of more acres are available -- 902 00:46:52,367 --> 00:46:55,533 millions of acres are available for exploration in the Gulf and 903 00:46:55,533 --> 00:46:56,834 in Alaska and other places. 904 00:46:56,834 --> 00:47:07,899 We work with manufacturers in a variety of ways to ensure the 905 00:47:07,900 --> 00:47:13,734 smooth operation of a system here that provides oil and gas 906 00:47:13,734 --> 00:47:16,567 products to American consumers, but I don't think it was 907 00:47:16,567 --> 00:47:17,800 anything more specific than that. 908 00:47:17,800 --> 00:47:19,133 The Press: Do you know of any specific concern -- 909 00:47:19,133 --> 00:47:19,767 Mr. Carney: No -- 910 00:47:19,767 --> 00:47:21,933 The Press: -- a new effort to get them to try to put a lid on prices? 911 00:47:21,934 --> 00:47:23,000 Mr. Carney: No, no, no, no. 912 00:47:23,000 --> 00:47:24,700 And I think that should not be interpreted that way. 913 00:47:24,700 --> 00:47:29,100 I think this was more about the fact that we have a lot of 914 00:47:29,100 --> 00:47:33,133 consultation and dialogue to ensure that the overall system 915 00:47:33,133 --> 00:47:36,265 that produces and supplies American consumers is 916 00:47:36,266 --> 00:47:37,433 operating smoothly. 917 00:47:37,433 --> 00:47:40,867 The Press: In the Florida speech tomorrow, is he going to specifically 918 00:47:40,867 --> 00:47:43,967 address the current price situation? 919 00:47:43,967 --> 00:47:46,400 Is there going to be any kind of reassurance for people in this 920 00:47:46,400 --> 00:47:48,967 speech, which apparently is going to focus on energy? 921 00:47:48,967 --> 00:47:51,967 Mr. Carney: Well, he will talk about the need to take an 922 00:47:51,967 --> 00:47:53,567 all-of-the-above approach. 923 00:47:53,567 --> 00:47:57,934 He will certainly talk about it broadly in terms of our energy 924 00:47:57,934 --> 00:48:01,934 security in the 21st century and our economic security in the 925 00:48:01,934 --> 00:48:05,734 21st century as a long-term project. 926 00:48:05,734 --> 00:48:13,232 He'll, I expect, make reference to the rise in oil prices that 927 00:48:13,233 --> 00:48:17,333 we're experiencing right now and the anxiety that that creates 928 00:48:17,333 --> 00:48:20,367 and the impact that has on American families trying to 929 00:48:20,367 --> 00:48:22,667 make ends meet. 930 00:48:22,667 --> 00:48:31,232 He has been very clear about his concern about higher gas prices 931 00:48:31,233 --> 00:48:33,500 and higher oil prices, and what that means for 932 00:48:33,500 --> 00:48:34,500 American families. 933 00:48:34,500 --> 00:48:39,200 And he's been explicit about that in arguing for the payroll 934 00:48:39,200 --> 00:48:42,533 tax cut and the extra money that that provides to Americans both 935 00:48:42,533 --> 00:48:44,266 in 2011 and this year. 936 00:48:44,266 --> 00:48:46,233 So, yes, I expect you can hear him -- 937 00:48:46,233 --> 00:48:49,200 you'll hear him talk about that tomorrow. 938 00:48:49,200 --> 00:48:50,066 Yes. 939 00:48:50,066 --> 00:48:52,232 The Press: Jay, the President is going viral again by singing. 940 00:48:52,233 --> 00:48:53,667 (laughter) 941 00:48:53,667 --> 00:48:56,567 Is this by design? 942 00:48:56,567 --> 00:48:58,600 Is it a reaction to polls? 943 00:48:58,600 --> 00:49:05,767 Mr. Carney: I think it's just -- it's a hidden talent that we're just 944 00:49:05,767 --> 00:49:06,332 getting to hear. 945 00:49:06,333 --> 00:49:12,333 It's not at all -- the circumstances both at the Apollo 946 00:49:12,333 --> 00:49:15,433 Theater and last night at the event here I think were 947 00:49:15,433 --> 00:49:16,934 pretty unique. 948 00:49:16,934 --> 00:49:21,133 So I can't predict -- the next time maybe at the 949 00:49:21,133 --> 00:49:23,966 inauguration next year. 950 00:49:23,967 --> 00:49:25,667 (laughter) 951 00:49:25,667 --> 00:49:30,500 But what I can tell you is that among his -- 952 00:49:30,500 --> 00:49:31,633 The Press: It's only a matter of when. 953 00:49:31,633 --> 00:49:32,533 (laughter) 954 00:49:32,533 --> 00:49:33,933 Mr. Carney: It will be a celebration. 955 00:49:33,934 --> 00:49:37,667 No matter -- among his many talents is the ability to 956 00:49:37,667 --> 00:49:38,667 carry a tune. 957 00:49:38,667 --> 00:49:39,667 Yes, sir. 958 00:49:39,667 --> 00:49:45,834 The Press: Jay, on corporate taxes, you could find any number of polls 959 00:49:45,834 --> 00:49:49,600 suggesting average Americans believe that corporations don't 960 00:49:49,600 --> 00:49:52,133 pay their fair share, that there are too many loopholes, 961 00:49:52,133 --> 00:49:53,533 too many breaks, et cetera. 962 00:49:53,533 --> 00:49:56,533 So why doesn't the President make more of a show of this? 963 00:49:56,533 --> 00:49:59,165 Why doesn't he bang the drum a little bit about this issue when 964 00:49:59,166 --> 00:50:02,433 it could be politically positive for him? 965 00:50:02,433 --> 00:50:09,400 Mr. Carney: I think the President has been pretty explicit about his firm 966 00:50:09,400 --> 00:50:14,800 belief that there are provisions within the tax code that allow 967 00:50:14,800 --> 00:50:20,400 some corporations to be subsidized in ways that are just 968 00:50:20,400 --> 00:50:23,033 not affordable and are unnecessary. 969 00:50:23,033 --> 00:50:26,400 And I think oil and gas companies are a primary example 970 00:50:26,400 --> 00:50:29,967 and one that he's been beating the drum on for quite some time 971 00:50:29,967 --> 00:50:31,734 -- and that is included within this corporate tax 972 00:50:31,734 --> 00:50:34,866 reform proposal. 973 00:50:34,867 --> 00:50:38,367 He hasn't often been criticized for not speaking out on this 974 00:50:38,367 --> 00:50:40,433 issue because he's spoken out on it so clearly, 975 00:50:40,433 --> 00:50:42,166 and he will continue to do so. 976 00:50:42,166 --> 00:50:45,734 And that's how -- we've been clear about the carried interest 977 00:50:45,734 --> 00:50:48,767 rule and why that is simply bad policy and why it needs to 978 00:50:48,767 --> 00:50:49,767 be eliminated. 979 00:50:49,767 --> 00:50:55,066 It's simply not equitable if a hedge fund manager or a private 980 00:50:55,066 --> 00:51:03,100 equity executive pays tax on his or her income at a rate of 15% 981 00:51:03,100 --> 00:51:05,734 when average folks are paying much more. 982 00:51:05,734 --> 00:51:07,366 That's just not -- it doesn't make sense and it's 983 00:51:07,367 --> 00:51:08,367 not affordable. 984 00:51:08,367 --> 00:51:11,400 We need to be fiscally responsible in our approach to 985 00:51:11,400 --> 00:51:12,400 the tax code. 986 00:51:12,400 --> 00:51:14,100 That's the approach the President has taken in this 987 00:51:14,100 --> 00:51:18,933 corporate tax reform, and it's the approach that guides his 988 00:51:18,934 --> 00:51:21,934 vision on taxes in general. 989 00:51:21,934 --> 00:51:23,467 Yes, Kate. 990 00:51:23,467 --> 00:51:25,967 The Press: House Democrats sent the President a letter today asking 991 00:51:25,967 --> 00:51:29,300 him to release oil from the Strategic Petroleum Reserve. 992 00:51:29,300 --> 00:51:31,667 Is that something that's on the table? 993 00:51:31,667 --> 00:51:33,967 Mr. Carney: I haven't seen this letter that you mention, 994 00:51:33,967 --> 00:51:36,734 but I'll answer that as I have in the past, 995 00:51:36,734 --> 00:51:41,467 which is I have no specific comments to make on 996 00:51:41,467 --> 00:51:42,867 that possibility. 997 00:51:42,867 --> 00:51:49,066 We obviously examine every issue when it comes to higher oil and 998 00:51:49,066 --> 00:51:50,332 gas prices. 999 00:51:50,333 --> 00:51:53,567 That was the case last year and continues to be the case. 1000 00:51:53,567 --> 00:51:56,500 And we take no possible response off the table, 1001 00:51:56,500 --> 00:52:01,533 but I have no specific comment to make on that. 1002 00:52:01,533 --> 00:52:03,500 The Press: Is there a price that you're looking at, though? 1003 00:52:03,500 --> 00:52:05,667 Mr. Carney: No, I have no comment on that. 1004 00:52:05,667 --> 00:52:07,066 The Press: On the Buffett Rule -- back to the Buffett 1005 00:52:07,066 --> 00:52:09,500 Rule, Governor Christie -- any response to his remarks that 1006 00:52:09,500 --> 00:52:13,033 Warren Buffett should just "shut up and write a check" in a TV 1007 00:52:13,033 --> 00:52:14,200 interview last night? 1008 00:52:14,200 --> 00:52:18,899 (laughter) 1009 00:52:18,900 --> 00:52:25,800 Mr. Carney: I think Mr. Buffett, who is widely regarded for his success 1010 00:52:25,800 --> 00:52:31,166 in business as well as in philanthropy, 1011 00:52:31,166 --> 00:52:34,300 has been quite outspoken, as is his right, 1012 00:52:34,300 --> 00:52:37,767 on what he believes is an issue of tax fairness. 1013 00:52:37,767 --> 00:52:41,165 He simply believes, as one of the wealthiest men in the world, 1014 00:52:41,166 --> 00:52:44,900 that he should not be paying an effective tax rate lower than 1015 00:52:44,900 --> 00:52:47,300 his secretary. 1016 00:52:47,300 --> 00:52:53,633 I don't know why the governor mentioned or others think that's 1017 00:52:53,633 --> 00:52:57,033 a bad idea, but this President believes it's the 1018 00:52:57,033 --> 00:52:57,866 right approach. 1019 00:52:57,867 --> 00:53:01,133 The Press: Do you think he should go ahead and write the check until that 1020 00:53:01,133 --> 00:53:03,433 -- it becomes law? 1021 00:53:03,433 --> 00:53:08,967 Mr. Carney: I mean, that's a quip that tries to draw attention away from what 1022 00:53:08,967 --> 00:53:14,734 is a very serious issue, which is the need to have a tax code 1023 00:53:14,734 --> 00:53:19,066 that's fair and that helps the American people as they recover 1024 00:53:19,066 --> 00:53:24,466 from this recession, and helps us achieve the kind of balanced 1025 00:53:24,467 --> 00:53:30,667 approach to deficit and debt reduction that this President 1026 00:53:30,667 --> 00:53:32,667 has pursued for some time now. 1027 00:53:32,667 --> 00:53:37,633 So, quips aside, we think the Buffett Rule is absolutely an 1028 00:53:37,633 --> 00:53:40,533 important principle to apply to individual tax reform. 1029 00:53:40,533 --> 00:53:42,500 Jared. 1030 00:53:42,500 --> 00:53:43,000 Last one. 1031 00:53:43,000 --> 00:53:43,867 Yes. 1032 00:53:43,867 --> 00:53:47,333 The Press: Rhetorically, when you're talking about the energy policy, 1033 00:53:47,333 --> 00:53:49,000 the President has had this ground-up, 1034 00:53:49,000 --> 00:53:50,800 comprehensive energy policy. 1035 00:53:50,800 --> 00:53:53,500 But when we're talking about tax reform, 1036 00:53:53,500 --> 00:53:56,066 it seems like what's coming from the podium is that there are 1037 00:53:56,066 --> 00:53:58,834 these piecemeal things, we can do this on corporate tax reform, 1038 00:53:58,834 --> 00:54:01,899 there could be more -- you said earlier -- on individual reform, 1039 00:54:01,900 --> 00:54:04,300 if the Congress is there for it. 1040 00:54:04,300 --> 00:54:06,033 Why is it not the same comprehensive, 1041 00:54:06,033 --> 00:54:08,165 ground-up strategy? 1042 00:54:08,166 --> 00:54:12,200 Mr. Carney: Well, I think first of all, the corporate tax reform framework 1043 00:54:12,200 --> 00:54:16,700 that was laid out today is fairly detailed, A. 1044 00:54:16,700 --> 00:54:19,500 B, if we could achieve some of these important policy 1045 00:54:19,500 --> 00:54:23,900 objectives through executive action as the President did with 1046 00:54:23,900 --> 00:54:28,600 close to a dozen automobile manufacturers in putting in 1047 00:54:28,600 --> 00:54:31,500 place fuel efficiency standards that will save 12 billion 1048 00:54:31,500 --> 00:54:33,667 barrels of oil, we would. 1049 00:54:33,667 --> 00:54:37,866 But the fact is that in order to achieve corporate tax reform or 1050 00:54:37,867 --> 00:54:41,000 individual tax reform or balance deficit and debt reduction, 1051 00:54:41,000 --> 00:54:42,133 we need to work with Congress. 1052 00:54:42,133 --> 00:54:45,600 And the way to do that is to put forward the kind of detailed 1053 00:54:45,600 --> 00:54:49,366 framework that makes clear what this President's principles are, 1054 00:54:49,367 --> 00:54:52,467 makes clear the path that he believes we need to take in 1055 00:54:52,467 --> 00:54:54,767 reforming our tax code, and invite, 1056 00:54:54,767 --> 00:54:57,299 as the Secretary of the Treasury has already done, 1057 00:54:57,300 --> 00:55:00,433 Democrats and Republicans to work together to achieve that 1058 00:55:00,433 --> 00:55:03,633 goal of lowering the rate, expanding the base, 1059 00:55:03,633 --> 00:55:07,265 eliminating subsidies and loopholes, 1060 00:55:07,266 --> 00:55:09,967 and creating incentives for American manufacturing and 1061 00:55:09,967 --> 00:55:12,867 advanced manufacturing and small businesses to grow. 1062 00:55:12,867 --> 00:55:15,467 The Press: Earlier the President -- there was a statement from the 1063 00:55:15,467 --> 00:55:18,333 President's office about observation of Ash Wednesday. 1064 00:55:18,333 --> 00:55:20,667 Is the President doing anything in particular during 1065 00:55:20,667 --> 00:55:21,366 Lenten season? 1066 00:55:21,367 --> 00:55:23,233 Is he giving anything up or is he doing anything 1067 00:55:23,233 --> 00:55:24,166 special for it? 1068 00:55:24,166 --> 00:55:26,166 Mr. Carney: I don't have any information on that. 1069 00:55:26,166 --> 00:55:28,433 I believe we did put out a statement for Ash 1070 00:55:28,433 --> 00:55:29,400 Wednesday today. 1071 00:55:29,400 --> 00:55:30,233 Thanks very much.