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1 00:00:03,661 --> 00:00:05,561 Mr. Carney: Good afternoon, ladies and gentlemen. 2 00:00:05,561 --> 00:00:07,561 Thanks for being here. 3 00:00:07,561 --> 00:00:10,094 A couple of things I want to bring to your attention before 4 00:00:10,094 --> 00:00:11,161 I take your questions. 5 00:00:11,161 --> 00:00:13,994 First of all, you should have seen moments ago a statement 6 00:00:13,994 --> 00:00:17,461 from the President on the House passage of the Violence Against 7 00:00:17,461 --> 00:00:18,461 Women Act. 8 00:00:18,461 --> 00:00:22,026 The President says in this statement: 9 00:00:22,027 --> 00:00:24,428 "I was pleased to see the House of Representatives come together 10 00:00:24,428 --> 00:00:27,828 and vote to reauthorize and strengthen the Violence Against 11 00:00:27,828 --> 00:00:28,961 Women Act. 12 00:00:28,961 --> 00:00:32,126 Over more than two decades, this law has saved countless 13 00:00:32,127 --> 00:00:35,561 lives and transformed the way we treat victims of abuse. 14 00:00:35,561 --> 00:00:38,094 Today's vote will go even further by continuing to reduce 15 00:00:38,094 --> 00:00:41,394 domestic violence, improving how we treat victims of rape, 16 00:00:41,394 --> 00:00:44,161 and extending protections to Native American women and 17 00:00:44,161 --> 00:00:46,528 members of the LGBT community. 18 00:00:46,528 --> 00:00:50,193 The bill also reauthorizes the Trafficking Victims Protection 19 00:00:50,194 --> 00:00:53,961 Act, providing critical support for both international and 20 00:00:53,961 --> 00:00:57,461 domestic victims of trafficking, and helping ensure traffickers 21 00:00:57,461 --> 00:00:58,561 are brought to justice. 22 00:00:58,561 --> 00:01:00,594 I want to thank leaders from both parties, 23 00:01:00,594 --> 00:01:03,494 especially Leader Pelosi, Congresswomen Gwen Moore 24 00:01:03,494 --> 00:01:05,761 and Senator Leahy, for everything they've done 25 00:01:05,761 --> 00:01:06,994 to make this happen. 26 00:01:06,994 --> 00:01:09,695 Renewing this bill was an important step towards making 27 00:01:09,695 --> 00:01:12,428 sure no one in America is forced to live in fear. 28 00:01:12,428 --> 00:01:15,527 And I look forward to signing it into law as soon as it hits 29 00:01:15,528 --> 00:01:16,528 my desk." 30 00:01:16,528 --> 00:01:20,461 I would note that the vote in the House was 31 00:01:20,461 --> 00:01:21,895 bipartisan, substantially. 32 00:01:21,895 --> 00:01:23,928 It was 286 to 138. 33 00:01:23,928 --> 00:01:28,461 That included 199 Democratic yes votes, 0 Democratic no votes; 34 00:01:28,461 --> 00:01:35,394 87 Republican yes votes, 138 Republican no votes. 35 00:01:35,394 --> 00:01:43,594 Secondly, I'd like to mention the Republican bill in the 36 00:01:43,594 --> 00:01:47,494 Senate that supposedly would provide flexibility on how to 37 00:01:47,494 --> 00:01:50,394 deal with or implement the sequester. 38 00:01:50,394 --> 00:01:53,728 We have put out a statement of administration policy on this, 39 00:01:53,728 --> 00:01:56,494 and I think you will note that we believe no amount of 40 00:01:56,494 --> 00:02:00,094 flexibility changes the fact that these severe cuts threaten 41 00:02:00,094 --> 00:02:03,428 thousands of middle-class jobs and slash vital services for 42 00:02:03,428 --> 00:02:06,961 children, seniors and our troops and military families. 43 00:02:06,961 --> 00:02:09,161 There is no way to cut spending this dramatically 44 00:02:09,161 --> 00:02:12,094 over a seven-month period without drastically affecting 45 00:02:12,094 --> 00:02:14,861 national security and economic priorities. 46 00:02:14,861 --> 00:02:17,960 The Republican proposal is the worst of all worlds. 47 00:02:17,961 --> 00:02:22,661 It explicitly protects pork-barrel projects and 48 00:02:22,661 --> 00:02:25,961 every single tax loophole that benefits the wealthy, 49 00:02:25,961 --> 00:02:28,494 but puts on the table cuts to things like Medicare and 50 00:02:28,494 --> 00:02:31,394 education, forcing middle-class families to bear the burden 51 00:02:31,394 --> 00:02:34,361 while asking nothing from the wealthiest Americans. 52 00:02:34,361 --> 00:02:38,960 This doesn't solve the problem; it makes the problem worse. 53 00:02:38,961 --> 00:02:41,594 This bill is an effort to shift the focus away from the need for 54 00:02:41,594 --> 00:02:44,928 the Congress to work toward a bipartisan compromise that would 55 00:02:44,928 --> 00:02:46,661 avoid sequestration. 56 00:02:46,661 --> 00:02:50,695 The Congress must act responsibly to avert 57 00:02:50,695 --> 00:02:52,727 sequestration through balanced deficit reduction, 58 00:02:52,728 --> 00:02:55,728 and stop endangering the nation's economic recovery. 59 00:02:55,728 --> 00:02:57,661 With that, I'll go to the Associated Press. 60 00:02:57,661 --> 00:02:59,094 The Press: Thanks, Jay. 61 00:02:59,094 --> 00:03:00,761 This meeting with congressional leaders tomorrow, 62 00:03:00,761 --> 00:03:04,561 is this a meeting to focus solely on dealing 63 00:03:04,561 --> 00:03:05,561 with the sequester? 64 00:03:05,561 --> 00:03:09,428 Or does the focus turn now to a bigger deal to deal with the 65 00:03:09,428 --> 00:03:11,861 spending cuts, but also some of these other deadlines with the 66 00:03:11,861 --> 00:03:14,960 CR and with debt ceiling issues? 67 00:03:14,961 --> 00:03:17,061 Mr. Carney: That's a very good question, Josh. 68 00:03:17,061 --> 00:03:18,061 Two things I would say. 69 00:03:18,061 --> 00:03:22,961 First of all, the Senate will vote on the proposal put forward 70 00:03:22,961 --> 00:03:26,861 by Democrats that would deal with the sequester, 71 00:03:26,861 --> 00:03:31,727 postpone the sequester in a balanced, responsible way. 72 00:03:31,728 --> 00:03:34,795 We expect that that bill will get majority support 73 00:03:34,795 --> 00:03:36,027 in the Senate. 74 00:03:36,027 --> 00:03:39,560 The only reason why it might not pass the Senate is because 75 00:03:39,561 --> 00:03:42,328 a minority of Republicans, led by the Republican leader, 76 00:03:42,328 --> 00:03:44,795 would filibuster that bill -- 77 00:03:44,795 --> 00:03:50,695 a pretty stark indication of the state of things when a bill that 78 00:03:50,695 --> 00:03:54,894 has majority support is blocked by a minority, 79 00:03:54,895 --> 00:03:59,094 when that bill would avert the problem that we have confronting 80 00:03:59,094 --> 00:04:00,861 us with this imminent deadline. 81 00:04:00,861 --> 00:04:03,161 So we'll have to see what the Senate actually does, 82 00:04:03,161 --> 00:04:05,828 whether Republicans filibuster this bill. 83 00:04:05,828 --> 00:04:06,928 That has not happened yet. 84 00:04:06,928 --> 00:04:10,428 Maybe they'll have a change of heart. 85 00:04:10,428 --> 00:04:14,061 And that will obviously affect the topics of conversation 86 00:04:14,061 --> 00:04:16,428 tomorrow in the meeting with the President. 87 00:04:16,428 --> 00:04:19,560 The President believes we need to come together and deal with 88 00:04:19,560 --> 00:04:20,560 the sequester. 89 00:04:20,560 --> 00:04:23,661 And the sequester is just one piece of the broader challenge 90 00:04:23,661 --> 00:04:27,294 here, which is reducing our deficit in a balanced way. 91 00:04:27,294 --> 00:04:32,161 That's what the sequester was part of when it was included 92 00:04:32,161 --> 00:04:33,494 in the Budget Control Act. 93 00:04:33,494 --> 00:04:37,261 And it was designed as policy that would never come into 94 00:04:37,261 --> 00:04:39,561 effect because it was so onerous for both sides. 95 00:04:39,561 --> 00:04:44,361 It would compel Congress to reach a compromise that 96 00:04:44,361 --> 00:04:47,361 reduced our deficit by a further $1.2 trillion. 97 00:04:47,361 --> 00:04:50,161 The President, as you know, has put forward a proposal that is 98 00:04:50,161 --> 00:04:52,461 balanced, that works on -- 99 00:04:52,461 --> 00:04:56,161 that continues the progress that we've made in deficit reduction, 100 00:04:56,161 --> 00:05:00,394 $2.5 trillion thus far, more than two dollars in spending 101 00:05:00,394 --> 00:05:03,094 cuts for every dollar in revenue represented in that 102 00:05:03,094 --> 00:05:05,528 $2.5 trillion of deficit reduction -- 103 00:05:05,528 --> 00:05:08,594 the kind of balance that tilts toward spending cuts that this 104 00:05:08,594 --> 00:05:11,127 President has put on the table, the kind of balance that we 105 00:05:11,127 --> 00:05:13,895 haven't seen, unfortunately, from Republicans. 106 00:05:13,895 --> 00:05:14,895 But he hopes that -- 107 00:05:14,895 --> 00:05:20,628 whether it is action by Republicans to deal with 108 00:05:20,628 --> 00:05:23,361 the sequester in the short term in a balanced way, 109 00:05:23,361 --> 00:05:29,661 or to take up the project of a bigger deal and more deficit 110 00:05:29,661 --> 00:05:32,628 reduction that helps us reach that $4 trillion goal, 111 00:05:32,628 --> 00:05:36,127 he will be hoping that Republicans, 112 00:05:36,127 --> 00:05:37,828 whether it's the short term or the long term, 113 00:05:37,828 --> 00:05:43,828 are ready to talk seriously about compromise and making 114 00:05:43,828 --> 00:05:47,227 sure that Washington is not inflicting wounds on the economy 115 00:05:47,227 --> 00:05:50,928 right when the economy should be growing and creating jobs. 116 00:05:50,928 --> 00:05:53,661 The Press: Well, is there anything that's off the table for tomorrow? 117 00:05:53,661 --> 00:05:56,061 Were there any preconditions from either the President or 118 00:05:56,061 --> 00:05:59,126 from Republicans in terms of taxes or things that are not 119 00:05:59,127 --> 00:06:03,895 to be part of what's asked for tomorrow? 120 00:06:03,895 --> 00:06:04,994 Mr. Carney: Well, no, there are no preconditions to 121 00:06:04,994 --> 00:06:05,795 a meeting like this. 122 00:06:05,795 --> 00:06:09,294 This is a meeting with the President and leaders of 123 00:06:09,294 --> 00:06:10,628 Congress, both parties. 124 00:06:10,628 --> 00:06:18,695 And obviously, any topic is up for discussion if one member of 125 00:06:18,695 --> 00:06:22,861 the group decides he or she wants to broach it. 126 00:06:22,861 --> 00:06:26,494 The immediate purpose of the meeting is to talk about the 127 00:06:26,494 --> 00:06:31,528 imminent sequester deadline and the need to avert it -- 128 00:06:31,528 --> 00:06:35,428 the need, if it is implemented, to take action in a balanced way 129 00:06:35,428 --> 00:06:38,661 to deal with our deficit reduction in a way that 130 00:06:38,661 --> 00:06:42,161 doesn't unduly burden seniors, or middle-class families, 131 00:06:42,161 --> 00:06:45,695 or parents of children with disabilities, 132 00:06:45,695 --> 00:06:49,528 that asks everyone to bear the burden, and that by doing that, 133 00:06:49,528 --> 00:06:51,528 allows our economy to continue to grow, 134 00:06:51,528 --> 00:06:54,861 to continue the recovery that we've seen underway now for 135 00:06:54,861 --> 00:06:58,661 three years, but that still has a long way to go. 136 00:06:58,661 --> 00:07:05,161 So the President is firm in his conviction that we need 137 00:07:05,161 --> 00:07:08,061 to include balance in our deficit reduction. 138 00:07:08,061 --> 00:07:10,895 It is unacceptable, it is a "my way or the highway" 139 00:07:10,895 --> 00:07:14,561 approach to say that revenues shouldn't be part of it -- 140 00:07:14,561 --> 00:07:17,895 because as it's true of the proposal Republicans in the 141 00:07:17,895 --> 00:07:20,794 Senate are putting forward today, 142 00:07:20,795 --> 00:07:22,695 what's true about that proposal is true with the general 143 00:07:22,695 --> 00:07:24,760 Republican position, which is that they would rather see 144 00:07:24,761 --> 00:07:27,161 sequester take effect with its job loss, 145 00:07:27,161 --> 00:07:30,227 with its negative effect on economic growth, 146 00:07:30,227 --> 00:07:32,994 than ask a single wealthy individual to pay a little 147 00:07:32,994 --> 00:07:35,861 bit more, to give up a special tax break, 148 00:07:35,861 --> 00:07:40,661 to ask some big corporations or industries to forego their 149 00:07:40,661 --> 00:07:44,561 loopholes or limit their deductions. 150 00:07:44,561 --> 00:07:47,928 And that's just not a position that is sustainable, we believe, 151 00:07:47,928 --> 00:07:50,928 and it's not fair to the American people. 152 00:07:50,928 --> 00:07:53,895 The Press: On another topic, today is the deadline for the administration 153 00:07:53,895 --> 00:07:56,928 to file an amicus brief if it chooses to do so in the Prop 8 154 00:07:56,928 --> 00:07:59,027 case before the Supreme Court. 155 00:07:59,027 --> 00:08:02,027 Will the administration be filing a brief in that case? 156 00:08:02,027 --> 00:08:06,594 Mr. Carney: As I've said in the past, decisions about filing briefs 157 00:08:06,594 --> 00:08:08,361 are legal and constitutional matters, 158 00:08:08,361 --> 00:08:12,127 so best to address those questions to the Department 159 00:08:12,127 --> 00:08:13,728 of Justice. 160 00:08:13,728 --> 00:08:15,528 The Press: Just going back to what you were saying earlier, 161 00:08:15,528 --> 00:08:19,094 why is the President so concerned about closing 162 00:08:19,094 --> 00:08:22,161 loopholes now when six weeks ago as part of the fiscal cliff 163 00:08:22,161 --> 00:08:28,728 deal, he was very interested in agreeing to sign into law 164 00:08:28,728 --> 00:08:30,761 loopholes that protected certain industries like 165 00:08:30,761 --> 00:08:33,861 the wind industry and NASCAR and films? 166 00:08:33,861 --> 00:08:35,361 Mr. Carney: Well, a couple of things. 167 00:08:35,361 --> 00:08:39,528 One, as part of the end-of-the-year negotiations, 168 00:08:39,528 --> 00:08:41,494 we were focused, as were the Republicans, 169 00:08:41,494 --> 00:08:44,428 on the imminent prospect of taxes going up on 170 00:08:44,428 --> 00:08:45,494 middle-class Americans. 171 00:08:45,494 --> 00:08:47,928 And that had to be resolved and was resolved. 172 00:08:47,928 --> 00:08:51,895 We were also focused on the need to return the top marginal rate 173 00:08:51,895 --> 00:08:55,294 to the level it was under President Clinton, 39.6, 174 00:08:55,294 --> 00:08:57,593 for the wealthiest Americans, and that was achieved. 175 00:08:57,594 --> 00:09:02,061 And that produces now in the 10-year window a certain amount 176 00:09:02,061 --> 00:09:04,661 of revenue toward deficit reduction. 177 00:09:04,661 --> 00:09:07,361 That's obviously a positive development. 178 00:09:07,361 --> 00:09:11,561 The fact is the loopholes that we have identified are similar 179 00:09:11,561 --> 00:09:13,161 to some of the ones that John Boehner, 180 00:09:13,161 --> 00:09:16,795 the Speaker of the House, has identified as worthy of closing, 181 00:09:16,795 --> 00:09:22,694 as not good for our tax code, not good for economic fairness. 182 00:09:22,695 --> 00:09:26,394 And those are the ones we believe should be closed. 183 00:09:26,394 --> 00:09:28,895 And additionally, in our proposal to the Speaker of 184 00:09:28,895 --> 00:09:32,861 the House we've put forward a provision that would cap 185 00:09:32,861 --> 00:09:37,494 deductions at 28% for millionaires and billionaires -- 186 00:09:37,494 --> 00:09:39,294 that would produce a certain amount of revenue -- 187 00:09:39,294 --> 00:09:44,328 and the combination would achieve the level necessary 188 00:09:44,328 --> 00:09:48,795 of revenue as part of an overall deficit-reduction package that 189 00:09:48,795 --> 00:09:51,861 includes savings from entitlements that would 190 00:09:51,861 --> 00:09:57,828 complete the job of getting $4 trillion-plus in deficit 191 00:09:57,828 --> 00:09:59,461 reduction over 10 years. 192 00:09:59,461 --> 00:10:04,728 The fact of the matter is that proposal that the President made 193 00:10:04,728 --> 00:10:06,560 to Speaker Boehner, which everyone here I think, 194 00:10:06,561 --> 00:10:09,961 or most people here recognized as an effort by the President to 195 00:10:09,961 --> 00:10:14,094 compromise, to make tough choices for Democrats, 196 00:10:14,094 --> 00:10:15,261 is still on the table. 197 00:10:15,261 --> 00:10:20,026 And we hope that the Speaker would consider taking up that 198 00:10:20,027 --> 00:10:22,227 proposal, because just -- I think it was yesterday or the 199 00:10:22,227 --> 00:10:24,461 day before -- the Speaker talked about how he believes 200 00:10:24,461 --> 00:10:26,461 we could and should reform the tax code. 201 00:10:26,461 --> 00:10:29,828 The fundamental difference here now seems to be not that we 202 00:10:29,828 --> 00:10:33,328 shouldn't close loopholes and cap deductions for the 203 00:10:33,328 --> 00:10:38,394 wealthiest individuals and corporations that are given 204 00:10:38,394 --> 00:10:40,227 special treatment in the tax code -- 205 00:10:40,227 --> 00:10:41,761 the Speaker seems to agree with that. 206 00:10:41,761 --> 00:10:44,694 The disagreement here now seems to be that he believes that the 207 00:10:44,695 --> 00:10:48,227 savings from that action, the savings from closing those 208 00:10:48,227 --> 00:10:51,795 loopholes, should be funneled back to the wealthiest 209 00:10:51,795 --> 00:10:53,593 individuals in tax cuts. 210 00:10:53,594 --> 00:10:56,027 We believe adopting a conservative position 211 00:10:56,027 --> 00:10:59,361 that that savings should be applied to deficit reduction, 212 00:10:59,361 --> 00:11:03,093 and thereby by applying that savings to deficit reduction 213 00:11:03,094 --> 00:11:06,928 we're not asking seniors and middle-class families to bear 214 00:11:06,928 --> 00:11:09,494 the burden of deficit reduction all by themselves -- 215 00:11:09,494 --> 00:11:11,328 and that's a pretty conservative position. 216 00:11:11,328 --> 00:11:13,361 That's a pretty reasonable, middle-of-the-road, 217 00:11:13,361 --> 00:11:16,161 common-sense approach to both tax reform and 218 00:11:16,161 --> 00:11:17,527 entitlement reform. 219 00:11:17,528 --> 00:11:21,294 The Press: But on the specific issue of tax loopholes and allowing -- 220 00:11:21,294 --> 00:11:25,561 or agreeing to continue some but now saying these other ones are 221 00:11:25,561 --> 00:11:28,994 bad, is there any contradiction that you have to square your 222 00:11:28,994 --> 00:11:30,594 messaging on that? 223 00:11:30,594 --> 00:11:34,361 Mr. Carney: No, I don't think -- if you're asking me is the wind energy tax 224 00:11:34,361 --> 00:11:38,761 credit that helps support thousands of jobs and, 225 00:11:38,761 --> 00:11:44,060 importantly, contributes to the development and growth of clean 226 00:11:44,061 --> 00:11:46,828 energy technologies in this country, so the jobs in those 227 00:11:46,828 --> 00:11:49,961 industries are created in this country, I would say absolutely yes. 228 00:11:49,961 --> 00:11:51,761 And a number of Republicans agree with us. 229 00:11:51,761 --> 00:11:54,593 If you ask me if an industry -- we're talking about clean 230 00:11:54,594 --> 00:11:55,961 energy, energy jobs of the future -- 231 00:11:55,961 --> 00:11:59,961 if you're asking if subsidies that have been in effect for 232 00:11:59,961 --> 00:12:03,561 100 years for the oil and gas industry, 233 00:12:03,561 --> 00:12:07,194 taxpayer subsidies given to an industry that is doing quite 234 00:12:07,194 --> 00:12:09,694 well, as everyone here who has filled up their tank recently 235 00:12:09,695 --> 00:12:13,661 can attest, whether those subsidies and special tax 236 00:12:13,661 --> 00:12:15,428 breaks should be continued, the answer is no. 237 00:12:15,428 --> 00:12:16,761 They're bad policy. 238 00:12:16,761 --> 00:12:20,928 That's something that actually Ronald Reagan agrees with. 239 00:12:20,928 --> 00:12:24,761 He said numerous times he had proposed to close that special 240 00:12:24,761 --> 00:12:28,428 tax break and loophole for the oil and gas industry back in 241 00:12:28,428 --> 00:12:32,661 1985 when he thought at the time that the need for that 242 00:12:32,661 --> 00:12:38,161 subsidization of the oil and gas industry had run its course. 243 00:12:38,161 --> 00:12:40,026 And that was almost 30 years ago. 244 00:12:40,027 --> 00:12:43,027 The Press: Just on Syria briefly, is the U.S. government helping in any 245 00:12:43,027 --> 00:12:46,828 way to train Syrian opposition rebels? 246 00:12:46,828 --> 00:12:52,861 Mr. Carney: I think you saw Secretary Kerry announce an increase in our 247 00:12:52,861 --> 00:12:57,328 assistance to the opposition, the Syrian Opposition Coalition, 248 00:12:57,328 --> 00:12:58,328 in Rome today. 249 00:12:58,328 --> 00:13:01,394 He stood with our partners in that coalition and reaffirmed 250 00:13:01,394 --> 00:13:04,294 the commitment of President Obama to help the Syrian people 251 00:13:04,294 --> 00:13:07,627 transition to a Democratic inclusive and peaceful Syria. 252 00:13:07,628 --> 00:13:11,428 Bashar al-Assad has lost all legitimacy and must go. 253 00:13:11,428 --> 00:13:13,994 We stand united with the Syrian people on this, 254 00:13:13,994 --> 00:13:16,594 and we will continue to offer support to the Syrian opposition 255 00:13:16,594 --> 00:13:19,661 even as other countries choose to make it possible for Assad to 256 00:13:19,661 --> 00:13:24,127 continue his violent campaign against his own people. 257 00:13:24,127 --> 00:13:28,560 Secretary Kerry announced today that to translate our support 258 00:13:28,561 --> 00:13:31,461 into tangible assistance, we will provide an additional 259 00:13:31,461 --> 00:13:35,428 $60 million in nonlethal support to the Coalition's 260 00:13:35,428 --> 00:13:36,428 operational needs. 261 00:13:36,428 --> 00:13:40,161 That comes on top of $50 million already provided in nonlethal 262 00:13:40,161 --> 00:13:44,895 assistance to the opposition, and is separate from the $385 263 00:13:44,895 --> 00:13:46,828 million in humanitarian assistance that we have 264 00:13:46,828 --> 00:13:50,060 been providing to the Syrian population. 265 00:13:50,061 --> 00:13:50,928 The Press: Jay? 266 00:13:50,928 --> 00:13:51,961 Mr. Carney: Yes, Major. 267 00:13:51,961 --> 00:13:53,194 The Press: I'll get to sequester in a minute. 268 00:13:53,194 --> 00:13:55,560 I just wondered if the President took note yesterday at all of 269 00:13:55,561 --> 00:13:57,394 the oral arguments before the Supreme Court on the Voting 270 00:13:57,394 --> 00:13:59,294 Rights Act, if he was briefed on it, 271 00:13:59,294 --> 00:14:00,394 has any particular reaction to it. 272 00:14:00,394 --> 00:14:01,628 It could be described in many ways, 273 00:14:01,628 --> 00:14:04,528 but lively would be one way to describe it. 274 00:14:04,528 --> 00:14:05,994 Mr. Carney: I haven't spoken with him about it. 275 00:14:05,994 --> 00:14:09,928 I know that White House Counsel Kathy Ruemmler was 276 00:14:09,928 --> 00:14:12,828 in attendance, but I have not spoken with the President so I 277 00:14:12,828 --> 00:14:17,026 don't have a reaction from him on those arguments. 278 00:14:17,027 --> 00:14:22,027 I will say that while I can't comment on specific litigation 279 00:14:22,027 --> 00:14:24,194 -- and for comment on that, I would refer you to the 280 00:14:24,194 --> 00:14:26,593 Department of Justice -- I can say that it is the President's 281 00:14:26,594 --> 00:14:29,027 position and the White House position that voting is a basic 282 00:14:29,027 --> 00:14:30,261 democratic right. 283 00:14:30,261 --> 00:14:33,560 And the reauthorization of the Voting Rights Act itself passed 284 00:14:33,561 --> 00:14:35,928 with bipartisan support in Congress and was signed into 285 00:14:35,928 --> 00:14:39,061 law by President Bush just seven years ago. 286 00:14:39,061 --> 00:14:41,194 The protections offered in the Voting Rights Act have 287 00:14:41,194 --> 00:14:44,493 been critical to reducing discrimination in voting 288 00:14:44,494 --> 00:14:47,895 in the more than four decades since the law was first passed, 289 00:14:47,895 --> 00:14:49,593 and continue to play an important role. 290 00:14:49,594 --> 00:14:52,628 As the President has said, "We must remain vigilant 291 00:14:52,628 --> 00:14:56,027 in guaranteeing access to the ballot box." 292 00:14:56,027 --> 00:14:58,328 The Press: On the sequester issues, when will the President's budget be 293 00:14:58,328 --> 00:15:01,093 sent to the Congress, and why is it so far behind schedule? 294 00:15:01,094 --> 00:15:03,094 Mr. Carney: Well, we've addressed this question in the past. 295 00:15:03,094 --> 00:15:04,194 I don't have a date -- 296 00:15:04,194 --> 00:15:04,928 The Press: There's word of a new delay. 297 00:15:04,928 --> 00:15:05,994 That's the reason I'm bringing it up. 298 00:15:05,994 --> 00:15:06,994 Mr. Carney: Well, I don't know about that. 299 00:15:06,994 --> 00:15:07,961 I don't have a date certain. 300 00:15:07,961 --> 00:15:10,094 I don't think we've provided a date certain for when the budget 301 00:15:10,094 --> 00:15:14,795 will be put forward, but I think it will be in March. 302 00:15:14,795 --> 00:15:16,294 The Press: And is sequester complicating it? 303 00:15:16,294 --> 00:15:19,961 Mr. Carney: I think that the series of manufactured crises around 304 00:15:19,961 --> 00:15:25,628 budget issues certainly has resulted at least in part in 305 00:15:25,628 --> 00:15:28,328 those experts in the administration who work 306 00:15:28,328 --> 00:15:29,494 on those issues being -- 307 00:15:29,494 --> 00:15:32,661 having to spend a lot of time dealing with those crises rather 308 00:15:32,661 --> 00:15:34,661 than on that. 309 00:15:34,661 --> 00:15:39,227 But that's part of the job, and they're working on the budget. 310 00:15:39,227 --> 00:15:41,127 The Press: The Education Secretary was here yesterday. 311 00:15:41,127 --> 00:15:43,261 He said some things that didn't prove to be true 312 00:15:43,261 --> 00:15:48,161 about the immediacy of pink slips for teachers. 313 00:15:48,161 --> 00:15:51,493 He mentioned a specific school district in West Virginia. 314 00:15:51,494 --> 00:15:53,227 They're not sequester-related at all. 315 00:15:53,227 --> 00:15:55,461 He made some sort of mild -- suggested that 316 00:15:55,461 --> 00:15:56,227 they might not be. 317 00:15:56,227 --> 00:15:57,528 They're clearly not. 318 00:15:57,528 --> 00:16:00,194 How confident are you, Jay, and confident is this administration 319 00:16:00,194 --> 00:16:03,060 that the things it's saying and the portrait it is presenting to 320 00:16:03,061 --> 00:16:06,428 the country is not only accurate but will stand the scrutiny of 321 00:16:06,428 --> 00:16:08,461 time once these cuts begin? 322 00:16:08,461 --> 00:16:09,561 Mr. Carney: Well, we're very confident -- 323 00:16:09,561 --> 00:16:11,594 The Press: Because it's not the first time that there was a note 324 00:16:11,594 --> 00:16:14,161 of exaggeration or factual inaccuracy. 325 00:16:14,161 --> 00:16:14,661 Mr. Carney: Oh, really? 326 00:16:14,661 --> 00:16:17,828 Because if you want to provide other examples, I'd take them. 327 00:16:17,828 --> 00:16:21,194 The Press: The FAA can't explain definitively there will 328 00:16:21,194 --> 00:16:21,895 be 90-minute delays. 329 00:16:21,895 --> 00:16:23,394 That's another example. 330 00:16:23,394 --> 00:16:25,428 Mr. Carney: Well, I don't know that the Secretary of Transportation 331 00:16:25,428 --> 00:16:29,361 was giving you an absolute minute target for how much 332 00:16:29,361 --> 00:16:30,394 the delays will be. 333 00:16:30,394 --> 00:16:32,695 If there are going to be delays as a result of reduction in 334 00:16:32,695 --> 00:16:36,394 man-hours and personnel among our air traffic controllers, 335 00:16:36,394 --> 00:16:37,561 that's a fact. 336 00:16:37,561 --> 00:16:41,161 And I hope you keep that in mind when you're on your next 337 00:16:41,161 --> 00:16:42,627 commercial flight and you're delayed, 338 00:16:42,628 --> 00:16:45,761 if that does in fact come into effect with the sequester. 339 00:16:45,761 --> 00:16:47,560 I would refer you to the Department of Education 340 00:16:47,561 --> 00:16:49,795 and to the superintendent of schools in the district that 341 00:16:49,795 --> 00:16:53,728 you mentioned for specifics about that. 342 00:16:53,728 --> 00:16:55,761 I'm certainly not familiar with it. 343 00:16:55,761 --> 00:16:59,194 I can tell you that the impacts of sequester are real, 344 00:16:59,194 --> 00:17:00,026 and to diminish them -- 345 00:17:00,027 --> 00:17:01,328 The Press: But you're familiar with that example -- 346 00:17:01,328 --> 00:17:02,093 it's wrong. 347 00:17:02,094 --> 00:17:02,728 That was wrong. 348 00:17:02,728 --> 00:17:03,527 Mr. Carney: Well, I'm unfamiliar of the example. 349 00:17:03,528 --> 00:17:04,895 I would refer you to the Department of Education 350 00:17:04,895 --> 00:17:06,761 and to the superintendent of the school district for more 351 00:17:06,761 --> 00:17:07,728 information about it. 352 00:17:07,728 --> 00:17:08,528 I don't have it. 353 00:17:08,528 --> 00:17:09,993 What I can tell you is that -- 354 00:17:09,993 --> 00:17:13,194 The Press: Jay, it came from your podium, right? 355 00:17:13,194 --> 00:17:13,860 You guys said that. 356 00:17:13,861 --> 00:17:14,861 You guys made the statement. 357 00:17:14,861 --> 00:17:15,861 The Press: It was in this room, and -- 358 00:17:15,861 --> 00:17:17,061 Mr. Carney: I'm just saying I don't have any -- 359 00:17:17,060 --> 00:17:20,261 I am not personally in contact with individual 360 00:17:20,261 --> 00:17:21,161 school districts -- 361 00:17:21,161 --> 00:17:22,695 The Press: So you're asserting something and you're asking us to check 362 00:17:22,694 --> 00:17:24,927 with a local school affiliate on whether or not -- 363 00:17:24,928 --> 00:17:25,761 Mr. Carney: No, no, Hans. 364 00:17:25,761 --> 00:17:28,528 Let me rewind the tape where I said I would refer you to the 365 00:17:28,528 --> 00:17:31,094 Department of Education, which is here in Washington, 366 00:17:31,094 --> 00:17:34,094 D.C., not a local school district, for more information. 367 00:17:34,094 --> 00:17:35,027 The Press: You also referred us to the district. 368 00:17:35,027 --> 00:17:36,628 Mr. Carney: Well, obviously, the school district is a good place to go 369 00:17:36,628 --> 00:17:38,160 for information about the school district. 370 00:17:38,161 --> 00:17:39,728 The Press: But they said the information said at that podium was false, 371 00:17:39,728 --> 00:17:40,661 it was wrong. 372 00:17:40,661 --> 00:17:41,861 So I'm asking you to acknowledge that. 373 00:17:41,861 --> 00:17:43,461 Mr. Carney: Jon, I don't have any more for you in it. 374 00:17:43,461 --> 00:17:44,695 I welcome -- 375 00:17:44,695 --> 00:17:47,593 I encourage you to make phone calls in the old-fashioned 376 00:17:47,594 --> 00:17:50,161 reporting sense to find out more if you like. 377 00:17:50,161 --> 00:17:51,461 I don't have anything more for you on it. 378 00:17:51,461 --> 00:17:56,895 The fact is the effects of sequester will be real if it 379 00:17:56,895 --> 00:17:59,328 takes place, beginning tomorrow night. 380 00:17:59,328 --> 00:18:04,394 In Ohio -- Ohio will lose approximately $25.1 million 381 00:18:04,394 --> 00:18:07,061 in funding for primary and secondary education, 382 00:18:07,061 --> 00:18:10,328 putting around 350 teacher and aide jobs at risk. 383 00:18:10,328 --> 00:18:13,528 In addition, about 34,000 fewer students would be served, 384 00:18:13,528 --> 00:18:16,695 and approximately 100 fewer schools would receive funding. 385 00:18:16,695 --> 00:18:19,761 If you don't think that's real -- 386 00:18:19,761 --> 00:18:22,428 if this happens, you should go out to Ohio and ask the families 387 00:18:22,428 --> 00:18:24,561 that are affected if they think it's real. 388 00:18:24,561 --> 00:18:27,895 California will lose about $3.3 million in funding for jobs 389 00:18:27,895 --> 00:18:30,394 search assistance, referral, and placement -- 390 00:18:30,394 --> 00:18:34,695 meaning around 129,770 fewer people will get the help and 391 00:18:34,695 --> 00:18:36,027 skills they need to find employment. 392 00:18:36,027 --> 00:18:39,161 If you don't think that the effects of sequester are real, 393 00:18:39,161 --> 00:18:42,594 if sequester takes place, after a few weeks, fly to California, 394 00:18:42,594 --> 00:18:44,895 go to a jobs assistance placement office, 395 00:18:44,895 --> 00:18:46,661 find the people who aren't getting served, 396 00:18:46,661 --> 00:18:48,394 and ask them if they think it's real. 397 00:18:48,394 --> 00:18:52,494 Ask the family whose child will not have a slot in Head Start 398 00:18:52,494 --> 00:18:53,628 whether they think it's real. 399 00:18:53,628 --> 00:18:56,695 Ask the civilian Defense Department employee, 400 00:18:56,695 --> 00:18:58,961 who's already gotten a notification that he or 401 00:18:58,961 --> 00:18:59,461 she will -- 402 00:18:59,461 --> 00:19:00,294 The Press: But even the President has said that -- 403 00:19:00,294 --> 00:19:04,328 Mr. Carney: Jessica, let me finish -- that he or she will be furloughed, 404 00:19:04,328 --> 00:19:06,161 whether that has a real impact. 405 00:19:06,161 --> 00:19:09,494 They might lose 10 or 20% of their pay for the month or the 406 00:19:09,494 --> 00:19:12,226 year -- whether that has a real impact on their family budget. 407 00:19:12,227 --> 00:19:15,895 I think to suggest otherwise is -- 408 00:19:15,895 --> 00:19:17,628 The Press: No one in this room suggested otherwise. 409 00:19:17,628 --> 00:19:19,226 I asked you about what the Education Secretary said -- 410 00:19:19,227 --> 00:19:20,528 Mr. Carney: And I'm saying for more information about that you 411 00:19:20,528 --> 00:19:22,561 should go to the Department of Education. 412 00:19:22,561 --> 00:19:24,494 What I'm saying is you're using an example -- 413 00:19:24,494 --> 00:19:25,394 again, I don't have details on it -- 414 00:19:25,394 --> 00:19:27,728 to suggest that the whole argument -- 415 00:19:27,728 --> 00:19:28,461 The Press: I asked you about it. 416 00:19:28,461 --> 00:19:29,194 I just asked you. 417 00:19:29,194 --> 00:19:32,428 Mr. Carney: Right, again, let's rewind the tape, 418 00:19:32,428 --> 00:19:34,961 because what you said after that was, do you think -- 419 00:19:34,961 --> 00:19:37,361 using this as an example -- that we're exaggerating the 420 00:19:37,361 --> 00:19:38,695 effects of sequester. 421 00:19:38,695 --> 00:19:40,461 And I just gave you concrete examples of what's going 422 00:19:40,461 --> 00:19:41,461 to happen. 423 00:19:41,461 --> 00:19:43,994 Those are real people with real impacts. 424 00:19:43,994 --> 00:19:47,394 And I think they wonder, when they sit around their kitchen 425 00:19:47,394 --> 00:19:51,528 tables, why Washington can't compromise, and in this case, 426 00:19:51,528 --> 00:19:56,261 because compromise represents willingness to accept policies 427 00:19:56,261 --> 00:19:58,828 that aren't 100% of what you want. 428 00:19:58,828 --> 00:20:00,895 The President has done that again and again. 429 00:20:00,895 --> 00:20:04,494 Unfortunately, Republicans seem to be unwilling to do that when 430 00:20:04,494 --> 00:20:07,328 it comes to sequester, so the sequester may take place with 431 00:20:07,328 --> 00:20:09,594 the effects that we've talked about. 432 00:20:09,594 --> 00:20:11,361 The Press: Even the President said last night, 433 00:20:11,361 --> 00:20:14,227 economists say this is not a cliff, it's a tumble downward. 434 00:20:14,227 --> 00:20:17,895 It's conceivable in the first few weeks, the first month, 435 00:20:17,895 --> 00:20:20,828 that a lot of people may not notice the full impact 436 00:20:20,828 --> 00:20:21,761 of the sequester. 437 00:20:21,761 --> 00:20:22,394 Mr. Carney: Sure. 438 00:20:22,394 --> 00:20:25,027 The Press: Is he concerned that you've overstated the impact of it 439 00:20:25,027 --> 00:20:27,227 initially and he's trying to dial it back? 440 00:20:27,227 --> 00:20:32,895 Mr. Carney: It's our responsibility to be upfront about the fact that you 441 00:20:32,895 --> 00:20:37,928 cannot responsibly cut $85 billion out of the budget in 442 00:20:37,928 --> 00:20:40,494 seven months without having -- in the way that the law 443 00:20:40,494 --> 00:20:45,328 is designed without having dramatic effects on the defense 444 00:20:45,328 --> 00:20:48,728 industry and civilian workers, on our national security 445 00:20:48,728 --> 00:20:52,027 readiness, on teachers, on kids in Head Start. 446 00:20:52,027 --> 00:20:53,094 That's just a fact. 447 00:20:53,094 --> 00:20:53,994 It's also a -- 448 00:20:53,994 --> 00:20:55,895 The Press: It's a markedly different tone from the tone that, for example, 449 00:20:55,895 --> 00:20:58,094 was in what the Attorney General said when he says, 450 00:20:58,094 --> 00:21:00,394 this is going to have an impact on the safety of this country, 451 00:21:00,394 --> 00:21:02,428 and anyone who says otherwise is lying. 452 00:21:02,428 --> 00:21:05,994 Mr. Carney: But that's -- if you reduce the number of border security 453 00:21:05,994 --> 00:21:07,860 guards, that has an impact on our safety. 454 00:21:07,861 --> 00:21:11,861 If you are forced because of the sequester to change our military 455 00:21:11,861 --> 00:21:14,227 readiness posture, that has an effect on our safety. 456 00:21:14,227 --> 00:21:16,561 I think the reporters are the ones who are suggesting that we 457 00:21:16,561 --> 00:21:19,961 -- that all of this was going to happen the stroke after midnight 458 00:21:19,961 --> 00:21:21,628 when the sequester goes into effect. 459 00:21:21,628 --> 00:21:22,461 We've never said that. 460 00:21:22,461 --> 00:21:25,361 We've always been clear about when you talk about -- 461 00:21:25,361 --> 00:21:28,861 furloughs, notices go out; once you receive a notice there's 462 00:21:28,861 --> 00:21:32,994 always a 30-day warning before the furloughs actually begin. 463 00:21:32,994 --> 00:21:36,127 We've been very clear about the different impacts. 464 00:21:36,127 --> 00:21:37,628 When Arne Duncan was here yesterday, 465 00:21:37,628 --> 00:21:40,593 Secretary of Education, he made clear that a lot of the actual 466 00:21:40,594 --> 00:21:45,161 effects in the education world won't be felt concretely until 467 00:21:45,161 --> 00:21:47,561 the fall because that's when the new school year begins. 468 00:21:47,561 --> 00:21:50,194 There are some specific areas like school districts outside 469 00:21:50,194 --> 00:21:55,127 of military bases or on Indian reservations that will feel the 470 00:21:55,127 --> 00:21:57,394 impact immediately because they'll be forced by the nature 471 00:21:57,394 --> 00:22:00,961 of their grants to cut their budgets for this school year. 472 00:22:00,961 --> 00:22:02,594 We've been very clear. 473 00:22:02,594 --> 00:22:04,161 What the President said last night is -- 474 00:22:04,161 --> 00:22:05,494 and I think what other people have said -- 475 00:22:05,494 --> 00:22:07,561 is that this will be a rolling impact, 476 00:22:07,561 --> 00:22:09,695 an effect that will build and build and build. 477 00:22:09,695 --> 00:22:13,261 And as the CBO has said, and as outside economic organizations 478 00:22:13,261 --> 00:22:17,695 have said, we'll see a contraction in the amount 479 00:22:17,695 --> 00:22:22,727 of GDP growth -- reduction in the amount of GDP growth by a 480 00:22:22,728 --> 00:22:24,628 full half of a percent or more. 481 00:22:24,628 --> 00:22:27,593 And we'll see up to 750,000 jobs lost. 482 00:22:27,594 --> 00:22:28,928 That's the CBO. 483 00:22:28,928 --> 00:22:31,394 That's Moody's and Macroeconomics Advisors. 484 00:22:31,394 --> 00:22:33,994 So that's real. 485 00:22:33,994 --> 00:22:36,160 At least we agree with those assessments. 486 00:22:36,161 --> 00:22:37,494 And it affects real people. 487 00:22:37,494 --> 00:22:39,328 The Press: On a different topic, at last year's White House 488 00:22:39,328 --> 00:22:41,795 Correspondents Dinner, the President said he values a 489 00:22:41,795 --> 00:22:44,428 free press that is not afraid to ask questions, 490 00:22:44,428 --> 00:22:47,261 to examine and to criticize. 491 00:22:47,261 --> 00:22:50,360 Has he ever spoken to his aides about the tone he'd like them to 492 00:22:50,361 --> 00:22:53,461 take, you all to take, when talking to the press? 493 00:22:53,461 --> 00:22:56,928 Mr. Carney: Look, I think the President expects us to fully explain his 494 00:22:56,928 --> 00:23:02,528 policies, to answer questions about his positions, 495 00:23:02,528 --> 00:23:07,261 and to make clear when we believe factual errors are 496 00:23:07,261 --> 00:23:08,928 being stated, which is what we do. 497 00:23:08,928 --> 00:23:14,594 And look, I think as anyone who has done this from either side 498 00:23:14,594 --> 00:23:18,728 of this podium can tell you, these are about real issues. 499 00:23:18,728 --> 00:23:22,994 These are about the concrete effects of policy on people's 500 00:23:22,994 --> 00:23:28,194 lives, on our national security, on our children's future. 501 00:23:28,194 --> 00:23:32,661 And everybody who's involved in these issues feels passionately 502 00:23:32,661 --> 00:23:33,661 about them. 503 00:23:33,661 --> 00:23:37,928 But we are enormously respectful of the work that you do, 504 00:23:37,928 --> 00:23:42,294 that I used to do, and we also believe it's important for us to 505 00:23:42,294 --> 00:23:46,194 make clear when we think, as we have in the past, 506 00:23:46,194 --> 00:23:48,261 somebody is out there getting the facts wrong. 507 00:23:48,261 --> 00:23:51,194 The Press: So when Gene Sperling told Bob Woodward that he might regret 508 00:23:51,194 --> 00:23:53,226 his reporting, what was intended by that? 509 00:23:53,227 --> 00:23:54,695 Mr. Carney: Jessica, don't you think it would be a responsible thing to 510 00:23:54,695 --> 00:23:57,160 ask that question in the context of the full email since we know 511 00:23:57,161 --> 00:23:58,895 what the full email said, where Gene Sperling, 512 00:23:58,895 --> 00:24:01,828 in keeping with a demeanor I have been familiar with for 513 00:24:01,828 --> 00:24:05,061 more than 20 years, was incredibly respectful, 514 00:24:05,061 --> 00:24:07,593 referred to Mr. Woodward as his friend, 515 00:24:07,594 --> 00:24:11,728 and apologized for raising his voice? 516 00:24:11,728 --> 00:24:15,695 I think you cannot read those emails and come away with the 517 00:24:15,695 --> 00:24:18,660 impression that Gene was threatening anybody, 518 00:24:18,661 --> 00:24:22,661 as I think others have observed. 519 00:24:22,661 --> 00:24:25,428 The point, though -- I wish that reporters would pay attention to 520 00:24:25,428 --> 00:24:28,261 the policy substance of that email because the point that 521 00:24:28,261 --> 00:24:30,394 Gene was making is a point that I've made and others have made 522 00:24:30,394 --> 00:24:31,628 and the President has made. 523 00:24:31,628 --> 00:24:38,428 This is really important policy, and one thing that is absolutely 524 00:24:38,428 --> 00:24:40,194 irrefutable is that the President, 525 00:24:40,194 --> 00:24:43,094 from day one of signing the Budget Control Act, 526 00:24:43,094 --> 00:24:46,828 has been absolutely clear that in dealing with deficit 527 00:24:46,828 --> 00:24:50,027 reduction going forward and in replacing and eliminating the 528 00:24:50,027 --> 00:24:53,227 sequester, he believed we had to have balance. 529 00:24:53,227 --> 00:24:55,561 You'd have to have your head in the sand not to know that. 530 00:24:55,561 --> 00:24:58,528 Everybody here has reported it ad nauseam. 531 00:24:58,528 --> 00:25:02,695 So I think that's the fact that Gene was concerned with. 532 00:25:02,695 --> 00:25:04,994 That's the fact that we're all concerned with. 533 00:25:04,994 --> 00:25:06,561 The Press: I'll stop after this, I promise. 534 00:25:06,561 --> 00:25:08,727 But as you've remarked, you're in a unique position because 535 00:25:08,728 --> 00:25:12,528 you've been on both sides of a reporter-source relationship. 536 00:25:12,528 --> 00:25:16,094 Any regret about the erosion of trust between 537 00:25:16,094 --> 00:25:17,294 sources and reporters? 538 00:25:17,294 --> 00:25:19,027 Does it hurt the public? 539 00:25:19,027 --> 00:25:24,328 Mr. Carney: Well, look, I think that I've seen this play out before in 540 00:25:24,328 --> 00:25:26,895 both White Houses I've covered previously. 541 00:25:26,895 --> 00:25:31,528 I think we've talked about this just in recent weeks where the 542 00:25:31,528 --> 00:25:33,795 naturally adversarial relationship between 543 00:25:33,795 --> 00:25:36,695 the press corps and any administration, any White House, 544 00:25:36,695 --> 00:25:39,828 means that you guys, appropriately, 545 00:25:39,828 --> 00:25:43,226 are always demanding more information and holding our 546 00:25:43,227 --> 00:25:44,227 feet to the fire. 547 00:25:44,227 --> 00:25:45,661 That's absolutely how it should be. 548 00:25:45,661 --> 00:25:48,227 You go out and you report everything you can find about 549 00:25:48,227 --> 00:25:50,261 what we're doing and what Congress is doing and what 550 00:25:50,261 --> 00:25:51,928 the agencies are doing. 551 00:25:51,928 --> 00:25:54,695 And we get out there and try to explain the President's 552 00:25:54,695 --> 00:25:59,394 positions and articulate why we think his positions are the 553 00:25:59,394 --> 00:26:04,194 right positions, and contest assertions to the contrary. 554 00:26:04,194 --> 00:26:05,594 'Twas ever thus. 555 00:26:05,594 --> 00:26:09,127 And it was certainly that way when I got here and covered the 556 00:26:09,127 --> 00:26:10,728 Clinton White House, and when I was covering the 557 00:26:10,728 --> 00:26:11,728 Bush White House. 558 00:26:11,728 --> 00:26:12,728 And I don't think it's any different now. 559 00:26:12,728 --> 00:26:17,494 In fact, I would suggest that the atmosphere in this room was 560 00:26:17,494 --> 00:26:23,761 a lot more tense when I got here in 1993 than it is today. 561 00:26:23,761 --> 00:26:26,360 The Press: Jay, when you were jus telling Jessica that the tone of that 562 00:26:26,361 --> 00:26:28,661 email from Gene Sperling was respectful -- 563 00:26:28,661 --> 00:26:30,094 last night on Twitter, David Plouffe, 564 00:26:30,094 --> 00:26:32,961 who very recently was a very senior advisor inside this White 565 00:26:32,961 --> 00:26:36,094 House, put out a tweet that was basically comparing Bob Woodward 566 00:26:36,094 --> 00:26:40,394 to an aging baseball player who has sort of lost his talent, 567 00:26:40,394 --> 00:26:42,561 and sort of belittled him. 568 00:26:42,561 --> 00:26:43,561 Do you think that's respectful? 569 00:26:43,561 --> 00:26:46,226 Is that something the White House also supports? 570 00:26:46,227 --> 00:26:51,061 Mr. Carney: Ed, the fact of the matter is there was an accusation that 571 00:26:51,061 --> 00:26:52,061 Gene had been threatening. 572 00:26:52,061 --> 00:26:55,261 And as I think everybody who knows Gene knows, 573 00:26:55,261 --> 00:26:56,594 that's hard to believe. 574 00:26:56,594 --> 00:26:58,461 So, one. 575 00:26:58,461 --> 00:27:00,628 Two, Gene has been working on these issues all his life. 576 00:27:00,628 --> 00:27:02,428 He is very passionate about them. 577 00:27:02,428 --> 00:27:06,394 He works 20 hours a day, often, on behalf of the American people 578 00:27:06,394 --> 00:27:09,961 and this President to try to advance an economic agenda that 579 00:27:09,961 --> 00:27:13,328 helps middle-class Americans, average Americans. 580 00:27:13,328 --> 00:27:15,328 And he'll continue to do that. 581 00:27:17,027 --> 00:27:20,728 Look, I have enormous respect for the work that Bob Woodward 582 00:27:20,728 --> 00:27:21,728 is famous for. 583 00:27:21,728 --> 00:27:24,161 I think a lot of us probably got into the business in part 584 00:27:24,161 --> 00:27:25,161 because we read 585 00:27:25,161 --> 00:27:27,161 "All The President's Men" or we saw the movie, or both. 586 00:27:29,328 --> 00:27:35,226 But we had a factual disagreement that I think we 587 00:27:35,227 --> 00:27:38,928 stand by, which is that the President was very clear from 588 00:27:38,928 --> 00:27:43,861 the beginning that he would push balanced deficit reduction. 589 00:27:43,861 --> 00:27:45,127 I mean, how can that be a mystery? 590 00:27:45,127 --> 00:27:47,461 That's been his position since the day he signed the Budget 591 00:27:47,461 --> 00:27:48,461 Control Act. 592 00:27:48,461 --> 00:27:51,561 It was even the position that various Republicans adopted in 593 00:27:51,561 --> 00:27:53,293 trying to eliminate the sequester. 594 00:27:53,294 --> 00:27:56,127 So the phrase, "moving the goalposts" is not one 595 00:27:56,127 --> 00:27:56,860 we agree with. 596 00:27:56,861 --> 00:27:58,127 But that's it, really. 597 00:27:58,127 --> 00:27:59,661 It's just a disagreement about the facts. 598 00:27:59,661 --> 00:28:02,561 The Press: Okay, so we're concerned about the facts in this debate about 599 00:28:02,561 --> 00:28:03,794 the sequester. 600 00:28:03,795 --> 00:28:06,194 In the back-and-forth just here about Arne Duncan, 601 00:28:06,194 --> 00:28:08,061 are you acknowledging from this podium now, though, 602 00:28:08,061 --> 00:28:09,794 that some of the things he said yesterday were not true? 603 00:28:09,795 --> 00:28:11,761 Mr. Carney: Again, I haven't independently looked into them, 604 00:28:11,761 --> 00:28:12,761 so I can't really -- 605 00:28:12,761 --> 00:28:15,194 The Press: How can the public believe what you're saying day in, day out, 606 00:28:15,194 --> 00:28:17,661 about flight towers and everything else if you're 607 00:28:17,661 --> 00:28:18,728 not checking it out? 608 00:28:18,728 --> 00:28:20,795 Mr. Carney: Well, again, I had the Secretary of Transportation come up here 609 00:28:20,795 --> 00:28:24,328 and talk about the impacts on the FAA, 610 00:28:24,328 --> 00:28:27,061 the Secretary of Education talk about the impacts on 611 00:28:27,061 --> 00:28:28,461 areas of his budget. 612 00:28:28,461 --> 00:28:30,695 And that's because they're the experts in those fields. 613 00:28:30,695 --> 00:28:33,394 And I had the Secretary of Homeland Security talk about 614 00:28:33,394 --> 00:28:36,061 the effects on her areas of responsibility. 615 00:28:36,061 --> 00:28:40,360 So we do that because they know the most and the most in depth 616 00:28:40,361 --> 00:28:41,361 about those areas. 617 00:28:41,361 --> 00:28:43,828 So when you want an answer to a specific question I think you 618 00:28:43,828 --> 00:28:45,027 ought to take it to them. 619 00:28:45,027 --> 00:28:47,994 I think the broader point, setting aside that issue, 620 00:28:47,994 --> 00:28:52,928 was I think strongly made, which is that there will be 621 00:28:52,928 --> 00:28:56,528 substantial effects on school districts around the country, 622 00:28:56,528 --> 00:29:01,328 on budgets to help poor children and budgets to help disabled 623 00:29:01,328 --> 00:29:04,261 kids, which are, as Secretary Duncan described, 624 00:29:04,261 --> 00:29:07,161 two of the biggest portions of his budget and that will 625 00:29:07,161 --> 00:29:10,828 unavoidably be affected when sequester is implemented. 626 00:29:10,828 --> 00:29:16,961 So, again, those are real people out there who will suffer if 627 00:29:16,961 --> 00:29:21,361 sequester goes into effect and stays into effect for a 628 00:29:21,361 --> 00:29:22,461 substantial period of time. 629 00:29:22,461 --> 00:29:23,661 The Press: On a specific, substantive point, 630 00:29:23,661 --> 00:29:27,628 yesterday when you were asked about the ICE Agency releasing 631 00:29:27,628 --> 00:29:30,961 detainees apparently because of budget cuts around sequester, 632 00:29:30,961 --> 00:29:32,127 you had said that the White House did not 633 00:29:32,127 --> 00:29:33,127 intervene beforehand. 634 00:29:33,127 --> 00:29:35,895 There's been some reporting overnight that perhaps ICE is 635 00:29:35,895 --> 00:29:39,661 rethinking this, and I wonder has the White House since 636 00:29:39,661 --> 00:29:42,528 yesterday's briefing intervened with ICE and said this is not a 637 00:29:42,528 --> 00:29:43,961 good idea? 638 00:29:43,961 --> 00:29:44,961 Mr. Carney: Not that I'm aware of. 639 00:29:44,961 --> 00:29:48,094 Again, this was a decision made by career officials at ICE 640 00:29:48,094 --> 00:29:50,795 without any input from the White House as a result of fiscal 641 00:29:50,795 --> 00:29:53,628 uncertainty over the continuing resolution 642 00:29:53,628 --> 00:29:55,828 and possible sequestration. 643 00:29:55,828 --> 00:29:58,828 I have no more information today about it than I did yesterday. 644 00:29:58,828 --> 00:30:00,328 The Press: Okay, last thing on -- when you were talking about the 645 00:30:00,328 --> 00:30:03,261 relationship with press -- today Secretary Lew was 646 00:30:03,261 --> 00:30:04,661 just sworn in as the Treasury Secretary. 647 00:30:04,661 --> 00:30:07,061 You didn't let cameras or the press pool in. 648 00:30:07,061 --> 00:30:09,127 Why not? 649 00:30:09,127 --> 00:30:12,226 Mr. Carney: Well, it was a private ceremony with members of his family, 650 00:30:12,227 --> 00:30:13,528 including grandchildren. 651 00:30:13,528 --> 00:30:17,828 As you know, now Secretary Lew has served President Obama in 652 00:30:17,828 --> 00:30:19,961 four positions -- this is his fourth. 653 00:30:19,961 --> 00:30:25,161 And he and the President have become close through their 654 00:30:25,161 --> 00:30:27,861 service together and the President wanted to have 655 00:30:27,861 --> 00:30:32,594 this ceremony for Secretary Lew in the Oval Office because 656 00:30:32,594 --> 00:30:33,661 of that relationship. 657 00:30:33,661 --> 00:30:34,661 The Press: Okay, just the last thing on that, though. 658 00:30:34,661 --> 00:30:37,361 The AP reported in January of 2009 that the last Treasury 659 00:30:37,361 --> 00:30:39,561 Secretary, Tim Geithner, who I assume had his family there as 660 00:30:39,561 --> 00:30:42,593 well, was sworn in by the Vice President and the President was 661 00:30:42,594 --> 00:30:45,594 there, and actually made remarks about the financial crisis and 662 00:30:45,594 --> 00:30:47,361 said that we need to get our team in place. 663 00:30:47,361 --> 00:30:49,261 Right now there's a budget crisis that you've been talking 664 00:30:49,261 --> 00:30:50,695 about from this podium every day. 665 00:30:50,695 --> 00:30:53,394 Why wouldn't the President open it up to TV cameras and say -- 666 00:30:53,394 --> 00:30:56,227 Mr. Carney: Well, again, it was a ceremony, Ed, a family ceremony. 667 00:30:56,227 --> 00:31:01,227 The President has addressed the looming sequester challenge as 668 00:31:01,227 --> 00:31:02,227 recently as last night. 669 00:31:02,227 --> 00:31:06,328 He took questions on it from you guys less than a week ago 670 00:31:06,328 --> 00:31:07,328 on Friday. 671 00:31:07,328 --> 00:31:11,528 I'm sure he'll be talking with you about it in the future and 672 00:31:11,528 --> 00:31:14,227 making remarks about it in the future. 673 00:31:14,227 --> 00:31:17,795 Granted it's not as important as who he's playing golf with, 674 00:31:17,795 --> 00:31:22,828 but he will be talking about this very important policy 675 00:31:22,828 --> 00:31:24,728 issue and engaging with you on it in the future. 676 00:31:24,728 --> 00:31:25,394 Mara. 677 00:31:25,394 --> 00:31:27,728 The Press: You said earlier that you're going to be forced to cut 678 00:31:27,728 --> 00:31:30,695 security guards and that's because of the nature of the 679 00:31:30,695 --> 00:31:33,394 sequester -- it forces you to go down to the deepest level 680 00:31:33,394 --> 00:31:36,695 of government activity and then make the across-the-board cuts. 681 00:31:36,695 --> 00:31:42,328 Why not accept flexibility so you wouldn't have to do that? 682 00:31:42,328 --> 00:31:45,494 Mr. Carney: Well, as I said at the top, no amount of flexibility changes 683 00:31:45,494 --> 00:31:47,895 the fact that these severe cuts threaten thousands of 684 00:31:47,895 --> 00:31:50,528 middle-class jobs and slash vital services for children, 685 00:31:50,528 --> 00:31:52,561 seniors, and our troops and military families. 686 00:31:52,561 --> 00:31:56,293 You can't -- $85 billion, as we've had economic officials 687 00:31:56,294 --> 00:32:00,528 talk to you about and Cabinet Secretaries talk to you about -- 688 00:32:00,528 --> 00:32:05,928 there is no way to mitigate the damage that cuts made that 689 00:32:05,928 --> 00:32:09,161 deeply and that swiftly in the budgets identified go away. 690 00:32:09,161 --> 00:32:10,628 The Press: But it wouldn't have cut security guards. 691 00:32:10,628 --> 00:32:12,360 It would force you to make a choice. 692 00:32:12,361 --> 00:32:14,761 Mr. Carney: Mara, I'm not sure if you were here when Homeland Security 693 00:32:14,761 --> 00:32:17,094 Secretary Napolitano was here and explained how that's 694 00:32:17,094 --> 00:32:18,027 not the case. 695 00:32:18,027 --> 00:32:24,194 And in these personnel-intensive agencies when you're forced to 696 00:32:24,194 --> 00:32:26,561 deal with the kinds of cuts envisioned here, 697 00:32:26,561 --> 00:32:29,293 you have to apply them to personnel through furloughs 698 00:32:29,294 --> 00:32:32,861 and the like, or reduce man-hours. 699 00:32:32,861 --> 00:32:34,828 You cannot -- that's the problem. 700 00:32:34,828 --> 00:32:39,928 The Fed Chairman made clear that no changing of the nature of the 701 00:32:39,928 --> 00:32:45,227 $85 billion in cuts would change the effect on the economy, 702 00:32:45,227 --> 00:32:50,027 which he described as negative, in talking about the effect on 703 00:32:50,027 --> 00:32:51,695 our fiscal situation. 704 00:32:51,695 --> 00:32:59,127 The best way to go about this is to postpone the sequester 705 00:32:59,127 --> 00:33:02,394 or agree to a bigger deal that eliminates it entirely 706 00:33:02,394 --> 00:33:07,227 in a balanced way -- in away that doesn't ask seniors, 707 00:33:07,227 --> 00:33:14,994 or the border security guards, or middle-class families who 708 00:33:14,994 --> 00:33:19,528 depend on important services for disabled kids or help sending 709 00:33:19,528 --> 00:33:22,994 their kids to college -- if you ask them to bear the burden of 710 00:33:22,994 --> 00:33:25,593 this deficit reduction, the burden is onerous. 711 00:33:25,594 --> 00:33:29,428 If you spread out the burden and ask wealthy individuals, 712 00:33:29,428 --> 00:33:32,695 who enjoy advantages in the tax code that average Americans 713 00:33:32,695 --> 00:33:34,928 don't, to give up those advantages, 714 00:33:34,928 --> 00:33:38,695 if you ask industries and corporations that have special 715 00:33:38,695 --> 00:33:41,226 exceptions written into the tax code because they have really 716 00:33:41,227 --> 00:33:43,928 good lobbyists here in Washington to give up those 717 00:33:43,928 --> 00:33:46,494 special exceptions and exemptions, 718 00:33:46,494 --> 00:33:49,293 you can spread the burden and make it less onerous 719 00:33:49,294 --> 00:33:50,294 on regular folks. 720 00:33:50,294 --> 00:33:51,928 And that's the approach the President believes is the 721 00:33:51,928 --> 00:33:52,928 right way to go. 722 00:33:52,928 --> 00:33:54,695 The Press: I just have one question about Arne Duncan. 723 00:33:54,695 --> 00:33:58,027 Wait, can I just finish with one last question about Arne Duncan? 724 00:33:58,027 --> 00:34:02,294 Are you in essence saying that one inaccurate example should 725 00:34:02,294 --> 00:34:04,561 not undercut your larger argument about the overall -- 726 00:34:04,561 --> 00:34:07,628 Mr. Carney: I'm saying that I don't know the specifics about this example, 727 00:34:07,628 --> 00:34:09,828 but I'm certainly saying that the larger argument 728 00:34:09,828 --> 00:34:11,628 remains true. 729 00:34:11,628 --> 00:34:13,227 There's just -- it's irrefutable. 730 00:34:13,226 --> 00:34:15,860 It's been attested to by Republicans who, 731 00:34:15,860 --> 00:34:18,127 until they changed their political strategy, 732 00:34:18,127 --> 00:34:20,561 were shouting from the rooftops about the terrible 733 00:34:20,561 --> 00:34:22,661 effects of sequester. 734 00:34:22,661 --> 00:34:23,528 You guys reported on it -- 735 00:34:23,527 --> 00:34:25,026 The Press: You're asking for some forbearance on 736 00:34:25,027 --> 00:34:25,994 the specific examples. 737 00:34:25,994 --> 00:34:27,194 Mr. Carney: Again, I don't know the specifics so I'm not even 738 00:34:27,194 --> 00:34:28,328 sure I'm asking for forbearance. 739 00:34:28,328 --> 00:34:29,895 I'm just saying I don't know the specifics. 740 00:34:29,895 --> 00:34:30,695 Christi. 741 00:34:30,695 --> 00:34:31,994 The Press: Jay, thank you. 742 00:34:31,994 --> 00:34:33,594 I know you want to leave questions about the Prop 8 743 00:34:33,594 --> 00:34:36,895 brief to the DOJ, but as the President's spokesman, 744 00:34:36,895 --> 00:34:39,494 I wonder if you could just tell us a little bit about 745 00:34:39,494 --> 00:34:42,328 his deliberations on this. 746 00:34:42,328 --> 00:34:43,960 Mr. Carney: I really don't have anything for you on it. 747 00:34:43,960 --> 00:34:46,627 The President obviously has expressed an opinion in the 748 00:34:46,628 --> 00:34:49,695 past on this issue as a matter of policy. 749 00:34:49,695 --> 00:34:54,528 But when it comes to legal and constitutional issues around it, 750 00:34:54,527 --> 00:34:57,828 that's a jurisdiction that resides at the 751 00:34:57,828 --> 00:34:58,828 Department of Justice. 752 00:34:58,828 --> 00:35:00,428 So I don't have anything for you on it. 753 00:35:00,428 --> 00:35:02,227 The Press: A decision about whether to weigh in wouldn't be a policy 754 00:35:02,227 --> 00:35:04,127 decision made by the President? 755 00:35:04,127 --> 00:35:05,594 Mr. Carney: I just don't have anything more for you on it. 756 00:35:05,594 --> 00:35:08,761 I would refer you to the DOJ. 757 00:35:08,761 --> 00:35:10,227 Jon. 758 00:35:10,227 --> 00:35:12,828 The Press: Jay, just the bottom line on these questions about 759 00:35:12,828 --> 00:35:13,394 the sequester. 760 00:35:13,394 --> 00:35:14,593 What's it going to be like tomorrow? 761 00:35:14,594 --> 00:35:16,795 I mean, this thing is going to happen barring 762 00:35:16,795 --> 00:35:18,695 a legislative miracle. 763 00:35:18,695 --> 00:35:21,795 It's going to happen tomorrow, so what are we going to see? 764 00:35:21,795 --> 00:35:22,728 Mr. Carney: Well, it will happen Saturday. 765 00:35:22,728 --> 00:35:24,561 The Press: Well, it will happen tomorrow at 11:59 p.m. 766 00:35:24,561 --> 00:35:27,294 So what happens at 11:59 p.m. tomorrow? 767 00:35:27,294 --> 00:35:33,928 Mr. Carney: I think we've been very clear about various areas where these 768 00:35:33,928 --> 00:35:37,161 cuts once implemented will go into effect and the impacts 769 00:35:37,161 --> 00:35:40,294 they will have. 770 00:35:40,294 --> 00:35:42,661 Not all of them will be felt immediately, 771 00:35:42,661 --> 00:35:44,094 as I think we've been clear about -- 772 00:35:44,094 --> 00:35:46,394 Secretary Duncan, the President, others -- 773 00:35:46,394 --> 00:35:48,627 but there will be immediate effects. 774 00:35:48,628 --> 00:35:53,227 And if you doubt that, how do you -- 775 00:35:53,227 --> 00:35:54,127 The Press: -- immediate effects -- 776 00:35:54,127 --> 00:35:56,394 Mr. Carney: Okay, well, let's talk about GDP, which was, granted, 777 00:35:56,394 --> 00:36:00,127 revised upwards two-tenths of a percent for the fourth quarter. 778 00:36:00,127 --> 00:36:03,494 But it was as low a figure as we got, 779 00:36:03,494 --> 00:36:05,628 as every outside economist will tell you, 780 00:36:05,628 --> 00:36:07,528 because of the reduction -- 781 00:36:07,528 --> 00:36:10,961 in part because of the reduction in defense spending -- 782 00:36:10,961 --> 00:36:14,294 a historic 40-year low or drop -- 783 00:36:14,294 --> 00:36:16,828 in anticipation of the sequester. 784 00:36:16,828 --> 00:36:18,695 We saw it again yesterday, I believe it was, 785 00:36:18,695 --> 00:36:22,294 in the durable goods figures that showed almost all of the 786 00:36:22,294 --> 00:36:25,361 drop in durable goods attributable to defense 787 00:36:25,361 --> 00:36:29,194 sector reductions in spending, reductions and orders made by 788 00:36:29,194 --> 00:36:32,861 defense industry companies because of sequester. 789 00:36:32,861 --> 00:36:36,661 These have real effects on business and on jobs. 790 00:36:36,661 --> 00:36:38,895 And we will see it when -- 791 00:36:38,895 --> 00:36:43,094 we've seen it already from the notices that have gone out 792 00:36:43,094 --> 00:36:46,227 warning people that furlough notices will be forthcoming if 793 00:36:46,227 --> 00:36:47,861 sequester goes into effect. 794 00:36:47,861 --> 00:36:55,428 Now, I believe that if you're a middle-class family and the 795 00:36:55,428 --> 00:36:59,328 father or mother in that family gets a notice in a couple of 796 00:36:59,328 --> 00:37:01,695 days, or has gotten a notice already, 797 00:37:01,695 --> 00:37:04,161 that he or she will be getting a furlough notice and that that 798 00:37:04,161 --> 00:37:06,194 furlough will take effect in 30 days, 799 00:37:06,194 --> 00:37:08,828 that doesn't have an impact on your family in 30 days. 800 00:37:08,828 --> 00:37:10,795 It has an impact on your family right now, 801 00:37:10,795 --> 00:37:16,094 as you begin to contemplate life with less money to make 802 00:37:16,094 --> 00:37:17,194 the ends meet. 803 00:37:17,194 --> 00:37:18,961 And that's just -- these are real consequences. 804 00:37:18,961 --> 00:37:21,127 There will be families that get notices that there's not a slot 805 00:37:21,127 --> 00:37:23,695 anymore for their child in Head Start. 806 00:37:23,695 --> 00:37:27,127 And there will be families that have to deal with reduced hours 807 00:37:27,127 --> 00:37:31,728 if a father or mother is a border security guard or an 808 00:37:31,728 --> 00:37:33,027 air traffic controller. 809 00:37:33,027 --> 00:37:34,194 These are real-world impacts. 810 00:37:34,194 --> 00:37:37,861 They don't all happen on Saturday; 811 00:37:37,861 --> 00:37:38,993 it's a gradual process. 812 00:37:38,994 --> 00:37:43,194 But the cumulative impact of sequester will be significant 813 00:37:43,194 --> 00:37:46,861 to our economy and particularly so to the individuals affected. 814 00:37:46,861 --> 00:37:48,461 The Press: So what do you say to Mayor Bloomberg, 815 00:37:48,461 --> 00:37:52,627 who stood right over there yesterday and was asked about 816 00:37:52,628 --> 00:37:54,628 the warnings that have come out of the White House, 817 00:37:54,628 --> 00:37:56,328 and he said there's a lot of posturing. 818 00:37:56,328 --> 00:37:58,194 "Spare me, I live in that world. 819 00:37:58,194 --> 00:37:59,861 I mean, come on, let's get serious here." 820 00:37:59,861 --> 00:38:02,895 He was very dismissive of these warnings. 821 00:38:02,895 --> 00:38:04,994 Is Mayor Bloomberg just wrong about it? 822 00:38:04,994 --> 00:38:06,361 Mr. Carney: I wasn't there. 823 00:38:06,361 --> 00:38:08,428 I didn't hear what he had to say. 824 00:38:08,428 --> 00:38:09,961 The Press: That's what he said. 825 00:38:09,961 --> 00:38:14,694 Mr. Carney: Different cities and regions and states will have different 826 00:38:14,695 --> 00:38:17,994 effects, depending on what kind of funding they get in 827 00:38:17,994 --> 00:38:20,494 the affected areas from the federal government. 828 00:38:20,494 --> 00:38:23,061 I can't speak to what the impacts will be on 829 00:38:23,061 --> 00:38:24,061 New York City. 830 00:38:24,061 --> 00:38:25,661 But there will be real-world impacts. 831 00:38:25,661 --> 00:38:32,728 And it is I think just a fact that if you're at the receiving 832 00:38:32,728 --> 00:38:35,227 end of a notice that you're going to be furloughed or you're 833 00:38:35,227 --> 00:38:39,027 going to be laid off, that's nothing small. 834 00:38:39,027 --> 00:38:39,828 That's huge. 835 00:38:39,828 --> 00:38:44,528 And the people who get those notices will have 836 00:38:44,528 --> 00:38:47,227 Washington to blame -- in particular, unfortunately, 837 00:38:47,227 --> 00:38:49,928 the intransigence, the refusal to compromise and 838 00:38:49,928 --> 00:38:52,461 to do something reasonable and balanced that we've 839 00:38:52,461 --> 00:38:53,727 seen on Capitol Hill. 840 00:38:53,728 --> 00:38:55,761 The Press: Just one quick follow-up on the Woodward thing. 841 00:38:55,761 --> 00:39:00,494 Another longtime, respected Washington journalist, 842 00:39:00,494 --> 00:39:03,328 Ron Fournier, came out and talked about Woodward, 843 00:39:03,328 --> 00:39:05,194 and he said that -- he talked about his own story about how 844 00:39:05,194 --> 00:39:08,895 he's received many what he called "vulgar and abusive" 845 00:39:08,895 --> 00:39:12,194 emails and phone calls from White House officials. 846 00:39:12,194 --> 00:39:14,861 I mean, have you ever heard of anything like that? 847 00:39:14,861 --> 00:39:17,627 Mr. Carney: I've been on the receiving end of a few in previous 848 00:39:17,628 --> 00:39:21,728 White Houses and I think -- it certainly didn't trouble 849 00:39:21,728 --> 00:39:22,728 me too much. 850 00:39:22,728 --> 00:39:25,594 And I don't have any specific comment on that. 851 00:39:25,594 --> 00:39:26,895 The Press: Is it just whining by the -- 852 00:39:26,895 --> 00:39:33,294 Mr. Carney: I think this is a situation where people feel passionately 853 00:39:33,294 --> 00:39:39,828 about the policies that the President has and that previous 854 00:39:39,828 --> 00:39:40,994 Presidents have put forward. 855 00:39:40,994 --> 00:39:45,561 And my predecessors and others felt the same way, I'm sure. 856 00:39:45,561 --> 00:39:49,361 And reporters are under a great deal of competitive pressure not 857 00:39:49,361 --> 00:39:52,928 just to get scoops, but also to have the most 858 00:39:52,928 --> 00:39:55,661 noticed opinion or observation. 859 00:39:55,661 --> 00:39:58,828 And there are going to be disagreements about whether 860 00:39:58,828 --> 00:40:03,961 those facts or opinions or observations are on the mark. 861 00:40:03,961 --> 00:40:05,828 I think it should be that way. 862 00:40:05,828 --> 00:40:11,227 I never took it personally when my former boss here, 863 00:40:11,227 --> 00:40:13,027 Rahm Emanuel, back when I was a reporter, 864 00:40:13,027 --> 00:40:15,828 would get on the phone and give me an earful about something he 865 00:40:15,828 --> 00:40:17,795 didn't like. 866 00:40:17,795 --> 00:40:20,227 It didn't affect my relationship with him and it didn't stop me 867 00:40:20,227 --> 00:40:23,428 from talking to him. 868 00:40:23,428 --> 00:40:26,161 I just happened to know that was Rahm's way. 869 00:40:26,161 --> 00:40:29,494 And that was true in the Bush White House, 870 00:40:29,494 --> 00:40:30,695 not just the Clinton White House. 871 00:40:30,695 --> 00:40:32,695 The Press: It won't affect our relationship with you either, Jay. 872 00:40:32,695 --> 00:40:33,594 Mr. Carney: Thanks, Ed. 873 00:40:33,594 --> 00:40:35,461 The Press: Jay, would the White House concede in some form that 874 00:40:35,461 --> 00:40:39,461 this was a miscalculation to put forward the sequester as 875 00:40:39,461 --> 00:40:41,794 a forcing mechanism now that we're on the eve of 876 00:40:41,795 --> 00:40:43,261 it going into effect? 877 00:40:43,261 --> 00:40:44,528 Mr. Carney: I feel like this is Groundhog Day. 878 00:40:44,528 --> 00:40:46,828 Let's go back to -- 879 00:40:46,828 --> 00:40:47,994 The Press: But without relitigating the details, 880 00:40:47,994 --> 00:40:49,961 you guys played a part in some capacity of it -- 881 00:40:49,961 --> 00:40:51,361 the President or Jack Lew, Arne Duncan -- 882 00:40:51,361 --> 00:40:54,461 Mr. Carney: I think it's unfortunate that Republicans who, again, 883 00:40:54,461 --> 00:40:59,394 shouted from the rooftops -- and I could read page and page 884 00:40:59,394 --> 00:41:02,660 and page of quotes from Republicans who said sequester 885 00:41:02,661 --> 00:41:04,695 should never become law, it would be the worst possible 886 00:41:04,695 --> 00:41:08,928 thing for our national security and other aspects 887 00:41:08,928 --> 00:41:14,560 of the government -- who now think that sequester is an 888 00:41:14,561 --> 00:41:17,494 effective political tool and they're perfectly happy with 889 00:41:17,494 --> 00:41:20,261 the consequences of sequester. 890 00:41:20,261 --> 00:41:23,961 They were right that sequester was designed purposely to be 891 00:41:23,961 --> 00:41:25,093 bad policy. 892 00:41:25,094 --> 00:41:29,528 It was designed that way and to be equally onerous for both 893 00:41:29,528 --> 00:41:32,961 Republicans and Democrats so that the prospect of its 894 00:41:32,961 --> 00:41:36,160 implementation would compel Congress to make tough choices. 895 00:41:36,161 --> 00:41:40,061 Unfortunately, despite some -- going back to the argument about 896 00:41:40,061 --> 00:41:43,227 goalposts -- despite some proposals by some Republicans 897 00:41:43,227 --> 00:41:45,493 or at least suggestions that revenue be included in a package 898 00:41:45,494 --> 00:41:48,161 of deficit reduction that would eliminate the sequester 899 00:41:48,161 --> 00:41:51,428 and achieve our $4 trillion goal, Republicans in the end 900 00:41:51,428 --> 00:41:53,560 refused to do that, even though the President repeatedly put 901 00:41:53,561 --> 00:41:56,094 forward proposals that did that and continues to have a proposal 902 00:41:56,094 --> 00:41:57,528 on the table that does that. 903 00:41:57,528 --> 00:42:00,493 So, yes, it's unfortunate the sequester may come to pass, 904 00:42:00,494 --> 00:42:04,661 and we would simply point you to statements not just by Democrats 905 00:42:04,661 --> 00:42:07,461 or the President but by Republicans who warned about 906 00:42:07,461 --> 00:42:10,461 all the negative impacts of sequester and said we have to 907 00:42:10,461 --> 00:42:12,328 do something responsible to avoid it. 908 00:42:12,328 --> 00:42:14,061 And I think we've seen -- unfortunately, not from the 909 00:42:14,061 --> 00:42:16,828 leadership, but from a number of Republicans lately, 910 00:42:16,828 --> 00:42:19,961 including Senator Graham and Senator McCain and some House 911 00:42:19,961 --> 00:42:23,993 Republicans -- comments from them suggesting that it would 912 00:42:23,994 --> 00:42:26,561 be wise to close a few loopholes, or cap a few 913 00:42:26,561 --> 00:42:30,428 deductions, or eliminate some special breaks for corporations 914 00:42:30,428 --> 00:42:34,127 as part of a deficit reduction package to avoid sequester. 915 00:42:34,127 --> 00:42:35,861 The Press: But given the intransigence and the impact that you've indicated 916 00:42:35,861 --> 00:42:37,627 in this conversation with us earlier today, 917 00:42:37,628 --> 00:42:39,428 is there no Plan B? 918 00:42:39,428 --> 00:42:43,194 Is the sequester preferable to anything without tax cuts of 919 00:42:43,194 --> 00:42:43,895 some form? 920 00:42:43,895 --> 00:42:45,628 Mr. Carney: I think you've seen numerous economists, 921 00:42:45,628 --> 00:42:48,594 as well as the Chairman of the Fed, say $85 billion, 922 00:42:48,594 --> 00:42:54,861 you can't wish away the negative effects that that will have on 923 00:42:54,861 --> 00:42:59,394 our economy if it comes all in cuts in the way 924 00:42:59,394 --> 00:43:00,560 that it's fashioned. 925 00:43:00,561 --> 00:43:03,861 The way to deal with this responsibly is to balance it 926 00:43:03,861 --> 00:43:10,161 with revenues gained from tax reform, closing loopholes, 927 00:43:10,161 --> 00:43:13,628 eliminating special tax breaks for industries that no longer 928 00:43:13,628 --> 00:43:17,895 need them and maybe never did, and asking millionaires and 929 00:43:17,895 --> 00:43:20,061 billionaires to carry some of the burden. 930 00:43:20,061 --> 00:43:21,895 Again, that's a proposition that the American people 931 00:43:21,895 --> 00:43:23,227 overwhelmingly support. 932 00:43:23,227 --> 00:43:23,961 Peter. 933 00:43:23,961 --> 00:43:24,861 The Press: Thank you, Jay. 934 00:43:24,861 --> 00:43:27,428 So tomorrow we're seeing a meeting between the President 935 00:43:27,428 --> 00:43:28,928 and congressional leaders on the sequester. 936 00:43:28,928 --> 00:43:31,928 Does this usher in sort of a new phase where we'll see more 937 00:43:31,928 --> 00:43:35,627 direct face-to-face negotiations among the parties to try to 938 00:43:35,628 --> 00:43:36,261 resolve this? 939 00:43:36,261 --> 00:43:39,194 Or would you expect to see the President may still go out on 940 00:43:39,194 --> 00:43:41,394 the road, make his case to the general public? 941 00:43:41,394 --> 00:43:43,093 Or do you think we'll be seeing more -- 942 00:43:43,094 --> 00:43:43,895 Mr. Carney: It's not an either -- 943 00:43:43,895 --> 00:43:48,361 it never has been and it will not be an either-or proposition, 944 00:43:48,361 --> 00:43:49,594 as we've said for a long time now. 945 00:43:49,594 --> 00:43:53,161 The President will continue to travel around the country and 946 00:43:53,161 --> 00:43:56,194 talk about the issues that he thinks are important and the 947 00:43:56,194 --> 00:44:00,161 priorities that he's put forward in his agenda. 948 00:44:00,161 --> 00:44:06,394 The suggestion that that's a bad thing to do I think implies that 949 00:44:06,394 --> 00:44:08,627 Republicans who criticize the President for talking about 950 00:44:08,628 --> 00:44:11,194 sequester with the American people don't want the American 951 00:44:11,194 --> 00:44:14,061 people to know about what's really happening here, 952 00:44:14,061 --> 00:44:16,861 which is not an approach we take. 953 00:44:16,861 --> 00:44:18,961 He will obviously continue to engage with Congress, 954 00:44:18,961 --> 00:44:21,394 as he has in the past, as he will tomorrow -- 955 00:44:21,394 --> 00:44:24,493 both congressional leaders and rank-and-file members of both 956 00:44:24,494 --> 00:44:26,428 the Senate and the House -- in an effort to try to 957 00:44:26,428 --> 00:44:27,428 resolve this. 958 00:44:27,428 --> 00:44:30,493 We have an opportunity here still on the table for Congress 959 00:44:30,494 --> 00:44:34,895 to take up a balanced deal that would complete the job and then 960 00:44:34,895 --> 00:44:38,528 some of achieving more than $4 trillion of deficit reduction 961 00:44:38,528 --> 00:44:40,961 over 10 years, in a balanced way that helps our economy grow, 962 00:44:40,961 --> 00:44:42,993 that helps it create jobs. 963 00:44:42,994 --> 00:44:45,061 The Press: Can I change topic just for a second? 964 00:44:45,061 --> 00:44:45,961 Mr. Carney: Really, do you have to? 965 00:44:45,961 --> 00:44:46,993 (laughter) 966 00:44:46,994 --> 00:44:48,328 The Press: Why not? Why not? 967 00:44:48,328 --> 00:44:50,828 In the midst of all this, has the President had an opportunity 968 00:44:50,828 --> 00:44:53,528 to sit down with your team, the national security team, 969 00:44:53,528 --> 00:44:57,294 to talk about what his message will be almost in two weeks when 970 00:44:57,294 --> 00:44:58,661 he goes to the Middle East? 971 00:44:58,661 --> 00:45:02,194 Mr. Carney: I don't have any preview of that trip to give to you beyond what 972 00:45:02,194 --> 00:45:04,027 we've said already, which the President very much 973 00:45:04,027 --> 00:45:04,994 looks forward to it. 974 00:45:04,994 --> 00:45:09,294 The timing is good. 975 00:45:09,294 --> 00:45:11,461 He believes as he begins his second term and as there's a 976 00:45:11,461 --> 00:45:17,461 new government coming into place in Israel, 977 00:45:17,461 --> 00:45:21,127 he very much looks forward to the trip both to Israel and 978 00:45:21,127 --> 00:45:23,761 Jordan and to Ramallah, the West Bank. 979 00:45:23,761 --> 00:45:25,328 Peter, last one. 980 00:45:25,328 --> 00:45:26,094 The Press: Thanks. 981 00:45:26,094 --> 00:45:29,795 What is your understanding of how and when this thing is going 982 00:45:29,795 --> 00:45:31,328 to kick in tomorrow? 983 00:45:31,328 --> 00:45:36,227 Some people on the Hill think that it's 12:01 a.m. 984 00:45:36,227 --> 00:45:37,194 tomorrow morning. 985 00:45:37,194 --> 00:45:39,061 You mentioned 11:59 p.m. 986 00:45:39,061 --> 00:45:41,561 There's also wording out there that the President 987 00:45:41,561 --> 00:45:42,594 has to sign -- 988 00:45:42,594 --> 00:45:46,261 Mr. Carney: My understanding -- and I'm a layman in this, 989 00:45:46,261 --> 00:45:49,594 but my understanding is that the law has a provision that 990 00:45:49,594 --> 00:45:52,761 requires the President to order the sequester 991 00:45:52,761 --> 00:45:55,261 on March 1st, which is tomorrow. 992 00:45:55,261 --> 00:45:57,061 And that means that it has to be done by 993 00:45:57,061 --> 00:46:00,261 11:59 p.m. tomorrow. 994 00:46:00,261 --> 00:46:01,061 The Press: Will he wait that long? 995 00:46:01,061 --> 00:46:02,861 The Press: Will he do it beforehand or will he wait -- 996 00:46:02,861 --> 00:46:05,694 Mr. Carney: -- 11:59 and 59 seconds, because he's ever hopeful. 997 00:46:05,695 --> 00:46:06,728 No, I don't know what time tomorrow. 998 00:46:06,728 --> 00:46:08,261 The Press: Will you let us know when it's signed? 999 00:46:08,261 --> 00:46:09,127 Mr. Carney: I think we will, yes. 1000 00:46:09,127 --> 00:46:09,795 The Press: Do you not know? 1001 00:46:09,795 --> 00:46:10,661 Mr. Carney: I do not know. 1002 00:46:10,661 --> 00:46:11,628 The Press: It won't be during the meeting? 1003 00:46:11,628 --> 00:46:13,761 (laughter) 1004 00:46:13,761 --> 00:46:15,728 Mr. Carney: I wouldn't expect that. 1005 00:46:15,728 --> 00:46:17,161 We haven't made a schedule yet for tomorrow. 1006 00:46:17,161 --> 00:46:19,761 The Press: What's the coverage on the meeting? 1007 00:46:19,761 --> 00:46:21,761 Mr. Carney: I think it will be a private meeting, 1008 00:46:21,761 --> 00:46:22,528 try to get something done. 1009 00:46:22,528 --> 00:46:24,026 The Press: Is the President going to come out and speak publicly to the 1010 00:46:24,027 --> 00:46:25,094 nation at some point? 1011 00:46:25,094 --> 00:46:25,895 Mr. Carney: I don't have any scheduling announcements. 1012 00:46:25,895 --> 00:46:26,828 Thanks.