English subtitles for clip: File:7-12-12- White House Press Briefing.webm

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Mr. Carney:
How is everyone today?

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Welcome to the White House.

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Thanks for being here, as ever.

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I have no announcements
to make at the top,

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so I'll go straight to Ben
Feller of the Associated Press.

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The Press:
Thanks, Jay.

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I had a question that I think
carries over from the campaign

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to the White House, so
I'll give it a try here.

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The campaign said today in a
call that Governor Romney has

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either misrepresented himself on
his SEC filings and committed a

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felony, or if not, he's not
being honest with the American

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people about when he left Bain.

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And I'm wondering, just as
a matter of principle and

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character, whether President
Obama stands by that position,

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that he thinks Governor
Romney is dishonest.

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Mr. Carney:
Well, I would say
a couple of things.

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One, the campaign I
think did address this,

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so this is a campaign-specific
question and I would direct most

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of your inquiries
to the campaign.

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The President feels very
strongly that we need to take

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action in Washington to reward
companies that insource,

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that bring jobs back
to the United States,

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that build industries
here in the United States,

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and to eliminate incentives that
exist in our tax code that --

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incentives to
companies to outsource,

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to move jobs overseas.

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That's his position, and
his record, his commitment,

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is demonstrated throughout
his presidency to this

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general principle.

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There's been some discussion
about the Recovery Act.

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The entire purpose of the
Recovery Act was to grow the

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American economy and grow
American jobs here at home,

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and that's what it did.

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It's widely recognized to
have broken the back of the

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recession, to have reversed the
situation where we were losing

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jobs at a rate of 750,000 per
month to one where we've created

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over 4.2 million
private sector jobs.

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The Recovery Act alone is viewed
by outside economists as having

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saved or created
over 3 million jobs.

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And it was one of the principles
-- the Recovery Act had many

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components, but one was to
provide direct relief to states

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to stop the hemorrhaging of jobs
in areas like public schools and

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police and fire departments.

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Another was to give the middle
class a tax cut to help it

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weather this terrible recession.

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And another was to make some
long-term investments in

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industries that would help the
economy grow in the future,

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and that includes in the
clean energy industry.

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And one of the successes of
the Recovery Act was getting

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companies that had the choice of
building facilities in China or

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India or Europe or the United
States to make the choice to

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build in the United States.

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And there is example after
example of that -- the advanced

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battery industry is a good one.

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It was virtually nonexistent,
when this President took office,

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in this country, had
about 3 -- U.S. companies,

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U.S. facilities had about
3 percent of the market,

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and we're well on our way to
having a substantial portion

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of that market because of the
investments in the Recovery Act.

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So I can talk about the
President's position on

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insourcing versus outsourcing,
his demand that Congress act to

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end incentives that encourage
companies to outsource.

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But for campaign-related
specifics,

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I'd refer you to the campaign.

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The Press:
Okay.

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One quick follow on that before
going on to another subject.

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Again, I think this goes
straight to the President,

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so I'll try -- when Romney
became the presumptive nominee,

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the President called him and
-- I'm paraphrasing here but

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essentially said,
congratulations,

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and we ought to have a big
debate about the future

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of the country.

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Does the President think that
what's happening right now,

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this debate about who's
telling the truth, who's lying,

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is this befitting of a
presidential campaign?

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Mr. Carney:
The President believes that
there is a great deal at stake

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in this election.

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You hear him say often that this
election in many ways might be

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more consequential
than the last one.

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What we have now is a situation
where there are two starkly

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different visions about how
we need to move the country

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forward economically.

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He remarks -- and I
think it is remarkable,

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as somebody who covered it --
that the President succeeded a

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Republican who believed
in immigration reform.

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He ran against a Republican
who believed that climate

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change was real.

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There has been a -- the
differences between the two

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parties and their positions and
their visions have become more

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and more stark in a
short period of time.

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The matter of tax fairness, the
issue of what you would do to

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encourage the development of
economic -- the development of

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industries here in the United
States to create jobs for

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American workers here
in the United States,

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and what you would do to prevent
or discourage companies from

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outsourcing -- those are
fundamental matters of debate,

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because, as the President said,
he could not agree more with the

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idea that the economy is the
number-one issue in this debate.

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And he is very interested
in having that discussion.

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I mean, if you're referring to
the article in the Boston Globe,

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that was a piece of reporting by
your colleagues that -- it's not

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something the campaign produced.

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So it's an interesting
read, but beyond that,

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I would refer you
to the campaign.

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The Press:
The other topic is
the Penn State report.

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I'm wondering if the President
has been made aware of the

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findings or -- and if the
White House has a reaction.

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Mr. Carney:
I haven't spoken with
him about that today,

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but I suspect he is aware.

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He addressed this not long
ago and I think he made an

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observation that I
know he feels deeply,

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which is that what happened at
Penn State is a reminder that

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institutions have -- individuals
and institutions have grave

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responsibilities to make sure
that our children are taken care

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of and protected.

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And it is an indication
perhaps that -- well,

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it is a clear indication that
that responsibility was not

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taken with the seriousness
that it needs to be taken by

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institutions across the country.

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So as you know, he's a
devoted sports fan so

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followed this story.

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And again, I haven't spoken with
him about it yet today but I'm

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sure he's aware of it.

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Yes, Jeff.

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The Press:
Jay, can the President do more
to show leadership on being

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transparent with regard
to documents, records,

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his own background?

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That's another sort of
underlying theme here that the

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campaigns are clearly going at.

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Mr. Carney:
Are you talking
about Donald Trump?

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(laughter)

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The Press:
Not talking about Donald Trump.

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Mr. Carney:
Well, you'd have to ask
me a specific question.

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I think the President's record
of unprecedented levels of

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transparency in the White
House is well established.

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His record as a candidate, both
when he ran for the Senate and

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when he ran for President in
2008 and now as a candidate

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for reelection, in terms of
transparency is a solid one and

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reflects a long tradition
of being an open book,

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as I think he described it when
he was asked this question not

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long ago.

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That's part of the process.

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It's not always
pleasant or comfortable,

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but it has become a
well-established tradition

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in our country to make
available information about

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one's private dealings.

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That just comes
with the territory.

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So he not only accepts that but
practices and believes that it's

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the right thing.

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The Press:
I know this has been
asked for years,

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but one thing that people --
at least on the -- among his

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opponents, continue to bring up
is the -- his college records.

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Mr. Carney:
Right.

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This is a Donald Trump
question, which I think --

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The Press:
That's the Donald Trump.

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Mr. Carney:
-- he's the one who
brings it up the most.

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The Press:
But what's the answer to
that particular question?

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Mr. Carney:
I would refer you
to the campaign.

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It is preposterous -- this is
from the guy who insisted that

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he didn't believe the President
was born in the United States.

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And it is funny, every once in
a while when I sit back in my

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office and remember all the
things that seemed to be the

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most important issue of the day,
and there were briefings after

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briefings where that was the
most important issue of the day,

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to the point where we had to
solicit the long form of the

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President's birth certificate.

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And again, the President's
record on transparency is

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extremely sound.

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He has provided the kind of
documentation that candidates

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for President have
now, by tradition,

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provided for 30 years.

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And he believes it's
the right thing to do.

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The Press:
All right, swapping to one --
sorry -- last non-campaign or

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transparency-related question.

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Yesterday you couldn't
confirm that this ambassador

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had defected.

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Mr. Carney:
I can confirm that the Syrian
ambassador to Iraq defected.

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And I think the Syrian
government's response was,

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"you can't quit, you're fired"
-- which is another sign of the

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desperation, I think, that is
enveloping the Assad regime.

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We are seeing daily now more and
more indications that Assad is

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losing his grip, that
those around him,

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both in his inner circle and
more broadly in the military and

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governmental leadership, are
beginning to assess Assad's

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chances of remaining in power,
and hopefully beginning to

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assess Assad's legacy -- his
legacy of brutality -- and

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making the choice that they
will abandon him in favor of

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the Syrian people.

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So this is another
example of that.

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Kristen.

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The Press:
Following up on that,
can you confirm the

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ambassador's location?

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There are reports
that he's in Qatar.

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Mr. Carney:
I cannot confirm that.

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I don't know.

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The Press:
Okay.

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And going back to some of the
questions yesterday about the

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President not speaking to the
NAACP -- you referred most of

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those questions to the campaign,
and yet President Obama

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delivered a videotaped message
that seemed to have been taped

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in the White House.

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So why does this fall under
the umbrella of the campaign?

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Mr. Carney:
Well, the campaign is handling
a lot of his scheduling for

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campaign-related events.

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Again, I think the President's
opponent appeared, and --

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The Press:
You think?

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Mr. Carney:
I'm told.

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(laughter)

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The President films a lot of
videos -- I haven't seen this

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one -- but to events that he
cannot attend or is not able

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to attend for scheduling
reasons or whatever reason.

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So I'll have to get back to you.

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I'm not even sure what
room he filmed it in.

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The Press:
Do you know when he filmed it,
and was it because there were a

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lot of questions about the
fact that he was not going

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to be attending --

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Mr. Carney:
Absolutely not.

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I can't remember exactly
when he filmed it.

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I'm sure it was recently.

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He, as you know, films his
weekly address and other video

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messages every week, and it is
absolutely routine when he does

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not -- or is not able
to attend an event,

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but wants to be able
to send a message,

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that he will videotape that
message and provide it to

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the convention or conference
or gathering in his stead.

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The Press:
So why not announce yesterday,
when you got all of these

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questions about it, he would be
delivering a videotaped address?

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Mr. Carney:
I think you're reading something
into this that there isn't.

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The issue was would he attend
and why didn't he attend.

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He provides a video as a
matter of routine to events

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he doesn't attend.

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The Press:
And just following up also
on the discussions about the

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sequester -- you said yesterday
that the OMB is developing an

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analysis in case the sequester
should be put in place.

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Can you give us a sense of
where specifically they are

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in that analysis?

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And at what point do they begin
to contact other departments?

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Mr. Carney:
I don't have a
date-specific for that.

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00:13:05,800 --> 00:13:09,900
Obviously you know the sequester
is written not to take effect

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00:13:09,900 --> 00:13:16,600
until the beginning of next
year, as I understand it.

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00:13:16,600 --> 00:13:21,400
As we have made clear, should it
get to the point where Congress

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00:13:21,400 --> 00:13:25,766
has failed to do its job,
as dictated by Congress,

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00:13:25,767 --> 00:13:28,400
and the sequester
may take effect,

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00:13:28,400 --> 00:13:31,400
OMB and DOD and the various
agencies will be ready.

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00:13:35,333 --> 00:13:37,467
But we do not believe
that should come to pass.

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00:13:37,467 --> 00:13:44,500
The whole point of the Budget
Control Act was to create a

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00:13:44,500 --> 00:13:50,333
trigger, a forcing mechanism
that was so onerous that nobody

248
00:13:50,333 --> 00:13:51,800
wanted it to come to pass.

249
00:13:51,800 --> 00:13:56,099
The defense cuts, the President
agrees, are too steep;

250
00:13:56,100 --> 00:13:58,734
the non-defense cuts,
the President believes,

251
00:13:58,734 --> 00:14:01,400
are too steep.

252
00:14:01,400 --> 00:14:07,033
That is why Congress needs to
come together and make some hard

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00:14:07,033 --> 00:14:10,166
choices around the kind of
balanced proposal that the

254
00:14:10,166 --> 00:14:14,000
President and every other
person who has looked at this

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00:14:14,000 --> 00:14:15,967
seriously, including
bipartisan commissions,

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00:14:15,967 --> 00:14:19,934
agrees must be taken in order to
deal with our long-term deficit

257
00:14:19,934 --> 00:14:20,934
and debt challenges.

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00:14:20,934 --> 00:14:25,834
We've accomplished, in spite of
all the rancor and disagreement,

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00:14:29,367 --> 00:14:31,934
close to $2 trillion -- I think
$2 trillion in non-defense

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00:14:31,934 --> 00:14:33,266
discretionary cuts.

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00:14:33,266 --> 00:14:34,766
There is more that
needs to be done,

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00:14:34,767 --> 00:14:40,400
and we need to address that
through a balanced approach

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00:14:40,400 --> 00:14:41,766
that Congress needs to take up.

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00:14:41,767 --> 00:14:43,834
And that's how we
avoid the sequester,

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00:14:43,834 --> 00:14:46,834
which was never meant
to be implemented.

266
00:14:46,834 --> 00:14:47,766
Bill.

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00:14:47,767 --> 00:14:50,133
The Press:
Jay, in talking
yesterday about tax cuts,

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00:14:50,133 --> 00:14:52,633
you mentioned that the President
was always open to compromise.

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00:14:52,633 --> 00:14:57,533
So I want to ask you, how locked
in is the $250,000 ceiling?

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00:14:57,533 --> 00:15:01,166
I mean, could it be adjusted
to $500,000 or $1 million?

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00:15:01,166 --> 00:15:02,400
Is there some play?

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00:15:02,400 --> 00:15:03,867
Mr. Carney:
Bill, what I've said -- and I
appreciate the question -- the

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00:15:03,867 --> 00:15:07,233
President's position is
what it has always been.

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00:15:07,233 --> 00:15:12,934
He will not extend tax cuts to
the wealthiest 2 percent of the

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00:15:12,934 --> 00:15:14,065
American people.

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00:15:14,066 --> 00:15:16,300
He is committed to extending,
and believes we should make

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00:15:16,300 --> 00:15:21,699
permanent, tax cuts for 98
percent of taxpaying Americans

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00:15:21,700 --> 00:15:27,800
-- a middle-class tax cut
for Americans who need it.

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00:15:29,934 --> 00:15:35,567
And this is because we simply
can't afford to spend another

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00:15:35,567 --> 00:15:38,900
close to a trillion dollars over
10 years on tax cuts for the

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00:15:38,900 --> 00:15:42,132
wealthiest 2 percent
of American earners.

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00:15:42,133 --> 00:15:49,867
One of the reasons why we have
the fiscal situation that led to

283
00:15:49,867 --> 00:15:52,733
the super committee and the
Budget Control Act and the

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00:15:52,734 --> 00:15:58,133
negotiations last year is
because those two tax cuts were

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00:15:58,133 --> 00:16:00,700
promoted by the
previous President,

286
00:16:00,700 --> 00:16:02,300
passed through Congress
and signed into law,

287
00:16:02,300 --> 00:16:03,733
and were totally unpaid for.

288
00:16:03,734 --> 00:16:09,934
And what we saw, as a result in
part of those policies and many

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00:16:09,934 --> 00:16:11,199
other policies that
were implemented,

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00:16:11,200 --> 00:16:17,867
was the slowest job creation of
any expansion in recent memory.

291
00:16:17,867 --> 00:16:22,367
We saw the middle class put
under even greater stress and

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00:16:22,367 --> 00:16:29,165
saw its incomes stagnate and
shrink while more affluent

293
00:16:29,166 --> 00:16:32,133
Americans saw their
wealth increase.

294
00:16:34,900 --> 00:16:37,967
And if all that
weren't bad enough,

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00:16:37,967 --> 00:16:41,533
we had the great recession, the
worst financial and economic

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00:16:41,533 --> 00:16:43,133
crisis of our lifetimes.

297
00:16:43,133 --> 00:16:49,333
So it's not that hard to deduce
that we shouldn't do that again.

298
00:16:49,333 --> 00:16:52,834
What we should do, since we all
agree it's the right thing to do

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00:16:52,834 --> 00:16:56,400
-- Republicans and Democrats
alike -- is extend the tax cuts

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00:16:56,400 --> 00:16:59,967
for 98 percent of
the American people.

301
00:16:59,967 --> 00:17:02,633
Pass it now -- the President
will sign it right away.

302
00:17:02,633 --> 00:17:06,567
And then we can continue to
debate whether or not the right

303
00:17:06,567 --> 00:17:09,934
economic policy, the right
policy to improve job creation,

304
00:17:09,934 --> 00:17:13,899
to improve economic growth in
our country is to give more tax

305
00:17:13,900 --> 00:17:16,633
cuts to the
wealthiest Americans.

306
00:17:16,633 --> 00:17:21,066
And I understand that there are
people in Washington who believe

307
00:17:21,066 --> 00:17:22,533
that is the right policy.

308
00:17:22,532 --> 00:17:25,199
There are candidates for office
who believe that is the right

309
00:17:25,200 --> 00:17:28,667
policy, that that is the ticket
-- that is the key to future

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00:17:28,667 --> 00:17:29,833
economic growth.

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00:17:29,834 --> 00:17:31,567
And that is a debate
we should have.

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00:17:31,567 --> 00:17:35,934
But we should not hold
98 percent of American

313
00:17:35,934 --> 00:17:37,934
taxpayers hostage.

314
00:17:37,934 --> 00:17:41,734
We should not say you're not
going to get a tax hike unless

315
00:17:41,734 --> 00:17:43,300
the wealthiest 2
percent get a tax cut.

316
00:17:43,300 --> 00:17:45,966
We should all agree on the idea
that 98 percent of American

317
00:17:45,967 --> 00:17:50,500
taxpayers should get a tax cut,
get that security and certainty,

318
00:17:50,500 --> 00:17:53,233
and then debate the issue
of tax cuts for the wealthy.

319
00:17:53,233 --> 00:17:55,000
The Press:
But as you know, there are
supporters of the President,

320
00:17:55,000 --> 00:17:58,100
Democratic leaders who think
they can -- who calculated they

321
00:17:58,100 --> 00:18:00,632
could go up to a million dollars
and still have sufficient

322
00:18:00,633 --> 00:18:02,934
revenue to --

323
00:18:02,934 --> 00:18:06,433
Mr. Carney:
The President firmly believes
that we cannot afford to extend

324
00:18:06,433 --> 00:18:09,300
tax cuts over $250,000.

325
00:18:09,300 --> 00:18:10,265
He has made his position clear.

326
00:18:10,266 --> 00:18:14,934
I think you've seen broad
support from Democrats for the

327
00:18:14,934 --> 00:18:16,667
President's position.

328
00:18:16,667 --> 00:18:22,065
And we certainly hope to see the
Senate given the opportunity to

329
00:18:22,066 --> 00:18:25,834
vote on that proposal
in the near future.

330
00:18:25,834 --> 00:18:26,533
Yes, Ann.

331
00:18:26,533 --> 00:18:27,166
The Press:
Thanks.

332
00:18:27,166 --> 00:18:29,700
Was the President serious
on Monday when he said --

333
00:18:29,700 --> 00:18:32,100
challenged Congress for
an immediate vote on this?

334
00:18:32,100 --> 00:18:36,600
Because yesterday in the Senate,
twice during floor action,

335
00:18:36,600 --> 00:18:39,433
that was proposed so long as
they voted on something else as

336
00:18:39,433 --> 00:18:41,233
well, a different
version as well.

337
00:18:41,233 --> 00:18:44,533
And both times it was -- did the
President discuss that with the

338
00:18:44,533 --> 00:18:45,367
Democratic leaders?

339
00:18:45,367 --> 00:18:46,000
And did --

340
00:18:46,000 --> 00:18:46,667
Mr. Carney:
The President was
deadly serious.

341
00:18:46,667 --> 00:18:49,833
And as I said yesterday -- and
as I think if you dig into it

342
00:18:49,834 --> 00:18:53,200
will recognize what was proposed
in a gimmick by Senator Hatch

343
00:18:53,200 --> 00:18:54,767
was not the
President's proposal.

344
00:18:54,767 --> 00:18:56,900
In fact, it left out the
extension of the American

345
00:18:56,900 --> 00:19:00,834
Opportunity Tax Credit and other
tax provisions that would have

346
00:19:00,834 --> 00:19:04,633
resulted, if that were passed,
in a tax hike for 18 or 25

347
00:19:04,633 --> 00:19:06,433
million American families.

348
00:19:06,433 --> 00:19:08,600
So that was a gimmick.

349
00:19:08,600 --> 00:19:13,833
The Senate is in a process of
considering very important tax

350
00:19:13,834 --> 00:19:16,467
relief for small businesses
that the President has

351
00:19:16,467 --> 00:19:18,400
initiated and supports.

352
00:19:18,400 --> 00:19:20,133
And there will be
a vote, we hope,

353
00:19:20,133 --> 00:19:24,066
on the President's proposal,
which includes all the

354
00:19:24,066 --> 00:19:28,400
middle-class tax cuts that were
part of the President's plan.

355
00:19:28,400 --> 00:19:33,834
And he believes that there
will be strong support from the

356
00:19:33,834 --> 00:19:39,100
Democratic Party for that -- and
that there should be 100 percent

357
00:19:39,100 --> 00:19:41,833
support in the Senate,
because -- I don't know,

358
00:19:41,834 --> 00:19:44,934
go to their websites -- doesn't
everybody in the Republican

359
00:19:44,934 --> 00:19:46,834
Party support tax cuts
for the middle class?

360
00:19:46,834 --> 00:19:49,333
And if so, they
should vote for it.

361
00:19:49,333 --> 00:19:54,033
The Press:
On the NAACP speech, the Vice
President's office says that

362
00:19:54,033 --> 00:19:57,500
that was a political
appearance of his today.

363
00:19:57,500 --> 00:20:01,100
And I assume that the
President's video was a

364
00:20:01,100 --> 00:20:01,899
political one --

365
00:20:01,900 --> 00:20:06,333
Mr. Carney:
I have to -- the problem is I
haven't seen it as I was just

366
00:20:06,333 --> 00:20:07,033
asked about this.

367
00:20:07,033 --> 00:20:08,766
The Press:
It looked like a radio
-- a weekend address.

368
00:20:08,767 --> 00:20:11,567
Mr. Carney:
But I think we were referring
to the campaign on this because

369
00:20:11,567 --> 00:20:12,734
this is a question.

370
00:20:12,734 --> 00:20:13,466
The Press:
My question is this.

371
00:20:13,467 --> 00:20:16,900
The Vice President used the
official presidential seal on

372
00:20:16,900 --> 00:20:20,600
his podium, as the President did
on Friday at Carnegie Mellon,

373
00:20:20,600 --> 00:20:23,265
using the presidential seal,
at what was clearly announced

374
00:20:23,266 --> 00:20:24,233
as a campaign.

375
00:20:24,233 --> 00:20:26,399
Is he changing the policy now?

376
00:20:26,400 --> 00:20:28,200
Is he going to start using
the presidential seal --

377
00:20:28,200 --> 00:20:29,467
Mr. Carney:
You've covered a number
of Presidents, Ann,

378
00:20:29,467 --> 00:20:31,300
and you will find that
many Presidents running for

379
00:20:31,300 --> 00:20:35,200
reelection have, when they stand
in front of that particular

380
00:20:35,200 --> 00:20:36,867
podium, used the
presidential seal.

381
00:20:36,867 --> 00:20:39,533
It's government -- that
podium is government property.

382
00:20:39,533 --> 00:20:42,033
We don't hang
campaign signs on it.

383
00:20:42,033 --> 00:20:43,699
We use the presidential seal.

384
00:20:43,700 --> 00:20:47,767
The Press:
And in almost every one of
President Obama's campaign

385
00:20:47,767 --> 00:20:50,934
appearances during
this cycle, he has not.

386
00:20:50,934 --> 00:20:54,133
Mr. Carney:
I think if you look at -- again,
we can have this discussion in

387
00:20:54,133 --> 00:20:58,266
more detail, but if you pay
close attention to it and you

388
00:20:58,266 --> 00:21:02,667
look at the podium, you'll
recognize that when that

389
00:21:02,667 --> 00:21:04,766
podium is used that we
use the presidential seal.

390
00:21:04,767 --> 00:21:08,300
Margaret.

391
00:21:08,300 --> 00:21:10,934
The Press:
I'm going to ask another
question since Bill Press

392
00:21:10,934 --> 00:21:13,767
took mine.

393
00:21:13,767 --> 00:21:16,600
Mr. Carney:
I'll give you a little time while --

394
00:21:16,600 --> 00:21:17,466
(laughter)

395
00:21:17,467 --> 00:21:19,166
The Press:
No, that's okay. I got it. I got it.

396
00:21:19,166 --> 00:21:21,966
So, number one, should we
expect some of the Iran

397
00:21:21,967 --> 00:21:23,133
sanctions to be coming today?

398
00:21:23,133 --> 00:21:24,533
And since we're here now
and they haven't yet,

399
00:21:24,533 --> 00:21:26,399
can you tell us, if
so, what they are?

400
00:21:26,400 --> 00:21:30,266
And also, can you talk to us a
little bit about tomorrow's trip

401
00:21:30,266 --> 00:21:32,767
and any travel next week in
terms of what he wants to

402
00:21:32,767 --> 00:21:34,934
accomplish from a
policy perspective,

403
00:21:34,934 --> 00:21:40,567
as well as the
politics of the travel?

404
00:21:40,567 --> 00:21:42,467
Mr. Carney:
I have no announcements
to make on sanctions.

405
00:21:42,467 --> 00:21:49,800
I can tell you that we have seen
that the actions taken by this

406
00:21:49,800 --> 00:21:54,734
administration and with a great
deal of unanimity around the

407
00:21:54,734 --> 00:22:01,033
world in isolating and
pressuring Iran have had an

408
00:22:01,033 --> 00:22:06,399
impact, an economic impact
on the regime in Tehran,

409
00:22:06,400 --> 00:22:11,333
which the leaders there have
themselves acknowledged and

410
00:22:11,333 --> 00:22:12,700
spoken about.

411
00:22:12,700 --> 00:22:15,166
And we will continue
to put pressure,

412
00:22:15,166 --> 00:22:19,033
working unilaterally
and with our partners,

413
00:22:19,033 --> 00:22:24,699
on the Iranian regime until
they make the right choice,

414
00:22:24,700 --> 00:22:28,166
which is to abide by their
obligations to the United

415
00:22:28,166 --> 00:22:30,367
Nations, to the
international community,

416
00:22:30,367 --> 00:22:32,367
with regards to their
nuclear ambitions.

417
00:22:34,233 --> 00:22:37,466
I believe that the upcoming
travel that you're referring

418
00:22:37,467 --> 00:22:39,367
to is campaign travel.

419
00:22:39,367 --> 00:22:41,100
But I think the point
you make is a good one,

420
00:22:41,100 --> 00:22:45,166
which is that the President has
been and will continue to talk

421
00:22:45,166 --> 00:22:50,767
about -- as well as his broader
message that the campaign can

422
00:22:50,767 --> 00:22:54,300
discuss with you in more detail
-- some very specific things

423
00:22:54,300 --> 00:22:56,466
that have to do with
what Congress can do now,

424
00:22:56,467 --> 00:22:59,200
what we can do now to help
the American economy grow

425
00:22:59,200 --> 00:23:00,533
and create jobs.

426
00:23:00,533 --> 00:23:05,800
And that I think begins with
what we've been discussing

427
00:23:05,800 --> 00:23:08,834
already today, which is the
need to have Congress extend

428
00:23:08,834 --> 00:23:12,233
the middle-class tax cuts.

429
00:23:12,233 --> 00:23:13,399
I think I mentioned
yesterday -- people --

430
00:23:13,400 --> 00:23:15,433
"oh, isn't that just
a political issue,

431
00:23:15,433 --> 00:23:17,467
because the Republicans aren't
going to go along with it?

432
00:23:17,467 --> 00:23:20,934
Republicans are complaining that
you're trying to beat them over

433
00:23:20,934 --> 00:23:23,399
the head with this by supporting
middle class tax cuts."

434
00:23:23,400 --> 00:23:30,033
And my answer to that is
if that is what you fear,

435
00:23:30,033 --> 00:23:33,466
then take the opportunity
away from him by extending

436
00:23:33,467 --> 00:23:34,667
the middle-class tax cuts.

437
00:23:34,667 --> 00:23:35,833
That's what he wants.

438
00:23:35,834 --> 00:23:37,033
He thinks it's right
for the economy,

439
00:23:37,033 --> 00:23:40,567
he thinks it's right
for the middle class,

440
00:23:40,567 --> 00:23:46,667
and would not be happier to sign
that thing -- that bill right

441
00:23:46,667 --> 00:23:49,065
away if the opportunity
presented itself.

442
00:23:49,066 --> 00:23:52,367
The Press:
And just a quick follow-up --
since it's turning into that

443
00:23:52,367 --> 00:23:55,133
season where so many days
now he'll be on the road,

444
00:23:55,133 --> 00:23:57,867
and many of these days will be
almost entirely campaign days

445
00:23:57,867 --> 00:24:03,567
for schedule purposes, how is he
-- how have you guys broken out

446
00:24:03,567 --> 00:24:06,033
how he manages the time that
he needs for policy stuff?

447
00:24:06,033 --> 00:24:08,033
I mean, obviously you
can do all that stuff.

448
00:24:08,033 --> 00:24:09,233
There's communication
on the plane.

449
00:24:09,233 --> 00:24:11,966
But if a foreign leader calls,
the briefing is on actual issues

450
00:24:11,967 --> 00:24:14,734
and what's going on -- how do
you schedule time into those

451
00:24:14,734 --> 00:24:16,567
days for him to do that?

452
00:24:16,567 --> 00:24:18,900
Mr. Carney:
Well, that's a good question and
it's obviously one that every

453
00:24:18,900 --> 00:24:24,767
incumbent President must
confront if he or she is

454
00:24:24,767 --> 00:24:27,567
running for reelection,
as the President is.

455
00:24:27,567 --> 00:24:34,767
We, as previous Presidents
have, benefited from the

456
00:24:34,767 --> 00:24:37,734
sophistication of the operations
here in the White House that

457
00:24:37,734 --> 00:24:40,600
provides the kinds of
communication capabilities that

458
00:24:40,600 --> 00:24:45,600
a President requires when he or
she travels and that allows for

459
00:24:45,600 --> 00:24:51,934
the kind of instantaneous
communications needs that a

460
00:24:51,934 --> 00:24:54,466
President has on the road.

461
00:24:54,467 --> 00:24:56,967
But he gets, as you know -- I
think you and I talked about

462
00:24:56,967 --> 00:25:00,967
this a little either earlier
this week or last week -- a

463
00:25:00,967 --> 00:25:03,367
President of the United States,
even when he or she is running

464
00:25:03,367 --> 00:25:07,200
for reelection, is President of
the United States 24 hours a day

465
00:25:07,200 --> 00:25:08,200
and seven days a week.

466
00:25:08,200 --> 00:25:14,166
And, therefore, the presidency
travels with him or her wherever

467
00:25:14,166 --> 00:25:15,166
he goes.

468
00:25:15,166 --> 00:25:19,600
And that requires a national
security staff and obviously --

469
00:25:19,600 --> 00:25:23,132
Secret Service and other staff
-- but other White House staff

470
00:25:23,133 --> 00:25:25,667
that travel with him, in
addition to campaign staff who

471
00:25:25,667 --> 00:25:29,600
are helping him manage the
events that he is engaged in.

472
00:25:29,600 --> 00:25:34,100
So it's no different
from President George W.

473
00:25:34,100 --> 00:25:37,166
Bush when he ran for reelection
or President Bill Clinton when

474
00:25:37,166 --> 00:25:41,399
he ran, and I'm sure Ronald
Reagan and George H.W. Bush

475
00:25:41,400 --> 00:25:42,633
before them.

476
00:25:42,633 --> 00:25:47,400
But I remember some stories a
few months ago that talked about

477
00:25:47,400 --> 00:25:49,367
how we were not ramping
up quick enough.

478
00:25:49,367 --> 00:25:54,033
And the President is committed
to -- when I say "we",

479
00:25:54,033 --> 00:25:56,367
I mean that the campaign was
not ramping up quick enough.

480
00:25:56,367 --> 00:25:59,600
And the President's first
commitment is to his

481
00:25:59,600 --> 00:26:01,332
responsibilities in office.

482
00:26:01,333 --> 00:26:10,300
And that is just a reality that
you have to accept if you're

483
00:26:10,300 --> 00:26:16,265
President, that there are going
to be times when the campaign

484
00:26:18,467 --> 00:26:22,266
has to wait because he has
to make important decisions,

485
00:26:22,266 --> 00:26:24,533
have important conversations
with foreign leaders,

486
00:26:24,533 --> 00:26:30,065
or meetings with staff and
others -- members of Congress --

487
00:26:30,066 --> 00:26:33,500
to get the work done
that needs to be done.

488
00:26:33,500 --> 00:26:35,500
Yes, give me one second.

489
00:26:35,500 --> 00:26:36,033
Go ahead.

490
00:26:36,033 --> 00:26:37,300
The Press:
Did the President discuss --

491
00:26:37,300 --> 00:26:38,466
Mr. Carney:
You have to tell me
who you are first.

492
00:26:38,467 --> 00:26:39,633
The Press:
Yes. I'm Tamara Keith, from NPR.

493
00:26:39,633 --> 00:26:40,100
Mr. Carney:
Oh, yes.

494
00:26:40,100 --> 00:26:42,033
Sorry, somebody emailed me about
that and then I blew it -- nice

495
00:26:42,033 --> 00:26:42,667
to see you.

496
00:26:42,667 --> 00:26:43,433
Thank you for being here.

497
00:26:43,433 --> 00:26:44,333
The Press:
It's nice to see you.

498
00:26:44,333 --> 00:26:47,767
Did the President, when meeting
with the congressional leaders

499
00:26:47,767 --> 00:26:50,867
yesterday, discuss any sort of
a timeline for a vote on the

500
00:26:50,867 --> 00:26:53,399
middle-class tax cut proposal?

501
00:26:53,400 --> 00:26:54,500
Mr. Carney:
Well, I think we
provided a readout.

502
00:26:54,500 --> 00:26:55,967
I don't have a date
specific for you.

503
00:26:55,967 --> 00:26:57,567
They discussed a
number of issues,

504
00:26:57,567 --> 00:27:00,967
including the
middle-class tax cut,

505
00:27:00,967 --> 00:27:03,333
other items on the
congressional agenda,

506
00:27:03,333 --> 00:27:06,233
actions that Congress can
take to help small businesses,

507
00:27:06,233 --> 00:27:09,899
actions that Congress can take
to put construction workers and

508
00:27:09,900 --> 00:27:11,700
teachers back to work.

509
00:27:11,700 --> 00:27:14,800
But I don't have a
specific date for you.

510
00:27:14,800 --> 00:27:17,000
I tend to leave Senate
scheduling up to the

511
00:27:17,000 --> 00:27:17,900
Majority Leader.

512
00:27:17,900 --> 00:27:18,867
The Press:
Absolutely.

513
00:27:18,867 --> 00:27:22,000
The criticism is that there
isn't even language yet.

514
00:27:22,000 --> 00:27:25,400
And I don't know --

515
00:27:25,400 --> 00:27:26,533
Mr. Carney:
I don't think it's
that complicated.

516
00:27:26,533 --> 00:27:32,500
The President wants to extend
the so-called Bush tax cuts as

517
00:27:32,500 --> 00:27:34,533
well as the other middle-class
tax cuts the President put into

518
00:27:34,533 --> 00:27:37,233
place for a year.

519
00:27:37,233 --> 00:27:40,300
And these tax cuts go to 98
percent of American taxpayers.

520
00:27:40,300 --> 00:27:44,200
He does not support and does not
believe we can afford extending

521
00:27:44,200 --> 00:27:48,233
tax cuts for the top 2
percent in this country.

522
00:27:48,233 --> 00:27:49,633
And that is his position.

523
00:27:49,633 --> 00:27:54,667
There will be an opportunity
for the Senate to vote on that,

524
00:27:54,667 --> 00:27:58,233
as Majority Leader
Reid has said,

525
00:27:58,233 --> 00:28:00,934
but I will leave it to
him to announce when

526
00:28:00,934 --> 00:28:02,867
that's going to happen.

527
00:28:02,867 --> 00:28:03,700
Laura.

528
00:28:03,700 --> 00:28:06,000
The Press:
Just following up on
Margaret's line of questioning,

529
00:28:06,000 --> 00:28:09,533
I have no doubt that when there
are urgent priorities that in

530
00:28:09,533 --> 00:28:12,934
his job as President he makes
the time to make that happen.

531
00:28:12,934 --> 00:28:16,300
But when it gets to the point
where he's campaigning almost

532
00:28:16,300 --> 00:28:20,033
every day on the
road, what goes?

533
00:28:20,033 --> 00:28:23,632
I mean, there's only so many
hours in the day and he does

534
00:28:23,633 --> 00:28:27,000
still have to sleep, so where
-- what is it that he has been

535
00:28:27,000 --> 00:28:30,367
doing all along that he won't
have time for when he's in

536
00:28:30,367 --> 00:28:31,934
intensive campaign mode?

537
00:28:31,934 --> 00:28:36,466
Mr. Carney:
Well, I think as
you might expect,

538
00:28:36,467 --> 00:28:38,567
and you have seen in
previous administrations,

539
00:28:38,567 --> 00:28:40,700
that there is less
foreign travel in a

540
00:28:40,700 --> 00:28:42,800
campaign reelection year.

541
00:28:42,800 --> 00:28:47,100
Foreign travel tends to take
up a great deal of time;

542
00:28:47,100 --> 00:28:48,265
it's very important.

543
00:28:48,266 --> 00:28:51,667
This President has traveled
widely in pursuit of American

544
00:28:51,667 --> 00:28:53,632
interests around the globe.

545
00:28:53,633 --> 00:29:00,767
But it is certainly the case
that there will, I'm sure,

546
00:29:00,767 --> 00:29:03,934
be fewer days out of the country
this year for the President than

547
00:29:03,934 --> 00:29:05,633
in previous years.

548
00:29:05,633 --> 00:29:09,967
I think that's a result of the
reality of the campaign year.

549
00:29:09,967 --> 00:29:13,066
But other than that, I think
that there really is the

550
00:29:13,066 --> 00:29:16,867
opportunity between the days
he's here and his capabilities

551
00:29:16,867 --> 00:29:22,867
when he's traveling, the
opportunity to get the briefings

552
00:29:22,867 --> 00:29:26,600
he needs, have the interactions
with foreign leaders that he

553
00:29:26,600 --> 00:29:29,734
needs, and congressional
leaders that he needs.

554
00:29:29,734 --> 00:29:33,800
And as I mentioned before,
there will be times, I'm sure,

555
00:29:33,800 --> 00:29:42,533
when a planned stop on a
campaign -- for a campaign event

556
00:29:42,533 --> 00:29:46,033
has to be delayed or postponed
or cancelled because of some

557
00:29:46,033 --> 00:29:47,966
pressing business
of the presidency.

558
00:29:47,967 --> 00:29:53,734
And that's just how it is.

559
00:29:53,734 --> 00:29:55,734
But it's nothing to
complain about, right?

560
00:29:55,734 --> 00:29:58,066
I mean, he's running for
reelection and that's part

561
00:29:58,066 --> 00:30:00,166
of the process.

562
00:30:00,166 --> 00:30:01,166
Mark.

563
00:30:01,166 --> 00:30:04,500
The Press:
Jay, on the seal, can you say
why there was a change of policy

564
00:30:04,500 --> 00:30:08,133
in using the seal on
lecterns at political events?

565
00:30:08,133 --> 00:30:11,500
Your predecessor made it
clear during the midterms

566
00:30:11,500 --> 00:30:14,667
that President Obama would
not use the seal at purely

567
00:30:14,667 --> 00:30:16,233
political events.

568
00:30:16,233 --> 00:30:19,867
Mr. Carney:
Mark, I would just refer
you to past practice of

569
00:30:19,867 --> 00:30:21,800
previous Presidents.

570
00:30:21,800 --> 00:30:27,000
When this President is at
campaign events that involve

571
00:30:27,000 --> 00:30:33,133
raising funds for the campaign,
he uses campaign -- depending

572
00:30:33,133 --> 00:30:35,333
on the event, whether
there's a podium or not.

573
00:30:37,834 --> 00:30:42,633
In this case, as has been the
practice of his predecessors

574
00:30:42,633 --> 00:30:48,767
running for reelection, there
are times when it's entirely --

575
00:30:48,767 --> 00:30:53,233
it is certainly in keeping with
past precedent and appropriate

576
00:30:53,233 --> 00:30:57,399
to have the presidential seal
on the podium behind which he

577
00:30:57,400 --> 00:31:00,934
is standing because he is
actually the President of

578
00:31:00,934 --> 00:31:02,066
the United States.

579
00:31:02,066 --> 00:31:03,333
The Press:
Well, I'm not saying
he shouldn't use it.

580
00:31:03,333 --> 00:31:06,633
I'm just saying that two years
ago you said one thing and now

581
00:31:06,633 --> 00:31:07,633
you're saying another.

582
00:31:07,633 --> 00:31:10,066
Mr. Carney:
Well, I don't know that
comment specifically,

583
00:31:10,066 --> 00:31:14,967
but I can tell you that this is
in keeping with past precedent.

584
00:31:14,967 --> 00:31:20,734
And I would point you to
photographs of previous

585
00:31:20,734 --> 00:31:22,166
Presidents running
for reelection --

586
00:31:22,166 --> 00:31:22,767
The Press:
Oh, yes.

587
00:31:22,767 --> 00:31:24,967
Mr. Carney:
You understand that, right?

588
00:31:24,967 --> 00:31:28,300
You seem doubtful, but I
can find photos for you.

589
00:31:28,300 --> 00:31:29,533
The Press:
It's a change for you now.

590
00:31:29,533 --> 00:31:31,466
This is the first --
as far as we know,

591
00:31:31,467 --> 00:31:34,100
the first campaign event
President Obama has done

592
00:31:34,100 --> 00:31:38,000
all year, at Carnegie Mellon
he used the seal on a podium

593
00:31:38,000 --> 00:31:39,600
he uses all the time.

594
00:31:39,600 --> 00:31:42,300
Mr. Carney:
I think I've addressed
this in detail.

595
00:31:42,300 --> 00:31:44,133
Let me get to Brianna.

596
00:31:44,133 --> 00:31:47,166
The Press:
Did the President watch
Vice President Biden's

597
00:31:47,166 --> 00:31:49,533
address to the NAACP?

598
00:31:49,533 --> 00:31:50,766
Mr. Carney:
I think he was in meetings.

599
00:31:50,767 --> 00:31:53,500
He doesn't have
a TV in the Oval.

600
00:31:53,500 --> 00:31:57,467
The Press:
And was it the CBS interview,
is that why he couldn't go --

601
00:31:57,467 --> 00:31:59,367
the scheduling conflict?

602
00:31:59,367 --> 00:32:00,633
Mr. Carney:
It hasn't happened yet.

603
00:32:00,633 --> 00:32:02,800
The Press:
But I mean preparation for
it or something -- is that --

604
00:32:02,800 --> 00:32:04,200
Mr. Carney:
That hasn't happened either.

605
00:32:04,200 --> 00:32:06,767
The Press:
Did that -- somehow did
that figure into it?

606
00:32:06,767 --> 00:32:08,433
So I mean, what was it?

607
00:32:08,433 --> 00:32:10,066
What was the scheduling --

608
00:32:10,066 --> 00:32:11,767
Mr. Carney:
There are meetings all the time.

609
00:32:11,767 --> 00:32:15,300
I don't know who he's meeting
-- he has the presidential daily

610
00:32:15,300 --> 00:32:18,100
briefing; he has -- as
much as he would like to,

611
00:32:18,100 --> 00:32:21,766
he doesn't get to watch often
me at the podium or -- maybe

612
00:32:21,767 --> 00:32:26,066
he wouldn't like that -- or
members of his administration,

613
00:32:26,066 --> 00:32:28,433
Cabinet members speak.

614
00:32:28,433 --> 00:32:31,800
So I can't guarantee you he
didn't watch it because I wasn't

615
00:32:31,800 --> 00:32:34,233
in whatever meeting he
was in, but I'm pretty

616
00:32:34,233 --> 00:32:36,767
confident he didn't.

617
00:32:36,767 --> 00:32:39,000
The Press:
And on the tax cuts, the
President has said that

618
00:32:39,000 --> 00:32:41,233
he would veto an
across-the-board extension.

619
00:32:41,233 --> 00:32:46,367
Would he veto anything over
the $250,000 threshold?

620
00:32:46,367 --> 00:32:50,332
Mr. Carney:
This is the reincarnation
of you from yesterday and

621
00:32:50,333 --> 00:32:54,033
Bill from today.

622
00:32:54,033 --> 00:32:58,166
He does not believe and it is
not his position that we should

623
00:32:58,166 --> 00:33:01,867
extend tax cuts beyond
the 98 percent who fall

624
00:33:01,867 --> 00:33:03,265
under the $250,000.

625
00:33:03,266 --> 00:33:04,000
The Press:
He will veto --

626
00:33:04,000 --> 00:33:06,500
Mr. Carney:
He will veto, as I've
said and he has said,

627
00:33:06,500 --> 00:33:09,800
any extension of the
high-end Bush tax cuts.

628
00:33:09,800 --> 00:33:10,600
The Press:
-- across the board.

629
00:33:10,600 --> 00:33:14,332
Mr. Carney:
Again, it is -- there are
no proposals for that.

630
00:33:14,333 --> 00:33:18,834
Because then we could go,
well, what about $251,000?

631
00:33:18,834 --> 00:33:23,133
Or $332,000? Or $723,000?

632
00:33:23,133 --> 00:33:25,734
His position is -- look, and
there's a reason for it, right?

633
00:33:25,734 --> 00:33:31,899
I mean, I think that's generous
in terms of the definition of

634
00:33:31,900 --> 00:33:32,900
middle class, right?

635
00:33:32,900 --> 00:33:34,834
It's certainly --
$250,000, it's only --

636
00:33:34,834 --> 00:33:35,967
The Press:
It just makes --

637
00:33:35,967 --> 00:33:37,700
Mr. Carney:
-- hold on -- there's only 2
percent of American earners who

638
00:33:37,700 --> 00:33:38,967
make more than
that, first of all.

639
00:33:38,967 --> 00:33:42,934
That 2 percent accounts for --
in the Bush tax cuts -- nearly a

640
00:33:42,934 --> 00:33:46,133
trillion dollars over 10 years,
a trillion dollars that we

641
00:33:46,133 --> 00:33:49,600
cannot afford as we try to
get our fiscal house in order.

642
00:33:49,600 --> 00:33:52,966
Two, it is important because
sometimes when the questions are

643
00:33:52,967 --> 00:33:57,533
asked and this
policy is explained,

644
00:33:57,533 --> 00:34:01,934
it is important to remember that
everybody under this proposal

645
00:34:01,934 --> 00:34:05,867
gets a tax cut on their
first $250,000 in earnings.

646
00:34:05,867 --> 00:34:08,900
So maybe some TV folks here -- I
don't know -- who make more than

647
00:34:08,900 --> 00:34:11,300
that, you'll get --
if you make $500,000,

648
00:34:11,300 --> 00:34:12,433
you get a tax cut --

649
00:34:12,433 --> 00:34:13,766
(laughter)

650
00:34:13,766 --> 00:34:19,132
-- on your first
$250,000 of income.

651
00:34:19,132 --> 00:34:21,766
It's not that if you're one
of the wealthiest Americans

652
00:34:21,766 --> 00:34:23,299
you don't get any tax cut.

653
00:34:23,300 --> 00:34:24,433
The Press:
I'm not asking about that.

654
00:34:24,433 --> 00:34:27,867
Mr. Carney:
No, I know, but I wanted to take
this opportunity to explain that

655
00:34:27,867 --> 00:34:34,734
everyone -- every taxpaying
American gets a benefit from

656
00:34:34,734 --> 00:34:35,500
this extension.

657
00:34:35,500 --> 00:34:36,833
The Press:
But when he laid down
the gauntlet on the

658
00:34:36,833 --> 00:34:41,699
across-the-board, and then you
won't say veto -- you just say

659
00:34:41,699 --> 00:34:43,299
that's his position, you're
not saying veto, it's just --

660
00:34:43,300 --> 00:34:43,867
Mr. Carney:
I said veto.

661
00:34:43,867 --> 00:34:47,767
The Press:
Above the $250,000 threshold.

662
00:34:47,766 --> 00:34:49,433
Mr. Carney:
I'm not aware of any
proposals -- I can't --

663
00:34:49,433 --> 00:34:52,632
The Press:
Anything between -- somewhere
between -- it makes it seem like

664
00:34:52,632 --> 00:34:54,933
you're aware that you're
asking for something you're

665
00:34:54,934 --> 00:34:55,600
not going to get.

666
00:34:55,600 --> 00:34:56,533
Mr. Carney:
Where is there some bill that
you were talking about before

667
00:34:56,533 --> 00:34:59,600
that's being written perhaps as
we speak that has it at $250,000

668
00:34:59,600 --> 00:35:02,200
and 50 cents -- then
I said he would veto

669
00:35:02,200 --> 00:35:04,033
it if it's over that.

670
00:35:04,033 --> 00:35:09,066
He will not support legislation
that extends tax cuts for the

671
00:35:09,066 --> 00:35:10,200
wealthiest 2 percent.

672
00:35:10,200 --> 00:35:15,066
The 2 percent threshold
is a $250,000 threshold.

673
00:35:15,066 --> 00:35:16,700
Alexis.

674
00:35:17,367 --> 00:35:20,133
The Press:
Jay, I want to take you to
an obscure topic but it's

675
00:35:20,133 --> 00:35:20,966
an important one.

676
00:35:20,967 --> 00:35:22,433
I'm not sure it's actually
been discussed in the

677
00:35:22,433 --> 00:35:23,900
briefing room -- Libor.

678
00:35:23,900 --> 00:35:28,800
So my question to you is what
lessons is the President taking

679
00:35:28,800 --> 00:35:35,066
from the trail that the Libor
manipulation is leaving us with

680
00:35:35,066 --> 00:35:38,399
the CFTC's investigation of
this bank and other banks

681
00:35:38,400 --> 00:35:39,834
that may be implicated?

682
00:35:39,834 --> 00:35:40,734
What lesson is he taking?

683
00:35:40,734 --> 00:35:43,967
I know we talked about --

684
00:35:43,967 --> 00:35:53,567
Mr. Carney:
I'm trying to -- London
-- I was trying to pass

685
00:35:53,567 --> 00:35:56,100
that test this morning.

686
00:35:56,100 --> 00:35:59,933
I would refer you and your
questions to the Federal

687
00:35:59,934 --> 00:36:01,834
Reserve Bank of New York.

688
00:36:01,834 --> 00:36:03,700
I have not had this
conversation with the President,

689
00:36:03,700 --> 00:36:05,834
so I cannot address that.

690
00:36:05,834 --> 00:36:08,100
I can tell you that,
as I understand it,

691
00:36:08,100 --> 00:36:11,066
they issued a statement the
other day noting that after

692
00:36:11,066 --> 00:36:12,933
they received reports
of problems with Libor,

693
00:36:12,934 --> 00:36:16,200
they shared suggestions with
Libor -- this goes to the

694
00:36:16,200 --> 00:36:18,033
New York Fed part of this.

695
00:36:18,033 --> 00:36:20,266
But in terms of the
broader implications,

696
00:36:20,266 --> 00:36:21,900
I haven't had that
conversation with him.

697
00:36:21,900 --> 00:36:30,033
But I think, broadly speaking,
this President took up the issue

698
00:36:30,033 --> 00:36:33,133
of Wall Street reform and is
committed to its implementation

699
00:36:33,133 --> 00:36:37,332
because it's important that
everybody play by the same set

700
00:36:37,333 --> 00:36:42,900
of rules and that -- not just
because that's how it should be,

701
00:36:42,900 --> 00:36:45,734
but because it's important for
our economy and it's important

702
00:36:45,734 --> 00:36:46,667
for the global economy.

703
00:36:46,667 --> 00:36:49,834
So that's a broad statement
about his position on things.

704
00:36:49,834 --> 00:36:52,500
I don't want to get too involved
in Libor because I know it's

705
00:36:52,500 --> 00:36:53,967
under investigation.

706
00:36:53,967 --> 00:36:57,600
Yes, and then Mark.

707
00:36:57,600 --> 00:36:59,366
Well, I'm sorry. I called
on this gentleman here who

708
00:36:59,367 --> 00:37:06,967
wants to say --

709
00:37:06,967 --> 00:37:08,834
The Press:
This week you have
criticized, and at times,

710
00:37:08,834 --> 00:37:15,533
kind of gently mocked
Republicans' definition

711
00:37:15,533 --> 00:37:18,165
in some cases of small
businesses as including

712
00:37:18,166 --> 00:37:20,834
some hedge fund managers
and lawyers and so forth.

713
00:37:20,834 --> 00:37:25,966
Republicans, in turn, criticize
the President's plan that his

714
00:37:25,967 --> 00:37:30,233
tax cut plan would benefit 97
percent of small businesses.

715
00:37:30,233 --> 00:37:31,600
So here's my question --

716
00:37:31,600 --> 00:37:33,366
Mr. Carney:
Let me just be clear
-- it's not a claim.

717
00:37:33,367 --> 00:37:35,400
It's been established
by the Joint Tax Center;

718
00:37:35,400 --> 00:37:38,266
it's been well documented
by outside -- in fact,

719
00:37:38,266 --> 00:37:43,266
we're being kind in our
definition of it because I

720
00:37:43,266 --> 00:37:46,600
believe the JTC said it
was only 2.7 percent.

721
00:37:46,600 --> 00:37:50,933
So it's really 97.3 percent
of small businesses would fall

722
00:37:50,934 --> 00:37:54,633
under the -- even under the
definition that the Republicans

723
00:37:54,633 --> 00:38:02,066
put forward do not have more
than $250,000 in revenue.

724
00:38:02,066 --> 00:38:04,265
So, to your question.

725
00:38:04,266 --> 00:38:07,133
The Press:
Thank you.

726
00:38:07,133 --> 00:38:08,332
Mr. Carney:
It's not just our claim.

727
00:38:08,333 --> 00:38:10,834
I mean, we are citing -- I think
Ann asked me where did that come

728
00:38:10,834 --> 00:38:12,500
from, and we provided that
information -- we even put

729
00:38:12,500 --> 00:38:14,200
it on the briefing.

730
00:38:14,200 --> 00:38:17,866
The Press:
For a couple decades,
under various presidential

731
00:38:17,867 --> 00:38:21,166
administrations, the Small
Business Administration has

732
00:38:21,166 --> 00:38:27,266
been at times criticized by
journalists for giving money to

733
00:38:27,266 --> 00:38:30,133
companies that are really not
small businesses -- they're

734
00:38:30,133 --> 00:38:31,232
larger than small businesses.

735
00:38:31,233 --> 00:38:34,400
This is an ongoing
kind of dispute.

736
00:38:34,400 --> 00:38:38,200
What is the President's
definition of a small business?

737
00:38:38,200 --> 00:38:40,133
Is it based on the
number of employees?

738
00:38:40,133 --> 00:38:42,799
Is it based on the
annual revenue?

739
00:38:42,800 --> 00:38:46,467
What is it based -- does
he have a definition?

740
00:38:46,467 --> 00:38:48,934
Mr. Carney:
Well, I haven't had a -- I'm
not sure that he has his own

741
00:38:48,934 --> 00:38:49,800
personal definition.

742
00:38:49,800 --> 00:38:54,867
I'm sure that he looks to the
SBA and the SBA Administrator

743
00:38:54,867 --> 00:38:55,400
for that.

744
00:38:55,400 --> 00:39:00,066
But the fact of the matter is,
and I think the point that we

745
00:39:00,066 --> 00:39:03,000
are making here when we
talk about this debate with

746
00:39:03,000 --> 00:39:08,300
Republicans who sort of ignore
the fact that -- or try to

747
00:39:08,300 --> 00:39:12,533
ignore the fact that included
in their definition of small

748
00:39:12,533 --> 00:39:17,165
businesses are hedge fund
managers and law partners and

749
00:39:17,166 --> 00:39:26,233
others -- is that 97.3 percent
of small businesses benefit from

750
00:39:26,233 --> 00:39:29,133
the extension of the tax cut who
file in this way -- S corps who

751
00:39:29,133 --> 00:39:32,066
file in this way benefit
from the extension of the

752
00:39:32,066 --> 00:39:33,399
middle-class tax cuts.

753
00:39:33,400 --> 00:39:38,800
It is simply not a viable claim
to say that this is going after

754
00:39:38,800 --> 00:39:42,200
small businesses -- unless
you want to argue that Warren

755
00:39:42,200 --> 00:39:45,232
Buffett and other folks,
and hedge fund managers

756
00:39:45,233 --> 00:39:46,567
are small businesses.

757
00:39:46,567 --> 00:39:48,533
Did you know that by the
Republican definition of small

758
00:39:48,533 --> 00:39:53,933
business, half of the Forbes
400 wealthiest individuals are

759
00:39:53,934 --> 00:39:56,767
small businesses?

760
00:39:56,767 --> 00:40:01,567
I don't think that's what most
Americans have in mind when they

761
00:40:01,567 --> 00:40:04,667
think about -- when they hear
politicians talk about -- and

762
00:40:04,667 --> 00:40:08,533
politicians of both parties talk
about this that small business

763
00:40:08,533 --> 00:40:10,767
is the economic engine
of economic growth.

764
00:40:10,767 --> 00:40:18,066
They think of small businesses
that hire a handful of employees

765
00:40:18,066 --> 00:40:20,133
-- or perhaps scores of
employees -- but they don't

766
00:40:20,133 --> 00:40:22,700
think hedge funds, and they
don't think of law firms.

767
00:40:22,700 --> 00:40:26,834
They think of the kinds of small
businesses that they see when

768
00:40:26,834 --> 00:40:35,667
they walk through their towns,
and maybe the kinds of small

769
00:40:35,667 --> 00:40:38,200
businesses that
they themselves own.

770
00:40:38,200 --> 00:40:42,000
So this is the debate
we're happy to have

771
00:40:42,000 --> 00:40:43,967
because we're right.

772
00:40:43,967 --> 00:40:44,934
The Press:
Jay, can I follow?

773
00:40:44,934 --> 00:40:47,300
Mr. Carney:
Yes. Sorry.

774
00:40:47,300 --> 00:40:49,900
The Press:
The SBA's definition
of small businesses,

775
00:40:49,900 --> 00:40:53,633
depending upon what it's doing,
from a manufacturing concern,

776
00:40:53,633 --> 00:40:55,633
have 1,500 workers.

777
00:40:55,633 --> 00:41:00,232
And the criticism of the impact
of the tax cuts is they would

778
00:41:00,233 --> 00:41:05,600
impact while only 2-and-change
percent of the small businesses,

779
00:41:05,600 --> 00:41:08,933
nearly half the small business
income -- and that's where the

780
00:41:08,934 --> 00:41:09,934
jobs are being created.

781
00:41:09,934 --> 00:41:12,867
Mr. Carney:
But again, that is, again, with
a measure of -- do you know why

782
00:41:12,867 --> 00:41:14,033
there's a lot of income in that?

783
00:41:14,033 --> 00:41:16,100
Because there's hedge fund
managers and law partners who

784
00:41:16,100 --> 00:41:17,533
are making millions -- right?

785
00:41:17,533 --> 00:41:23,299
And again, if you're a small
business and you file under the

786
00:41:23,300 --> 00:41:25,867
personal income tax code,
if you're an S corps,

787
00:41:25,867 --> 00:41:32,066
and you make $275,000, you
get a tax cut on $250,000.

788
00:41:32,066 --> 00:41:34,567
And you benefit from every other
tax cuts for small businesses

789
00:41:34,567 --> 00:41:36,700
that this President has
passed and signed into law.

790
00:41:36,700 --> 00:41:39,433
And if you're a small business
that's willing to make the

791
00:41:39,433 --> 00:41:41,800
investment in hiring a new
worker or expanding your wage

792
00:41:41,800 --> 00:41:43,867
base, you'll benefit from the
tax cut that the President is

793
00:41:43,867 --> 00:41:46,600
pushing Congress
to pass this week.

794
00:41:46,600 --> 00:41:50,066
The Press:
I think the argument, though,
is the tiny small businesses

795
00:41:50,066 --> 00:41:51,667
are not hiring.

796
00:41:51,667 --> 00:41:54,333
What we don't really want to
think of is a small business

797
00:41:54,333 --> 00:41:58,767
concern with a thousand
workers -- they are.

798
00:41:58,767 --> 00:42:00,299
Mr. Carney:
I'm not sure what the
point of your question is.

799
00:42:00,300 --> 00:42:06,133
Again, 97.3 percent, 97 percent
of small businesses unaffected.

800
00:42:06,133 --> 00:42:08,033
By the Republican definition
of a small business,

801
00:42:08,033 --> 00:42:12,500
the hedge fund managers
would get a big tax cut,

802
00:42:12,500 --> 00:42:14,667
law partners would
get a big tax cut.

803
00:42:14,667 --> 00:42:16,700
The Press:
But also a concern,
a manufacturing --

804
00:42:18,100 --> 00:42:22,299
Mr. Carney:
You would have to
cite me real examples,

805
00:42:22,300 --> 00:42:24,467
instead of hypothetical
ones, and perhaps there are.

806
00:42:24,467 --> 00:42:27,333
But those businesses would
benefit not just from,

807
00:42:27,333 --> 00:42:31,700
if they file this way, from a
tax cut for the first $250,000,

808
00:42:31,700 --> 00:42:33,966
but from every other tax cut
that the President has passed

809
00:42:33,967 --> 00:42:36,834
into law -- 18 and counting --
and from a tax -- and when you

810
00:42:36,834 --> 00:42:40,767
talk about hiring, that's why
Congress ought to pass the

811
00:42:40,767 --> 00:42:43,000
provision the President supports
-- actually initiated -- that

812
00:42:43,000 --> 00:42:47,467
would reward small
businesses if they hire more.

813
00:42:47,467 --> 00:42:48,767
The Press:
A company with a
thousand workers,

814
00:42:48,767 --> 00:42:52,433
$250,000 tax cut means
nothing to them.

815
00:42:52,433 --> 00:42:54,600
Mr. Carney:
Wendell, you're talking about a
hypothetical that I don't even

816
00:42:54,600 --> 00:42:55,734
know if it exists.

817
00:42:55,734 --> 00:42:58,400
If you want to come to me with
-- or come to our economists

818
00:42:58,400 --> 00:43:02,233
with an example of a company
with a thousand workers that

819
00:43:02,233 --> 00:43:07,200
files on personal income tax --
files under the personal income,

820
00:43:07,200 --> 00:43:09,933
is an S corps -- because we're
talking -- I think you may be

821
00:43:09,934 --> 00:43:12,767
confused here with the corporate
tax rate here and the individual

822
00:43:12,767 --> 00:43:13,299
tax rate.

823
00:43:13,300 --> 00:43:15,734
The Press:
I'm talking about the SBA's
definition of a small business,

824
00:43:15,734 --> 00:43:16,567
which for --

825
00:43:16,567 --> 00:43:20,967
Mr. Carney:
Wendell, the issue is how
do they file their taxes.

826
00:43:20,967 --> 00:43:23,133
So we're talking about
personal income tax rates.

827
00:43:23,133 --> 00:43:25,767
We're talking about extending
tax cuts for 98 percent of

828
00:43:25,767 --> 00:43:29,000
Americans, individuals,
and how they file.

829
00:43:29,000 --> 00:43:31,734
The issue -- the canard the
Republicans put out there is

830
00:43:31,734 --> 00:43:36,133
that a lot of small
businesses file as S corps,

831
00:43:36,133 --> 00:43:41,633
I believe it's called, and under
the individual income tax code,

832
00:43:41,633 --> 00:43:46,433
97 percent of them would
not be affected by this.

833
00:43:46,433 --> 00:43:49,066
Mark Landler of
The New York Times.

834
00:43:49,066 --> 00:43:49,734
The Press:
Thank you, Jay.

835
00:43:49,734 --> 00:43:53,000
You addressed the issue
of sequesters earlier,

836
00:43:53,000 --> 00:43:55,233
but I wanted to put it
in a different context.

837
00:43:55,233 --> 00:43:58,533
Tomorrow the President
is going to Virginia,

838
00:43:58,533 --> 00:44:02,734
a state that's economically
dependent on military contracts.

839
00:44:02,734 --> 00:44:05,767
What should or will the
President say to people

840
00:44:05,767 --> 00:44:10,500
in Hampton Roads and that area
who don't understand the ins and

841
00:44:10,500 --> 00:44:12,333
outs and mysteries
of sequesters;

842
00:44:12,333 --> 00:44:14,000
all they know is
what they're hearing,

843
00:44:14,000 --> 00:44:17,100
which is that next year they
could face these devastating

844
00:44:17,100 --> 00:44:21,299
cuts in military contracts --
what message would the President

845
00:44:21,300 --> 00:44:22,700
have for those people?

846
00:44:22,700 --> 00:44:30,133
Mr. Carney:
Well, I think you would make
clear that what he supports,

847
00:44:30,133 --> 00:44:33,500
what he signed into law, what
bipartisan majorities of both

848
00:44:33,500 --> 00:44:40,867
parties passed last year, was
a legislative commitment by

849
00:44:40,867 --> 00:44:45,567
Congress to take action
to avoid the sequester.

850
00:44:45,567 --> 00:44:48,233
The Secretary of Defense, the
President and others have made

851
00:44:48,233 --> 00:44:55,100
clear they do not support cuts
in defense spending that would

852
00:44:55,100 --> 00:44:58,232
be called for in the sequester,
as well as the President made

853
00:44:58,233 --> 00:45:00,767
clear cuts in non-defense in
spending that's called for in

854
00:45:00,767 --> 00:45:01,299
the sequester.

855
00:45:01,300 --> 00:45:03,667
The cuts were -- the
across-the-board cuts were

856
00:45:03,667 --> 00:45:06,866
objectionable and onerous
to both sides for a reason.

857
00:45:09,166 --> 00:45:10,867
That's why Congress has to act.

858
00:45:10,867 --> 00:45:15,834
And I think for defense
industries and others,

859
00:45:15,834 --> 00:45:19,767
that there is -- for everybody
who cares about this issue,

860
00:45:19,767 --> 00:45:23,265
and everybody should, it's a
reminder of why we need to --

861
00:45:23,266 --> 00:45:27,367
we, the American people, need
to remind Congress that it's

862
00:45:27,367 --> 00:45:31,867
important to compromise and
take a balanced approach here;

863
00:45:31,867 --> 00:45:42,767
that it is not the right policy
to balance our -- or get our

864
00:45:42,767 --> 00:45:46,600
fiscal house in order and deal
with our deficits and debt by

865
00:45:46,600 --> 00:45:51,366
asking only senior citizens,
only the middle class,

866
00:45:51,367 --> 00:45:57,633
only parents with children with
disabilities to bear the burden.

867
00:45:57,633 --> 00:46:00,966
And that's what
the bottom line is.

868
00:46:00,967 --> 00:46:02,834
I mean, that has been the
stoppage, the stalemate,

869
00:46:02,834 --> 00:46:07,533
that's been created by the
Republican insistence that

870
00:46:07,533 --> 00:46:11,900
there be no revenues as
part of a balanced approach.

871
00:46:11,900 --> 00:46:15,033
And that's unsustainable.

872
00:46:15,033 --> 00:46:20,066
And in the end, the
President believes,

873
00:46:20,066 --> 00:46:23,700
we will get that balanced
approach because it is what the

874
00:46:23,700 --> 00:46:29,866
American people support and it's
the right thing for our economy.

875
00:46:29,867 --> 00:46:30,533
The Press:
Thanks, Jay.

876
00:46:30,533 --> 00:46:31,533
Mr. Carney:
All right. Yes, sorry.

877
00:46:31,533 --> 00:46:32,299
The Press:
Can I ask one --

878
00:46:32,300 --> 00:46:33,433
Mr. Carney:
I thought there might be one.

879
00:46:33,433 --> 00:46:34,166
The Press:
Yes.

880
00:46:34,166 --> 00:46:37,266
I mean, the President's message
for the last two or three trips

881
00:46:37,266 --> 00:46:40,233
outside of Washington has been,
let's give the middle class some

882
00:46:40,233 --> 00:46:42,233
certainty, let's
give them a tax cut.

883
00:46:42,233 --> 00:46:45,734
So the certainty in a time of
economic uneasiness is a key

884
00:46:45,734 --> 00:46:46,834
part of his message.

885
00:46:46,834 --> 00:46:48,899
Now he's going to Virginia
and saying, on the one hand,

886
00:46:48,900 --> 00:46:51,433
I want to give you certainty,
but on the other hand,

887
00:46:51,433 --> 00:46:55,333
I can give you no certainty on
a key component of your local

888
00:46:55,333 --> 00:46:58,233
economy, which is the
military contracting business.

889
00:46:58,233 --> 00:47:00,200
Doesn't that sort of
complicate his message?

890
00:47:00,200 --> 00:47:02,332
Mr. Carney:
Well, I'm not -- he can't give
-- I mean, here's the thing.

891
00:47:02,333 --> 00:47:04,400
Congress passed a law.

892
00:47:04,400 --> 00:47:06,700
The point he's making with
extending the middle-class tax

893
00:47:06,700 --> 00:47:11,767
cuts is that here is something,
amidst all this stalemate,

894
00:47:11,767 --> 00:47:14,734
that Democrats and Republicans
all agree we should do,

895
00:47:14,734 --> 00:47:20,133
which is extend tax cuts for 98
percent of the American people

896
00:47:20,133 --> 00:47:21,899
-- American taxpayers.

897
00:47:21,900 --> 00:47:28,433
So amidst -- this is the little
diamond in the sand, right,

898
00:47:28,433 --> 00:47:31,100
that let's do that, we all
agree on it, let's do that.

899
00:47:31,100 --> 00:47:33,799
And let's create -- and that
does create an important amount

900
00:47:33,800 --> 00:47:37,166
of economic certainty not just
for the recipients of that tax

901
00:47:37,166 --> 00:47:39,767
cut but for the broader economy.

902
00:47:39,767 --> 00:47:42,567
It addresses a portion of
the so-called fiscal cliff.

903
00:47:42,567 --> 00:47:44,100
Let's do it now.

904
00:47:44,100 --> 00:47:48,667
Let's continue to debate the
issues where we -- where there

905
00:47:48,667 --> 00:47:56,967
is contention and disagreement.

906
00:47:56,967 --> 00:47:58,767
But it is not the
answer to simply say,

907
00:48:01,133 --> 00:48:03,366
we didn't mean it -- we,
Congress -- when we signed

908
00:48:03,367 --> 00:48:04,033
this into law.

909
00:48:04,033 --> 00:48:07,299
We didn't -- I mean, the point
is Congress needs to make some

910
00:48:07,300 --> 00:48:10,233
tough choices and deal
with our deficit and

911
00:48:10,233 --> 00:48:11,567
debt in a balanced way.

912
00:48:11,567 --> 00:48:17,367
And if the answer is, well, we
don't really want to do that

913
00:48:17,367 --> 00:48:21,867
after all, then that takes
away the very purpose of the

914
00:48:21,867 --> 00:48:24,800
sequester, which was to
force Congress to make

915
00:48:24,800 --> 00:48:26,266
some tough calls.

916
00:48:26,266 --> 00:48:28,867
The Press:
But he's not saying
with the same urgency,

917
00:48:28,867 --> 00:48:30,600
let's deal with the
sequester issue now,

918
00:48:30,600 --> 00:48:33,400
let's get this settled now
before we get to January,

919
00:48:33,400 --> 00:48:35,300
that he's saying the tax cuts,
which -- so are you at all

920
00:48:35,300 --> 00:48:36,133
worried that --

921
00:48:36,133 --> 00:48:37,232
Mr. Carney:
Well, first of all,
you're saying "this week."

922
00:48:37,233 --> 00:48:39,200
I mean, the President has been
talking about the urgency to

923
00:48:39,200 --> 00:48:44,700
deal with our deficit and debt
in a balanced way all year.

924
00:48:44,700 --> 00:48:49,433
And last fall -- it is embodied
in his several budget proposals,

925
00:48:49,433 --> 00:48:51,400
and embodied -- he talked about
it in the State of the Union,

926
00:48:51,400 --> 00:48:52,600
he talked about it in
his budget proposal,

927
00:48:52,600 --> 00:48:55,366
he talked about it all
spring -- winter and spring.

928
00:48:55,367 --> 00:48:57,934
And you'll continue to
hear him talk about it.

929
00:48:57,934 --> 00:49:02,166
It was disappointing that the
super committee didn't get its

930
00:49:02,166 --> 00:49:04,300
act together, that Congress
didn't do the right thing.

931
00:49:04,300 --> 00:49:09,867
It was disappointing that an
unelected person who passes out

932
00:49:09,867 --> 00:49:13,000
petitions seems to have more
power and authority in Congress

933
00:49:13,000 --> 00:49:19,233
with the Republican
Party than its leaders.

934
00:49:19,233 --> 00:49:26,133
But we need to break that logjam
so that that balanced approach

935
00:49:26,133 --> 00:49:33,399
is adopted to create the kind of
foundation for future economic

936
00:49:33,400 --> 00:49:36,066
growth that the President
believes we need to do.

937
00:49:36,066 --> 00:49:36,933
Thanks, all.

938
00:49:36,934 --> 00:49:38,600
The Press:
Jay, week ahead?

939
00:49:38,600 --> 00:49:40,500
Mr. Carney:
Sorry -- it's
Thursday, isn't it?

940
00:49:40,500 --> 00:49:41,367
(laughter)

941
00:49:41,367 --> 00:49:41,867
The Press:
Yes.

942
00:49:41,867 --> 00:49:43,266
Mr. Carney:
So I don't have a
week ahead. Okay.