The White House

Office of the Press Secretary

Press Briefing by Press Secretary Jay Carney, 12/13/2012

James S. Brady Press Briefing Room

1:08 P.M. EST

MR. CARNEY:  Good afternoon.  Thanks for being here at the White House.  I have no announcements, so let’s go straight to questions.  Jim.

Q    Thank you, Jay.  Fiscal cliff:  At the start of the negotiations, the White House welcomed the Republican movement toward revenue.  You guys said that that was a good step in the right direction.  I'm wondering, can you point to something that the President has done that kind of has moved in the direction of Republicans here?  The cuts that you’ve outlined have been ones that have been in your budget.  You’ve asked for almost double -- now you’ve come down to $1.4 trillion -- it’s almost double what the Republicans have put on the table.  And you have $200 billion in stimulus money there.  So what is it that -- can you point to us how that is a negotiation?

MR. CARNEY:  Well, it sounds like you’ve gotten some points for you.  Let’s just be clear.  There is one party to these negotiations who has put forward a specific proposal for revenue and a specific proposal for spending cuts.  Even when the Republicans -- and I saw Speaker Boehner do this earlier today -- insist that the President hasn’t put forward spending cuts, it begs the question, what spending cuts have the Republicans put forward? 

The proposal that we've seen is a two-page letter, and the much-discussed second proposal is less than half a page.  There is no specificity behind what the Republicans have put forward, and no more than a sentence on revenues.

The President has said when it comes to spending cuts, here’s what I propose.  But he understands that it might require tougher choices and a negotiation.  He’s made that clear and he’s said repeatedly that he’s willing to do that.  What we have seen -- and you noted at the top -- is some rhetorical concession to the notion that revenue has to be part of the equation here, but not a single specified source of revenue; only the vague promise that revenue could be achieved through tax reform that somehow makes permanent the high-end tax cuts for the wealthy -- which is non-negotiable and is not happening -- and has a goal of lowering rates further -- i.e. giving another tax cut, an additional tax cut for the wealthy.

This is fantasy economics.  And I know I'm answering at length here, but in 1993 -- I know because I was there and I covered it -- John Boehner got up and said, if we pass the Clinton budget plan we'll lose jobs, the economy will shrink, inflation will go up.  Verbatim he said that, or close to verbatim; I don’t have the exact quote, I had it on my computer.

In 2001, he fiercely advocated for the massive tax cuts that President Bush insisted on, again in 2003, that went disproportionately to the wealthy, promising that they would lead to economic growth and a middle class that was better off. 

Let me just say that while I personally am very fond of John Boehner, his record of predicting what would happen if certain policies, economic policies were instituted is abysmal, okay?  Because after 1993, after that budget plan was passed, we saw record economic growth.  We saw record job creation.  We saw the middle class strengthened and made more secure, and we saw vast amounts of wealth created in this country.

In the aftermath of those two massive tax cuts in 2001 and 2003 that President Bush authored and then-Congressman Boehner advocated, we saw stagnation for the middle class; we saw anemic economic growth, and then the worst financial crisis of our lifetimes -- not to mention surpluses turned into deficits.

So the President has a plan.  The President has been very specific.  He understands that he will not get everything in his plan.  He is prepared to negotiate.  But it is not a tenable position to say that the tax cuts for the wealthy should be made permanent.  It’s not going to happen.  The President has made that clear.

Q    I guess the question was where has the President moved toward the Republicans --

MR. CARNEY:  Well, I think, as it's been reported -- of course, not by us, but has been described by those who have received it -- the President has moved in his proposal for revenue and he has put forward very specific spending cuts.  Again, what we lack on either spending or revenue from the Republicans is a single specific -- occasionally I see in reports Republicans saying, well, we have our budget, too.  Okay, if Republicans are saying that their spending cuts include turning Medicare into a voucher, I think they ought to say so.  I think the American people would be very interested to hear that, since we just had an election where that was a focus and it was roundly opposed by a majority of the American people.

I don’t think that’s their position.  And the fact is, is while they insist on greater spending cuts -- and we're willing to have that conversation about additional spending cuts -- we need to know what it is they're proposing.  And they have yet to tell you that, and they have yet to tell us that. 

Q    The Speaker also said that the debt ceiling demands just would never pass Congress.  Is that something that's negotiable to you?

MR. CARNEY:  Well, here's what the President is proposing.  He's proposing that the legislation authored by Senator McConnell -- not a noted Obama sympathizer -- be taken up again and adopted.  And I noted that Speaker Boehner made the point that then-Senator Obama and Senator Reid at the time would not have supported such a move under President George W. Bush.  But here's what I have to say about that.  What happened last year, when House Republicans, led by Speaker Boehner, brought this country to the brink of default had never happened before.  Congress, prior to that, while raising the debt ceiling had been a matter of debate, had always done its job, had never in the history of this country threatened default on our credit. 

And because we can't do that again, because we cannot do what some Republicans seem to think is wise economic policy, which is engage in that folly every three or six months, the President suggested that we adopt Senator McConnell's proposal, which has been in place since the summer of 2011.  And that is all.  And that proposal, by the way, still gives Congress the authority to vote on, and if they disagree with the President's decision, to override a veto of a rejection of raising the debt ceiling.  So the authority still resides there. 

But we cannot play this game, because while it might be satisfying to those with highly partisan and ideological agendas, it's not satisfying to the American people and is punishing to the American economy.  We cannot do it.

Q    But it sounds like this demand -- you would not let that demand hold up a deal if there’s --

MR. CARNEY:  Here's what I'll say about that.  The President believes Congress ought to do its job.  Let's remember what a vote to raise the debt ceiling is.  It is a vote to pay the bills that Congress has incurred.  The President doesn’t control the purse strings -- the President of either party.  Congress passes bills that appropriate money.  Congress says, we're building this bridge or funding that defense project, and they cost this much. And because it is the United States, those bills have always been paid. 

So when Congress raises the debt ceiling, this is not about spending in the future; it's about paying bills that Congress has incurred.  So it would be the height of irresponsibility for Congress not to do its job and not to pay the bills that it racked up. 

The President will not engage in that kind of brinksmanship.  He just expects Congress to do its job.

Yes, Jessica.

Q    Has the administration given a written offer to the Speaker?

MR. CARNEY:  I’m not going to get into specifics.  Although since so much of this seems to leak from elsewhere, I think it’s known that we have exchanged offers.

Q    Yes, but you keep deriding their offer as nonspecific because it’s just a short letter.  But it’s my understanding that the Geithner offer was verbal.  It wasn’t even written down, so if writing is --

MR. CARNEY:  Well, I’m not going to get into specifics, but everything that's behind --

Q    -- the measure of seriousness, your offer wasn’t even written.

MR. CARNEY:  Well, again, Jessica, everything that -- every conversation that we’ve had with Congress both at the level of Secretary Geithner and Rob Nabors and at the level of the President has been backed by the specific proposals that we have on paper.  So when we say $1.6 trillion in revenue, it’s documented.  When we say, $600 billion in spending cuts, it’s documented that --

Q    So do you dispute that?

MR. CARNEY:  Well, I don't understand what you're saying.  So we have the documentation; they have the documentation.  If you’re saying, verbally, if he repeats everything in an 80-page proposal -- no.  But they know where our proposed cuts from come, and they know where our proposed revenue comes from.  And when we reduce our revenue proposal --

Q    It was in the original proposal, you’re saying, from this --

MR. CARNEY:  That's correct.

Q    -- but it wasn’t -- when Geithner went up to the Hill, he didn’t present it --

MR. CARNEY:  But that is our proposal.  They know what our  --

Q    So he was reiterating a past proposal?

MR. CARNEY:  Right.  We have put forward specific cuts.  And let me remind you that even the House Republican budget, which is sometimes cited as the source for their cuts, is wholly unspecific.  It’s just targets.  It’s just across-the-board stuff.  There’s no specificity beyond the voucherization of Medicare for how they would achieve cuts.  So again, the only party to these negotiations who has put forward any specific cuts or any specificity when it comes to raising revenues is the President of the United States. 

And here’s how we know that -- because if you were to ask the leaders in Congress on the Republican side, what are their specifics, they will not tell you, and they have not told us.

Q    Does the White House dispute the Speaker’s contention that negotiations are at the 11th hour now?

MR. CARNEY:  Well, I’m not sure if we are 11/12’s of the way through the year -- we are, we’re even beyond that.  So I think that’s a fair assessment that we are close to a deadline.

Q    So does the President feel it’s incumbent on him to make a new offer now?

MR. CARNEY:  The President does not believe that he should negotiate with himself.  He has made abundantly clear that Republicans need to accept the fact that rates will go up on the top 2 percent and that we should extend tax cuts for the remaining 98 percent.  Thus far, we have not seen an acceptance of that by Republican leaders, and in fact, the proposal that we’ve seen and that you guys have reported on doesn’t just reject that, it says we should make permanent the tax cuts for the wealthiest Americans. 

Q    Speaker Boehner has said he is leaving town tomorrow and he won’t be here this weekend.  Does the President read this as a sign that negotiations have been unsuccessful, that he’s been unable to --

MR. CARNEY:  Well, look, there’s no question that we haven’t reached an agreement.  It’s also true that the parameters of an agreement are very clear, and how we -- the building blocks --

Q    Is that worrisome?  You guys need to be making --

MR. CARNEY:  Well, look, I think it’s worrisome for the American people that thus far the House Republican leadership has refused to accept the fundamental principle that was debated again and again and again throughout a presidential election and on which the American people made their voices heard and their opinions clear.  It is a position the President has been utterly transparent about and a position that some pundits thought was politically risky but that he believed was absolutely the right position to take for our economy.

So there is no particular reason why we can’t get this done very quickly beyond the single obstacle here, which is that the Republicans refuse to accept that rates are going up on the high end -- the top earners in this country.  And again, if the Republicans have specific spending cuts that they would like to propose that build on or are different from the ones the President has proposed, I think they should.  And the President looks forward to negotiating that, but we haven’t seen that yet.

Q    Okay, on a different topic.  As senator, President Obama repeatedly traveled to Iraq and Afghanistan with then-Senator Chuck Hagel.  He has said flattering things about him and appointed him to this Intelligence Advisory Board.  He obviously thinks very highly of him.  But what would the President say to pro-Israel advocates who are concerned or have voiced strong concerns about his position on sanctions, Iran and Israel?

MR. CARNEY:  You’re asking me, I can tell, to engage in conversation about potential personnel decisions the President is making and will make.  And I have no opinions to offer.

Q    Well, we know Mr. Hagel has met with the President and Vice President.

MR. CARNEY:  The President thinks very highly of Senator Hagel.  I think a lot of people in Washington and around the country, and especially in Senator Hagel’s home state think very highly of him.  But I have no news to make for you on that process.

Q    Was the offer that Speaker Boehner made on Tuesday different from the offer that he had made previously?

MR. CARNEY:  Again, I’m not going to get into specific --

Q    I’m not asking you for specifics.

MR. CARNEY:  Well, that is a specific difference.  What I can say is that we have yet to see --

Q    You say that the President is not going to negotiate with himself --

MR. CARNEY:  Here’s what I will tell --

Q    -- which suggests that Speaker Boehner wasn’t offering something different.

MR. CARNEY:  Fair enough.  Here’s what I will say, is that on the fundamental obstacle, the answer is, no, we have not seen in any of our conversations or offers any difference in the stated position by the Speaker of the House when it comes to revenues. 

And the irony of even the proposal that was in the Speaker’s letter and that has been put forward as the Speaker’s  -- the Republican position, they called it -- that promises $800 billion in revenue, which is not enough to create the balanced plan that's necessary for our broad-based deficit reduction goals.  But even that $800 billion has been totally unspecified beyond their insistence that lower tax rates be extended for the wealthiest Americans.  So that's where it stands.

Q    Maybe the $800 billion is part of the $1.2 trillion that the President said would be in tax deductions and limited closing loopholes last year.

MR. CARNEY:  Again, we see no specificity.  And what Jason Furman got up here and described to you in great detail, using solid facts and analysis by independent economists, not reports commissioned by industry in support of a political agenda, makes it very clear that we cannot achieve the kind of revenue necessary simply through cutting deductions, or capping deductions and closing loopholes limited to the wealthy, or to those making more than $250,000 in any economically sensible or politically feasible way.  It's just not possible. 

So again, you can write that --

Q    There are other contentious issues, including the --

MR. CARNEY:  Sure.

Q    -- and House Republicans think that the degree to which spending will be reduced or cut is a big, contentious issue.  Did the Speaker's second proposal not -- was it not different a little bit at least from his first proposal when it came to spending cuts?

MR. CARNEY:  We have not seen any specificity when it comes to spending cuts.  We know that Republicans want greater spending cuts, but we don't know how they would achieve them, what their proposals are.  If the answer -- which we haven't heard -- but if the answer is, well, go look at the Ryan budget, we know that, A, that lacks specificity, too, always did -- and, B, that it contains the voucherization of Medicare, which is not happening. 
So that doesn't mean that there are not serious and credible ways to further reduce spending that this President would entertain and be able to come to an agreement on with Republicans.  We believe there are.  And this President has made clear that he understands that it's -- that this is not easy, that he will not get everything that he wants, that his plan as written will not be what's passed and signed into law.  And he is willing to make tough choices.

But there are some clear red lines when it comes to how we build a broader deficit reduction package.  And one red line is he will not sign into law an extension of tax cuts for the top 2 percent.  We can't afford it and it's bad economic policy.

Q    Is there any sort of plan B being discussed, whether with the Speaker or on some sort of separate track, so that if there isn't a deal cut, there is at least some way to pass the 98 percent -- extending the tax cuts for 98 percent and paying down some of the sequestered spending cuts at least for a few months until something can be worked out?  Is there any effort being made by Mr. Nabors or anybody in the White House to at least have that ready so we don't entirely go over the cliff on January 1st?

MR. CARNEY:  It's a good question.  We still believe that a big deal is possible.  We believe the parameters are there and we remain confident that if Republicans agree with the basic idea that rates have to go up for the wealthiest while we extend tax cuts for everyone else that we can reach a deal fairly quickly.

Yes, I mean, one aspect of a way to deal with this at the very least would be to pass the tax cuts for 98 percent of the American people.  That would deal with a chunk of the so-called fiscal cliff.  And I am sure that there are others who have -- as part of putting together a bigger proposal, but also independent from that, I'm sure there are ways to address issues of the fiscal cliff. 

The President believes that this is an opportune time to think bigger than that, to do more than that, to try to pass a broad package that, combined with the spending cuts already signed into law, achieves the kind of significant deficit reduction that puts us on a fiscally sustainable path for a decade.  And he doesn't want to pass up that opportunity.

Q    Got it.  But just in case --

MR. CARNEY:  That's not saying that there --

Q    -- in case of emergency, break glass.  Is there some sort of plan B?
MR. CARNEY:  In case of emergency, the House should break the glass; the House Speaker ought to allow the Republicans to vote on extending tax cuts for 98 percent of the American people. That would deal with a chunk of the so-called fiscal cliff.  \

And I will refrain from reading the quotations from congressman after congressman of the Republican Party, as well as senators who have said that we should do that at the very least. And I'm hoping that, and the President hopes that those voices are heard and that action is taken, because the dysfunction that appears to continue to exist in Washington should not result in punishment for the middle class.  That’s unfair and it's bad for our economy.

Q    One last question.  The President went to Michigan and he waded into the local controversy there involving right to work.  There was violence at some of the demonstrations, with the union activists being involved.  I was wondering if the President was aware of any of this violence, if he had any response to it.

MR. CARNEY:  I haven't discussed reports like that with him, so I'm not sure he's aware of it.  But we deplore violence in any case.  And the President feels very strongly, as he said on his visit to Michigan the other day, that right-to-work laws are really right-to-be-paid-less laws, and that they reflect a political agenda and not an economic agenda, and he opposes them. We should not make it harder for workers to organize, and that's his position.  But certainly, we do not support violence.

Q    There's been no negotiation back and forth --

MR. CARNEY:  I'm sorry, Bill.

Q    Thank you.  (Laughter.)  There's been no negotiations back and forth as far as anybody can tell, in the sense that terms have been discussed, debated, swapped back and forth, and won't be, if I hear you correctly, unless and until Republicans agree in advance that they will drop their opposition to the tax hike on the upper 2 percent.

MR. CARNEY:  Well, I guess it's a question of semantics in terms of what negotiations mean.  But we have obviously had meetings and we've had discussions and we've had phone calls, and we've presented ideas and ideas have been presented to us.  But this is -- on the issue of -- on the revenue side, I think the President could not have been more clear, and I will reiterate the clarity, which is he will not sign --

Q    Right.  So nothing happens until they agree -- is that what you're saying?

MR. CARNEY:  Well, no, because we've put forward spending cuts.  And if --

Q    Yeah, but you put them forward a long time ago.  They were written into a budget and --

MR. CARNEY:  Right, and they achieve a significant amount of savings.  And if the --

Q    The other side says they don't, they’re never going to pass on that --

MR. CARNEY:  Do they?  Because the math doesn't back up their words, which is frequently the case.  They do achieve significant savings.  And what distinguishes them from spending cut proposals by the Republicans is they exist and they're in detail. 

So what the President believes is that there is an opportunity for a deal here, for a compromise here, one that achieves security for the middle class, certainty for the middle class by extending those tax cuts for the middle class, and one that deals with the fiscal cliff and one that broadly puts us on a sustainable fiscal path.  That opportunity exists.

But here's the thing.  You have reported -- I don't know if you personally, but many of you in this room have reported on the offer we made earlier this week, which actually does reduce the amount of revenue that the President believes should be part of this package.  Again, but we're not going to just negotiate with ourselves.  What we have not seen is any specificity from the Republicans or any indication from the leadership that they're going to accept the basic principle that wealthier Americans are going to pay higher rates, rates that were in place under the Clinton administration when this economy grew rapidly, the middle class saw its incomes rise and the wealthy did very well, to boot.

Q    But if you're saying that no negotiation can really begin until they accept your first principle --

MR. CARNEY:  That's not what I'm saying, Bill.  That's what you're saying.

Q    -- and if the Speaker is saying no negotiation really can begin --

MR. CARNEY:  Negotiation is taking place and we've put forward offers.  And what we have not seen from the Republicans is any movement at all on the fundamental issue here. 

Q    Jay, tax reform is a big piece of this.  You were outspoken in the last campaign about saying Mitt Romney's use of offshore accounts while legal was not fair.  Do you share the same concern, level of concern about Google and Eric Schmidt, who has been an advisor to the President, informal advisor, using accounts in Bermuda to not pay their fair share of taxes?

MR. CARNEY:  I'm not even aware of that story, so I don't have an opinion.

Q    There were several reports in that last couple of days. 
MR. CARNEY:  I've been focused on the fiscal cliff, on Syria, on North Korea -- so I'm not aware of those stories.

Q    Democrats have talked up the NBC News/Wall Street Journal poll, because it pretty much hit the election in the weeks and months leading up to it in terms of how it was going to turn out. 

MR. CARNEY:  And what's the Republican view?

Q    They don't like that poll as much.  They had a poll last night that said if we go off the fiscal cliff and we can't get a compromise, who's to blame?  Nineteen percent said the President and Democrats, 24 percent said Republicans, and 56 percent say they'd be equally at blame.  How does that square with you saying in recent weeks that if we go off the cliff, this is all the Republicans’ fault?  That's not what the people seem to be saying.

MR. CARNEY:  Well, I haven't said that.  I've said -- you've never heard me say if we go off the cliff, the American people will blame one side or the other.  What I have said is the American people support the President's position overwhelmingly. And that was demonstrated in exit polls from the election.  It's been demonstrated in polls ever since.  And that's just a fact, and it was an uncomfortable fact.  But the proposition that middle-class Americans should have their taxes go up on average of $2,000 if wealthy Americans don't get a tax cut I think is bad politics as well as bad policy.  And the American people have responded that way.

The fact that Americans do not like to see dysfunction in Washington is not a new fact and it certainly is not surprising. But we are trying very hard to reach a broad agreement that achieves not just a mitigation of the fiscal cliff and avoids that coming to pass, but more broadly, actually achieves deficit reduction, a goal which supposedly the Republican Party shares, even though when they were in control last time we saw record deficits, and deficits went down under President Clinton.  I mean, there's a little history lesson that needs to be learned here.

But the fact is this President is committed to sensible deficit reduction that helps our economy grow and that insulates the middle class from bearing the burden that, unfortunately thus far, Republican proposals -- Republicans would like to see them bear.

Q    As a last question, you're saying the President is committed to getting this done.  To follow up on Bill, in terms of negotiations -- and the public is saying, this poll, 56 percent think the parties would be equally to blame -- why not -- with Jessica saying Speaker Boehner is leaving town, why isn't the President bringing the leaders over here and just saying -- as you've said over and over --

MR. CARNEY:  Speaker Boehner was here --

Q    Earlier in this process you dismissed that idea, but now it's late --

MR. CARNEY:  Speaker Boehner was here a few days ago.

Q    -- and you just said the parameters of the debate are obvious -- okay, you said parameters are obvious here.  So why doesn’t the President bring the Speaker in here and just get this thing done?

MR. CARNEY:  I’m sure that if -- first of all, the Speaker of the House was here.  The President has spoken to the Speaker of the House recently.  The Speaker physically was here Sunday; the President has spoken with the Speaker since then.

Q    It's now Thursday and we're getting closer.

MR. CARNEY:  Every time that you guys seem to think that a physical meeting is the elixir to all our ills, I think it would behoove you to ask the Speaker if he believes that, or ask the House Majority Leader if he believes that.

We have put forward proposals.  We have received proposals. The process continues.  There are clear obstacles here, the principle one being the rather amazing insistence -- given the road we've traveled these past several years, given the degree to which this was debated, the degree to which independent economists back up the President's position -- we still have this insistence that we're not going to do anything that doesn’t include tax cuts for the wealthy from the Republicans.  And that’s just not acceptable to the President.

Q    If I could just interject -- the Speaker's office says there is cell phone coverage in Ohio, and if the President wants to talk they can.

MR. CARNEY:  And there's actually hard lines here, and I think the Speaker knows that. 

Q    But will he be talking to him?

MR. CARNEY:  I don’t have any phone calls or conversations to preview for you.

Kristen.

Q    Jay, thanks.  I want to go back to the issue of the debt ceiling.  You compare it to the McConnell plan.  Republicans push back against that.  They say the McConnell plan was never meant to be permanent and it also came with a guaranteed amount of spending cuts.  They say the President's plan does not come with that.

MR. CARNEY:  No, the McConnell plan was separate from the spending cuts that were part of the Affordable Care Act.

Q    Well, the concern is -- and House Speaker John Boehner said today that the debt ceiling brings fiscal sanity to Washington.  Why is that not true?  Why shouldn’t you have to get --

MR. CARNEY:  I think you ought to ask the Speaker if in the 1990s when Bill Clinton was President and Washington was able to erase deficits for the first time in decades and create surpluses for the first time in decades -- Speaker Boehner was here, he should remember -- did Congress then flirt with default when the debt ceiling was raised?  The answer is no.  Did Congress under President George W. Bush flirt with default and cause the markets alarm and our economy to slow down and job creation to slow down because one party or the other had demands that insisted on being met?  The answer is no.

That has happened once, and it happened last year, and Speaker Boehner was Speaker of the House.  That is why the President believes we need to take -- I understand that it was a -- the McConnell plan was passed once, and we believe we ought to take it up again and pass it again, because the American economy cannot afford the consequences of that kind of political gamesmanship.  It's just -- it is unconscionable to imagine that because Congress insists it be so that the entire economy could default and that for the first time in our history we would not pay our bills.

Because remember as I said before, the debt ceiling is -- raising the debt ceiling merely gives Congress the capacity to pay for the work they’ve already done.

Q    No, it gives them the power to borrow more.

MR. CARNEY:  To pay for the work that they’ve already done.

Q    But to borrow more money.

MR. CARNEY:  Correct.

Q    And raise the debt.

MR. CARNEY:  Okay, so the alternative, which is default, is to not pay for the bills that Congress has incurred.

Q    And, Jay, I’m not disputing that it’s a difficult process.  But isn’t this the best way to keep deficits in check?

MR. CARNEY:  Again, I could go over the history again.  In our lifetimes, certainly yours, the last time and the only time that deficits have turned into surpluses -- I just mean that I’m a lot older.  (Laughter.)  But my lifetime, too.  You are still the fountain of youth by comparison to me.  But I’m pretty sure in my -- in fact, I know in my lifetime as well, the only time there have not been deficits, the only time that the budget has been balanced, the only time that we have been creating surpluses was under President Bill Clinton.  And we did not have this kind of gamesmanship.  We did not have members of Congress threatening to default.  It’s absolutely the wrong thing to do.  It’s damaging to the economy. It’s punishing to the middle class.

And if the position is that the middle class ought to have its taxes go up and then get stuck again because of a refusal of Congress to do its job, that's just absolutely unacceptable.

Q    I want to ask one on Syria.  Jay, based on your comments yesterday, it appears as though there are no plans to interfere militarily in Syria.  But does the President worry that this sends a message to Assad that he can use Scud missiles and other types of weapons against his own people without the fear of international --

MR. CARNEY:  Absolutely not.  We have explicitly condemned the use of missiles.  It is just another demonstration of the utter depravity of the Assad regime and the lengths to which he will go to retain power.  The assault on his own people has been heinous.  It has been proof that he’s a tyrant and proof that he has no place in Syria’s history.  And we have joined our international partners in condemning it. 

We have joined our international partners in providing a variety of forms of aid to both the Syrian people and the Syrian opposition.  I believe we have made announcements of additional aid that we’re providing.  And we will continue to take that path because Syria’s future cannot include the kind of leader who would launch missiles against his own people, slaughter them in the way that he has, repeatedly, over the past year or so.  And it’s unacceptable.

Q    Given the escalation, is he in any way considering his red line in Syria?

MR. CARNEY:  Our policy remains what it was, and we obviously consult with our allies and others and evaluate the situation regularly.  But we believe that providing continued support to the Syrian people as well as non-lethal support to the opposition is the right approach.  We’ve been very engaged in assisting the opposition unify itself.  We recognized the Syrian Opposition Coalition just this week as the legitimate representative of the Syrian people.  And we will continue to work with our partners to isolate Assad and to help bring about the day when the Syrian people can decide for themselves on a better future for their country.

Jon Christopher.

Q    Fiscal cliff:  We are way beyond the early stage, and the international markets are very concerned.  Instability is something that they deplore.  Is there one more thing you can say to calm or quell the fears that international finance has --

MR. CARNEY:  Look, I think that the parameters of an agreement are clear.  They’re not complicated.  And we hope and look forward to the time when Republicans acknowledge that revenues not only have to be part of the equation, but that rates on top earners have to go up as part of the revenue equation.  And when that happens, we believe that we can reach a deal fairly quickly, because the President has made clear that as part of a balanced package, spending cuts need to be part of this and that he’s willing to work with Republicans and make tough choices to achieve the kind of balanced package that he seeks.

Q    Senator Durbin said that the President is no longer open to raising the Medicare eligibility age.  Is that the case?

MR. CARNEY:  I haven’t seen those remarks, but I can tell you that I’m not going to negotiate specifics of the -- I'm not doubting them, I’m just saying -- I speak for the President, and I’m not going to get into details of hypothetical --

Q    But he’s someone from your own party from the President’s home state.

MR. CARNEY:  Let me take the answer for the President, which is that we’re not going to engage in hypotheticals about what a package would like on the spending cut side and negotiate it with the Republicans.  What we will not accept, I think has been clear, is the promise of future revenues achieved miraculously through means that are so amazing they won’t even be put on paper, that allow for extension of tax cuts for the wealthiest Americans and that end up sticking it to the middle class and seniors.  That's not a package the President will accept.  He is willing to make hard choices, however, but he will make hard choices that make sense for the economy and for our seniors and our middle class and our students and families with disabled children.

Q    Why would Senator Durbin say that?  

MR. CARNEY:  I don't speak for Senator Durbin.

Mara.

Q    You said there are clear red lines on revenue, no tax cuts for the top 2 percent.  Are there clear red lines on entitlements other than keeping Social Security on a separate track and not using that as part of the deficit reduction?

MR. CARNEY:  Well, I mean, that’s -- there’s a broad range of crazy ideas I’m sure that I could rule out.  But the President is committed to making sensible choices in terms of deficit reduction that ensure the integrity and sustainability of our very important entitlement programs for seniors. 

But is voucherization of Medicare not something the President would accept?  I think that's fair to say.  But I’m not going to get into --

Q    That's the only red line you draw --

MR. CARNEY:  No, that's not what I said, Mara.  Go back to the beginning of my answer.  I’m sure there are all sorts of bad ideas that could be thrown out there that wouldn’t pass muster and wouldn’t pass Congress.  But I’m not going to negotiate the details of a sensible compromise from here.

Q    Yesterday, even though Senator Durbin said what he said, to Barbara Walters, the President did not rule out raising the Medicare retirement age.

MR. CARNEY:  Well, again, the President is not going to rule in or rule out things in interviews.  He has been trying to have these conversations and negotiations in a constructive way.  What we haven’t seen from Republicans is any specificity about how they would achieve the kind of spending reductions, the levels of spending reductions that they claim to seek.  And we look forward to the time when we can see some specifics from them.  So I think he like I is not eager to negotiate the specifics of a potential compromise with the media.

Bill.

Q    House Majority Leader Eric Cantor told his members today to be prepared to stay here through the weekend before Christmas, into the holidays if a deal isn’t reached.  What can you tell us about the President’s vacation plans and any contingencies at the White House as these negotiations kind of build into the holiday season?

MR. CARNEY:  I don't have any updates on the President’s schedule.  The President’s schedule is what it is.  And when we have -- if we have adjustments to that schedule, we’ll make you aware of them.

But right now the President is focused on what he believes is an achievable compromise that would not take very long to put together if we saw some specificity and some flexibility from Republicans.

Q    So are you prepared for this to go into the --

MR. CARNEY:  I don't think that's required.  But again, what we hope to see is some acknowledgement by Republican leaders that existing law when it comes to the Bush-era tax cuts for the wealthiest Americans should stay in place.  Those tax rates that provide generous tax cuts to the top 2 percent should not be extending.  The President will not sign an extension of those rates.

The rest of the country, 98 percent of us, should see tax cuts.  Everyone in Washington agrees on those tax cuts.  The President is eager to sign those tax cuts, and he hopes that Republicans in the House will follow the lead of the Senate and pass those tax cuts.

Q    Following up on that question, when does this get to the point where there’s not enough time to get legislation through Congress and to the President’s desk to sign it?  Where  -- given that the end of the year is the deadline, when in December are there not enough days left?

MR. CARNEY:  I think that that's a question that you’d have to ask leaders in Congress because they decide the calendar.  They have an even deeper understanding of the rules than I do, so I would refer you to them.

Yes, Steve.

Q    Back to Syria.  Russia has said for the first time that it looks like the rebels might win.  Does the White House see any sign in this that Russia is disengaging from Assad?  And if so, would it represent an opening for the frustrated efforts to get rid of him diplomatically?

MR. CARNEY:  Well, I saw those remarks.  I would say that we certainly agree that Assad will not be a part of Syria’s future. We have noted as the media has the progress that the opposition has been making.  We still believe that for the sake of the Syrian people Assad ought to leave now.  He ought to remove himself from power now, because it is terrible what damage he has inflicted on the Syrian people, the lives that have been lost because of his brutality.  But we welcome all progress in the effort to bring an understanding of the fact that Assad has to go, that he has no place in Syria's history -- I mean, in Syria's future.  Unfortunately he does have a place in Syria's history. 

But I have no other assessment to make of those remarks, which I just saw before I came out here.

Alexis.

Q    Jay, quick question.  The President is going to be talking to media this afternoon, local media.  He's been traveling, trying to apply pressure from the outside in, talking to the business community.  Can you give us any examples of where the President believes that that -- working from the outside in is getting closer -- getting everyone closer to a negotiating deal before the end of the year? 

MR. CARNEY:  Well, I can certainly tell you that in the effort to extend the payroll tax cut last year and in the effort to ensure that rates on student loans didn’t double, the President's approach was both to work directly with leaders of Congress and to bring his position to the American people out in the country, and that that strategy, we believe, proved effective.  And it's entirely sensible, because these are debates that are not about obscure subjects that most Americans don’t have the time to pay attention to; these are debates that affect every American’s life.

And so he looks forward to every opportunity to communicate with the American people where they live and where they get their information.  And that’s often -- in the latter example, that’s often from local television, and that’s why he's doing interviews today.

Q    And is it showing -- are there examples of where you can see the ground shifting now?

MR. CARNEY:  Well, I don’t have -- I cannot say that a Republican congressman who now believes we ought to extend tax cuts for the middle class and accepts that we will not extend tax cuts for the top 2 percent came to that position after he or she saw a local news report.  But I think that the broader effect of the campaign and the debate that we had over this past year that focused on these issues, and the President's continued efforts to explain to the American people what his views are and why he's taking the positions that he's taking and what he believes the stakes are has had an effect. 

The purpose being that we believe there ought to be a compromise where nobody gets everything that he wants, but that we all come together to agree to a package that achieves something that would be very beneficial to this country's economy, which a long-term deficit reduction deal that protects the middle class, that helps the economy grow and create jobs, that ensures that we continue to invest in areas that will help the economy grow long term and that brings down our deficits in a way that puts us on a fiscally sustainable path -- that's a goal that I believe, the President believes, many share here in Washington, both Democrats and Republicans, and he looks forward to the opportunity to achieve it.

Q    Jay, a follow-up to what you said to Kristen really.  I, too, am old enough to remember the mid-'90s.  And I'm old enough to remember --

MR. CARNEY:  Kristen remembers that.  I just mean that -- I just want to be clear that the only time in her lifetime there's been a surplus was under Bill Clinton.

Q    But before, in '95 and '96, I remember, before the budgets were balanced, we had two major government shutdowns.  And it became very personal, the negotiations became very personal.  Don't we run the risk of this becoming a personal kind of thing with this crisis?

MR. CARNEY:  Well, I'm not sure about that assessment.  I think that President Clinton and then-Speaker Gingrich continued to talk and negotiate, even though they came at it from different points of view.  And I don't think that's very different from the situation we have now. 

At the personal level, I think and I know that the President likes and respects Speaker Boehner and has good relations with congressional leaders of both parties, as well as rank-and-file members in both parties.  And that's a good thing.  But the most important thing is that we here in Washington respond to and listen to the American people, and we make the tough choices that we believe are right for the economy and for the middle class. 

And that's why he hopes that Republicans in the House will pass tax cuts for the middle class; why he hopes Republican leaders will agree to the basic principle that in order to achieve the kind of deficit reduction that's necessary and balanced, we need rates to go up on top earners.  And then, we can move forward with a package that includes tough spending cuts, but spending cuts that are sensible and make sure that we achieve the balance the President believes is both the right way to go and that the American people want to see.

Q    They're not slamming the phone down on each other or anything?

MR. CARNEY:  I have never seen that happen on this end.

Q    Two questions on North Korea.  A few years ago, Defense Secretary Gates said that North Korea's attempt to develop an ICBM program could in a number of years pose a direct threat to the American homeland.  The North Koreans have now successfully put a long-range missile into orbit.  I'm wondering whether you believe, the President believes, that the American people should feel directly threatened by what the North Koreans did this week. 
And then, the second is, the Chinese, as they often do in a case like this, have been extremely muted in their response, I think expressing regret but little more about what happened.  Is the President frustrated?  And would he like the Chinese to take a tougher line with Pyongyang? 

MR. CARNEY:  On the second question, I think you've seen us be very explicit about our desire to have China exert the influence that it has on North Korea.  I think that the Chinese, in our view, have made clear both prior to this launch and in the aftermath of the launch their opposition to it.  And that, we believe, is a positive thing. 

On the broader issue, there is no question that North Korea's flagrant violation of United Nations Security Council resolutions that apply to its nuclear program and to its ballistic missile program matters of serious concern.  And that continues to be the case.  And that’s why we have spoken out so clearly against this action and why we are working with our partners up in New York at the United Nations on the Security Council discussing next steps.

There will be consequences for this decision.  And that is because we are, rightly, concerned, with our international partners, about this development.  But let's be clear.  Under this President we have marshaled an international consensus about North Korean behavior and applied the kind of sanctions that have further isolated and brought pain to the North Korean leadership, which is entirely appropriate.  But it is a matter of concern.

Q    But, Jay, I guess what I'm asking is --

MR. CARNEY:  But in terms of what Secretary Gates said, I don’t have a timeline for you, but we certainly believe, as demonstrated by what we've said in reaction to it, that this kind of violation of North Korea's international obligations is a serious matter.

Q    I guess -- just one more shot at this.  The issue up until now has been primarily regional; it's a threat to the South Koreans, it's a threat to the Japanese.  But no one has really thought that these missiles were technologically capable of reaching the American homeland.  Is that still the view?

MR. CARNEY:  Well, I think it's certainly still the view that is the case, but I don’t have a timeline for you and I would simply refer back to Secretary Gates's comments.  But I would also note that one of the reasons why this President has pursued missile defense that is oriented towards threats that we perceive as real is so important.  And that includes, obviously, North Korea as well as Iran.  So we're pursuing this issue from a variety of fronts because we consider it to be very serious.

Q    Thanks, Jay.

MR. CARNEY:  Last one. 

Q    Thank you, Jay.  How would you compare the situation with North Korea and with Iran?  Are they on the same -- is it the same dynamics that you seek a Security Council resolution that there will be timelines, there will be red lines?  Or is North Korea a different case than Iran?

MR. CARNEY:  Well, they are certainly at different stages in the developments of their prohibitive programs, and there are different countries -- there are in some ways different issues at stake.  But the overall principle that Iran ought to forsake its nuclear weapons program, abide by its international obligations and thereby end its pariah status, re-enter the international community and enjoy the benefits thereof applies to North Korea. And North Korea ought to cease violation of its international obligations and take the necessary steps to assure the international community of that cessation, and that that would be better for North Korea and better for the North Koreans.

Thanks very much.

END
1:58 P.M. EST

The White House

Office of the Press Secretary

Statement by the President on Ambassador Rice

Today, I spoke to Ambassador Susan Rice, and accepted her decision to remove her name from consideration for Secretary of State. For two decades, Susan has proven to be an extraordinarily capable, patriotic, and passionate public servant. As my Ambassador to the United Nations, she plays an indispensable role in advancing America’s interests. Already, she has secured international support for sanctions against Iran and North Korea, worked to protect the people of Libya, helped achieve an independent South Sudan, stood up for Israel’s security and legitimacy, and served as an advocate for UN reform and the human rights of all people. I am grateful that Susan will continue to serve as our Ambassador at the United Nations and a key member of my cabinet and national security team, carrying her work forward on all of these and other issues. I have every confidence that Susan has limitless capability to serve our country now and in the years to come, and know that I will continue to rely on her as an advisor and friend. While I deeply regret the unfair and misleading attacks on Susan Rice in recent weeks, her decision demonstrates the strength of her character, and an admirable commitment to rise above the politics of the moment to put our national interests first. The American people can be proud to have a public servant of her caliber and character representing our country.

President Obama Talks Middle-Class Tax Cuts with Mayors and Their Constituents

Today, President Obama held a conference call with a bipartisan group of mayors and community leaders from around the country to discuss preventing an income tax increase on middle-class families. Several of the mayors asked some of their constituents who had shared what a $2,000 tax increase next year would mean for their familes to join the call as well. 

Check out some photos and tweets from leaders who listened in from cities and towns nationwide below, or on Storify:

Related Topics: Middle-Class Tax Cuts, Taxes

The White House

Office of the Press Secretary

Press Briefing by Press Secretary Jay Carney, 12/12/2012

James S. Brady Press Briefing Room

1:10 P.M. EST

MR. CARNEY:  Good afternoon.  Welcome to the White House.  I have no announcements to make.  I’ll go straight to the Associated Press.

Q    Thank you.  Speaker Boehner said today that he’s advised his members to not make plans for Christmas in an effort to sort of set expectations for the public here.  Are you looking at a situation where a deal is still likely before Christmas?  Or is the end of the year more realistic?

MR. CARNEY:  I can't speculate about the timeframe.  What the President is interested in is working with Congress to achieve a deal that avoids the fiscal cliff and, beyond that, addresses our long-term fiscal challenges in a balanced way.  He wants to makes sure, first and foremost, that the middle class does not have their taxes go up on January 1st.  That is something that Congress could do today.

The House of Representatives, or at least the House Republican leadership, has refused to take that action, has refused to give middle-class Americans that certainty.  Why?  Because they have refused to accept the fundamental fact that higher-income Americans, millionaires and billionaires, the top 2 percent of earners in America, are not going to have their tax cuts extended.  The President has made that clear, and he will not sign a bill that extends tax cuts for the top 2 percent.

And to tell the rest of the American people, to tell the 98 percent out there who have to plan for next year and the bill -- and figure out how they're going to pay their bills that their taxes are going to go up because of indignation over the suggestion that people making $250,000 or $500,000 or $5 million should get a tax cut, that's just not a position the President shares.

Q    The President has previously said, though, that he was hopeful, optimistic that a deal could be reached before Christmas.  Given what you said about Republicans not backing down on their position on taxes, is that still a realistic goal?

MR. CARNEY:  The President said yesterday that he remains confident that a deal is possible.  The parameters of what a deal would look like are clear.  And he has made abundantly clear, both in his policy presentations and in what he has said to you and to the American public, that he is willing to make tough choices on the spending side; to reduce our spending as part of a broad package that includes cuts in discretionary spending, savings from our entitlement programs and increased revenues that are borne by those in this country who can most afford it.  And he believes that a package like that is still possible and hopes that Republican leaders join the majority of the American people -- another poll today demonstrating this, even close to 50 percent of Republicans in the country agreeing with this position -- in acknowledging that rates have to go up on the wealthiest Americans. 

This is not new information for most people.  This was the  subject of fierce debate for an entire year.  The President’s views and intentions were made clear again and again when it came to this.  He is eager to find a compromise.  He understands that that would require tough choices by him and Democrats.  But a position that says we want tax cuts for the wealthiest Americans and that is our number-one priority is not a position that the President could ever sign on to.

Q    On a separate topic, there are some reports that Syrian forces have fired Scud missiles at insurgents.  What can you confirm about those reports?  And if they prove to be true, does that cross any type of red line for the President?

MR. CARNEY:  Well, I cannot confirm this story.  I have seen it.  Nor can I discuss intelligence, as you know.  But if true, this would be the latest desperate act from a regime that has shown utter disregard for innocent life, utter disregard for the lives of its own citizens.

Again, the idea that the Syrian regime would launch missiles within its borders at its own people is stunning, desperate, and a completely disproportionate military escalation.  What is clear is that the regime's efforts to defeat militarily the opposition are failing.  The opposition is becoming more unified, more organized.  In fact, there is an international conference, as you know, this week to further help the opposition as it organizes and unifies, and the sooner that Assad goes the better it will be for the Syrian people.

I know you know that the President yesterday announced our decision to recognize the Syrian Opposition Coalition as the legitimate representative of the Syrian people.  And we are working with our international partners to help strengthen the opposition and to further isolate and sanction the Assad regime.

Again, if this proves to be true, it's just another indication of the depravity of Assad and his cronies.

Q    So then you think it's true?

MR. CARNEY:  Well, look, I wouldn’t put this kind of act -- it would not surprise me that Assad would take this kind of action, but I cannot confirm the reports at this time and I can't discuss intelligence.

Q    Jay, also on foreign policy, the existing sanctions regime against North Korea has not prevented it from doing exactly what it wanted, which is launching a long-range rocket.  What further sanctions or other options are there, either unilaterally or through the U.N. Security Council, to deal with this?

MR. CARNEY:  The United Nations Security Council is meeting today on this issue, and I would point you to the U.S. Mission to the United Nations, to the U.S. Ambassador to the United Nations for indications of next steps within the Security Council.

What we have said, both leading up to and now in the aftermath of this launch, is that it was a provocative act that threatens regional peace and security and undermines the global non-proliferation regime.  And it is regrettable that the leadership in Pyongyang chose to take this course in flagrant violation of its international obligations.

As you know, U.N. Security Council Resolution 1718 requires the DPRK to abandon its ballistic missile program in a complete, verifiable and irreversible manner.  U.N. Security Council Resolutions 1718 and 1874 require Pyongyang to suspend all activities related to its ballistic missile program and to reestablish a moratorium on missile launches.  Therefore this action is, again, in flagrant violation of a series of U.N. Security Council resolutions.  It demonstrates a decision by the regime to continue a pattern of disregard for its international obligations.

And what we have seen since the President came into office is the building of an international consensus that includes Russia and China in opposition to these actions.  I think you saw the Chinese made clear their opposition to this launch prior to it, and their regret over the fact that it took place after it happened.

So we will continue to work with our international partners to ensure that the North Korean regime is further isolated, that it is further punished for its flagrant violations of international obligations, and the specifics behind those further steps will await action in New York.

Q    You mentioned China.  Does the U.S. have a strategy for encouraging China to be more receptive to further sanctions against North Korea?

MR. CARNEY:  Well, we engage with the Chinese, the Russians and others on the Security Council and beyond in our effort to build a consensus about the unacceptability of North Korea's actions with regards to its ballistic missile program and obviously its nuclear program.  And we will work with those partners and others as we move forward to make clear how isolated, how in violations of norms this action by North Korea  -- how isolated the regime is and how in violation of its obligations North Korea is.

Q    Given what you're calling the flagrant violations by North Korea, does the President believe there is a way to stop them and it -- does he believe another approach should be considered?

MR. CARNEY:  Well, I would simply say that the President is concerned about North Korea's behavior, and has been.  He has made non-proliferation a top national security priority and will continue to do that, and he will continue to work with his international partners, our international partners, to put pressure on North Korea, to isolate North Korea, and to impose consequences on North Korea for the actions that it continues to take. 

There has, and remains, a path for North Korea to end its isolation, but that requires abiding by its international obligations, abiding by the United Nations Security Council resolutions that I mentioned before.  And it has chosen not to, and therefore, there will be consequences for that.  I don't have a preview of next steps, but we take this matter very seriously and we take it -- and we are not alone.  In fact, we are far from alone in taking this matter very seriously.

Q    On another topic, Ben Bernanke today announced continuation of the so-called stimulus policy of the Fed.  Is the President concerned that this could lead to inflation or weakening of the U.S. dollar?

MR. CARNEY:  You know that I won't comment on actions by the Fed from here.  The President is focused on, when it comes to economic policy, working with Congress to ensure that middle-class Americans don't have their taxes go up, to ensure that --

Q    Can it help with -- in the context of the fiscal cliff, can it, in the President’s view, help create an environment in which it’s easier to get to a deal?

MR. CARNEY:  I appreciate the question, but I won't comment on Fed action.

Yes, Jake.

Q    A White House official told me that in his counteroffer yesterday, Speaker Boehner asked for -- part of his proposal was a permanent extension of the Bush tax cuts for the top two brackets, for all the Bush tax cuts but including the top two brackets.  The House Speaker’s office disputes that.  I was hoping that you could shed some light on what exactly John Boehner, in his counterproposal, suggested should happen.

MR. CARNEY:  I'm not going to get into the details of the proposals that have gone back and forth, but I can say that -- because it has been public in the positions that the Speaker has put forward -- that we do not accept the position that was outlined in the letter that the Speaker sent previously that Bush tax cuts for the top earners can be extended.  The President has made clear he will not support legislation that hands another tax cut to the wealthiest 2 percent of American earners.  We can't afford it.  It is bad economic policy.  And the result of pursuing that policy  would mean added burdens to the middle class, added burdens to seniors, added burdens to families with children who have disabilities.  That's unacceptable to the President.

He is willing to make tough choices and he has made clear and specified the spending cuts that he is willing to make, and he has said that he is willing to go further as part of a broader deficit reduction plan.  But he will not extend the tax cuts for the wealthiest Americans.

And it is not a plausible position, as Jason Furman from the National Economic Council made clear in his presentation to you last week, to say that we can somehow magically achieve significant revenue on the order that we need for the balanced deficit reduction package simply by closing loopholes that they will not name, or capping deductions that they will not specify sometime in the future.  That is -- those magic beans are just beans, and that fairy dust is just dust.  It is not serious.  And the President will not sign an extension of the Bush tax cuts for the wealthiest.

Q    Just to clarify, I'm telling you that a White House official told me that that was what Speaker Boehner said --

MR. CARNEY:  I understand.  I'm not disputing the characterization.  I'm just simply saying that we know what -- and you know I'm not going to talk about internal discussions that have been taking place or proposals that are changing hands. It is, I think, explicitly in the letter that the Speaker put forward and made public --

Q    Right, but that was two weeks ago.

MR. CARNEY:  And I don't believe that we’ve heard anything from the leadership that suggests they have moved off their position -- we certainly haven’t heard it publicly -- anything from the leadership that suggests they have changed their position, which is they want an extension of the Bush-era tax cuts for the wealthiest and that they hold out some vague promise that they can achieve significant revenue through closing loopholes and capping deductions.  Again -- zero specificity on how that would happen.  And that's just not a position the President shares.  He will not accept an extension of those tax cuts.

And remember that the letter the Speaker put forward said that through that magical tax reform, they would lower rates.  So even a further additional tax cut for the wealthiest Americans is just not plausible economic policy.  And when Jason Furman stood up here and showed you why propositions suggesting that you can achieve levels of revenue that are necessary here don't hold water, he did it in a fact-based way -- not in a single sentence or two that promises action in the future that everyone knows isn’t plausible.

Q    I wasn’t here when The New York Times published this report.  I’ve been -- I was off for a couple weeks when The New York Times published this report about the Obama administration drafting policy for drones in the weeks leading up to the election just in case the Obama administration was not going to be in charge for the next four years.  Given the administration’s desire to be more -- stated desire to be more open about its foreign policy, as exemplified by John Brennan’s speech a few months ago, is there anything more you can tell us about that policy?  Is there anything more we can expect in terms of transparency and discussion about the drone policy?

MR. CARNEY:  There is nothing more that I can add to that discussion beyond that John Brennan said in his speech that you refer to.  Obviously, the broader focus of the President on taking the actions that are necessary to keep America safe will continue.  But I don't have any more details about that issue in terms of moving forward.

Q    Those actions that are done in Yemen and Pakistan and elsewhere sometimes result in civilian deaths.  And yet because this program is not discussed very often, certainly not from that podium, but also not by the Pentagon and in press releases, we don't know what is being done in the name of national security that is resulting in not just bad guys being killed, but also sometimes women and children who are either related to the bad guys or just happen to be in the wrong place at the wrong time.  Is there no desire for greater transparency at all when it comes to this?  I mean, would that not live up to the President’s desire for transparency as repeatedly stated?

MR. CARNEY:  Without discussing classified matters or other intelligence matters, I would point you to the remarks that John Brennan made, which I think demonstrate our position on these issues and the broader issue that you talk about in terms of transparency.  I just don't have anything new to say or to add to that conversation today.

Q    Thank you.

MR. CARNEY:  Kristen.

Q    Jay, thanks.  According to multiple sources, the conversation yesterday between the President and Speaker Boehner was tense.  How would you describe the phone call?  Is that accurate?

MR. CARNEY:  I’m not going to dispute multiple unnamed descriptions.  I’d simply say that, yes, we confirm the call -- one in a series of conversations, as well as a meeting, as you know, recently that the President has had with the Speaker aimed towards the effort of trying to find some common ground on this important issue.  And the President has made clear that his desire is to do a big deal that not only addresses the fiscal cliff but achieves the kind of significant long-term deficit reduction that has been the stated goal of many people for a number of years now on the order of roughly $4 trillion. 

And he has put forward a plan to do that that includes spending cuts, entitlement reforms, and increased revenues from the wealthiest Americans.  And to achieve on the revenue side that package, it has to be done in a way that both raises rates and in an economically wise and politically feasible way, closes some loopholes and caps some deductions.  That’s the way to do it. 

And the President is open to other proposals.  He has made clear that he is not wedded to every item in his plan.  He knows that he will have to make tough choices, but there has to be a willingness on the other side to recognize some fundamental facts and one of the fundamental facts is that there is no way to do this without rates going up on top earners.

Q    There’s a sense that after yesterday and the sort of two proposals were offered, that these negotiations are, yet again, grinding to a halt.  Is that accurate?  Where do these negotiations stand and what’s the President going to do to move the process forward?

MR. CARNEY:  Well, I think you’ve seen the President actively engage in moving the process forward.  I think you’ve seen him make clear his willingness to make tough choices and also make clear what his principles are and what he won’t do, which is go along with a vague promise of insufficient revenue gleaned from unnamed sources in return for substantial cuts that affect programs like Medicare and Social Security and Medicaid.  That’s not a balanced plan.  And we know where the public stands on this.  And, look, we know where now dozens of Republicans -- including elected officials, including members of Congress who are Republicans -- stand on this. 

But the obstacle thus far has been the adamant refusal to accept the proposition that rates have to go up for the top 2 percent and that rates must continue to stay where they are so that there is no tax hike on 98 percent of the American people.  And I think what Republicans have to explain somehow is why -- Republican leaders, anyway -- why it is better for you, broadly speaking, the American people, 98 percent of you, to have your taxes go up if the wealthiest Americans don’t get a tax cut.

Q    But according to Speaker Boehner, the $1.4 trillion in new revenue that the President is now offering wouldn’t make it through the House, it might not make it through the Senate, so is it a realistic proposal?

MR. CARNEY:  The President has made clear his willingness to negotiate and compromise.  He has made clear his willingness to make tough choices.  He has put on the table specific cuts and savings in entitlement programs, including our health care entitlement programs.  He has put on the table specific ways that we can achieve the revenue targets that are necessary to have a balanced package.  And what we have not seen yet is any kind of specificity from Republicans on how they would do it differently. 
And, again, going back to the Speaker’s letter, it is not a realistic position to say that we can resolve this by extending tax cuts for the wealthiest Americans and vaguely promising that we’ll glean additional revenue by closing loopholes and capping deductions in a way that everyone knows is unrealistic.

Q    But just to be clear, the President thinks it’s realistic to get $1.4 trillion in new revenues through the House?

MR. CARNEY:  The President -- look, I can -- and I’ve got page after page here.  I can read to you quotes from the press, probably some of them from NBC, Politico, Fox, elsewhere, of Republicans saying that they would accept a tax increase, or that tax increases have to be part of this for the wealthiest Americans, that rates have to go up --

Q    -- the entire House.

MR. CARNEY:  Well, they're the people who vote.  And we’ve also heard again yesterday from the Business Roundtable, and individuals like the CEO of Goldman Sachs or others who have said rates going up has to be part of this package.

And the holdouts here seem to be those who are beholden to a subset of one party in one house of Congress, as opposed to those who are holding the broader American interest in mind as they approach this challenge, the goal of which is to achieve long-term deficit reduction in a way that will help the economy grow, help it create jobs that will give an enormous boost of confidence if achieved to our economy, and could potentially allow for substantially greater growth and job creation, which could create greater economic security for the middle class -- and by the way, the way it did in the 1990s, even with higher tax rates for millionaires and billionaires, more millionaires and billionaires -- the wealthy would do well, too.  That's the goal. 
The President’s vision here is an economy that allows for broad-based prosperity and broad-based opportunity.  It is not a vision that says we’re not going to do anything unless the top 2 percent get a tax cut.  It’s not his position.

Q    One question on Syria.  The administration has recognized the opposition forces, has also called al-Nusra a terrorist organization.  Some people within Syria are saying this is too little too late.  What is your reaction to those people?

MR. CARNEY:  Well, the United States is working with a broad array of international partners in its support for the Syrian people and the Syrian opposition.  And a major step is being taken today, as the President made clear yesterday in recognizing the Syrian Opposition Coalition as the legitimate representative of the Syrian people.

We will continue to provide support to the opposition -- nonlethal.  And we will continue to provide humanitarian support to the Syrian people who are suffering greatly under the regime of Bashar al-Assad.  And the international community has been very clear in its views that are shared by the United States and shared by this President about which direction Syria has to go.

And the designation that you mentioned was a demonstration of the fact that we believe that those elements within the Syrian opposition who do not hold the views that Syria needs to move towards greater democracy and rights for their citizens, that they should be isolated.  Because the broader section of the opposition actually supports that, and that's why we’ve recognized the Syrian Opposition Coalition.

Major.

Q    Based on the conversation yesterday, how would you rate Speaker Boehner’s flexibility?

MR. CARNEY:  I won’t get into the conversations that the -- the private conversations the President has with the Speaker or others.  I would simply say that, as made clear by the letter, that the Speaker made public --

Q    And reiterated in the call yesterday.

MR. CARNEY:  Again, I’ll speak about the public presentation here.  There is no indication yet that the Republican leadership is willing to acknowledge the basic fact that rates need to rise on the top 2 percent in order to achieve the kind of broad-based deficit-reduction package that a significant majority of the American people support and even numerous Republicans have publicly come out in support of.

Q    Why did the White House lower its request for revenue? And how does it achieve that $200 billion?  What $200 billion did you take out of that request for extra revenue?  I’m told it’s from tax reform.  Is that true?

MR. CARNEY:  I can simply say that -- well, it is our position that rates have to go up on the top 2 percent.  So that is absolutely the case.  It is our position, as Mr. Furman demonstrated in his presentation to you last week, that you cannot achieve significant levels of revenue solely by capping deductions or closing loopholes.  So that is why you have to have a combination package of both reforms that include those kinds of actions, as well as allowing rates to rise on top earners.

As to the proposal that you -- or the offer that you reference, I mean, I think it demonstrates the fact that we are willing to try to find a compromise.  We are willing to try to work with the Republicans to find an agreement that achieves the broad-based deficit reduction that is supposedly the goal that we all share, and achieve it in a way that doesn't stick it to the middle class, that doesn't leave seniors holding the bag, and that asks, as the President made clear he thought was the right thing to do, asks those who can most afford it to pay a little bit more. 

And that's where he’s been, and it is demonstrated in the proposals he’s put forward.  And it is demonstrated in the spirit with which he has approached these negotiations.  He knows that compromise requires tough decisions by both sides, but it cannot require compromise by one side only.

Q    Why did you add yesterday corporate tax reform to the mix?  And how do you respond to the Speaker’s contention that that is a red herring, that they always assumed corporate tax reform would be part of these broader conversations on the future of the tax code, and it’s not a concession or an offer or a sweetner.

MR. CARNEY:  I’m not -- what I won’t do is negotiate the particulars from here because I think that as I said yesterday and have said --

Q    That's been confirmed here and up on the Hill.

MR. CARNEY:  But again, I won’t negotiate the particulars of it.  The President supports --

Q    No, you’re not negotiating.  There’s something that’s been confirmed that was put on the table yesterday.  I’m just asking what --

MR. CARNEY:  I’m not disputing --

Q    Okay.

MR. CARNEY:  -- anything.  I’m just saying I won’t -- you citing what one party said and what others said about it -- I will simply say that corporate tax reform is a goal the President shares with many members in Congress, as well as the business community, and it is one that he’s serious about and hopes to pursue. 

His goal is to try to find an agreement with Republicans that strengthens and protects the middle class, that helps our economy grow, that helps to create jobs and that achieves the deficit reduction that also will help our economy grow and create jobs in a balanced way.  So that's the President’s goal.

Q    Last question.  Based on where we are now, does the President feel it’s incumbent upon him to provide any new proposals to the Republicans?

MR. CARNEY:  I’m not going to game out how the next days and weeks play out.  The process we hope will continue.  Again, there is a simple proposition here that --

Q    So it’s possible that if the Republicans can reiterate their position, the President could compromise some more?

MR. CARNEY:  Well, I think I’ve said before, we’re not going to just negotiate with ourselves.  But the President believes, as he said yesterday, that a deal is possible.  He’s confident that a deal is achievable.

Q    That was before the --

MR. CARNEY:  Well, there have been more than -- obviously, he’s had more than one conversation with the Speaker and many conversations with many other stakeholders in this process and the process continues.  But let’s make clear what is absolutely his position -- and he’s been clear about this for quite a long time.  He will not sign an extension of the Bush tax cuts for the top 2 percent.  It is not a viable position to say that the highest priority here should be that wealthy folks get another tax cut.  That is not good economic policy.  We can’t afford it. It’s not fair. 

And the President believes that the focus ought to be on the middle class here.  And if the focus were on the middle class universally up on Capitol Hill, 98 percent of the American people would already know that they were getting a tax cut next year.  But that hasn’t happened.

Q    You mean a tax --

MR. CARNEY:  Well, that’s a tax cut compared to what current law is.  And let’s also recognize the fact here that when those who oppose that position say that we can’t hike taxes on the top 2 percent, nobody is asking them to vote for a tax hike for the top 2 percent. 

We’re asking that they vote for a tax cut -- a tax cut extension for 98 percent of the American people, and to let the rest of that law stand as is, which means that those tax cuts for the wealthiest expire.  That’s how the law was written.  That’s how it was designed, as you know because you and I both covered it back in 2001 and 2003, with a 10-year window and then an extension -- precisely because the designers, the authors of those tax cuts knew that they were explosively expensive in the out-years, knew that they were budget busters. 

And while they promised otherwise, that’s what America got. They got a series of economic policies that took record surpluses and turned them into record deficits, and now you have some of the same people who supported those policies saying we’ve got to do that again because it was so good for America.  The President disagrees.

Wendell.

Q    You said a short while ago the President is eager for a compromise.  How is that helped by him predicting publicly that Speaker Boehner will cave on the tax cuts for the top 2 percent?

MR. CARNEY:  Look, what the President was saying is reiterating his position, which is that he will not sign an extension of tax cuts for the top 2 percent, as I think I've made clear several times just today, and that a reasonable compromise has to include rates going up on the top 2 percent while taxes are cut for the rest of the country -- income taxes.

And that, again, is a position that supposedly is universally supported up on Capitol Hill.  Let's give extended tax cuts to the middle class.  The President supports permanent extension of those tax cuts to the middle class.  And by middle class, again, we're talking about 98 percent of Americans.  And we should be able to act on that right away.  So the fact that the President is saying that --

Q    But he's not diplomatic in his language.  He predicted the Speaker will cave. 

MR. CARNEY:  Well, again, I think the President predicted that the Speaker would not want to hold a position, and that Republicans in general would not want to maintain a position that would result in everybody's taxes going up because of their insistence that the wealthiest Americans get a tax cut.  That doesn't seem like a very popular position to take.  But I will leave it to the Speaker and others to decide if that's the position that they'll maintain.

But the President believes that there is broad acknowledgement of the fact that rates need to go up for the top earners.  We had a sustained debate about this issue; the public has made clear their views on it, broadly speaking.  And he understands that as part of a broader deficit reduction package, that everyone is going to have to make some tough choices, including him, and he has demonstrated his willingness to do that.

Q    You've often said the President is the only party in this dispute that's put a comprehensive plan on the table, but that was the September plan of last year that included stimulus spending and various other things, and was rejected.

MR. CARNEY:  Actually, you're misremembering.  The September proposal that we’re talking about was the proposal to the super committee, aimed specifically at achieving the necessary deficit reduction that was --

Q    That is I presumed what you were talking about when you were talking about a detailed plan for spending cuts and stuff.

MR. CARNEY:  I held it up here just yesterday. 

Q    Exactly.  Why is that still relevant?

MR. CARNEY:  Why wouldn't it be?

Q    Because of things it includes, like stimulus spending and various other things that have been roundly rejected.

MR. CARNEY:  Yes, I think you're talking about -- there is the President's proposal that he has put forward to leaders in Congress, that includes our belief that we need to make infrastructure investments; we need to make sure that millions of Americans don’t fall off a different kind of cliff when their unemployment insurance benefits expire.  Those benefits were extended under President Bush when the unemployment rate was lower than it is now. 

The specific spending cuts that we're talking about in the proposals the President put forward to the super committee in September of 2011 are absolutely viable today.

Q    So it's only portions of that plan that you say are --

MR. CARNEY:  Well, again, I’m happy to go over the details of the plan.  There's the President's budget, there's the President's proposal to the super committee.  The goal of the super committee, which it failed to achieve, was to enact deficit reduction on the order of $1.2 trillion to avert the sequester.  Well, they didn't do that, so now the sequester is upon us. 

Mark.

Q    Jay, can I pick up on what Kristen asked you about earlier on Syria?  You talked about how designating a group like al-Nusra is a way of isolating an extremist force that doesn't share the U.S.'s vision for the future in Syria.  But based on our paper's reporting from the ground, that designation appears to have actually, far from isolating the group, unified people in Syria from secular liberals to conservative Islamists in rejecting the American action.  Many of these people view al- Nusra as, for whatever flaws it may have, one of the most effective fighting forces against the Assad regime.  So I'm wondering, in light of that, what evidence you can point to that there isn't a rising tide of anti-American sentiment in Syria, and that indeed, to use Kristen's words, that whatever the President did yesterday in terms of recognition is too little, too late.

MR. CARNEY:  Well, again, I would dispute that characterization.  What the United States has done is recognize the main opposition group, the Syrian Opposition Coalition, and in doing so we've also -- in designating al-Nusra as a terrorist organization, we've recognized that there are elements of -- that the Assad regime is creating an environment essentially in Syria that fuels the growth of extremism, and the al-Nusra front is al Qaeda in Iraq's attempt to rebrand itself in order to hijack the struggles of the legitimate Syrian opposition to further its own extremist ideology. 

We firmly believe that the vast majority of the Syrian opposition do not share those extremist goals, and that we will work with the opposition -- we, and broadly speaking with our international partners -- in their efforts to isolate those with extremist views.  Because we believe that the Syrian people and the Syrian Opposition Coalition -- reflected by the Syrian Opposition Coalition, are interested in a future for Syria that includes a transition towards greater democracy, greater rights for its citizens, more economic prosperity, and does not include enacting a vision propounded by extremists.

Q    Would you reject the contention that anti-American sentiments are on the rise in Syria?

MR. CARNEY:  Well, I haven't made that assessment.  I would simply say that we encourage all responsible actors to speak out against and distance themselves from extremists like the al Qaeda-linked al-Nusra Front.  And we will continue to work with the Syrian Opposition Coalition and our international partners to achieve the kind of future in Syria that we firmly believe the vast majority of the Syrian people seek.

Q    Jay, you said “firmly believe,” but you guys got it firmly wrong in Libya and in Egypt, where you firmly believed that you were working with -- I forget the phrase -- moderates.  We now are heading towards a theocracy in Egypt.  We have the war in Libya spread out into Mali.  What's the evidence that your firm belief in the moderation of the Syrian group is correct?

MR. CARNEY:  We make assessments all the time.  We have spent a lot of time evaluating the Syrian opposition.  We've spoken about that from here.  The Secretary of State and others from the State Department have spoken about that.  And one of the reasons why we've taken the actions that we've just discussed is because we believe it is in the interests of all parties to speak out against the kind of extremist views that are represented and espoused by the al-Nusra Front, even as we support the democratic aspirations of the broader Syrian opposition and the Syrian people. 

Q    But what's the evidence that the moderates -- forgive the phrase -- are moderates?

MR. CARNEY:  I understand that you have an editorial opinion here, but the --

Q    Of course.

MR. CARNEY:  Of course.  (Laughter.)  But the fact is we believe, and we think there is ample evidence to support the idea that the Syrian people want a future free from Bashar al Assad and a future that is more democratic, a future that allows -- that includes a government that recognizes the rights of the Syrian people and that allows for greater economic prosperity in a more peaceful country.

So it is in the United States' interests to work with the opposition and with our international partners to pursue that, and we will continue to do so.

Q    You need to explain that down the road.

Q    You do have a Friday deadline approaching for states to let the administration know if they're going to be part of this health care exchange under the Affordable Care Act.  What is the President's message to the majority of governors who are either sitting on the fence or flatly opposed to this thing?

MR. CARNEY:  Well, I would say that there have been a number of states who have -- whose applications have been approved.  We've had over 20 states to date that have agreed to operate an exchange, either on their own or in partnership with the federal government.  And we will continue to work with states in the implementation of the Affordable Care Act because, as you know, the Affordable Care Act is here to stay.  And the President's team will work to continue to implement that law.

We have, as an administration, consistently worked to give states the flexibility, time and resources they need to move toward -- forward, rather, in the implementation of the Affordable Care Act.  And for details on that process, HHS is the best place to go.

But we believe there has been considerable progress towards implementation and more and more states that have either had their applications approved to run their own health insurance exchanges, or have agreed to operate an exchange either on their own or in conjunction with the federal government. 

Q    Process aside, though, Jay, is the President -- this was his signature measure, as we all know.  Is he disappointed that most states still have not signed on to this thing?

MR. CARNEY:  Well, I think the President is pleased with the progress that's been made, and he's -- his administration is working to continue to implement the Affordable Care Act.  And that process continues.

Q    Why do you think most states have not signed on?

MR. CARNEY:  I would refer you to HHS for details.  I think it is a fact that there was consideration of the Affordable Care Act by the Supreme Court and that decision was only earlier this year.  We continue to implement the law.  The Court upheld the law.  And the President looks forward to full implementation.

Q    Thanks.

MR. CARNEY:  Mara.

Q    Just a question about the fiscal cliff.  Clearly you've shown some flexibility on the amount of the revenues that you need.  I’m wondering how flexible the President is on entitlements, which is the other thing that Boehner needs in order to get his troops to do something that’s clearly outside of their comfort zone.

MR. CARNEY:  Well, I won’t negotiate from here, but the President has made clear that spending reductions, including savings from our entitlement programs must be part of this broad package that also must include a balance, which means the revenues that we’ve talked about.  And he understands that he’ll have to make tough choices and that others will as well. 

But I won’t negotiate the specifics of what those choices will be.  I would point you to the fact that this President has already put on paper savings from entitlement programs and he has already implemented a law that the CBO acknowledges, or has shown in their documentation, is a long-term deficit reducer.  And it achieves savings in our health care costs rather than burden shifting of those costs over to seniors, which was the goal of the Republican proposal in the Republican budget.  That’s not an approach that the President supports, as I think he made amply clear over the past year that asking seniors to take on thousands and thousands of dollars in extra costs in order to give tax cuts to billionaires and millionaires -- not the approach this President supports.

Q    Right, but the things you just listed that he’s proposed -- is that what you mean by getting outside of your comfort zone generally?

MR. CARNEY:  If you’re asking me is he willing to do more, I think the President has made clear that he has made tough choices and he’s willing to make more tough choices.  But he is not going to accept a deal that extends tax cuts for the wealthiest Americans that offers no specificity on how to achieve revenue targets, only vague promises that they can be achieved through some process of reform that in the Speaker’s letter suggests that we would lower rates again, give another tax cut to millionaires and billionaires.  That’s just not serious math and it’s not policy this President could accept.

Q    Does the President believe that the Republicans have to wave the white flag first on rates?  I’ve asked this before, but it seems like we still haven’t gotten beyond that.  Do they have to do that first before you can even discuss entitlements?

MR. CARNEY:  Again, I’m not going to get into the back-and- forth that has taken place and is taking place between Capitol Hill and the White House on the specifics of a hoped-for deal.  But I think the President has demonstrated in his proposals and in these negotiations his willingness to make tough choices.  But he is -- has been and is very clear that there is not an avenue here to a deal that includes tax cuts for the top 2 percent.  I mean, those who continue to insist that that’s their bottom line seem not to understand that that’s not acceptable.  That cannot happen as part of this deal because it is simply not good policy.

And I've just been around long enough -- and you have too, Mara -- to know that we have recent examples of how these two policy positions play out and what results economically from the implementation of those policies.  And some of the very leaders on Capitol Hill who insist we can't raise rates on the wealthiest Americans -- on millionaires and billionaires -- because it would be bad for the economy insisted the very same thing in 1993, when those rates were first implemented under President Clinton.  And, boy, were they wrong. 

They don't really explain it well how they took that position and predicted with great confidence that it would lead to economic decline.  They don't explain how it led to the longest economic expansion in peacetime in the United States and the creation of vast amount of wealth not just for millionaires and billionaires, but for the middle class and 23 million new jobs.  Now, we have that to go by.

And then we have what happened after the implementation of a series, two, massive tax cuts, the benefits of which went disproportionately to top earners, surpluses turned to deficits and a cascading economic crisis and financial crisis and recession the likes of which none of us in our lifetimes have ever seen. 

It would seem that going out and saying we want to do that again would not be a great plan for -- in an effort to get popular support.

Thanks.

END 
2:08 P.M. EST

President Obama Speaks on the Ongoing Response to Hurricane Sandy

December 12, 2012 | 1:07 | Public Domain

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The White House

Office of the Press Secretary

Statement from NSC Spokesman Tommy Vietor on North Korea’s Missile Launch

North Korea’s launch today—using ballistic missile technology despite express prohibitions by United Nations Security Council resolutions—is a highly provocative act that threatens regional security, directly violates United Nations Security Council resolutions 1718 and 1874, contravenes North Korea’s international obligations, and undermines the global non-proliferation regime.  This action is yet another example of North Korea’s pattern of irresponsible behavior.  The United States remains vigilant in the face of North Korean provocations and fully committed to the security of our allies in the region. Given this current threat to regional security, the United States will strengthen and increase our close coordination with allies and partners.

On April 16, 2012, the United Nations Security Council expressed its “determination to take action accordingly in the event of a further [North Korean] launch.”  In the hours and days ahead, the United States will work with its Six-Party partners, the United Nations Security Council, and other UN member states to pursue appropriate action.  The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences.  The international community continues to insist that North Korea live up to its commitments, adhere to its international obligations, and deal peacefully with its neighbors.

North Korea is only further isolating itself by engaging in such provocative acts.  Devoting scarce resources to the development of ballistic missiles and nuclear weapons has not brought it security and acceptance by the international community—and never will.  North Korea will only truly strengthen itself by abiding by international norms, living up to its commitments and international obligations, and working to feed its citizens, to educate its children, and to win the trust of its neighbors.

The White House

Office of the Press Secretary

Press Briefing by Press Secretary Jay Carney, 12/11/2012

James S. Brady Press Briefing Room

1:50 P.M. EST

MR. CARNEY:  No announcements to make at the top, so I will go straight to your questions.  Mr. Henry is a bit disappointed that I have not a single announcement.

Jim.

Q    Thanks, Jay.  The Speaker, as you know, spoke today and turned the conversation over to the spending cuts and the fiscal cliff negotiations.  Two questions on that.  One is, does that suggest that there's been movement, since we're no longer talking about tax cuts or tax increases?  And where is the administration?  I know you guys have argued back that you have provided details on the spending cuts.  But are you prepared to offer more?  Today you have a letter from CEOs urging that spending cuts, entitlement adjustments and so forth be a multiple -- a greater multiple than revenues.  Is the White House prepared to do more on that front?

MR. CARNEY:  Let me take your questions in relative order.  First of all, I did hear what the Speaker of the House had to say, and I would note that if there is one fact that should not be in dispute it ought to be this:  The President, unlike any other party to these negotiations, has put forward detailed spending cuts as well as detailed revenue proposals.  It is a simple fact that the President put those forward to the not-so-super super committee in September of 2011, and that he again, in the process of these negotiations, put them forward as his position when it came to both the revenue that was required to achieve the kind of balanced deficit reduction package on the scale of $4 trillion that was necessary, as well as very specific spending cuts, including savings in entitlement programs.

And again, it's not a mystery.  We've seen this before.  This is the document that contains the specific spending cuts.  The Speaker of the House sent us a proposal that was two pages long that included one sentence on revenue.  The proposal here includes, I believe, from pages 17 to 45, details on proposed spending cuts by the President -- pages 17 to 45.  I recommend them to you.

Now, it is entirely our expectation that Republicans may not agree with all of our spending cuts; Republicans may want to propose additional spending cuts.  And the President has said that he is prepared to make tough decisions.  He has said that he's not wedded to every detail in this plan and that he understands that compromise requires all sides to accept something short of the ideal, and he's committed to doing that.  What we haven't seen from Republicans, to this day, is a single specific proposal on revenue, and, in fact, we've seen less specificity from Republicans on spending cuts than the President himself has proposed.  So that's point one. 

I think that the letter you mentioned from the executives at the Business Roundtable adds to the growing chorus of voices from a variety of sectors of both our economy and the broader American public demonstrating a desire for compromise; demonstrating agreement that there has to be a balanced approach, an approach that includes revenues as well as spending cuts.  So we welcome that and agree with it.

Furthermore, on the ratio question, the President's proposals have, taken together, shown roughly two and a half dollars in spending cuts for every dollar in revenue.  So we think that ratio makes sense.

Q    And for that, you're counting the $1 trillion from the Budget Act and the savings from --

MR. CARNEY:  Everyone is counting the $1 trillion from the Budget Act because it should be counted.  Let's go back, again, on the spending cuts:  While we have yet to see a single specific proposal from Republicans on revenues, the President has signed into law -- law of the land -- $1 trillion in spending cuts, and he has proposed additional specific spending cuts as part of this document that I showed you.  So, absolutely.

When we talked about $4 trillion, as did the Simpson-Bowles Commission and others, that was prior to the signing of the Budget Control Act.  And the trillion dollars in spending cuts that were agreed to by all sides and signed into law and voted for by Congress were part of, had there been a grand bargain, part of the $4 trillion.

Q    One of the items in that book that you just showed us includes some Medicaid adjustments that presumably are part of this -- part of the President's offer.  But there were reports yesterday that HHS is backing off some of these Medicaid changes that would allow for a blended percentage of rate adjustments with states.  Is that true?  And if you are backing down from some of these proposals, what does that say about where the President -- how the President --

MR. CARNEY:  Well, let me say two things about that.  While there has been a call for greater specificity in where the cuts  -- the fact is this document was produced more than a year ago and has been available to everyone in this room for that time, and everybody on Capitol Hill.  So that is a fact.  As part of that fact, there have been some changes in the world that affect some of the proposals here, including the Supreme Court's decision.  And so some -- a very small percentage of the provisions in here, the proposals in here that affect Medicaid we would no longer put forward but would absolutely make up in terms of the size of savings in other ways.  But we're talking about 10 percent here; nothing too sizable.

Q    Can I follow on just on that specific question?

MR. CARNEY:  Sure.

Q    So isn't it $100 billion in Medicaid savings?

MR. CARNEY:  I don't have the details in front of me.  It's not on that scale when we talk about the overall percentage of -- when we talk about the overall amount of entitlement program savings as well as, broken out, the health care savings.  So --

Q    But didn't the President also offer, and wasn't this also on the table during the last fiscal cliff negotiations or whatever it was called at the time -- I guess the debt ceiling negotiations?  Wasn't that one of the items on the table that the President had already agreed to, the $100 billion in --

MR. CARNEY:  Again, I don't have the specifics for the different iterations here.  But time has passed, and there have been some impacts on the Medicaid program that changed our calculations on this.  But we're not talking about a sizable portion of the proposed -- specific proposed savings from health care entitlements or overall savings from mandatory entitlement programs.  And we would find other savings.  We would propose -- we will propose other savings to make up for the difference.

The fact is, is that the vast majority of these proposed savings account for a higher degree of specificity than we have seen, by far, from the Republicans.  And going back to the revenue side of this, we've seen exactly no specificity from the Republicans except for a vague promise of an insufficient number -- $800 billion in revenue -- gleaned from unnamed closed loopholes and capped deductions. 

So if the issue is where are your proposals, I think we've answered that question in full, acknowledging that we're not going to get exactly what we've put forward, that there's a discussion and negotiation that has to take place.  And the President has been very clear that he understands that and that he'll make some tough choices in order to reach a balanced proposal on the scale that he's talked about.

Jeff.

Q    Jay, the Speaker's comments today seem to indicate that despite his meeting with the President on Sunday here at the White House, that very little progress has been made.  Does the White House share that assessment?

MR. CARNEY:  I don't think that's what he said.  I think he said that the discussions have been cordial, and we would agree with that, and we think that lines of communication remain open. But what we're not going to do is give a daily or hourly assessment of whether or not progress is being made, or what specific items are being discussed, because we don't think that's fruitful or helpful towards achieving the goal that we think we all share, which is reaching a compromise that Congress can pass and the President can sign into law. 

Q    You don't think it's helpful to say whether there’s progress being made?

MR. CARNEY:  I answered this question yesterday.  I don't think it is helpful to give hourly or daily readouts of progress, because our interest is in achieving a workable compromise that reflects the principles the President has talked about so clearly and has put forward before the American people for so long when it comes to having balance and making sure that everyone pays their fair share; and, as part of that, requiring that Republicans acknowledge and accept that rates are going up for the top earners in this country, and that a certain amount of revenue has to be a part of this deficit reduction package in order for it to be balanced, so that we’re not asking seniors, or the middle class, or students, or families with disabled children to bear the burden, in exchange for some vague promise that the top earners in this country might pay a little bit more down the road.  That's not the kind of deal that can work.

But there is a deal out there that's possible, and we do believe that the parameters of a compromise are pretty clear.  What is required is agreement by Republicans to some specific revenues that includes raising rates on the highest earners, and some decisions in the two-stage process that we’ve put forward and I think the Republicans agree on, on how we move forward on spending cuts and broader entitlement and tax reform.  So these things are possible, but they're less possible if we try to negotiate them on an hourly or daily basis in the media.

But having said that, I understand and I sympathize with the desire for more detail.  And if it weren’t for the broader interest here, which is in trying to allow some space for the parties to see if they can achieve a compromise, I’d be spilling my guts from here.

Yes.

Q    Just one follow-up? 

MR. CARNEY:  Sorry.  Yes.

Q    Yes, it’s just one follow-up, and that is, in terms of the deadline, as the end of the year draws near, at what point do you have to have some kind of an agreement at least in principle to give Congress enough time to pass it?

MR. CARNEY:  That sounds like a question for Congress, and I wouldn’t hazard a guess.

Yes, Kristen.

Q    Jay, thanks.  I want to go back to something that Vice President Biden said on Friday.  He seemed to suggest that there was room to negotiate on the tax rates for the top income earners.  This is something that we’ve obviously talked about.  He kind of made a more definitive statement.  He said, “theoretically, we can negotiate how far up, but we think it should go up” -- referencing the rates.  Is that something that the President agrees with?

MR. CARNEY:  Well, look, I would simply point you to what I have said and the President has said and others have said, including the Vice President, and that is there is a clean and simple way to do this that achieves the kind of revenue package that is necessary in terms of its scope for the balance that's required in a fair plan for broad deficit reduction:  Extend tax cuts for 98 percent of the American people; do nothing on rates for the top 2 percent.  That means you don't have to vote to raise taxes.  You simply let current law stay at it is, which would result in those rates for top earners, above $250,000, going back to the rates from the Clinton era; and then find those targeted loopholes that you can close and deductions that you can cap that, combined with the revenue gleaned from raising rates, produces a size of -- in the scope that’s necessary for the balance that we’ve talked about.

As I’ve said before, there’s no -- the fact that there could be theoretical ways of reaching that goal that are different from the one proposed by the President may be true, but we have yet to see anything along those lines from our negotiating partners, any specificity at all, or any acknowledgement in any concrete way from Republican leaders even that rates have to be part of this.

Q    It seems like the Vice President was signaling that they don’t have to go all the way back up to that 39.6 percent figure.  Is he suggesting that might be the way to --

MR. CARNEY:  The way you said it is theoretically, and I’m saying that a discussion about what’s theoretically possible could go on forever.  What is concretely possible is that we extend tax cuts for virtually 98 percent of the American people, allow rates to raise for the top 2 percent of earners, and address the loopholes and deductions in a way that achieves the kind of revenue package that we need for a broader deficit reduction goal.  That’s what’s on the table and that’s the way to do it.  Talking about what’s imaginable is one thing.  What we haven’t seen is anything like a concrete proposal from the Republicans when it comes to revenue.

Q    I want to take one more stab at the timeline question as well.  A lot of people are saying that you actually have to get a broad framework by this Friday.  Does the President see it that way -- in order for this to get passed by December 21st?

MR. CARNEY:  I’m not going to set deadlines.  I don’t think that’s helpful to the process.  You can certainly either speak directly with people on Capitol Hill or have your colleagues up there do that to find out what their assessments are about how long it would take Congress to act on certain possible legislation. 

Our focus right now is working to see if we can reach an agreement that helps us avoid the so-called fiscal cliff and also achieves a broader deal, which would address this longer-term deficit challenge that we face in a way that helps the economy grow and create jobs.  That’s our focus at the moment.  And we believe there is time.

Dan.

Q    On Susan Rice, the clock is winding down on Secretary Clinton’s time at the State Department.  She’s expected to leave at the end of next month.  And there’s been a lot of speculation that the decision would have been made by now as to who will replace her.  What is the holdup?  Is there a holdup?

MR. CARNEY:  There’s no holdup.  The President has made no decisions and I have no personnel announcements to make.

Q    Jay, can I ask a question?

MR. CARNEY:  Sure.

Q    About the decision to allow corporate donations for the inaugural festivities, why did the President change his mind on that?

MR. CARNEY:  I would refer you to PIC, which has been set up and I think is taking questions on that.  I haven’t had that discussion.

Q    The President was part of the Transition Committee in 2008 and 2009 when they announced that the reason that they were setting up these new limitations was part of President-elect Obama’s pledge to put the country on a new path.  This is not just a PIC decision.  This is a presidential decision.

MR. CARNEY:  Well, I understand, but PIC is handling questions like that.  I haven’t had that discussion with anyone here.  It’s the province of the Inaugural Committee so I would address your questions there and I’m sure they are taking questions like that.

Dan.

Q    I just wanted to continue on that.  Is the thinking that the President, the White House wants to get the fiscal cliff situation settled before the President starts making any announcements about nomination?

MR. CARNEY:  The President is working on a number of issues including resolving the fiscal cliff -- working with the Speaker of the House and other congressional leaders, also engaging with business leaders and labor leaders and others on that important issue.  And he’s certainly engaging in discussions about some of the personnel decisions that we all know he will be making.  But I haven’t got a timeline for you about when you’ll hear those announcements.  And since, as previous questions indicate, I can't give you a date for when we're going to resolve the fiscal cliff challenge, I wouldn't say that any other decisions or announcements are dependent upon that.

Q    And you don't really want to give any kind of a characterization of what happened in that meeting between the President and Speaker Boehner, but the White House has often talked about how there’s a need for certainty in the market for businesses to know what’s going to happen so they can start hiring, for middle-class Americans to know that their taxes are not going to go up.  So what is the harm in giving some progress report, that you're more optimistic now than you were last week that this deal will get done?

MR. CARNEY:  I would say that the best thing we can do for the middle class is take concrete action by having the House pass the tax cut for the middle class.  The President would sign it into law.  The best thing we can do for business confidence is produce a compromise that averts the fiscal cliff and achieves a broad-based, balanced deficit reduction package that helps our economy grow and helps it continue to create jobs. 

The ups and downs that always take place in negotiations like these I think are probably not all that conducive to creating certainty because, as you’ve seen from the variety of rumors that come out, that one hour it’s the talks are over, there’s no progress, the next hour is there’s progress, and a lot of tea leaf reading -- I don't think that -- having me participate in that kind of speculation probably doesn’t help the process. 

And like I said to Jeff, I really -- I understand there’s great interest in this, not just in this room but around the country, and we all here appreciate that.  And this is important, and it’s because it’s important that we believe it’s most helpful to the process to try to let those who are working on these challenges and trying to reach a compromise work with as much -- with the ability to focus on that work, rather than the kind of conversation on the outside, as much as possible.

Let me get Major.

Q    Jay, when you say “the work,” what kind of work are you talking about?  Lines of communication are open.  So far as I can tell, and based on your comments at the podium just now, no proposals are being exchanged.  There are no ideas being bandied back and forth between the White House and congressional Republicans.  It sounds like we're stuck. 

MR. CARNEY:  Well, again, Major, I'm not going to read out what’s happening.  And so I would neither confirm, nor deny any characterizations about what’s happening or the progress that's being made beyond the fact that we confirmed the meeting the President had; we've confirmed various phone calls and other activity -- in part because some of it takes place on Capitol Hill with some members of the President’s team and we can't really keep that secret.  But I'm not going to talk about --

Q    -- it sounds as if there’s nothing actually being exchanged between the two sides who have to create a deal.

MR. CARNEY:  I'm simply responding to the public statements by the Speaker of the House.  I'm not going to characterize internal negotiations. 

Q    Okay.  Can you tell us and the public what the coverage will be of the swearing-in for the President on Sunday for the inauguration?

MR. CARNEY:  I don't believe those decisions have been made, and I'm sure once they --

Q    Why is it even a question?

MR. CARNEY:  I don't know that it’s an open question.  Nobody has -- we just haven’t had discussions about press coverage.

Q    But the public would be entitled to --

MR. CARNEY:  Again, I just don't have an answer for you on that.  But I'm sure there will be and we'll make sure --

Q    There will be coverage?

MR. CARNEY:  -- I'm sure there will be an answer for you.  We haven't made those --

Q    You can't guarantee the public there will be coverage?

MR. CARNEY:  Major, I'm telling you that we don't have an answer for you yet, but I'm sure we will soon.

Q    You’ve invited a lot of us to look at the details when you talk about the mandatory spending cuts.  I take you up on your invitation.  On the $240 -- not the health care savings, but the other entitlement spending cuts that are identified -- would you say that those represent efforts to make the government smaller and reduce the size and scope of government activity?  Because that's a priority for Republicans. 

MR. CARNEY:  I think this President is committed to reducing spending by government -- and spending including tax expenditures, as the Simpson-Bowles Commission identified them -- and to having a leaner, more efficient government and a more effective government.  That's been reflected in the steps he’s taken to reduce spending.  What he signed into law last summer represented one of the largest cuts in discretionary spending in generations.  And he is continued to committed -- he continues to be committed to doing that. 

What he does not believe is helpful is making cuts in areas of investment that actually help the economy grow like research and development or education.  This was some of the debate we had.  And I would note that the irony of this -- and it goes to the broader point about I think some misunderstandings about what we’re contemplating.  What I think a lot of people don't understand is that the fiscal cliff is not about spending; it’s about cutting spending too fast and the impact that would have on our economy.

Q    I understand that.  But we’re just talking about other non-health care mandatory savings that the administration put forward -- $100 billion of that $240 billion is better IRS enforcement, meaning more rapid and efficient gathering of tax revenue; and a $61 billion financial crisis fee, which is a tax. And then there’s a $44 billion changing in payment on timing.  That's only a one-time-only savings.  And $27 billion from higher fees for federal employees.

Republicans would look at that and say that's not reducing the size, scope of government.  That's fees, better IRS enforcement and making federal employees pay more.  That's not really changing anything structurally in the federal government.

MR. CARNEY:  Well, here’s what I would say.  As demonstrated by your recitation, there’s a lot of specificity in there.  We have not seen anything like that kind of specificity from Republicans.  And what I said at the top is, no question Republicans may have different proposals; we just haven’t seen them with any great specificity about how they would reduce spending.

Q    But those aren’t reductions --

MR. CARNEY:  And they may want --

Q    -- they're fees, mostly.

MR. CARNEY:  Well, again, I don't have the item-by-item here to go over.  I have the document, but I’m not going to go item by item with you.  There are significant savings represented that the President put forward.  If the Republicans have specifics that they want to put forward, they ought to do that.  And then we can discuss about how we achieve that kind of balanced package that I think most people agree is necessary to help our economy and most people agree is fair when it comes to everyone bearing the burden fairly and equally to get our deficits under control.

Q    Jay, to Major’s point on the size of government, if you look at Labor Department statistics, there have been about 135,000 more federal workers hired during the President’s first term -- it’s about 95 workers per day, every day in his first term.  Is that really reducing the size of government?  To Major’s question about -- since this whole exercise in part is about reducing the size of the debt, is the President proud of the fact that the number of federal workers is increasing?  And do you see in the second term any decrease in that number coming?

MR. CARNEY:  The President has put forward a proposal to streamline and reorganize the variety of agencies that deal with commerce in the federal government and exports.  And as part of asking Congress for the authority for that kind of reorganization that existed up through President Reagan, he has made -- he has added as an incentive a component of that request that would require any reorganization to save money for the taxpayer, to save federal dollars.  So I think that demonstrates his commitment to making a more efficient and effective federal government.

The broader issue here is how do we make choices that ensure that the middle class is protected, ensure that our economy continues to grow, ensure that it continues to create jobs, that we are making investments in education and research and development and infrastructure that the Chamber of Commerce and the Business Roundtable, as well as the President of the United States all agree are essential for long-term economic growth. 

That's the vision the President has.  That's the vision he talked about during the campaign.  Again, we have put forward a specific set of proposals on both the revenue and the spending side.  We look forward to specificity from the Republicans.  And the President believes that we can reach an agreement if everyone acknowledges that they’re not going to get what they want and everyone acknowledges that the agreement has to be balanced, that it cannot -- we had the debate about whether we should put this all on the backs of senior citizens and middle-class Americans and families with kids who have disabilities, and I think that debate was settled.  The American public, by and large, does not support that approach. 

The approach they do support is one that asks everyone to pay their fair share, that includes asking the wealthiest Americans to pay a little bit more, but that also demands that we all contribute and that our government perform efficiently and effectively.  And the President understands that he’s going to have to and he is ready and willing to make some tough choices as part of that process.

Q    Quick question on Michigan and the right-to-work debate, which has gotten a bit testy today on the House floor.  There’s one Democrat, Doug Geiss, who said today that if this right-to-work initiative is signed into law, “there will be blood.”  Since the President weighed in yesterday, and obviously made his feelings known, but has talked about changing the tone here in Washington and around the country, does the White House feel any obligation to tell fellow Democrats to debate this issue, but debate it in a peaceful and sort of --

MR. CARNEY:  The President believes in debate that’s civil.  I haven’t seen those comments and I’m not sure that they mean what some would interpret them to mean.  I just haven’t seen them.  You heard the President talk about his views.  He has always opposed the so-called right-to-work laws.  As he said, those laws are generally political and not economic.  They’re more about the right to earn less pay than they are helpful to our economy.  And he presented those views yesterday in Michigan.

Q    Last thing on that -- when we were asking about the Chicago teacher strike in September, right before the election when that was getting a little tense, you were kind of suggesting it was a local issue.  At one point you said that the President “has not expressed any opinion or made any assessment about this particular incident” that was going on in his hometown in terms of the teacher strike.  So why was this different?  This is playing out in Michigan.  It’s playing out in various states; we saw it in Wisconsin several months ago.  Why all of a sudden -- I understand that he was in the state of Michigan, but he was also -- he’s from Chicago.  So why did he not weigh in before the election?

MR. CARNEY:  The President’s position on right-to-work laws, so-called right-to-work laws is well known.  He stated before.  He stated it again yesterday.  The specific teacher strike was one where he called on all sides to work together to reach a compromise that was in the interest of the children, who had the most to lose from a prolonged strike.  And he welcomed the resolution of that strike.

Let me move around.  Peter.

Q    Thank you, Jay.  Yesterday we saw an e-mail come out from a campaign official urging people, the President’s supporters, to contact members of Congress and express support for the President’s view of -- proposal for resolving the fiscal cliff.  Does the White House believe that this debate will be solved through internal negotiations between the parties or through outside pressure being brought to bear from the general public?

MR. CARNEY:  Both.  It’s our position that this is one of those issues that is very important to the American public, an issue that affects everyone, and one where it’s absolutely appropriate for the President and for members of Congress to engage with the public on and seek their opinions and encourage members of the public to participate by adding their voices to the debate. 

We were talking about this I think the week before last in anticipation of a trip the President was going to make, and to me, I think it makes all the sense in the world for leaders in Washington to go out in the country and engage the American people on these incredibly important issues.  I mean, we saw that this was the subject of sustained debate during the campaign, and I think that reflected the assessment of both the candidates and their campaigns that this was of great interest to the American people.  And it remains of great interest, because they have a great deal at stake. 

I mean, think about it:  If Congress fails to act, taxes go up on everyone.  Everyone who pays income taxes will see a tax hike.  The President believes that that should not happen, that the House of Representatives ought to follow the Senate’s lead and pass a bill that extends tax cuts for 98 percent of the American people because supposedly we all agree that that’s what should be done.  So let’s get it done and -- as many Republicans have now said, let’s get that done and continue to debate about whether or not the top 2 percent should get another tax cut. 

You know the President’s views on that.  You know the public’s views on that.  But we ought to take care of extending those tax cuts for the middle class.  So the answer, again, is both.  We will continue to engage with leaders on Capitol Hill.  We’ll continue to engage with a broader coalition of people who have a stake in this, and that includes ordinary Americans out in the country.

Yes, Mara.

Q    Given that he’s dark today, doesn’t have anything scheduled public in the days to come, whereas in the past week or so he did something almost every single day -- either with stakeholders or a family or went on Twitter -- is there a change now?  Are things kind of moving indoors and there will be less -- this is not the time to do something public every single day?

MR. CARNEY:  Well, we did travel to Michigan.  It was only yesterday -- only yesterday.

Q    This is a day-by-day kind of thing?

MR. CARNEY:  So I’ve gotten one question about how come he’s going out and campaigning among the people, and the next question is how come he stopped campaigning among the people. 

Q    Has he stopped for the moment?

MR. CARNEY:  No, and I wouldn’t expect that he will.  I wouldn’t expect that he will stop engaging with the American people in the manner that he has at any time during the next four-plus years.

Q    So what’s the next thing that he’s going to do?

MR. CARNEY:  I don't have a scheduling announcement for you, but you can be sure that the approach that we’re taking, which includes engaging with leaders on Capitol Hill and it includes engaging with the broader public, will continue.

Q    Jay, I understand your wish to leave the negotiated space and room to maneuver and all the rest of it.  But one of the parties to the negotiations just finished holding forth on Capitol Hill and said you folks are slow-walking this.  Are you slow-walking?

MR. CARNEY:  Well, I’m speaking for another party to the negotiations, and my response is we would like to see some specifics.

Q    But that's not even a yes or a no.  It’s just --

MR. CARNEY:  We’re not going to characterize the internal process here, the phone calls or the conversations or the meetings.

Q    But that confirms they're not specific conversations, right?

MR. CARNEY:  I said that in response to the inaccurate suggestion that we haven’t put forward spending cuts, I pointed out that we have.  And I pointed out that Republicans have thus far not proposed a single specific savings through revenue, and we would welcome it if they did.

Roger.

Q    Hill Republicans are saying that talks on a budget plan remain deadlocked because the administration’s negotiators have taken different positions than what the President did when he spoke with Mr. Boehner on the 9th; different positions -- they vary on revenue as well as the amount of spending cuts.  Can you --

MR. CARNEY:  I’m just not going to comment on internal -- conversations that the President had, meetings the President had, meetings and conversations that the President -- the members of the President’s team have had because it doesn't help the process.  And speculation about what was said and spin about what it means does not in my view or our view help the process move forward.

And we hope and remain optimistic about the possibility of an agreement being reached, and that is why we are taking the approach that we’re taking.

Q    A follow-up on what Jim and Jake were asking about, that $100-billion item -- in the September 19th proposal from 2011 that's now off the table, you said because it’s been -- it’s changed a little bit since it’s been more than a year.

MR. CARNEY:  There has been -- there are some changes to our views on that, but it does not represent a sizeable portion of the overall savings put forward in the proposal.  And again, we’re committed to achieving that level of savings.

Q    Okay.  The $100 billion was about one-third of the health savings, which was $320 [billion].

MR. CARNEY:  And I’m saying that the issue here, the changes that we would make do not represent a third.  They represent a much smaller portion.

Q    Okay, has there been any replacement --

MR. CARNEY:  I’ll have to get more --

Q    -- and substitute?

MR. CARNEY:  I’ll have to see if we have more specifics for you.

The point I’m making, though, is that the President has put forward spending cuts and will continue to do that in discussions if we get to a point where there is an acceptance and acknowledgement of the fact that as part of this, rates have to go up on the top 2 percent; revenue has to be for a big deal of the -- on the order that we’ve been talking about and that everybody who has looked at this has been talking about.  And we will not -- there’s no deal that envisions -- there’s no deal available that will see the tax cuts of the Bush era for the wealthiest Americans extended.  And it’s simply not acceptable to have a deal where all these specific burdens are placed on the middle class and seniors and others, on the one hand, and then there’s some vague promise that tax reform will produce savings from wealthy Americans sometime in the future without any specifics.  That can't be how it works.

Mark.

Q    Jay, how do you explain this enormous disconnect that you say the President has put forward spending cuts, and yet today Speaker Boehner and Senator McConnell say no, you haven’t.  There’s no leadership on that.  They haven't gotten any.  Isn’t that something you need to address?

MR. CARNEY:  I have.  And I think I made --

Q    -- pages 17 through 45, is that --

MR. CARNEY:  I’m making it clear that that assertion is incorrect.  We all know it is because we have access to the computer.  I don't have any more hard copies for you, but I can give you the link.

And having said that, I also acknowledge, as the President has, that in seeking a broader compromise, we understand that not every detail of his proposal will make it into the final product, and that there will be tough choices that he will have to make as part of that.

And we recognize that Republicans might have different spending cuts that they would prefer over the ones the President has put forward.  They might and I think are probably likely to suggest that there should be more, greater spending cuts than the President has put forward.  We acknowledge all of that.

But on the question of whether or not we have put forward specific spending cuts, the answer is we have.  And not only that, we’ve signed into law a trillion dollars in specific spending cuts.  So if you combine what’s signed into law with what we’ve proposed versus the total absence of any specificity from Republicans for a single dollar in revenue, and I think in the battle of specificity, the outcome has already been decided.

We’re looking for more concrete specifics from them, and I understand that this is a negotiation.  And we continue to be optimistic that -- or hopeful that we can reach a deal.

Q    Do you understand why the Republican leaders might say they didn't receive any when you say they have?

MR. CARNEY:  Mark, can we just end the charade here that we say they have?

Q    Well, we didn't go to the floor of the Senate and the House saying this.  They did.

MR. CARNEY:  No, no.  But it’s not that we say one thing and it might be true, and they say one thing and it might be true.  This is a real piece of -- this is a real document here with pages and tables and numbers.

Now, I understand they may not agree with all of it, but it exists and it was put forward.  And the President understands that there’s more to this process than just his proposal.  But it has -- it contains specificity and detail, and it is certainly -- it certainly represents his willingness to enact further spending cuts to achieve savings through our health care entitlement programs, as well as other entitlements.  And it represents his belief about how we can achieve the kind of revenue that's necessary for a balanced package in a way that ensures that we don't put all the burden for long-term deficit reduction on seniors or the middle class or other vulnerable communities.

Q    Syria, Jay?

MR. CARNEY:  Yes, Syria. 

Q    Can you explain to us which groups you're going to support and which groups you won’t and what your reasoning is?

MR. CARNEY:  I can say a few things.  Tomorrow, Deputy Secretary of State Burns will attend the Friends of Syria   -- Friends of the Syrian People meeting in Morocco.  We will do all we can to broaden our support of the Syrian opposition coalition and to work with like-minded countries to bring this crisis to an end.

We are pleased with the Syrian Opposition Coalition’s continued efforts to organize, form technical committees, engage with the international community, and take concrete steps to promote a unified, just, democratic future for Syria.

These actions are in line with what we and our international partners hoped would result from the formation of the Syrian Opposition Coalition in Doha last month.  As we look to tomorrow’s meeting and our ongoing efforts to support the Syrian people, let me be absolutely clear:  The United States stands with the Syrian people in insisting that any transition process result in a peaceful, unified, democratic Syria, in which all citizens are protected -- Sunni, Alawite, Christians, Kurds, Druze, men, women and children.  And a future of this kind cannot include Bashar al Assad.

Q    Still no plans for the U.S. to get involved militarily?

MR. CARNEY:  That's correct.  We provide significant assistance to the Syrian people in humanitarian aid.  We provide significant non-lethal assistance to the opposition.  But our position on providing lethal aid has not changed.

Q    Jay, can I follow up on Syria?

MR. CARNEY:  Okay, let me -- I've got to get to some folks in the back.  But go ahead, Kristen, on this.  On Syria, go ahead.

Q    Okay, thank you.  Defense Secretary Leon Panetta seemed to suggest that the Syrian government had slowed its preparations of chemical weapons, that the administration is not as concerned about this as it may have been last week.  Can you talk a little bit about that?  Is that accurate, and what has changed?

MR. CARNEY:  Well, I'm not going to get into assessments beyond what Secretary of Defense Panetta said.  I would simply reiterate our clear warning to the Assad regime about the potential use of or proliferation of chemical weapons.  And that warning was made by the President, and that warning stands.

We take this very seriously.  And were the Assad regime to unwisely make the wrong choice here, there would be consequences.

Q    Jay, the incoming and outgoing leaders of the House Foreign Affairs Committee have written a letter calling on the President to close the PLO office in Washington.  Will he do that?

MR. CARNEY:  I haven't seen the letter.  I'll have to take the question.

Yes, Alexis and then Justin.

Q    Jay, to clarify, when you're saying that the administration is looking for concrete specifics, and then you also say that you're not discussing the Sunday meeting between the President and the Speaker, are you separating the two?  Are you saying the concrete specifics have to be publicly and brought forth by Republicans?  Or are you saying that the President spent a lovely moment in time on Sunday with the Speaker talking about generalities?

MR. CARNEY:  I'm trying to be incredibly opaque about the distinction.  I know, look -- (laughter) --

Q    It's working.

MR. CARNEY:  It's working.  (Laughter.)  The Speaker made a public statement and I'm responding to that with the fact that we have put forward specifics, and that answers his charge that we have not put forward specific spending cuts.  We have.  We understand that Republicans may not agree with all of them, but it is simply uncontestable that we have put forward a plan with spending cuts. 

Beyond that, and beyond our insistence -- our public insistence that Republicans accept and acknowledge that rates on top earners have to go up, and accept and acknowledge that any package on the revenue side would have to include that element, I'm not going to get into the sausage-making or the internal discussions and deliberations, only because we hope that this process actually produces a positive result.  I’m not guaranteeing that, but I’m saying that this is the reason why we’re not really commenting on the process, or at least trying not to.

Q    Well, actually, I’m not asking about the process.  Do you want us to come away with the thought that the Speaker came to the White House and that two men did not discuss these two things?

MR. CARNEY:  I want to leave your thoughts to you and not frame them or shape them on that issue.  I think I would simply say that the President met with the Speaker and as a part of a series of engagements with the Speaker, as you know, and that the lines of communication remain open, as we have said, and that we hope the process moves forward.

Q    And can you also add when was the last time that the President talked with Harry Reid -- Senator Reid?

MR. CARNEY:  I believe it was yesterday.

Q    There was a poll released this week that showed 76 percent wanted across-the-board spending cuts as part of the deal, which is a higher margin than actually said they wanted tax increases on the rich.  But I also want to ask about the timeline for spending cuts.  A complaint among some conservatives in the past has been when these deals have been made, so much -- $3.00 in spending cuts for every $1.00 in tax increases, the cuts are always out 10 years ahead or 5 years ahead, or somewhere along the line.  Would the White House agree to something along the lines of upfront cuts early on?

MR. CARNEY:  Well, I would make two points.  The first is that when rates rise on the top 2 percent, as a subject much discussed during the campaign, the savings achieved from that would be gleaned over 10 years.  It’s not collected all in the first week or month or even year.  This is -- all of this is about a period of over 10 years, both the savings from spending cuts and the savings from revenue increases.  That’s one.

Two, the President has signed into law specific spending cuts as part of the Budget Control Act.  What we have not seen, as I’ve said already, is any specific proposal from Republicans -- at least Republican leaders -- about how we achieve the kind of revenue targets that are necessary for a balanced approach.

So the President is committed to achieving a package that includes all three pieces here:  the discretionary spending, much of which we’ve signed into law; the savings from entitlement programs, and the savings from revenue.  And he looks forward to reaching a compromise with the Speaker of the House and others.

Justin.

Q    Jay, will the administration take a public stance on the Proposition-8 case that was taken up by the Supreme Court on Friday, in particular some of the broader questions raised by that case, including whether or not the Constitution protects the rights of same-sex couples to marry?

MR. CARNEY:  Well, I appreciate the question, but for comment on the Court’s actions on that case, I would point you to the Department of Justice.  As you know, the administration is not a party to this case, and I just have nothing more for you on it.

Q    Did the President have any reaction to the court taking up the DOMA or the Prop-8 case?

MR. CARNEY:  I have nothing more for you on that.  Appreciate it.

Q    -- going to be able tell us what the President’s views are on that case.  Is the President not concerned about the outcome of that case?

MR. CARNEY:  Again, I just don’t have anything more for you, and I’d refer you to the Department of Justice.

Thank you all very much.
   
END
2:40 P.M. EST

The White House

Office of the Press Secretary

Remarks by the First Lady at Toys for Tots Service Project

Joint Base Anacostia-Bolling
Washington, D.C.

2:35 P.M. EST

MRS. OBAMA:  Well, good afternoon, everyone.  It is truly a pleasure, as always, to be here. 
 
I want to start by thanking Lieutenant General Osman for that very kind, gracious introduction.  I think the Toys for Tots tradition is really the reason for this success.  I'm kind of just glomming on to what has already been established, but you all do the real work and we are grateful to you.  Your dedication to not just Toys for Tots, but for -- to this country as well.
 
And of course, I want to thank all of the Toys for Tots volunteers, many of whom are here -- yay for our volunteers and all the donors, especially our men and women in uniform and their families. 
 
As you all know, Toys for Tots started with a military family -- a Marine reservist and his wife who decided that they wanted to make the holiday just a little bit better for kids in need.  And since then, so many Americans -- including so many military families like all of you -- have spent countless hours bringing gifts and holiday cheer and everything else that is wonderful about the holidays to children all across this country.
 
And this is just one of many examples of how our military families are always going that extra mile to serve our communities and our countries -- I talk about this endlessly.  You know I'm working on Joining Forces, but the military families are what inspires my work.  Because even though all of you are dealing with your own hardships and challenges and struggles, you're moving from base to base every couple of years; even though you've endured deployment after deployment, the miraculous thing about you all and your spirit is somehow you always are the first people to volunteer for something.  It could be as simple as the car pool, or the PTA, or a food pantry, or you're stepping up for a neighbor or friend; family members of your own.  But somehow you're always the ones who find the extra hours in the day to give back, above and beyond what life has thrown your way anyway. 
 
And that’s one of the reasons why Jill Biden and I launched Joining Forces several years ago.  As many of you already know, Joining Forces is a campaign to rally our Americans to honor, recognize and support our veterans, troops and their families.  And we did this because we want you all to know that you make such a tremendous sacrifice and do so much to serve our country, both in and out of uniform, here at home and around the world.  And we believe that it is time -- it is always time -- for us to start serving you all as well as you have served us. 
 
The idea behind Joining Forces, as many of you already know, is very simple -- everyone can do something to show their gratitude and to give back.  It's the same idea that drives Toys for Tots year after year -- the belief that we all have something to contribute.  And I want to be clear that there is still plenty of time for people all across this country to get involved for -- with Toys for Tots.
 
We are collecting toys at the White House.  We brought over boxes and boxes of toys.  I'm very proud that the folks at the White House stepped up, and I think we have a larger contribution this year than even before.  And I brought as many as I could here with me today, but we're going to keep the drive going and keep sending it over. 
 
And we also have a whole bunch of folks who helped make that happen.  We have K'NEX, a corporation who has donated -- the CEO of K'NEX has donated a lot of toys; my husband brought some of them back with him from his visit to the company a couple of weeks ago.  So we put in some of those toys as well, and we're thrilled about that donation.  And we hope that it inspires people across this country who may be watching this press conference to get into the spirit of giving this holiday season.
 
And Toys for Tots makes it easy for anyone anywhere to pitch in -- that’s the beauty of this effort.  You probably have seen ads on television; I see them all the time.  Everywhere you go there is a way that you can donate and be a part of Toys for Tots.  You can go to the Toys for Tots website and donate a toy online, which is very easy.  Everybody is doing things online, so now you can donate Toys for Tots online.  You can look up the nearest location, as we have here, and figure out how to go by and drop off something yourself.  It's a great way to get your kids involved by making them collect toys.  We have some dresses from Malia and Sasha that they have donated that I've brought along with me.  But it's a great way to get kids involved in the spirit. 
 
So collect the toys and have the kids come with you to drop them off at one of the sites.  And remember something that I always remind people every year since I've been involved -- that Toys for Tots isn't just for the little ones.  A lot of times when we do the shopping we like to reach for the cute little bear or the little doll, but the truth is, is that they also need gifts for older kids as well.  And oftentimes, that can be where there is a shortage.
 
So as you shop for children this year, think about things like books and games, clothing, backpacks -- anything for kids ages 11 to 14, which is why we brought over a lot of clothes.  Because if your teens are like mine, they want some clothes, something cute to wear.
 
So I hope that everyone will do their part, as you have already been doing, to continue the proud tradition that has made Toys for Tots such a very special part of the holiday season.  Thank you all.  Thank you for giving me the opportunity to be a part of this.  This is one of the best parts of what is oftentimes a very busy holiday season at the White House, but is always so important for me to take out time and come over here personally, deliver our toys, be a part -- as little as I can, as limited as my time is to help sort some toys. 
 
So I want to, again, thank you all.  Thank you for the work that you do, not just with Toys for Tots, but our military, our Marines, you all are so awesome.  You make us proud.  It is the easiest thing in the world to represent you to the rest of this country and around the world.
 
So thank you for making my job so easy.  And on behalf of myself, my husband and our family, I want to wish everyone happy holidays, and a happy and very safe New Year. 
 
And with that, we should get to work, right?  All right.  Let's sort some toys.

END 
2:43 P.M. EST

Meet Pretty Willie

President Barack Obama greets "Pretty Willie" Willie Carter (December 10, 2012)

President Barack Obama greets "Pretty Willie" Willie Carter after delivering remarks at the Daimler Detroit Diesel Facility in Redford, Michigan, Dec. 10, 2012. The President mentioned Carter, a long-time employee of the company, during the remarks. (Official White House Photo by Pete Souza)

Yesterday, President Obama introduced the world to "Pretty Willie" Carter — a man who has clocked in at Detroit Diesel for 60 years. The only other job he ever worked was fighting for his country in the Korean War. Through six decades, he's only been late to work once, and it was so long ago, he can't even remember why.

Here's what President Obama said about Pretty Willie:

"Willie believes in hard work. You don’t keep a job for 60 years if you don’t work hard. Sooner or later, someone is going to fire you if you don’t work hard. He takes pride in being part of something bigger than himself. He's committed to family; he's committed to community; he's committed to country. That’s how Willie lives his life. That’s how all of you live your lives."

"And that makes me hopeful about the future, because you're out there fighting every day for a better future for your family and your country. And when you do that, that means you're creating value all across this economy. You're inspiring people. You're being a good example for your kids. That’s what makes America great."

Learn more about President Obama's trip to Detroit Diesel.

Related Topics: Economy, Michigan

President Obama's Message to the Global Entrepreneurship Summit

December 11, 2012 | 2:38 | Public Domain

U.S. government officials, investors, entrepreneurs, NGO leaders, and policy makers from more than 50 countries are gathered in Dubai, United Arab Emirates for the third annual summit, which was created following President Obama's 2009 speech at Cairo University.

Download mp4 (73MB) | mp3 (3MB)