The White House

Office of the Press Secretary

Remarks by the President on Preventing an Income Tax Increase on the Middle Class

Private Residence
Northern Virginia

2:40 P.M. EST

THE PRESIDENT:  Well, I want to, first of all, just thank Tiffany and Richard, Jimmie and Velma for opening up their beautiful home to us.  The reason that we’re here is because Tiffany is one of the people who responded to My2K. 

As many of you know, we asked folks all across the country to talk a little bit about what would it mean if their income taxes went up in 2013, and Tiffany, who is a high school teacher, responded.  Her husband, Richard, works at a Toyota dealership.  They actually live with Tiffany’s parents, both of whom are still working.  And so what Tiffany pointed out was that an increase of $2,000 or so for her and her husband in this household would actually mean $4,000 that was lost.  And a couple of thousand dollars means a couple months’ rent for this family.

And the story they tell about working hard, my understanding is they’re interested in starting a business as well as the work that they currently do.  They’ve got dreams and ambitions.  They’ve got a beautiful 6-year-old son, Noah, who’s back with great-grandma.  And they’re keeping it together, they’re working hard, they’re meeting their responsibilities. 

For them to be burdened unnecessarily because Democrats and Republicans aren’t coming together to solve this problem gives you a sense of the costs involved in very personal terms.  Obviously, it would also have an impact on our economy, because if this family has a couple of thousand dollars less to spend, that translates into $200 billion of less consumer spending next year.  And that’s bad for businesses large and small.  It’s bad for our economy.  It means less folks are being hired, and we can be back in a downward spiral instead of the kind of virtuous cycle that we want to see.

So the message that I got from Tiffany and the message that I think we all want to send to members of Congress is this is a solvable problem.  The Senate has already passed a bill that would make sure that middle-class taxes do not go up next year by a single dime.  Ninety-eight percent of Americans whose incomes are $250,000 a year or less would not see any increases.  Ninety-seven percent of small businesses would not see any increases in their income taxes.  And even folks who make more than $250,000 would still have a tax break for their incomes up to $250,000.  So 100 percent of Americans actually would be keeping a portion of their tax cuts, and 98 percent of them would not be seeing any increase in their income tax.

That’s the right thing to do for our economy.  It’s the right thing to do for families like Tiffany’s and Richard’s.  And it’s very important that we get this done now, that we don’t wait.  We’re in the midst of the Christmas season; I think the American people are counting on this getting solved.  The closer it gets to the brink, the more stressed they’re going to be.  Businesses are making decisions right now about investment and hiring, and if they don’t have confidence that we can get this thing done, then they’re going to start pulling back and we could have a rocky time in our economy over the next several months, or even next year.

So I’m encouraged to see that there’s been some discussion on the part of Republicans acknowledging the need for additional revenue.  As I’ve indicated, the only way to get the kind of revenue for a balanced deficit reduction plan is to make sure that we’re also modestly increasing rates for people who can afford it -- folks like me.  For folks who are in the top 2 percent, we can afford to have a modest rate increase.  That allows us to not only reduce our deficit in a balanced, responsible way, it also allows us to make investments in education, in making college affordable, in putting folks back to work, and investing in basic research that’s important for our economy. 

And I think we all recognize that there are some smart cuts we’ve got to make in government.  We’re going to have to strengthen our entitlement programs so that they’re there for future generations.  Everybody is going to have to share in some sacrifice, but it starts with folks who are in the best position to sacrifice, who are in the best position to do a little bit more to step up.  And that’s what my plan does.

So just to be clear, I’m not going to sign any package that somehow prevents the top rate from going up for folks at the top 2 percent.  But I do remain optimistic that we can get something done that is good for families like this one’s and that is good for the American economy.

All right.  Thank you very much, everybody.

END               
2:45 P.M. EST

The White House

Office of the Press Secretary

Remarks by The President at the Tribal Nations Conference

U.S. Department of the Interior
Washington, D.C.

3:15 P.M. EST

THE PRESIDENT:  Thank you, everybody.  Thank you so much.  Everybody, please, please have a seat. 

Thank you, Brian, for that wonderful introduction.  Thanks to all the members of Congress and members of my administration who are here.  And I want to give a special shout-out to Senator Danny Akaka, who has been such a tireless advocate for Native Americans throughout his career.  (Applause.)  You know that Danny is going to be retiring this year, and he’s such a great friend.  And as a Hawaiian boy, I’ve got to give him a little special props.  (Laughter.)  So I want to thank all the tribal leaders who took the time and the effort to come and take part in this conference.

Every year I look forward to this event.  It’s especially wonderful to see so many friends that I’ve gotten to know from various nations all across the country.  You guys inspire me every single day, and whenever I’ve traveled to your home states there’s been such a warm welcome that I’ve received.  So I’m truly grateful to all of you.

Today, I want to begin by remembering somebody we lost last week.  To the Crow Nation, he was a revered elder.  To many Native Americans, he was a respected healer.  And I knew him warmly, for a few years at least, as an adoptive father.

Sonny Black Eagle adopted me into the Crow Nation during my 2008 campaign.  And yesterday he would have been 79 years old.  And while we can’t celebrate that milestone with him today, we can celebrate his remarkable life and all that happened along the way, because Sonny’s story is not just one man’s journey to keep his culture alive, but one country’s journey to keep perfecting itself. 
   
So Sonny Black Eagle was born in 1933 just outside of Lodge Grass, Montana.  That’s where his grandparents raised him after his mother died of tuberculosis; where he tended to cattle as a child; and where as an adult, he raised a family of his own.  And Sonny was brought up in the traditional Crow ways, with the same values that many of you share -- a reverence for the Earth, to cherish the Earth and to cherish each other; to honor ancestors and preserve traditions.

Staying true to those values wasn’t always easy.  As a child, if Sonny spoke Crow in school, his teachers would strike his hand with a ruler.  As a teenager, when he went to eat at local restaurants he was sometimes met with a sign on the door that said, “No Indians or dogs allowed.”  In the 1950s, as Sonny and his wife Mary began a new life together, the government put in place a new policy of forced assimilation -- a move that harkened back to the days when Native religions and languages were banned.  The policy was called “termination” for a reason -- it was meant to end tribal governments in America once and for all.

So Sonny, like many of you, knew intolerance and knew injustice.  He knew what it was like to be persecuted for who you are and what you believe.  But as time went by, year by year, decade by decade, as Native Americans rallied together and marched together, as students descended on Alcatraz and activists held their ground at Frank’s Landing, as respect and appreciation for your unique heritage grew and a seminal struggle played itself out, Sonny lived to see something else.  He saw a new beginning.

He lived to see a government that turned the page on a troubled past and adopted a new policy towards Native Americans -- a policy centered on self-determination and the right for tribal governments to do whatever you think is best to strengthen your communities.

Over the past 40 years, that policy has had a major impact.  It has empowered you to build up stronger institutions.  It has enabled you to establish more effective law and order.  It has laid the foundation for a true and lasting government-to-government relationship with the United States.

And over those decades, as Sonny went from being a father to a great-great-grandfather; and as he taught his family the Crow language and his community the Crow customs; as he became a living symbol of the perseverance of the entire Crow nation, Sonny stayed true to those fundamental values -- to those fundamental values -- to cherish the Earth and each other, to honor ancestors and preserve traditions. 

And these are not just Sonny's values.  In fact, they're not just values cherished by Native Americans.  These should be and are American values.  And they lie at the heart of some of our country's greatest challenges -- to rebuild the middle class; to build ladders of opportunity for everybody who's working hard; to protect our planet; to leave our children something better than we inherited; to make sure Americans remain optimistic about the future and that this country of ours remains the place where no matter who you are or what you look like or where you come from or what your last name is, you can make it here if you try.

Now, these are the challenges that we can only solve together, and that's been our approach to the unique challenges facing Indian country. 

Now, three years ago, I was proud to see that this conference was the largest gathering of tribal leaders in our history.  And back then, an event like this was rare.  Today, it’s gotten routine.  (Laughter.)  What I told you then is that I was committed to more than a unique nation-to-nation relationship -- I was committed to getting this relationship right, so that your nations can be full partners in our economy and your children can have a fair shot at pursuing the American Dream -- (applause) -- and that no one has to live under the cloud of fear or injustice.

And to make sure that we follow through on those commitments, I’ve named Native Americans to my White House staff –- like Jodi Gillette and Charlie Galbraith, who many of you know.  (Applause.)  I’ve named Native Americans throughout my administration.  And today, because we’ve made sure that the conversations here have translated into action, we can point to signs of real progress.

We’ve focused on justice and tribal sovereignty.  Long-standing legal disputes, like the Cobell case, have been resolved.  I signed into law the Tribal Law and Order Act, which is helping to fight crime.  These are all important steps.  But we’ve got more to do.  With domestic violence so prevalent on reservations, we’re pushing Congress to restore your power to bring to justice anyone -- Indian or non-Indian -- who hurts a woman.  (Applause.)  With some tribal nations unable to put their land into federal trust, we’re pushing Congress to pass the Carcieri fix right away.  (Applause.)   

A focus that a lot of you have spoken to me about and that we’re now really trying to drill down on is expanding economic opportunity for Native Americans.  Together, we’ve stepped up support for Tribal Colleges and Universities, so that more young people can graduate with the skills they need to start a career.  We’ve strengthened tribal health care and made it more accessible.  And along with the HEARTH Act, we’ve streamlined leasing regulations, putting more power in your hands to build more homes, and more small businesses, more clean energy projects –- like the Moapa solar project in Nevada.

But we’ve got more work to do.  We’ve got to rebuild America’s infrastructure -- from roads to high-speed internet -- that will help connect Native communities to other parts of the country and other parts of the world.  Congress needs to expand support for Native American small businesses, because when they’re opening new stores or exporting new goods, then they’re creating new jobs. 

So that’s where we need to go.  That’s the future we need to build.  And I’ve never been more hopeful about our chances.  Part of that hopefulness is because I’ve gotten to know so many of you, and I know the skills and the talent and the dedication and the values and the wisdom that you all represent.  And I’m hopeful not just because of the work all of you are doing, not just because of the solemn commitment of tribal leaders all across this country.  I’m also hopeful because of the rising generation who I’ve seen embrace the responsibility of following in your footsteps.

I’m hopeful because of young folks like Nick Tilsen.  I just had a chance to talk to Nick, a Lakota Indian who lives on the Pine Ridge Reservation in South Dakota, which is one of the poorest parts of America.  And unemployment there is rampant; high rates of disease and violence are often forcing folks to downsize their dreams.  But there’s a more promising statistic in Pine Ridge.  More than half of Pine Ridge’s population is under 30 years old.  And many of those young people, like Nick, are giving all they have to help turn things around.

So Nick heads up a non-profit in Pine Ridge.  A few years ago, with the support of some grants and other members of his tribe, Nick built a community center that uses spiritual and cultural teachings to help young people stay off drugs and their parents live healthier lifestyles.  And it’s making a difference.  So today, he’s building something bigger -- a clean-energy community that will provide affordable housing for folks who need it and help more Lakota small businesses get off the ground.

Day by day, family by family, community by community, Nick and his non-profit have helped inspire a new beginning for Pine Ridge.  In fact, just a few months ago, young and old came together to adopt a long-term plan that commits to bringing back jobs and development; bringing back native languages and customs; bringing back the spiritual strength that for so long has defined the Lakota people.  And Nick says, “We’ve decided as a community to take ownership of our own future.”

See, that makes me hopeful, talking to young people like that, because throughout Indian Country, you’ve got a generation ready to build on what generations before them have built.  They’re out there right now, stirring with hope, and restless for change, and ready to take ownership of their future. 

So let’s make sure our work here is worthy of their efforts.  Let’s do everything we can to get things in the best shape possible for when they're in charge.

And over the next four years, as long as I have the privilege of serving as your President, we’re going to keep working together to make sure that the promise of America is fully realized for every Native American.

Thank you very much, everybody.  (Applause.)  God bless you.  God bless the United States of America.  (Applause.)

END
3:26 P.M. EST

The White House

Office of the Press Secretary

Opening Remarks by the President to the Business Roundtable

 

Business Roundtable
Washington, D.C.
 
 
10:57 A.M. EST
 
 
THE PRESIDENT:  Well, good morning, everybody.  It is great to see all of you.  Many of you I've had a chance to see individually or in small groups over the last several months, but it’s good to be back at the Business Roundtable.  Jim, thanks for your leadership.
 
Originally, my team had prepared some remarks.  They always get nervous when I'm out there on my own -- never know what I might say.  Given the dialogue that we had the last time, I thought it was useful for me to abbreviate my remarks, speak off the cuff at the top, and then spend most of our time just having a conversation.
 
Let me begin by saying that all of you in this room are not just business leaders, not just CEOs of your companies, but you're also economic leaders and thought leaders in this country. And I recognize that all of you have an enormous investment not only in your own companies but in the well-being of America.  
 
There are a lot of patriots in this room, people who care deeply about not only your bottom lines but also the future of this country.  You’ve shown that over the last four years.  We've gone through as difficult an economic period as we've seen in most of our lifetimes, and we've emerged not yet where we need to be but we've certainly made progress.  And the reason we've made progress in part has been because of the outstanding management and productivity gains and efficiencies and competitiveness that you’ve been able to achieve in each and every one of your companies.
 
And I've said this to some of the small groups, let me repeat it to the large group -- I am passionately rooting for your success, because if the companies in this room are doing well, then small businesses and medium-sized businesses up and down the chain are doing well.  If companies in this room are doing well, then folks get jobs, consumers get confidence, and we're going to be able to compete around the world.
 
Now, the good news is that despite the extraordinary challenges that we've seen over the last four years, there is progress in some key sectors of our economy.  We've seen housing finally begin to bounce back for the first time.  And that obviously has an enormous ripple effect throughout the economy.  Consumer confidence is as high as it’s been.  Many of you, over the last two, three years, have experienced record profits or near record profits, and have a lot of money where you're prepared to invest in plants and equipment and hire folks.  
 
Obviously, globally, the economy is still soft.  Europe is going to be in the doldrums for quite some time.  Asia is not charging forward, and some of the emerging markets are not charging forward as quickly as they were maybe a few years ago.  
 
But I think what all of you recognize and many of you have told me is that everybody is looking to America because they understand that if we’re able to put forward a long-term agenda for growth and prosperity that’s broad-based here in the United States, that confidence will not just increase here in the United States, it will increase globally, and we can get the kind of virtuous cycle that I think all of us have been waiting for and want to see.  
 
What’s holding us back right now, ironically, is a lot of stuff that’s going on in this town.  And I know that many of you have come down here to try to see is there a way that we can break through the logjam and go ahead and get things done.  And I’m here to tell you that nobody wants to get this done more than me.  I know that you’ve gotten a lot of briefings, but let me just try to describe where the situation is right now with respect to our fiscal situation, both what the opportunities are but what also the challenges are.
 
I campaigned over the last year on the idea that we need to make sure that this economy is growing and that we’re providing ladders of opportunity for folks -- (electricity goes out, feed drops) -- I can speak pretty loud.  Can people hear me in the back?
 
During the entire campaign, I talked about the importance of short-term measures to boost growth but also a long-term plan to make sure that we've got our fiscal house in order, and I called for a balanced and responsible plan.  My budget reflects a balanced, responsible plan, and I've shown myself willing to make some tough decisions when it comes to government spending -- because, despite, I think, my reputation or the reputation of Democrats, I don't think every government program works exactly the way it should.  I think there are efficiencies that can be gained; there are some programs that used to work and just don't work now the way they were intended.  And as a consequence, working with Democrats and Republicans last year, we were able to cut over a trillion dollars of spending -- the largest cut, by the way, in discretionary spending in history.  So we're prepared to make some tough decisions when it comes to spending cuts. 
 
But if you look at what’s needed in order for us to stabilize our budget, stabilize our deficit-to-GDP ratio, our debt-to-GDP ratio, then every credible economist will tell you that you can't just do it on spending cuts.  We can't cut our way to prosperity, that there’s got to be a balanced approach in which we also are bringing in new revenues -- partly because our revenue levels are as low as they’ve been in most of our lifetimes.
 
And what I've proposed, what I put forward in the campaign and what I think a majority of the American people agreed with -- in fact, there’s some folks who didn’t vote for me that focus groups and polls show nevertheless they agreed with my concept when it comes to deficit reduction -- is that an approach that says we're going to raise additional revenue particularly from those who have done best in the economy over the last decade, combined with some smart cuts and with entitlement reform that can strengthen our social safety net over the long term but do so in a responsible way -- that's the way to go forward.  And that's what we've put forward.
 
Now, the question I think on the minds of a lot of you is how do you get there -- because I know that, speaking to many of you privately, you agree with this approach.  I've been struck by the number of CEOs who said, we're willing to pay slightly higher taxes if it means that we've got the kind of certainty and stability over the long term that allows us to invest and hire with confidence.  So most of the folks in this room I think are onboard for a balanced plan.
 
The problem that we had up until fairly recently -- and this was extensively debated during the campaign -- was the belief that either, A, we could balance our budgets entirely on spending cuts, or a variation that has emerged is, is that we can do so while still lowering rates simply by closing loopholes and deductions.  And you’ve heard from my team, but let me just repeat, we don't have any objection to tax reform, tax simplification, closing loopholes, closing deductions.  But there is a bottom-line amount of revenue that is required in order for us to get a real, meaningful deficit reduction plan that hits the numbers that are required for us to stabilize our debt and deficits.  And all the math that we've done -- and we analyzed this stuff pretty carefully -- shows that it is not possible for us to raise the amount of revenue that's required for a balanced package if all you are relying on is closing deductions and loopholes.
 
Let me amend that.  It is possible to do, theoretically; it is not possible or wise to do as a practical matter.  And the reason is, is that in order for us to raise the amount of revenue that's needed just by closing deductions and loopholes for high earners, we’d have to, for example, eliminate or severely cap the charitable deduction.  And folks in this room, you guys are not only CEOs -- I can't imagine there’s a person here who doesn’t sit on a number of non-for-profit boards, university boards, hospital boards.  In your respective communities, you are supporting an entire infrastructure that is the glue that holds our communities together.  So the notion that somehow we're going to just eliminate charitable deductions is unlikely.  
 
What that means is, is that any formula that says we can't increase tax rates probably only yields about $300-$400 billion, realistically.  And that's well short of the amount of revenue that's needed for a balanced package.
 
So what we've said instead is let’s allow higher rates to go up for the top 2 percent -- that includes all of you, yes, but not in any way that’s going to affect your spending, your lifestyles, or the economy in any significant way; let’s make sure that 98 percent of Americans don't see a single dime in tax increases next year, 97 percent of small businesses don't see a single dime in tax increases next year -- and by doing that alone we raise almost a trillion dollars without any adverse effects on the economy.
 
Let’s combine that, then, with some additional spending cuts and some long-term entitlement reform that can get us to a number close to $4 trillion, which stabilizes our debt and our deficits relative to GDP for at least a decade, perhaps more.
 
That's our plan.  That's what we've presented.  The holdup right now is that Speaker Boehner took a position I think the day after the campaign that said we're willing to bring in revenue but we're not willing to increase rates.  And I just explained to you why we don't think that works.  We're not trying to -- we're not insisting on rates just out of spite or out of any kind of partisan bickering, but rather because we need to raise a certain amount of revenue.  
 
Now, we've seen some movement over the last several days among some Republicans.  I think there’s a recognition that maybe they can accept some rate increases as long as it’s combined with serious entitlement reform and additional spending cuts.  And if we can get the leadership on the Republican side to take that framework, to acknowledge that reality, then the numbers actually aren't that far apart.  Another way of putting this is we can probably solve this in about a week; it’s not that tough.  But we need that conceptual breakthrough that says we need to do a balanced plan; that's what’s best for the economy; that's what the American people voted for; that's how we're going to get it done.
 
Let me make one last point and then I'll start taking questions.  There had been reports -- and these are not necessarily confirmed, and maybe some of you have more insight than I do on this -- that perhaps the Republicans go ahead and let the middle-class tax cuts get extended, the upper-income tax cuts go up, otherwise we don't get a deal, and next year we come back and the thinking is Republicans will have more leverage because there will be another vote on the debt ceiling and we will try to extract more concessions with a stronger hand on the debt ceiling.  
 
I have to just tell you that is a bad strategy for America. It is a bad strategy for our businesses.  And it is not a game that I will play.  
 
Most of you were involved in discussions and watched the catastrophe that happened in August of 2011.  Everybody here is concerned about uncertainty; there’s no uncertainty like the prospect that the United States of America, the largest economy that holds the world’s reserve currency potentially defaults on its debts; that we give up the basic notion that the United States stands behind its obligations.  
 
And we can't afford to go there again.  And this isn't just my opinion; it’s the opinion of most of the folks in this room.  So when I hear some on the other side suggesting that to resolve the possibility of a perpetual or a quarterly debt ceiling crisis that there is a price to pay -- well, the price is paid by the American people and your businesses and the economic environment worldwide.  And we should not accept going through that.
 
John Engler, who is, I think -- he and I philosophically don't agree on much -- (laughter) -- no, I'm just being honest about John, and he’s a great politician but he -- he originally comes from the other party -- but John is exactly right when he says the only thing that the debt ceiling is good for as a weapon is just to destroy your credit rating.
 
So I want to send a very clear message to people here:  We are not going to play that game next year.  If Congress in any way suggests that they’re going to tie negotiations to debt ceiling votes and take us to the brink of default once again as part of a budget negotiation -- which, by the way, we had never done in our history until we did it last year -- I will not play that game.  Because we've got to break that habit before it starts.
 
So, with that, let me just say we've got one path where we resolve this fairly quickly -- we've got some tough spending cuts, we reform our entitlements, we have modest revenue increases; you get business certainty; you do what you do best, innovate, invest, hire workers, make profits, do well by your shareholders and grow America -- and we then have open running room next year to deal with a whole host of other issues like information and tax reform and immigration reform that will further make America, Inc. competitive.  That's one option.  
 
The other option is to engage in a self-inflicted series of wounds that will potentially push us back into recession and set back this country, after all the work that we've done over the last four years digging ourselves out of a hole.  
 
I know the choice I'd like to make.  And I think the BRT can be helpful in making sure that everybody here in Washington makes the right choice.   
 
So with that, let me take some questions.  (Applause.) 
 
 
END
11:14 A.M. EST

The White House

Office of the Press Secretary

Remarks by the President at the Nunn-Lugar Cooperative Threat Reduction Symposium

The National War College
Washington, D.C.

4:21 P.M. EST

THE PRESIDENT:  Thank you.  Thank you, everybody.  (Applause.)  Please have a seat.  Thank you.  Thank you very much.  (Applause.)  Thank you.  Thank you so much.  Everybody, please have a seat.  (Applause.)  Thank you.

Well, good afternoon everybody.  It is wonderful to be back.  Secretary Panetta, thank you for the introduction.  Last week at the White House we had our first Cabinet meeting since the election, and it was a chance for me to thank my entire team for their service; for keeping our country safe and strong these past four years.  And, Leon, few have done more than you in that regard.  And that includes taking care of our remarkable men and women in uniform and their families and keeping our military the absolute best in the world -- bar none.  So thank you, Leon, for being such an outstanding Secretary of Defense.  We’re very grateful.  (Applause.)

Now, I am not here to give a big speech.  I wanted to just come by and join you in marking the 20th anniversary of one of the country’s smartest and most successful national security programs:  Nunn-Lugar.  And I want to express my gratitude to all of you -- from government, academia, NGOs and our partners from around the world.  People in this room conceived it.  You built it.  You’ve sustained it.  And of course, I especially want to acknowledge a leader who helped create it and who now helps guide it as our outstanding Deputy Secretary of Defense -- Ash Carter.  So thank you, Ash, for your great work.  (Applause.)

Of course, no one has done more than the two visionaries on this stage.  Now, you have to think about what real visionaries do.  They look at the world and they see what’s missing.  So they set out to fill the gap; to build something new.  And that’s what Sam Nunn and Dick Lugar did many years ago.  They challenged us to think anew; to imagine, after decades of confrontation, how our nations might engage in cooperation.  Early in the Cold War, Einstein warned of the danger of our wisdom not keeping pace with our technology.  And with Nunn-Lugar, our wisdom began to catch up.

I also wanted to be here because of my own personal debt to these two leaders.  When I was in -- when I was elected to the Senate, Sam Nunn was one of the first leaders I called.  Obviously, he had an extraordinary reputation for his work on a whole range of issues in the Senate.  And, Sam, by the way, I should -- I always meant to say thanks for taking my call.  (Laughter.)  So we do small talk, he congratulates me on being elected.  And then he says, I’ve got two pieces of advice for you.  First piece of advice:  Get a seat on the Foreign Relations Committee.  I did that.  Second piece of advice:  Learn from Dick Lugar.  (Laughter.)  I did that, too.  So I took Sam’s advice then.  And as President, I continue to value his advice and his counsel. 

Sam, as one of the so-called “Four Horsemen” -- which I’d say is a pretty ominous nickname -- (laughter) -- has spoken out for a world without nuclear weapons.  And with your Nuclear Threat Initiative, you helped us ratify the New START treaty, rally the world to secure nuclear materials, strengthen the global nonproliferation regime, and create an international fuel bank for peaceful nuclear power.  Sam, that’s an extraordinary legacy and an extraordinary record.  Thank you for your partnership and your leadership.  (Applause.)

And because I took Sam’s advice, I came to know and admire Dick Lugar.  I was a new, junior senator.  But nevertheless, he was willing to take me in and served in many cases, particularly on the issues that we’re celebrating here today, took me in as a pupil for him.  I watched, and I learned.  And when we worked together to pass a law to speed up the lockdown of nuclear materials, obviously it was called Lugar-Obama -- in that order.  (Laughter.)

And, Dick, I want to take this opportunity to say something else.  At times, we’ve disagreed on matters of policy.  But one thing we’ve always shared is a notion of what public service should be.  That it ought to be more than just doing what’s popular in the moment.  That it ought to be about what’s right for our nation, over the long term.  It ought to be about problem-solving and governance, not just how we can score political points on each other or engage in obstructionism.  And where compromise is not a vice and where bipartisanship is a actually considered a virtue -- to be rewarded, not punished.

That’s the essence of these two gentlemen, and that’s the essence of Nunn-Lugar.  That’s the spirit that’s defined Dick’s public service for nearly 50 years.  And that’s the bipartisan tradition that we need more of here in Washington, especially on foreign policy.  So, Dick, as you prepare to leave the Senate that you love, I think I speak on behalf of everybody here and millions of people across the country to say that your legacy will endure in a safer and more secure world, and a safer and more secure America.  And we pray that this nation produces more leaders with your sense of decency and civility and integrity.  We are grateful to you.  Thank you very much.  (Applause.)

Now, I will point out, it was Dick who took me on my first foreign trip as a Senator -- to Russia and Ukraine and Azerbaijan.  We were there to see the Cooperative Threat Reduction program in action.  And the first thing I learned is that when Dick Lugar travels overseas, it's not a junket.  We didn't stop and look at a lot of beautiful sights -- (laughter) -- and sort of lounge around on some shopping excursions.  He wore out every 25-year-old staffer that was part of this delegation. 

What you also learn is that Dick Lugar -- the more remote the place is and the more obscure the facility is, the bigger a rock star Dick Lugar is.  (Laughter.)  I mean, they love him in these places.   

I remember walking through one facility.  I started leaning in for a closer look and one of the workers said, don’t touch that orange stuff.  It turned out to be TNT.  (Laughter.)  At another point, the workers were taking apart munitions -- gloves on their hands, masks over their faces -- and I’m thinking, wait a second, why don’t we have masks on?  (Laughter.)  This is the kind of trip you take with Dick Lugar.  (Laughter.) 

We're traipsing through nuclear weapons storage sites and junkyards full of old land mines and technicians showing off test tubes where you said, well, what's that?  Well, that's anthrax, that's plague.  (Laughter.)  Shouldn't you keep it in something a little more sturdy than this?  (Laughter.)  Dick Lugar is standing in the back of the room.  (Laughter.)  I remember I asked him, I think, have you seen it?  He says, yes, yes, I've seen it.  I don't get too close now.  (Laughter.)  That's what it's like traveling with Dick Lugar.   

And I had been a strong advocate for CTR before.  But visiting those facilities, seeing the work that so many of you do, seeing these old weapons once aimed at us now being turned into scrap truly brought home how important this work was.  This is one of our most important national security programs.  And it's a perfect example of the kind of partnerships that we need, working together to meet challenges that no nation can address on its own. 

And so, Nunn-Lugar is the foundation for the vision that I laid out, once I was elected President, in travel to Prague -- where nations come together to secure nuclear materials, as we’re doing with our Nuclear Security Summits, where we build on New START and continue to work to reduce our arsenals; where we strengthen the Nuclear Non-Proliferation Treaty and prevent the spread of the world’s most deadly weapons; where, over time, we come closer to our ultimate vision -- a world without nuclear weapons.  

That’s why we haven’t just sustained programs like Nunn-Lugar over the past four years.  We’ve worked with all of you to strengthen it, expanding it to some 80 nations, far beyond the old Soviet Union -- moving ahead with the destruction of chemical weapons -- partnering with others, countries from Africa to Asia and global health organizations to prevent the spread of deadly diseases and bioterrorism.  And I have to give a shout-out to somebody who was on the original team with Ash that conceived of CTR; she’s been working it ever since and now leads our efforts at the White House -- Laura Holgate is here.  And so we're very proud of her for the outstanding work that she's done.  (Applause.)

And we’ve worked to keep weapons from spreading, whether it was nuclear material in Libya or, now, chemical weapons in Syria.  And on Syria, let me just say this.  We will continue to support the legitimate aspirations of the Syrian people -— engaging with the opposition, providing with -- providing them with the humanitarian aid, and working for a transition to a Syria that’s free of the Assad regime. 

And today, I want to make it absolutely clear to Assad and those under his command:  The world is watching.  The use of chemical weapons is and would be totally unacceptable.  And if you make the tragic mistake of using these weapons, there where be consequences, and you will be held accountable.  (Applause.)

We simply cannot allow the 21st century to be darkened by the worst weapons of the 20th century.  And that’s why, over the past four years, we’ve continued to make critical investments in our threat reduction programs -— not just at DOD, but at Energy and at State.  In fact, we’ve been increasing funding, and sustaining it.  And even as we make some very tough fiscal choices, we’re going to keep investing in these programs —- because our national security depends on it.

After all, even with all your success -— the thousands of missiles destroyed, bombers and submarines eliminated, the warheads that have been deactivated -— we’re nowhere near done.  Not by a long shot.  And you all know this.  There’s still much too much material -— nuclear, chemical, biological -— being stored without enough protection.  There are still terrorists and criminal gangs doing everything they can to get their hands on it.

And make no mistake, if they get it, they will use it; potentially killing hundreds of thousands of innocent people,  perhaps triggering a global crisis.  That’s why I continue to believe that nuclear terrorism remains one of the greatest threats to global security.  That’s why working to prevent nuclear terrorism is going to remain one of my top national security priorities as long as I have the privilege of being President of the United States. 

So, I came here in part to say we cannot let our guard down.  This needs to be a sustained effort across all your organizations, across our government.  We have to keep investing in our people and in new technologies.  We have to sustain the partnerships we have, and that includes Russia. 

We’re joined by some of our Russian friends today.  Russia has said that our current agreement hasn’t kept pace with the changing relationship between our countries.  To which we say, let’s update it.  Let’s work with Russia as an equal partner.  Let’s continue the work that’s so important to the security of both our countries.  And I’m optimistic that we can.

And we have to keep creating new partnerships.  We have to make sure -— to paraphrase Einstein -— that our wisdom stays ahead of our technology.  And I know you’re committed to this.  And I want you to know that I am, too.

So let me leave you with a story of that first trip Dick and I took together.  You may remember this, Dick.  I was Ukraine.  We went to a facility, an old factory.  We walked down these long, dark corridors.  We’re ducking our heads, stepping over puddles of -- something -- we’re not sure what it was.  (Laughter.)  Finally, we came across some women, sitting at a worktable.  On it were piles of old artillery shells.  And the women were sitting there, taking them apart.  By hand.  Slowly.  (Laughter.)  Carefully.  (Laughter.)  One by one. 

It took decades -— and extraordinary sums of money -— to build those arsenals.  It’s going to take decades -— and continued investments -— to dismantle them.  The two of you know know this better than anybody.  It’s painstaking work.   It rarely makes the headlines.  But I want each of you to know, and everybody who’s participating in this important effort to know, that the work you do is absolutely vital to our national security and to our global security. 

Missile by missile, warhead by warhead, shell by shell, we’re putting a bygone era behind us.  Inspired by Sam Nunn and Dick Lugar, we’re moving closer to the future we seek.  A future where these weapons never threaten our children again.  A future where we know the security and peace of a world without nuclear weapons.  I could not be prouder of these gentlemen.  I’m proud to call them friends.  And I’m looking forward to continuing to work with them and all of you in the years to come.

Thank you very much.

END
4:38 P.M. EST

The White House

Office of the Press Secretary

Remarks by President Obama and Prime Minister Borisov of Bulgaria

Oval Office

3:05 P.M. EST

PRESIDENT OBAMA:  Well, I want to welcome Prime Minister Borissov to the White House, and his delegation from Bulgaria.  I have to say at the outset that Bulgaria has proven to be one of our most outstanding NATO allies. 

Obviously, there are very strong bonds between our two countries, including many Bulgarian Americans in my hometown of Chicago.  It reminds us of the strong people-to-people relationship between the United States and Bulgaria. 

I've had an opportunity to work and discuss issues with the Prime Minister in the past, and he has always been a very effective leader on the world stage.  And I think it's important for everybody to know that he's also a black belt in karate, so you should be very careful crossing him.  (Laughter.)

We're going to have a lot to discuss during this meeting.  But first and foremost, I want to thank the Prime Minister for the strong partnership in NATO.  Bulgaria has been a strong supporter of the efforts in Afghanistan, and we'll have the opportunity to touch briefly on the transition that needs to take place there.  But I want to thank him and his fellow countrymen for their service and sacrifice.

We've also had excellent cooperation on criminal investigations, law enforcement, counterterrorism -- and most recently, I want to thank the Prime Minister for his very diligent investigation of the tragic terrorist attack that killed Israeli civilians in Bulgaria.  The security teams in Bulgaria have worked very hard and cooperatively in bringing the perpetrators to justice.

But of course, the relationship is not just based on security issues.  Bulgaria is a modernizing country, and I know that the Prime Minister is interested in a range of reforms to create an open and transparent government, to improve trade and commerce between our two countries, as a leader in the Balkans in moving towards further integration with Europe and the rest of the world economy.  We've been very impressed with the progress that's been made in Bulgaria, and I'm looking forward to hearing from the Prime Minister how the United States can further assist in those efforts.

So, Mr. Prime Minister, welcome to you.  And we look forward to this conversation.  The American people send their regards to the people of Bulgaria.  And the other thing I have to say is the weather is not always this good, so you should enjoy some of the sights while you're here as well.

PRIME MINISTER BORISSOV:  (As interpreted.)  Mr. President, it is an honor that you invited us all here to the White House. 

First of all, I would like to extend my congratulations on your winning the trust again of the American people. 

Of course, the fact that you pointed out you are from Chicago, I would like to point out that this is one of the biggest Bulgarian cities -- over 150,000 Bulgarians make Chicago their home.  And everybody in Bulgaria was deeply moved at your telephone call to express your condolences for the Bulgarian citizen as well as the Israeli nationals who perished in the terrorist act.

I'm very glad that you pointed out that in countries such as Iraq and Afghanistan, places where our soldiers, U.S. and Bulgaria, fight for democracy shoulder to shoulder, that we do have additional topics of mutual interest.  And I thank you for the opportunity to lay a wreath today at Arlington National Cemetery at the Tomb of the Unknown Soldier.  As you know, a lot of Bulgarian soldiers perished and were seriously, grievously wounded in our missions in Iraq and Afghanistan.  And the way that the U.S. people -- and you, personally -- protect the memory of the perished soldiers is unparalleled throughout the world. 

It is true that Bulgaria is an island of stability in the Eastern Balkans.  Our budget deficit is very low, our foreign debt is very low, and our financial stability is great.  Thank you for the opportunity in the energy sphere for Bulgaria to work towards diversification of energy sources.  We do have deep reserves in this area for the future. 

Especially, I also would like to thank you for the excellent cooperation with the United States in such areas as social security, national security, counterterrorism, combating organized crime.  Our law enforcement services work together very effectively.

Of course, the Bulgarian citizens are expecting your decision on Bulgaria's joining the Visa Waiver Program.  We do have visa-free travel regime with the entire European Union.  And thank you once again for the opportunity to discuss these topics. 

END                
3:15 P.M. EST   

The White House

Office of the Press Secretary

Remarks by the President at the Kennedy Center Honors Reception

East Room

5:31 P.M. EST

THE PRESIDENT:  Everybody, please have a seat.  (Applause.)  Thank you very much.  Thank you.  Well, good evening, everybody.  You all look lovely.  (Laughter.)  Welcome to the White House on a night when I am nowhere close to being the main attraction.

Thank you, David Rubenstein, Michael Kaiser and the Kennedy Center trustees, and everyone who has worked so hard to uphold President Kennedy’s commitment to supporting the arts.  I also want to recognize another of President Kennedy’s amazing legacies, and that is his wonderful daughter Caroline, who is here tonight.  (Applause.)

None of this would be possible without the co-chair of the President’s Committee on the Arts and the Humanities, George Stevens -- where is George, there he is -- (applause) -- and his son Michael -- where did Michael go, there he is -- (applause) -- who have produced the Kennedy Center Honors for 35 years now.  

Tonight, we continue a tradition here at the White House by honoring some extraordinary people who have no business being on the same stage together.  (Laughter.)  We’ve got Buddy Guy sitting next to Dustin Hoffman.  (Laughter.)  We've got Dave Letterman alongside one of the greatest ballerinas of all time.  I don't think Dave dances.  (Laughter.)  All three living members of Led Zeppelin in one place -- (applause) -- so this is a remarkable evening. 

And it speaks to something that has always made this country great -- the idea that here in America, more than any other place on Earth, we are free to follow our own passions, explore our own gifts, wherever they may lead us.  And people from all around the world come here to make sure that they too can provide us the incredible gifts that they have. 

Tonight’s honorees didn’t just take up their crafts to make a living.  They did it because they couldn’t imagine living any other way.  That passion took each of them from humble beginnings to the pinnacle of their profession.  Tonight, in the People’s House, we have a chance to say thank you.

Growing up as the son of a sharecropper in Louisiana, Buddy Guy made his first guitar out of wires from a window screen -- that worked until his parents started wondering how all the mosquitos were getting in.  (Laughter.)  But Buddy was hooked, and a few years later, he bought a one-way ticket to Chicago to find his heroes -- Muddy Waters and Howlin’ Wolf.  Pretty soon he was broke, hungry and ready to head home.  And then, one night outside a blues club, a man pulled up and handed Buddy a salami sandwich and said, “I’m Mud,” and "you ain’t goin’ nowhere.”  And that was the start of something special. 

Of course, success hasn’t changed the humble country boy who used to milk cows on a farm outside Baton Rouge.  Buddy tells a story about his son Greg wanting to learn to play the guitar like Prince.  Buddy told him he’d better learn some Jimi Hendrix first.  (Laughter.)  It was only after watching a TV special on Hendrix that Greg found out Jimi had borrowed some licks from his dad.  So Greg said, "I didn’t know you could play like that.”  And Buddy said, "You never asked.”  (Laughter.)

Today, Buddy is still going strong -- one of the last guardians of the great American blues.  And on a personal note, I will never forget Buddy playing “Sweet Home Chicago” in this very room back in February and him, and a few others, forcing me to sing along -- (laughing) -- which was just okay.  (Laughter.)  There aren’t too many people who can get me to sing, but Buddy was one of them.  And so we are so glad that we can honor him tonight.  Congratulations, Buddy Guy.  (Applause.)

When “The Graduate” was originally written, the main character was supposed to be Robert Redford -- a tall, blond track star.  And when Dustin Hoffman auditioned for the part, a crew member handed him a subway token on his way out, saying, “here, kid, you’re gonna need this.”  (Laughter.)

Dustin ended up getting the role and it launched one of the greatest movie careers of his generation, of any generation.  Most actors dream of being in maybe one film that becomes part of our cultural vocabulary.  Dustin churned out “Midnight Cowboy,” “Tootsie,” “Rain Man,” “Hook” -- not bad for a guy who signed up for his first acting class after a friend told him, “nobody flunks acting, it’s like gym.”  (Laughter.)  

Still, I imagine one secret to his success is his inability to see himself as anything but an underdog.  Even after “The Graduate” became a runaway success, Dustin says, “I really believed that was a fluke and I refused to believe I had arrived.  And in a way, I’ve been hanging on by my fingertips for the entire ride. 

Well, Dustin, you’ll be glad to know that this award was not supposed to go to Robert Redford.  (Laughter.)  He’s already got one.  (Laughter.)  So tonight we honor Dustin Hoffman -- an actor who has finally arrived.  He's made it.  (Applause.)  He's made it.  (Applause.)

If you ask David Letterman what's it like to tape his show, he'll say, “if it’s going well, it just lifts you.  If it’s not going well, it sinks you.  It’s exhilarating. It’s my favorite hour of the day.”  It’s unclear how Dave feels about this hour.  It’s different when you’re not the one with the mic, isn’t it, Dave?  (Laughter.)  You're looking a little stressed, aren't you?  (Laughter.)  I'd also point out it's a lot warmer here than it is on Dave's set.  (Laughter.) 

But I’ve enjoyed my time in the Ed Sullivan Theater.  And earlier this year, Dave celebrated his 30th anniversary in late night television -- the only person to reach that milestone besides Johnny Carson.  Now, Dave will be the first to tell you that he’s no Carson, that all his years on television have only made him appreciate even more how unique Johnny was.  But that’s a good thing, because if he were more like Johnny, he'd be less like Dave.

After all, it was Dave who got his start as an Indianapolis weatherman, once reporting that the city was being pelted by hail “the size of canned hams.”  (Laughter.)  It's one of the highlights of his career.  (Laughter.)  It was Dave who strapped a camera to a monkey -- (laughter) -- worked a Taco Bell drive-thru, told Lady Gaga that when he was her age, he had a paper route.  (Laughter.)  It was Dave who came back on the air less than a week after 9/11 to show the world that New York was still standing.  (Applause.)   

So tonight we honor David Letterman, who has always offered us an authentic piece of himself -- sometimes cranky, often self-deprecating, always funny.  And those of you who have been on his show know he is also a true gentleman.  So thank you, Dave.  (Applause.)

When Natalia Makarova defected from the Soviet Union in 1970, she made headlines around the globe.  But back home, her name was excised from textbooks, her photos expunged from the walls of her school.  And for the next 18 years, her countrymen were forced to rely on underground channels to follow the rise of one of the most accomplished ballerinas in the world.

But no one can erase what takes hold of the heart.  And in 1989, when the Iron Curtain opened, the Russian people welcomed her back with open arms.  Over 2,000 people packed the Kirov Theater where she had trained as a young girl -- another 20 people crammed in with the orchestra -- all to watch a dancer who never thought she’d be back.  It was a fitting end to a career that began when 13-year-old Natalia, completely double-jointed and possessed of an incredible gift for musicality and movement, told her parents she did not want to be an engineer, thank you, she wanted to dance. 

After hanging up her shoes, Natalia moved to Broadway, where she won a Tony Award.  And she remains as humble as ever -- once saying, “I’m never proud of what I’ve done.  Sometimes, I’m not ashamed.”  So thank you, Natalia, for the understatement of the century.  (Laughter.)  And thank you for sharing your talents with all of us.  Congratulations.  (Applause.)

I worked with the speechwriters -- there is no smooth transition from ballet to Led Zeppelin.  (Laughter.)  We were trying to work the "Stairway To Heaven" metaphor and it didn't work.  (Laughter.) 
    
So when Jimmy Page, Robert Plant, John Paul Jones and John Bonham burst onto the musical scene in the late 1960s, the world never saw it coming.  There was this singer with a mane like a lion and a voice like a banshee, a guitar prodigy who left people’s jaws on the floor, a versatile bassist who was equally at home on the keyboards, a drummer who played like his life depended on it.

And when the Brits initially kept their distance, Led Zeppelin grabbed America from the opening chord.  We were ready for what Jimmy called songs with “a lot of light and shade.”  It’s been said that a generation of young people survived teenage angst with a pair of headphones and a Zeppelin album and a generation of parents wondered what all that noise was about.  (Laughter.)

But even now, 32 years after John Bonham’s passing -- and we all I think appreciate the fact -- the Zeppelin legacy lives on.  The last time the band performed together in 2007 -- perhaps the last time ever, but we don't know -- more than 20 million fans from around the world applied for tickets.  And what they saw was vintage Zeppelin.  No frills, no theatrics, just a few guys who can still make the ladies weak at the knees, huddled together, following the music.  (Laughter.)

Of course, these guys also redefined the rock and roll lifestyle.  We do not have video of this.  (Laughter.)  But there was some hotel rooms trashed and mayhem all around.  So it's fitting that we’re doing this in a room with windows that are about three inches thick -- (laughter) -- and Secret Service all around.  (Laughter.)  So, guys, just settle down.  (Laughter.)  These paintings are valuable.  (Laughter.)  They look very calm now though, don't they?  (Laughter.)  

It is a tribute to you guys.  And tonight we honor Led Zeppelin for making us all feel young, and for showing us that some guys who are not completely youthful can still rock. 

So we've got Buddy Guy.  We've got Dustin Hoffman.  We've got David Letterman, Natalia Makarova, Led Zeppelin -- (applause) -- each of us can remember a moment when the people on this stage touched our lives.  Maybe they didn’t lead us to become performers ourselves.  But maybe they inspired us to see things in a new way, to hear things differently, to discover something within us or to appreciate how much beauty there is in the world. 

It’s that unique power that makes the arts so important.  We may not always think about the importance of music or dance or laughter to the life of this nation, but who would want to imagine America without it?  That’s why we celebrate artists like the ones here tonight.  And that’s why, in this season of joy and thanksgiving, they have earned our deepest appreciation. 

So congratulations again to tonight’s honorees.  Thank you all very much.  And I look forward to a spectacular evening.  Thank you.  (Applause.)

END               
5:44 P.M. EST

The White House

Office of the Press Secretary

Weekly Address: Urging Congress to Extend the Middle Class Tax Cuts

Hatfield, Pennsylvania

Hi, everybody. I’m here on the factory floor of a business in Hatfield, Pennsylvania, where folks are working around the clock making toys to keep up with the Christmas rush.

And I came here because, back in Washington, the clock is ticking on some important decisions that will have a real impact on our businesses – and on families like yours.

The most pressing decision has to do with your taxes. See, at the end of the year, middle-class tax cuts are set to expire.  And there are two things that can happen. 

First, if Congress does nothing, every family will see their income taxes automatically go up at the beginning of next year. A typical middle class family of four will see their income taxes rise by $2,200. We can’t let that happen. Our families can’t afford it, and neither can our economy. 

The second option is better. Right now, Congress can pass a law that would prevent a tax hike on the first $250,000 of everybody’s income. Everybody. That means that 98 percent of Americans and 97 percent of small businesses wouldn’t see their income taxes go up at all. And even the wealthiest Americans would get a tax cut on the first $250,000 of their incomes. 

Congress can do that right now. They can give families like yours a sense of security going into the New Year. They can give companies like this one some certainty about what to expect down the road. And with the issue behind us, we’ll have more time to work out a plan to bring down our deficits in a balanced way – including by asking the wealthiest Americans to pay a little more, so we can still invest in the things that make our nation strong, like education and research.

So let’s begin by doing what we all agree on. Both parties say we should keep middle-class taxes low. The Senate has already passed a bill to keep income taxes from going up on middle-class families.  Democrats in the House are ready to do the same thing. And if we can just get a few House Republicans on board, I’ll sign this bill as soon as Congress sends it my way. 

But it’s unacceptable for some Republicans in Congress to hold middle class tax cuts hostage simply because they refuse to let tax rates go up on the wealthiest Americans. And if you agree with me, then I could use your help.  Let your congressman know what $2,000 means to you. Give them a call. Write them an email. Or tweet them using the hashtag “My2K.”  That’s My2K.

You and your family have a lot riding on the outcome of this debate. We all do. And as citizens, we all have a say in the country we want to build – not just on election day, but every day. So make your voice heard. I promise, it makes a difference. Thanks, and have a great weekend.

 

###

The White House

Office of the Press Secretary

Remarks by the President in Visit to Rodon Group Manufacturing Facility

 

Hatfield, Pennsylvania
 
 
12:01 P.M. EST
 
THE PRESIDENT:  Hello, everybody!  Thank you.  Thank you.  (Applause.)  Well, good morning, everybody.
 
AUDIENCE:  Good morning!
 
THE PRESIDENT:  Everybody, please, please have a seat.  Have a seat.  Relax for a second.  (Laughter.)  
 
It is good to see all of you.  Hello, Hatfield!  (Applause.) It is good to be back in Pennsylvania.  And it is good to be right here at K’NEX.  (Applause.)  I want to thank Michael Araten, Robert Glickman, and the inventor of K’NEX, Joel Glickman, for hosting me today and giving me a great tour.  (Applause.)  Where did they go?  Where did they go?  I want to -- (applause) -- stand up.  Stand up so everybody can see you guys. There they are.  (Applause.)  There you go. 
 
And I just noticed, we’ve got a couple of outstanding members of Congress here.  We’ve got Chaka Fattah -- (applause) 
-- and Allyson Schwartz.  (Applause.)    
 
Now, I just finished getting a tour of the K’NEX workshop.  I have to say, it makes me wish that Joel had invented this stuff a little sooner, when I was a kid.  (Laughter.)  Back then, you couldn’t really build a rollercoaster out of your Erector Set.  (Laughter.)  
 
And I also got a chance to meet some of the folks who have been working around the clock to keep up with the Christmas rush, and that’s a good thing.  These guys are Santa’s extra elves here.  They manufacture almost 3,000 K’NEX pieces every minute.  And every box that ends up on store shelves in 30 countries is stamped “Made in America.”  And that’s something to be proud of. That’s something to be proud of.  (Applause.)    
 
By the way, I hope the camera folks had a chance to take a look at some of the K’NEX, including that flag made out of K’NEX. And Joe Biden was in Costco; he wanted to buy some of this stuff. (Laughter.)  But I told him he had too much work to do.  I wasn’t going to have him building rollercoasters all day long.  (Laughter.)  
 
Now, of course, Santa delivers everywhere.  I’ve been keeping my own naughty-and-nice list for Washington.  So you should keep your eye on who gets some K’NEX this year.  (Laughter.)  There are going to be some members of Congress who get them, and some who don't.  (Laughter and applause.)  
 
So, look, this is a wonderful time of year.  It’s been a few weeks since a long election finally came to an end.  And obviously, I couldn’t be more honored to be back in the White House.  But I’m already missing the time that I spent on the campaign visiting towns like this and talking to folks like you.
 
AUDIENCE MEMBER:  We love you!
 
THE PRESIDENT:  I love you back.  That's why I miss you.  (Applause.) 
 
And one of the benefits of traveling and getting out of the White House is it gives you a chance to have a conversation with the American people about what kind of country do we want to be 
–- and what kind of country do we want to leave to our kids.  
 
I believe America only thrives when we have a strong and growing middle class.  And I believe we’re at our best when everybody who works hard has a chance to get ahead.  That's what I believe.  And I know that's what the founders of this company believe as well.  We were talking about these guys' dad, who I understand just passed away at the age of 101.  So these guys have good genes in addition to inventive minds.  And the story of generations starting businesses, hiring folks, making sure that if you work hard, you can get ahead, that's what America is all about.  And that’s at the heart of the plan that I’ve been talking about all year.  
 
I want to reward manufacturers like this one and small businesses that create jobs here in the United States, not overseas.  (Applause.)  And by the way this is a company -- one of the few companies in the toy industry that have aggressively moved jobs back here.  (Applause.)  That's a great story to tell because we’ve got the best workers in the world and the most productive workers in the world, and so we need champions for American industry creating jobs here in the United States. 
 
I want to give more Americans the chance to earn the skills that businesses are looking for right now, and I want to give our children the kind of education they’ll need in the 21st century. I want America to lead the world in research and technology and clean energy.  I want to put people back to work rebuilding our roads and our bridges and our schools.  And I want to do all this while bringing down our deficits in a balanced and responsible way.  (Applause.)
 
Now, on this last point, you’ve probably heard a lot of talk in Washington and in the media about the deadlines that we’re facing on jobs and taxes and investments.  This is not some run-of-the-mill debate.  This isn’t about which political party can come out on top in negotiations.  We’ve got important decisions to make that are going to have a real impact on businesses and families all across the country.  
 
Our ultimate goal, our long-term goal is to get our long-term deficit under control in a way that is balanced and is fair. That would be good for businesses, for our economy, for future generations.  And I believe both parties can -- and will -- work together in the coming weeks to get that done.  We know how that gets done.  We’re going to have to raise a little more revenue.  We’ve got to cut out spending we don’t need, building on the trillion dollars of spending cuts we’ve already made.  And if we combine those two things, we can create a path where America is paying its bills while still being able to make investments in the things we need to grow like education and infrastructure.  So we know how to do that.  
 
But in Washington, nothing is easy, so there is going to be some prolonged negotiations.  And all of us are going to have to get out of our comfort zones to make that happen.  I’m willing to do that, and I’m hopeful that enough members of Congress in both parties are willing to do that as well.  We can solve these problems.  But where the clock is really ticking right now is on middle-class taxes.  At the end of the year, middle-class taxes that are currently in place are set to expire -- middle-class tax cuts that are currently in place are set to expire.  
 
There are two things that can happen.  If Congress does nothing, every family in America will see their income taxes automatically go up on January 1st.  Every family, everybody here, you’ll see your taxes go up on January 1st.  I mean, I’m assuming that doesn’t sound too good to you.
 
AUDIENCE:  No!
 
THE PRESIDENT:  That’s sort of like the lump of coal you get for Christmas.  That’s a Scrooge Christmas.  A typical middle-class family of four would see their income taxes go up by about $2,200.  That’s for a typical family -- it would be more for some folks.  That’s money a lot of families just can’t afford to lose. That’s less money to buy gas, less money to buy groceries.  In some cases, it means tougher choices between paying the rent and saving for college.  It means less money to buy more K’NEX.
 
AUDIENCE:  Booo -- (laughter.)  
 
THE PRESIDENT:  Just the other day, economists said that if income taxes go up on the middle class, people will spend nearly $200 billion less in stores and online.  And when folks are buying fewer clothes, or cars, or toys, that’s not good for our businesses; it’s not good for our economy; it’s not good for employment.  
 
So that’s one path:  Congress does nothing, we don’t deal with this looming tax hike on middle-class families, and starting in January, everybody gets hit with this big tax hike and businesses suddenly see fewer customers, less demand.  The economy, which we’ve been fighting for four years to get out of this incredible economic crisis that we have, it starts stalling again.  So that’s one path.
 
The good news is there’s a second option.  Right now, Congress can pass a law that would prevent a tax hike on the first $250,000 of everybody’s income -- everybody.  So that means 98 percent of Americans, 97 percent of small businesses wouldn’t see their income taxes go up by a single dime -- because 98 percent of Americans make $250,000 a year or less; 97 percent of small businesses make $250,000 a year or less.  So if you say income taxes don’t go up for any income above $250,000, the vast majority of Americans, they don’t see a tax hike.
 
But here’s the thing.  Even the top 2 percent, even folks who make more than $250,000, they’d still keep their tax cut on the first $250,000 of income.  So it would still be better off for them, too, for us to go ahead and get that done.  Families would have a sense of security going into the new year.  Companies like this one would know what to expect in terms of planning for next year and the year after.  That means people's jobs would be secure.  
 
The sooner Congress gets this done, the sooner our economy will get a boost.  And it would then give us in Washington more time to work together on that long-range plan to bring down deficits in a balanced way:  Tax reform, working on entitlements, and asking the wealthiest Americans to pay a little bit more so we can keep investing in things like education and research that make us strong.
 
So those are the choices that we have.  And understand this was a central question in the election -- maybe the central question in the election.  You remember.  We talked about this a lot.  (Laughter.)  It wasn't like this should come as a surprise to anybody.  We had debates about it.  There were a lot of TV commercials about it.  And at the end of the day, a clear majority of Americans -- Democrats, Republicans, independents -- they agreed with a balanced approach to deficit reduction and making sure that middle-class taxes don’t go up.  Folks agreed to that.  
 
Now, the good news is we're starting to see a few Republicans coming around to it, too -- I'm talking about Republicans in Congress.  So the reason I'm here is because I want the American people to urge Congress soon, in the next week, the next two weeks, to begin the work we have by doing what we all agree on.  Both parties agree that we should extend the middle-class tax cuts.  We've got some disagreements about the high-end tax cuts, right?  Republicans don’t want to raise taxes on folks like me; I think I can pay a little bit more to make sure that kids can go to college and we can build roads and invest in NIH so that we're finding cures for Alzheimer's.  And that’s a disagreement that we're going to have and we've got to sort out.
 
But we already all agree, we say, on making sure middle-class taxes don’t go up, so let's get that done.  Let's go ahead and take the fear out for the vast majority of American families so they don’t have to worry about $2,000 coming out of their pockets starting next year.
 
The Senate has already passed a bill to keep income taxes from going up on middle-class families.  That’s already passed the Senate.  Your member of Congress like Allyson and Chaka, other Democrats in the House, they're ready to go.  They're ready to vote on that same thing.  And if we can just get a few House Republicans on board, we can pass the bill in the House.  It will land on my desk, and I am ready -- I've got a bunch of pens ready to sign this bill.  (Laughter.)  I’m ready to sign it.  (Applause.)  There are no shortage of pens in the White House.  (Laughter.)  And I carry one around for an emergency just in case, just waiting for the chance to use it to sign this bill to make sure people's taxes don’t go up.  
 
AUDIENCE MEMBER:  Thank you!
 
THE PRESIDENT:  Well, don’t thank me yet, because I haven't signed it.  (Laughter.)  I need some help from Congress.  
 
So the key is, though, that the American people have to be involved.  It's not going to be enough for me to just do this on my own.  So I'm hopeful that both sides are going to come together and do the right thing, but we all know you can't take anything for granted when it comes to Washington.  Let's face it. And that’s why I'm going to be asking for all of you to make your voices heard over the next few days and the next couple of weeks.
 
I need you to remind members of Congress -- Democrats and Republicans -- to not get bogged down in a bunch of partisan bickering, but let's go ahead and focus on the people who sent us to Washington and make sure that we're doing the right thing by them.
 
So I want you to call, I want you to send an email, post on their Facebook wall.  If you tweet, then use a hashtag we're calling "My2K."  Not Y2K, “My2K,” all right?  Because it’s about your “2K” in your pocket.  (Laughter.)  We’re trying to burn that into people’s minds here.  (Applause.)
 
So in the meantime I’m doing my part.  I’m meeting with every constituency group out there.  We’re talking to CEOs.  We’re talking to labor groups.  We’re talking to civic groups. I’m talking to media outlets, just explaining to the American people this is not that complicated.  Let’s make sure that middle-class taxes don’t go up.  Let’s get that done in the next couple of weeks.  
 
Let’s also work together on a fair and balanced, responsible plan so that we are paying our bills -- we’re not spending on things we don’t need, but we are still spending on the things that make us grow.  That’s the kind of fair, balanced, responsible plan that I talked about during the campaign, and that’s what the majority of Americans believe in.
 
So I’m hopeful, but I’m going to need folks like you, the people here in Hatfield and here in Pennsylvania and all across the country, to get this done.  And a lot is riding on this debate.  This is too important to our economy, it’s too important for our families to not get it done.  And it’s not acceptable to me, and I don’t think it’s acceptable to you, for just a handful of Republicans in Congress to hold middle-class tax cuts hostage simply because they don’t want tax rates on upper-income folks to go up.  All right?  That doesn’t make sense.  (Applause.)
 
If your voices are heard, then we can help businesses like this one.  We’re going to sell a whole bunch of K’NEX.  (Laughter and applause.)  Let’s give families all across America the kind of security and certainty that they deserve during the holiday season.  Let’s keep our economy on the right track.  Let’s stand up for the American belief that each of us have our own dreams and aspirations, but we’re also in this together, and we can work together in a responsible way; that we’re one people, and we’re one nation.  
 
That’s what this country is about.  That’s what all of you deserve.  That’s what I’m fighting for every single day, and I will keep fighting for as long as I have the privilege of being your President.
 
Thank you very much, everybody.  (Applause.)  God bless you.  God bless the America.  (Applause.)  
 
 
 
END
12:19 P.M. EST

The White House

Office of the Press Secretary

Remarks of President Obama and President-Elect Peña Nieto of Mexico Before Bilateral Meeting

Oval Office

4:00 P.M. EST

PRESIDENT OBAMA:  Well, it is my great pleasure to welcome President-elect Peña Nieto to the Oval Office and to the White House.  This is a longstanding tradition where -- almost unique I think in the relationship between countries -- we meet early with the President-elect of Mexico because it symbolizes the extraordinarily close relationship we have between our two countries.

Over the last four years, I’ve been able to work with President Felipe Calderón and I think we established an excellent working relationship so I wish him all the best in his new life.

And I’m very confident that I’m going to establish a strong personal as well as professional relationship with the President-elect, who I know has an outstanding reputation for wanting to get things done.

Now, President Peña Nieto I think represents the close ties between our two countries because I understand that he lived in the United States in Maine for a year, where the winters are even worse than Chicago, my hometown.  (Laughter.)

But I think that’s representative of the strength of the relationship between the United States and Mexico.  It’s not just a matter of policy, but it’s a matter of people, as represented by the many U.S. citizens who travel to Mexico, who live in Mexico, and obviously the incredible contribution that Mexican Americans make to our economy, our society, and to our politics.

I know that President Peña Nieto has a very ambitious reform agenda, and we are very much looking forward to having a fruitful discussion here today about not only how we can strengthen our economic ties, our trades ties, our coordination along the border, improving our joint competitiveness, as well as common security issues.  But I think what I know the President-elect is also interested in is a discussion about both regional and global issues, because Mexico has become not simply an important bilateral partner, but is today a very important multilateral, multinational leader on a whole range of issues from energy to climate change, and we look forward to working with Mexico not only on regional issues, but also on global issues.

And just as President-elect Peña Nieto’s reform agenda is of great interest to us because what happens in Mexico has an impact on our society, I know he’s interested in what we do as well on issues like comprehensive immigration reform.  And I’ll be sharing with him my interest in promoting some issues that are important to the United States, but ultimately will be important to Mexico as well.

So Mr. President-elect, I want to welcome you.  Congratulations on your outstanding victory.  Vice President Biden will be leading our delegation to your inauguration.  We only send the Vice President to inaugurations when the country is really at the top of the list in importance to us and so we just want to wish you well and I look forward to an excellent relationship in the years to come.  

PRESIDENT-ELECT PEÑA NIETO:  (As interpreted.)  Thank you very much, President Barack Obama.  It’s truly a great pleasure to be here with you.  I feel so happy and thank you for your hospitality.  This is of course my first visit as President-elect of Mexico and I also want to congratulate you for your victory last November 6th for your second term as President of the United States.  I of course wish you great success and I know you have a great task before you, but I know, I trust that you will be doing a wonderful job. 

And I also want to thank you so much, President Obama, for having Vice President Joseph Biden go to Mexico for my inaugural ceremony next Saturday, December first.  I feel so pleased to be able to have Vice President Biden represent you in Mexico.  And of course we’re waiting for him and your delegation with open arms.

And I find that this is an opportunity we only have every 12 years.  We’re practically beginning our administration, same that you’ll be starting your next four-year term, I will be starting a six-year administration in Mexico, as you well know, and I think this is really a great opportunity for all of us to have a closer link of brotherhood, of sisterhood, of collaboration, and of course, of great accomplishments we might both have working together.

Yes, and I believe that we have very important tasks before us that are common, as a matter of fact.  For instance, we have many common things.  We were both congressmen -- legislators, as we say in Spanish -- in our respective congresses in our own countries.  And this means we're very sensitive to the needs of our peoples.  And we also share a very important vision, the vision for instance of creating more jobs.  We know this is very important, not only for the American people but also for the Mexican peoples, for both of our nations.  These are two very important demands in our countries.

And we do have the opportunity to grow, but not only that, we also have the opportunity to integrate North America, to be participating in this part of the world.  And I am so pleased that this is the situation we're in. 

And of course, as I said, to increase the integration of North America, to really take advantage of the open spaces we have for our work -- and not only in this part of the world, but also with Asia, of course and just mentioning for instance the TPP, the Trans Pacific Partnership.  And my government is of course very much interested in strengthening this, because we believe that this is going to be a great opportunity for all of us.

Yes, and of course in terms of security that's another major challenge we all face.  My government has set out to reduce the violence situation in our country.  And for that, of course, we have set out to launch a strategy for this purpose.  And I will do everything we can for this.  We want to have -- we have the will to have cooperation, efficient cooperation with respect, respect for our sovereign states.  And of course in terms of the border, we want our border to be a safe, modern, connected border, legal border -- that's exactly what we've set out to accomplish.

Yes, and in terms of the reform for migration, the migration reform, we do have to tell you that we fully support your proposal, sir, for this migration reform.  More than demanding what you should do or shouldn't do, we do want to tell you that we want to contribute.  We really want to participate with you.  We want to contribute towards the accomplishment, so that of course we can participate in the betterment and the well-being of so many millions of people who live in your country and who are also participating.  So we want to be part of this.

And I trust that we'll be able to have a very close relationship in our work, Mr. President.  And of course I want to invite you to come to Mexico, a state visit.  And as you know, next year in 2013, we're going to be holding the North American Summit, the leaders' summit.  And you're of course invited.  And we really hope to see you there.  We'll be waiting for you with open arms.

PRESIDENT OBAMA:  Any excuse to go to Mexico, I'm always game.  In fact, I'm jealous of Joe Biden.  (Laughter.)  But anyway, thank you very much.  Welcome.  Thank you, everybody.

END 
4:17 P.M. EST

The White House

Office of the Press Secretary

Remarks by the President at a Cabinet Meeting

The Cabinet Room

 

 
3:11 P.M. EST
 
THE PRESIDENT:  Hello, everybody.  Is that brighter than usual?  (Laughter.)  Yes, that's serious.  
 
Well, listen, this is a wonderful opportunity for me to meet with my full Cabinet for the first time since the election took place.  The primary purpose from my perspective is to say thank you, because everybody here, in their respective agencies, has done a remarkable job on behalf of the American people, across the board on a wide range of issues.  They’ve always prioritized how do we make sure that we have a strong middle class, how do we grow our economy, how do we put people back to work, and how do we keep the American people safe and continue to extend our influence and our ideals around the world.  And I could not have a better collection of people, many of whom have stayed here throughout my first term.  And I think we’ve had as little turnover as any President during the course of a first term, and the reason is because everybody has done such a remarkable job.
 
So my main purpose is to say thank you to them, but also to remind them that we’ve got a lot of work to do.  There are going to be a few specific issues that we spend a lot of time on.  One in particular that I should note is that the devastating impact of Hurricane Sandy is still being felt by families all across New York and New Jersey, parts of Connecticut.  We are very pleased that under the leadership initially of Janet Napolitano and FEMA, but now Shaun Donovan, who’s heading up a task force, we’re focusing not only on recovery, but now on rebuilding and making sure those communities come back stronger than ever and people get the help that they need.  So that will be an important topic because it’s really going to be an interagency concern.
 
The second thing that we’ll be talking about, obviously, is what’s on the minds of a lot of American families across the country, and that is making sure that we’ve got this fiscal cliff dealt with and that middle-class taxes don’t go up.  I already spoke extensively about that today.  I’ll just repeat:  There is no reason why taxes on middle-class families should go up.  It would be bad for the economy.  It would be bad for those families.  In fact, it would be bad for the world economy.  And so I think it’s very important that we get that resolved, and I am very open to a fair and balanced approach to reduce our deficit and provide the kind of certainty that businesses and consumers need so that we can keep this recovery going.
 
And obviously, we’ll be spending some time talking about national security issues as well.  
 
But I just want to say thank you to this extraordinary Cabinet for a job well done.  And I will take this opportunity to publicly embarrass two members of the Cabinet whose birthdays are either today or tomorrow:  Ric Shinseki, who is the Department of Veterans Affairs.  Happy birthday to you.  And that is actually today.  (Applause.)  And Janet Napolitano’s birthday is tomorrow.  (Applause.)
 
All right, guys.  Thank you.  We want to get back to work.
 
Q    Mr. President, do you think the Hill is being fair to Susan Rice in its meetings?
 
THE PRESIDENT:  Thank you so much guys.
 
Q    Any thoughts on that at all?
 
THE PRESIDENT:  Susan Rice is extraordinary.  I couldn’t be prouder of the job that she’s done as the USPR.  (Applause.)
 
 
END
3:15 P.M. EST