News Conference by The President

South Court Auditorium, Eisenhower Executive Office Building

4:16 P.M. EST

     THE PRESIDENT:  Hello, everybody.  Good afternoon.  I know everybody is itching to get out of here and spend some time with their families.  I am, too.  I noticed some of you colleagues have been reporting from Hawaii over the last week.  But I just wanted to say a few words about the progress that we’ve made on some important issues over these last few weeks.
 
     A lot of folks in this town predicted that after the midterm elections, Washington would be headed for more partisanship and more gridlock.  And instead, this has been a season of progress for the American people.  That progress is reflecting -- is a reflection of the message that voters sent in November -- a message that said it’s time to find common ground on challenges facing our country.  That’s a message that I will take to heart in the New Year, and I hope my Democratic and Republican friends will do the same.
 
     First of all, I am glad that Democrats and Republicans came together to approve my top national security priority for this session of Congress -- the New START treaty.  This is the most significant arms control agreement in nearly two decades, and it will make us safer and reduce our nuclear arsenals along with Russia.  With this treaty, our inspectors will also be back on the ground at Russian nuclear bases.  So we will be able to trust but verify.
 
     We’ll continue to advance our relationship with Russia, which is essential to making progress on a host of challenges -- from enforcing strong sanctions on Iran to preventing nuclear weapons from falling into the hands of terrorists.  And this treaty will enhance our leadership to stop the spread of nuclear weapons and seek the peace of a world without them.
 
     The strong, bipartisan vote in the Senate sends a powerful signal to the world that Republicans and Democrats stand together on behalf of our security.  And I especially want to thank the outstanding work done by Vice President Joe Biden; the Chairman of the Foreign Relations Committee, Senator John Kerry; and the Ranking Republican, Senator Richard Lugar, for their extraordinary efforts.  
 
In fact, I just got off the phone with Dick Lugar, and reminded him the first trip I ever took as senator -- foreign trip -- was with Dick Lugar to Russia, to look at nuclear facilities there.  And I told him how much I appreciated the work he had done and that there was a direct line between that trip that we took together when I was a first-year senator and the results of the vote today on the floor.
 
This all speaks to a tradition of bipartisan support for strong American leadership around the world -- and that's a tradition that was reinforced by the fact that the New START treaty won the backing of our military and our allies abroad.   
 
     In the last few weeks, we also came together across party lines to pass a package of tax cuts and unemployment insurance that will spur jobs, businesses and growth.   This package includes a payroll tax cut that means nearly every American family will get an average tax cut next year of about a thousand dollars delivered in their paychecks.  It will make a difference for millions of students and parents and workers and people still looking for work.  It’s led economists across the political spectrum to predict that the economy will grow faster than they originally thought next year.   
 
     In our ongoing struggle to perfect our union, we also overturned a 17-year-old law and a longstanding injustice by finally ending “don’t ask, don’t tell.”  As I said earlier today, this is the right thing to do for our security; it’s the right thing to do, period.
 
     In addition, we came together across party lines to pass a food safety bill -- the biggest upgrade of America’s food safety laws since the Great Depression.  And I hope the House will soon join the Senate in passing a 9/11 health bill that will help cover the health care costs of police officers, firefighters, rescue workers, and residents who inhaled toxic air near the World Trade Center on that terrible morning and the days that followed.
 
     So I think it’s fair to say that this has been the most productive post-election period we’ve had in decades, and it comes on the heels of the most productive two years that we’ve had in generations.
 
     That doesn’t mean that our business is finished.  I am very disappointed Congress wasn’t able to pass the DREAM Act so we can stop punishing kids for the actions of their parents, and allow them to serve in the military or earn an education and contribute their talents to the country where they grew up.
 
I’m also disappointed we weren’t able to come together around a budget to fund our government over the long term.  I expect we’ll have a robust debate about this when we return from the holidays -- a debate that will have to answer an increasingly urgent question -- and that is how do we cut spending that we don’t need while making investments that we do need -- investments in education, research and development, innovation, and the things that are essential to grow our economy over the long run, create jobs, and compete with every other nation in the world.  I look forward to hearing from folks on both sides of the aisle about how we can accomplish that goal.
 
     If there’s any lesson to draw from these past few weeks, it’s that we are not doomed to endless gridlock.  We’ve shown, in the wake of the November elections, that we have the capacity not only to make progress, but to make progress together.
 
     And I’m not naïve.  I know there will be tough fights in the months ahead.  But my hope heading into the New Year is that we can continue to heed the message of the American people and hold to a spirit of common purpose in 2011 and beyond.  And if we do that, I’m convinced that we will lift up our middle class, we will rebuild our economy, and we will make our contribution to America’s greatness.
 
     Finally, before I take questions, I want to send a message to all those Americans who are spending Christmas serving our nation in harm’s way.  As I said in Afghanistan earlier this month, the American people stand united in our support and admiration for you.  And in this holiday season, I’d ask the American people to keep our troops in your prayers, and lend a hand to those military families who have an empty seat at the table.
 
     So with that, I’m going to take some questions.  And I’m going to start with Caren Bohan.
 
     Q    Thank you, Mr. President.  You racked up a lot of wins in the last few weeks that a lot of people thought would be difficult to come by.  Are you ready to call yourself the “Comeback Kid”?  And also, as you look ahead to 2011, are you worried that bipartisan agreement will be a lot harder to reach on issues like deficit reduction and maybe even tax reform?
 
     THE PRESIDENT:  Well, look, as I said right after the midterm elections, we took a shellacking.  And I take responsibility for that.  But I think what’s happened over the last several weeks is not a victory for me, it’s a victory for the American people. And the lesson I hope that everybody takes from this is that it’s possible for Democrats and Republicans to have principled disagreements; to have some lengthy arguments but to ultimately find common ground to move the country forward.  
 
     That’s what we did with taxes.  Those arguments have not gone away.  I still believe that it doesn’t make sense for us to provide tax cuts to people like myself who don’t need them when our deficit and debts are growing.  That’s a debate that’s going to continue into 2011, and I know the Republicans feel just as strongly on the other side of that.
 
     I think that we’re still going to have disagreements in terms of spending priorities.  It’s vital for us to make investments in education and research and development -- all those things that create an innovative economy -- while at the same time cutting those programs that just aren’t working.  And there are going to be debates between the parties on those issues.
 
     But what we’ve shown is that we don’t have to agree on a hundred percent to get things done that enhance the lives of families all across America.  And if we can sustain that spirit, then regardless of how the politics play out in 2012, the American people will be better for it.  And that’s my ultimate goal.
 
     Jake Tapper.
 
     Q    Thanks, Mr. President.  Merry Christmas.
 
     THE PRESIDENT:  Merry Christmas.
 
     Q    I have a couple questions about “don’t ask, don’t tell.”  First of all, congratulations.  What was your conversation like with Marine Commandant Amos when he expressed to you his concerns and yet he said that he would abide by whatever -- whatever the ruling was?  Can you understand why he had the position he did?  And then on the other hand, is it intellectually consistent to say that gay and lesbians should be able to fight and die for this country but they should not be able to marry the people they love?
 
     THE PRESIDENT:  You know, I don’t want to go into detail about conversations in the Oval Office with my service chiefs.  Jim Amos expressed the same concerns to me privately that he expressed publicly during his testimony.  He said that there could be disruptions as a consequence of this.  And what I said to him was that I was confident, looking at the history of the military with respect to racial integration, with respect to the inclusion of women in our armed forces, that that could be managed.  And that was confirmed by the attitudinal studies that was done prior to this vote.
 
     And what he assured me of -- and what all the service chiefs have assured me of -- is that regardless of their concerns about disruptions, they were confident that they could implement this policy without it affecting our military cohesion and good discipline and readiness.  And I take them at their word.  And I’ve spoken to them since the vote took place and they have all said that we are going to implement this smartly and swiftly, and they are confident that it will not have an effect on our military effectiveness.
 
     So I’m very heartened by that.  And I want to, again, give Bob Gates and Admiral Mullen enormous credit for having guided this process through in a way that preserves our primary responsibility to keep America safe and at the same time allows us to live up to our values.
 
     With respect to the issue of whether gays and lesbians should be able to get married, I’ve spoken about this recently.  As I’ve said, my feelings about this are constantly evolving.  I struggle with this.  I have friends, I have people who work for me, who are in powerful, strong, long-lasting gay or lesbian unions.  And they are extraordinary people, and this is something that means a lot to them and they care deeply about.
 
     At this point, what I’ve said is, is that my baseline is a strong civil union that provides them the protections and the legal rights that married couples have.  And I think -- and I think that’s the right thing to do.  But I recognize that from their perspective it is not enough, and I think is something that we’re going to continue to debate and I personally am going to continue to wrestle with going forward.
 
     Q    But the military does not recognize civil unions, right?
 
     THE PRESIDENT:  I understand.  And as I said, this is going to be an issue that is not unique to the military -- this is an issue that extends to all of our society, and I think we’re all going to have to have a conversation about it.
 
     Dan Lothian.
 
     Q    Thank you, Mr. President, and happy holidays.
 
     THE PRESIDENT:  Happy holidays.
 
     Q    Can you give us an update on that car that you talk about so much about being in the ditch?  Can you give us an update as to where it is today?  What kind of highway do you think it will be driving on in 2011?  Who will really be behind the wheel, given the new makeup in Congress?  And what do you think Republicans will be sipping and saying next year?  (Laughter.)  
 
     THE PRESIDENT:  Dan, you gave some thought to that question, didn’t you?
 
     Q    I did.  (Laughter.)  
 
     THE PRESIDENT:  Well, I do think that the car is on level ground.  I mean, the car is the economy.  And I think we are past the crisis point in the economy, but we now have to pivot and focus on jobs and growth.  And my singular focus over the next two years is not rescuing the economy from potential disaster, but rather jumpstarting the economy so that we actually start making a dent in the unemployment rate and we are equipping ourselves so that we can compete in the 21st century.
 
     And that means we’ve got to focus on education, that means we have to focus on research and development, we have to focus on innovation.  We have to make sure that in every sector, from manufacturing to clean energy to high-tech to biotech, that we recognize the private sector is going to be the driving force.  And what the government can do is to make sure that we are a good partner with them, that we’re a facilitator; that in some cases, we’re a catalyst, when it’s a fledgling industry.
 
     And that means that we’ve got to look at some of our old dogmas -- both Democrats and Republicans, conservatives and liberals -- to think about what works.  If there are regulations that are in place that are impeding innovation, let’s get rid of those regulations.  Let’s make sure that we’re also protecting consumers, and we’re protecting the environment and protecting workers in the process.  But let’s find ways to do business that helps business.
 
     People were doubtful about the approach that we took to the auto industry, but that was an example of there may be occasions -- certainly during crisis -- where a timely intervention that’s limited and restricted can end up making a difference.
 
     And so I think Democrats, Republicans, House, Senate, the White House -- all of us have to be in a conversation with the private sector about what’s going to ensure that we can export and sell our products instead of just buying exports from someplace else.  How do we make sure that the green technologies of the future are made here in America?  
 
     And how do we get all these profits that companies have been making since the economy recovered into productive investment and hiring?  That's a conversation that I had with the 20 CEOs who came here, and that's a conversation I expect to continue in the months ahead.
 
     But the answer about who drives -- the American people are driving the car.  They're the ones who are going to be making an assessment as to whether we’re putting in place policies that are working for them.  And both parties are going to be held accountable and I’m going to be held accountable if we take a wrong turn on that front.
 
     Q    And what will the Republicans be sipping?  (Laughter.)  
 
     THE PRESIDENT:  You know, my sense is the Republicans recognize that with greater power is going to come greater responsibility.  And some of the progress that I think we saw in the lame duck was a recognition on their part that people are going to be paying attention to what they're doing, as well as what I’m doing and what the Democrats in Congress are doing.
 
     Mark Knoller.
 
     Q    Yes, sir.  Mr. President, can you explain the anger and even outrage many Democrats felt when the tax cut bill extended tax cuts not just for the middle class but also for the wealthy?  And is that a divide that you may be contributing to when you and the Vice President talk about “morally inappropriate” tax cuts for the wealthy?
 
     THE PRESIDENT:  Look, the frustration that people felt about that was frustration I share.  I’ve said that before, and I’ll probably say it again.  I don't think that over the long run we can afford a series of tax breaks for people who are doing very well and don't need it; were doing well when Bill Clinton was in office.  They were still rich then, and they will still be rich if those tax cuts went away.
 
     And so this is going to be a debate that we’re going to be having over the next couple of years because I guarantee you, as soon as the new Congress is sworn in, we’re going to have to have a conversation about how do we start balancing our budget, or at least getting to a point that's sustainable when it comes to our deficit and our debt.  
 
     And that's going to require us cutting programs that don't work, but it also requires us to be honest about paying for the things that we think are important.  If we think it’s important to make sure that our veterans are getting care that they need when they come back home from fighting in Afghanistan or Iraq, we can’t just salute and wish them well and have a Veterans Day Parade.  We got to make sure that there are doctors and nurses and facilities for post-traumatic stress disorder -- and that costs money.
 
     If we say that education is going to be the single most important determinant for our children’s success and this country’s success in the 21st century, we can’t have schools that are laying off so many teachers that they start going to four days a week, as they’ve done in Hawaii, for example.
 
     We’ve got to make sure that young people can afford to go to college.  If we want to keep our competitive edge in innovation, well, we’ve got to invest in basic research -- the same basic research that resulted in the Internet, the same basic research that invited -- that resulted in GPS.  All those things originated in research funded by the government.
 
     So we are going to have to compare the option of maintaining the tax cuts for the wealthy permanently versus spending on these things that we think are important.  And that's a debate that I welcome.   But I completely understand why not just Democrats but some Republicans might think that that part of the tax package we could have done without.
 
     Having said that, I want to repeat -- compromise, by definition, means taking some things you don't like.  And the overall package was the right one to ensure that this economy has the best possible chance to grow and create jobs.  And there is no better anti-poverty program than an economy that's growing.  There is no better deficit-reduction program than an economy that is growing.  And if the economy started contracting, as it might have had we not gotten this tax agreement, then the choices that we would have to make would be even tougher.
 
     Q    Sir, is there a divide between middle-class and wealthy Americans?
 
     THE PRESIDENT:  I think middle-class folks would confirm what the statistics say, which is that they have not seen a real increase in their incomes in a decade, while their costs have skyrocketed.  That's just a fact.
 
     What is also a fact is that people in the top 1 percent, people in the top 1/10th of 1 percent, or 1/100th of 1 percent have a larger share of income and wealth than any time since the 1920s.  Those are just facts.  That's not a feeling on the part of Democrats.  Those are facts.
 
     And something that's always been the greatest strength of America is a thriving, booming middle class, where everybody has got a shot at the American Dream.  And that should be our goal.  That should be what we’re focused on.  How are we creating opportunity for everybody?  So that we celebrate wealth.  We celebrate somebody like a Steve Jobs, who has created two or three different revolutionary products.  We expect that person to be rich, and that's a good thing.  We want that incentive.  That's part of the free market.  
 
     But we also want to make sure that those of us who have been extraordinarily fortunate, that we’re contributing to the larger American community so that a whole bunch of other kids coming up are doing well.  And that means schools that work and infrastructure like roads and airports that function, and it means colleges and universities that teach and aren’t restricted to just people who can afford it but are open to anybody with talent and a willingness to work.  And that’s going to be I think part of the conversation that we’ve got to have over the next couple years.
 
     Juan Carlos López.
 
     Q    Gracias, Presidente.  Feliz Navidad.
 
     THE PRESIDENT:  Feliz Navidad.
 
     Q    Mr. President, you’ve been able to fulfill many of your promises.  Immigration reform isn’t one of them.  Just this last weekend, the DREAM Act failed cloture by five votes, and five Democrats didn’t support it; three Republicans did.  How are you going to be able to keep your promise when the Republicans control the House when you haven’t been able to do so with Democrats controlling both the Senate and the House, and when Republicans say they want to focus on border security before they do anything on immigration?
 
     THE PRESIDENT:  Well, let me say, there are a number of things that I wanted to get accomplished that we did not get accomplished.  For example, collective bargaining for firefighters and public safety workers -- that was something that I thought was important.  We didn’t get it done.  I’m disappointed in that.  I think we’re still going to have to figure out how we work on energy, and that’s an area that I want to immediately engage with Republicans to figure out.
 
     But I will tell you, maybe my biggest disappointment was this DREAM Act vote.  You know, I get letters from kids all across the country -- came here when they were five, came here when they were eight; their parents were undocumented.  The kids didn’t know -- kids are going to school like any other American kid, they’re growing up, they’re playing football, they’re going to class, they’re dreaming about college.  And suddenly they come to 18, 19 years old and they realize even though I feel American, I am an American, the law doesn’t recognize me as an American.  I’m willing to serve my country, I’m willing to fight for this country, I want to go to college and better myself -- and I’m at risk of deportation.
 
     And it is heartbreaking.  That can’t be who we are, to have kids -- our kids, classmates of our children -- who are suddenly under this shadow of fear through no fault of their own.  They didn’t break a law -- they were kids.
 
     So my hope and expectation is that, first of all, everybody understands I am determined and this administration is determined to get immigration reform done.  It is the right thing to do.  I think it involves securing our borders, and my administration has done more on border security than any administration in recent years.  We have more of everything -- ICE, Border Patrol, surveillance, you name it.  
 
     So we take border security seriously.  And we take going after employers who are exploiting and using undocumented workers, we take that seriously.  But we need to reform this immigration system so we are a nation of laws and we are a nation of immigrants.  And at minimum, we should be able to get the DREAM Act done.
 
     And so I’m going to go back at it and I’m going to engage in Republicans who, I think, some of them, in their heart of hearts, know it’s the right thing to do, but they think the politics is tough for them.
 
     Well, that may mean that we’ve got to change the politics.  And I’ve got to spend some time talking to the American people, and others have to spend time talking to the American people, because I think that if the American people knew any of these kids -- they probably do, they just may not know their status -- they’d say, of course we want you.  That's who we are.  That's the better angels of our nature.  
 
And so one thing I hope people have seen during this lame duck -- I am persistent.  I am persistent.  If I believe in something strongly, I stay on it.  And I believe strongly in this.
 
And I am happy to engage with the Republicans about -- if they’ve got ideas about more on border security, I’m happy to have that conversation.  And I think that it is absolutely appropriate for the American people to expect that we don't have porous borders and anybody can come in here any time.  That is entirely legitimate.
 
But I also think about those kids.  And I want to do right by them, and I think the country is going to want to do right by them, as well.
 
Mike Emanuel.
 
Q    Thank you, Mr. President.  Merry Christmas.  
 
THE PRESIDENT:  Merry Christmas.
 
Q    Guantanamo, sir.  I understand a draft of an executive order is being prepared for you, and I don't expect you to comment then on that --
 
THE PRESIDENT:  Right.
 
Q    It hasn’t gotten to you yet.
 
THE PRESIDENT:  Yes.
 
Q    But it makes me wonder where you are, sir, at about the two-year mark on Guantanamo, when closing it was one of your initial priorities, sir?
 
THE PRESIDENT:  Obviously, we haven’t gotten it closed.  And let me just step back and explain that the reason for wanting to close Guantanamo was because my number one priority is keeping the American people safe.  One of the most powerful tools we have to keep the American people safe is not providing al Qaeda and jihadists recruiting tools for fledgling terrorists.
 
And Guantanamo is probably the number one recruitment tool that is used by these jihadist organizations.  And we see it in the websites that they put up.  We see it in the messages that they're delivering.  
 
And so my belief is that we can keep the American people safe, go after those who would engage in terrorism.  And my administration has been as aggressive in going after al Qaeda as any administration out there.  And we’ve seen progress, as I noted during the Afghan review.
 
Every intelligence report that we’re seeing shows that al Qaeda is more hunkered down than they have been since the original invasion of Afghanistan in 2001, that they have reduced financing capacity, reduced operational capacity.  It is much more difficult for their top folks to communicate, and a lot of those top folks can’t communicate because they're underground now.
 
But it is important for us, even as we’re going aggressively after the bad guys, to make sure that we’re also living up to our values and our ideals and our principles.  And that's what closing Guantanamo is about -- not because I think that the people who are running Guantanamo are doing a bad job, but rather because it’s become a symbol.  And I think we can do just as good of a job housing them somewhere else.
 
Now, to the issue you had about the review.  You’re right, I won’t comment right now on a review that I have not received yet.  I can tell you that over the last two years, despite not having closed Guantanamo, we’ve been trying to put our battle against terrorists within a legal structure that is consistent with our history of rule of law.  And we’ve succeeded on a number of fronts.
 
One of the toughest problems is what to do with people that we know are dangerous, that we know are -- have engaged in terrorist activity, are proclaimed enemies of the United States, but because of the manner in which they were originally captured, the circumstances right after 9/11 in which they are interrogated, it becomes difficult to try them whether in an Article III court or in a military commission.
 
Releasing them at this stage could potentially create greater danger for the American people.  And so how do we manage that?  And that's what this team has been looking at.  Are there ways for us to make sure these folks have lawyers, to make sure that these folks have the opportunity to challenge their detention -- but at the same time, making sure that we are not simply releasing folks who could do us grievous harm and have shown a capacity and willingness to engage in brutal attacks in the past.
 
And so when I get that report, I’m sure that I’ll have more comments on it.  The bottom line is, is that striking this balance between our security and making sure that we are consistent with our values and our Constitution is not an easy task, but ultimately that's what’s required for practical reasons.
 
Because the more people are reminded of what makes America special -- the fact that we stand for something beyond just our economic power or our military might, but we have these core ideals that we observe even when it’s hard -- that's one of our most powerful weapons.  And I want to make sure that we don't lose that weapon in what is a serious struggle.
 
So with that, everybody, I want to wish you all a merry Christmas.  Happy holidays.  Happy New Year.  See you in 2011.

END
4:50 P.M. EST

Remarks by the President and the Vice President Before Signing the Middle-Class Tax Cuts Bill

South Court Auditorium

4:00 P.M. EST

THE VICE PRESIDENT:  Thank you all very, very much.  Please be seated.  

Ladies and gentlemen, this is a -- I wasn’t going say, a big deal, but an important deal.  (Laughter.)  I can no longer say “big deal.”  (Laughter.)  Thank god, my mother wasn’t around.

The famed 18th century British statesman, Edmund Burke, once said, “All government, indeed every human benefit and enjoyment, every virtue, and every prudent act, is founded on compromise and barter.”  Today, we have a crystal clear example of what he meant.  

This package -- this package is a result of leaders from both sides coming together to act on behalf of the American people at a time they need it most.  I want to begin by applauding Senator Mitch McConnell, and the other Republican leaders, who like their Democratic counterparts who are here today, were willing to take issue with some of their own party and to do what was, in their view, necessary in order to move the country forward.

That’s what the American people expect of all of us, especially in these times.  And that’s what we’ve done here.  It means accepting some things we don’t like in order to get the job done for Americans as needs to be done.

We were put in office amid the deepest recession this country has seen since the Great Depression.  We were put here to protect and -- protect and rebuild the middle class.  And throughout the process, we’re working with two principles in mind -- grow the economy and support working-class families.  And that’s what we fought hard to do.

And I stand here today to say, in my view, our fight has paid off.  Most economists, many of whom are in this room, will tell you this plan will grow our economy in the next year.  And it’s going to help millions of families keep their jobs, if they have one, and keep their unemployment benefits if they don’t, and keep their tax relief, and keep their kids in school as well.  

All while keeping our economic recovery moving in the right direction, providing immediate -- an immediate economic jolt, and giving more than 150 million Americans help where they need it most, in their paychecks, in their wallets.  I believe it was the right thing to do.

This is an example of what can happen when you have a President who knows what needs to be done and acts tenaciously to make sure it happens.  The President, wholeheartedly -- wholeheartedly committed to serving the middle class.  And that’s what happens when you have a President who knows in his gut that the middle class is the backbone of the American people, and that a full economic recovery will only happen if we have -- if they, the middle class, have the support they need in order to succeed.

Ladies and gentlemen, the President of the United States, Barack Obama.  (Applause.)   

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

Good afternoon, everybody.  Before I get started, I just want to acknowledge some of the extraordinary people who did some extraordinary work in a very short period of time.  And I’m going to start with somebody who has been a champion for the middle class, but has also been just an extraordinary partner on every important initiative in this administration -- my friend, Joe Biden, the Vice President.  (Applause.)  

I want to acknowledge and thank Senator Mitch McConnell and the rest of the Republican leadership in the Senate; Dave Camp, Republican over in the House, for their willingness, as Joe indicated, to do what was right for the country, even though it caused occasional political discomfort.  I especially want to thank the folks who are here -- Dick Durbin, Max Baucus, Danny Davis, Allyson Schwartz, Rob Andrews -- part of a broader team that worked very diligently both in the House and the Senate on the Democratic side to make this happen.  

And we’ve got a bunch of other members of Congress who are here, as well as activists and economists and business leaders and people who generally recognize that at this critical juncture, we’ve got to think about what’s best to grow the economy and what’s best to put people back to work.

We are here with some good news for the American people this holiday season.  By a wide bipartisan margin, both Houses of Congress have now passed a package of tax relief that will protect the middle class, that will grow our economy, and will create jobs for the American people.  Not only do I want to thank all the leaders here today, but I want to thank mayors and governors from across the country who couldn’t be here today, and all who worked together to get this done.

First and foremost, the legislation I’m about to sign is a substantial victory for middle-class families across the country.  They’re the ones hit hardest by the recession we’ve endured.  They’re the ones who need relief right now.  And that’s what is at the heart of this bill.

This bipartisan effort was prompted by the fact that tax rates for every American were poised to automatically increase on January 1st.  If that had come to pass, the average middle-class family would have had to pay an extra $3,000 in taxes next year.  That wouldn’t have just been a blow to them -- it would have been a blow to our economy just as we’re climbing out of a devastating recession.

I refused to let that happen.  And because we acted, it’s not going to.  In fact, not only will middle-class Americans avoid a tax increase, but tens of millions of Americans will start the New Year off right by opening their first paycheck to see that it’s actually larger than the one they get right now.  Over the course of 2011, 155 million workers will receive tax relief from the new payroll tax cut included in this bill -– about $1,000 for the average family.

This is real money that’s going to make a real difference in people’s lives.  And I would not have signed this bill if it didn’t include other extensions of relief that were also set to expire -– relief that’s going to help families cover the bills, parents raise their children, students pay for college, and business owners to take the reins of the recovery and propel this economy forward.

As soon as I sign this legislation, 2 million Americans looking for work who lost their jobs through no fault of their own can know with certainty that they won’t lose their emergency unemployment insurance at the end of this month.  Over the past few weeks, 600,000 Americans have been cut off from that lifeline.  But with my signature, states can move quickly to reinstate their benefits –- and we expect that in almost all states, they’ll get them in time for Christmas.

Eight million college students who otherwise would have faced a tuition hike as soon as next semester will instead continue to have access to a $2,500 tax credit to afford their studies.

Twelve million families with 24 million children will benefit from extensions of the Earned Income Tax Credit and the Child Tax Credit.  And when combined with the payroll tax cut, 2 million American families who otherwise would have lived in poverty next year will instead be lifted out of it.  (Applause.)

And millions of entrepreneurs who have been waiting to invest in their businesses will receive new tax incentives to help them expand, buy new equipment, or make upgrades -- freeing up other money to hire new workers.

Putting more money in the pockets of families most likely to spend it, helping businesses invest and grow -- that’s how we’re going to spark demand, spur hiring, and strengthen our economy in the New Year.

Now, candidly speaking, there are some elements of this legislation that I don’t like.  There are some elements that members of my party don’t like.  There are some elements that Republicans here today don’t like.  That’s the nature of compromise -– yielding on something each of us cares about to move forward on what all of us care about.  And right now, what all of us care about is growing the American economy and creating jobs for the American people.  Taken as a whole, that’s what this package of tax relief is going to do.  It’s a good deal for the American people.  This is progress.  And that’s what they sent us here to achieve.

There will be moments, I am certain, over the next couple of years, in which the holiday spirit won’t be as abundant as it is today.  (Laughter.)  Moreover, we’ve got to make some difficult choices ahead when it comes to tackling the deficit.  In some ways, this was easier than some of the tougher choices we’re going to have to make next year.  There will be times when we won’t agree, and we’ll have to work through those times together.  But the fact is I don’t believe that either party has cornered the market on good ideas.  And I want to draw on the best thinking from both sides.

So wherever we can, whenever we can, it makes sense for our country’s success and our children’s future to work with people in both parties who are willing to come to the table for the hard work of moving our economy and our country forward.  What happened with this economic package was a good example of that.  A bipartisan group made up of Senators Baucus and Kyl and Representatives Van Hollen and Camp sat down with -- Secretary Geithner is here today and Director Jack Lew of the Office of Management and Budget to begin negotiations in good faith.  Leaders like Nancy Pelosi, John Boehner, Harry Reid, and Mitch, other members who are here together worked to bring this bill across the finish line.

And the final product proves when we can put aside the partisanship and the political games, when we can put aside what’s good for some of us in favor of what’s good for all of us, we can get a lot done.  And if we can keep doing it, if we can keep that spirit, I’m hopeful that we won’t just reinvigorate this economy and restore the American Dream for all who work for it.  I’m also hopeful that we might refresh the American people’s faith in the capability of their leaders to govern in challenging times, belief in the capacity of their institutions in this town to deliver in a rapidly changing world, and, most of all, confidence that our best days as a nation are still ahead of us.

So to all of you who worked so diligently on this issue, thank you very much.  To those on my staff who were working night and day, and on the Senate and House staffs in both parties who were working so hard, we’re very grateful to you.  And with that, let me sign this bill to make sure that people are seeing a bigger paycheck come January.  (Applause.)

END
4:17 P.M. EST

Remarks by the President to Children During a School Visit

Long Branch Elementary School, Arlington, Virginia

11:14 A.M. EST

      THE PRESIDENT:  Now let me just say one more thing and then maybe we can take a picture together.  One of the things about Christmas obviously is getting presents and having stockings full and spending time with your family and eating good stuff.  But part of the Christmas spirit is also making sure that we’re kind to each other and we’re thinking about people who aren’t as lucky as we are.

      And so I hope that all of you, even as you’re having a lot of fun during the holidays, whether it’s Christmas or Hanukkah, I want to make sure that all of you are also thinking about how can you guys be nicer to each other and think about people who have less than you do, because not everybody is as lucky as we are.  There are a lot of kids out there who they may not be able to get a lot of presents for Christmas because their parents don’t have a lot of money.

      There are a lot of parents right now who are maybe away from their families.  Some of them are in our military and they’re fighting overseas, and so they can’t be home for Christmas or the holidays.  So I hope you guys think about them too, all right?  And I want you all to remember that the spirit of Christmas is making sure that -- not just that you’re getting something from somebody but that you’re also giving back to other people.  Does that make sense?

      CHILDREN:  Yes.

      THE PRESIDENT:  Who wants to take a picture with me?

      (A picture is taken.)

      THE PRESIDENT:  Well, listen, I hope you guys have so much fun during the holidays.  And I’m so proud of you.  You guys are all working hard in school and learning all kinds of stuff.  It’s really exciting to see you guys doing so well.

      So -- and I want to thank all the teachers and the faculty, the staff who are here, because I know that you guys put your heart and soul into doing this great work.

      You guys have a couple questions for me before I go?  I thought so.

      What’s your question?

      Q    I don’t have a question, but my name is Malia.

      THE PRESIDENT:  Your name is Malia too?  Give me a high five for that.  That’s a great name.  That’s a great name.

      All right, let’s see.  What’s your name?

      Q    Sebastian.

      THE PRESIDENT:  Hey, Sebastian.

      Q    I don’t have a question, but I do know Mrs. Obama gave us these ornaments so we could make them for your Christmas tree.

      THE PRESIDENT:  Excellent.  Well, thank you so much.  We have all these volunteers come out to decorate the whole White House, and it’s pretty spectacular.  But one of those ornaments might have been yours.  Way to go.  Appreciate it.

      What’s your name?

      Q    Can I have an autograph?

      THE PRESIDENT:  Here’s the thing.  If I sign autographs, then I have to sign them for everybody.

      CHILDREN:  Yay!  (Laughter.)

      THE PRESIDENT:  I’d be here a really long time.  But here’s what I did, though, is I signed my book.  So it’s in the library.  And so that’s for the whole school.  All right?

      How about you?

      Q    How did you get the -- since you’re so busy, how did you get to write that book since you’re so busy?

      THE PRESIDENT:  You know what happened was I actually wrote it a couple of years ago, before I was sworn in as President, because I had written a couple books for adults, and then they said, well, would you be interested in writing a children’s book and then you can give the money to charity?  And I said I would, so I wrote the book, but then it takes a really long time because the art is so nice -- the artists, it’s like each page is like a painting.  So it takes them a long time to make it.  So that’s why it’s just coming out now.

      All right.  What else?

      Q    (Inaudible.)

      THE PRESIDENT:  I get 10,000 letters every day.  That’s a lot.  That’s a lot.  Now, I want to be honest, I don’t read every single piece of mail I get, because then obviously -- well, I just couldn’t get through all of it.  So I have a whole staff that just reads my mail, and then they give me letters that they think are really especially terrific, and I read those.

      All right.

      CHILDREN:  (Pointing.)

      THE PRESIDENT:  Oh, it’s Lawrence.

      What were you going to say?

      Q    How much fun is it just going around -- running around the White House all day?

      THE PRESIDENT:  You know, the truth is, I run around a lot in the White House, but most of the time I’m working.  So it’s not like I’m just running around having fun.  But sometimes it’s fun.  Because the White House -- how many people have visited the White House?  So it’s a pretty -- it’s a beautiful building, and there’s a big yard in the back called the South Lawn.  So a lot of times I walk Bo at night, and that’s fun.  Sometimes I run around with Bo, although I have to -- sometimes I have to scoop up his poop.

      Q    Ew!

      THE PRESIDENT:  Because I don’t want to just leave it in the lawn.  So if you guys have a dog, you got to walk your dog too and clean up after him a little bit.

      All right, guys, I’ve got to get going.  Merry Christmas, everybody!  Happy holidays!

      Q    Merry Christmas!

      THE PRESIDENT:  Thank you.  Thank you.

      * * * * *

      (Entering second classroom)

      THE PRESIDENT:  Well, hello, everybody!

      CHILDREN:  Hello!

      THE PRESIDENT:  Well, I just wanted to come by and wish everybody a wonderful holiday, Merry Christmas, Happy New Year, Happy Hanukkah, happy, happy all, everything.

      And -- now, I thought this was the last day of school.  I just found out you guys are actually in until Wednesday.

      But I did just want to come by to say how proud I am of all of you.  This is just a wonderful school.  The staff, the teachers, do such a great job.  And you guys, the students, are doing a great job.  And I just left a children’s book that I wrote called “Of Thee I Sing,” so I left that as a Christmas present.  I had a chance to read “The Night Before Christmas.”  So -- but I suspect everybody here has read it.

      CHILDREN:  We saw you.

      THE PRESIDENT:  Oh, you were watching.  Well, that’s amazing.  Well, then all I want to do is come in here and say, guys, I’m proud of you.  I hope you guys have a wonderful holiday.  And keep working hard, keep paying attention, because your teachers know more than you do.  At least for now.  But if they do a really good job, then at some point you’ll know more than them.  All right?

      But we couldn’t be prouder.  So from Michelle, Malia, Sasha and from Bo, we want to wish you guys a wonderful holiday.  All right?  Bye-bye, everybody.  (Applause.)

                        END           11:25 A.M. EST

Statement by the President on the Afghanistan-Pakistan Annual Review

James S. Brady Press Briefing Room

11:50 A.M EST

THE PRESIDENT:  Good morning, everybody.  When I announced our new strategy for Afghanistan and Pakistan last December, I directed my national security team to regularly assess our efforts and to review our progress after one year.  That’s what we’ve done consistently over the course of the past 12 months —- in weekly updates from the field, in monthly meetings with my national security team, and in my frequent consultations with our Afghan, Pakistani and coalition partners.  And that’s what we’ve done as part of our annual review, which is now complete.  

I want to thank Secretary Clinton and Secretary Gates for their leadership.  Since Joint Chief of Staff Chairman, Admiral Mullen, is in Afghanistan, I’m pleased that we’re joined by Vice Chairman, General Cartwright.  

Our efforts also reflect the dedication of Ambassador Richard Holbrooke, whose memory we honor and whose work we’ll continue.  Indeed, the tributes to Richard that have poured in from around the globe speak to both the enormous impact of his life and to the broad international commitment to our shared efforts in this critical region.     

I have spoken with President Karzai of Afghanistan as well as President Zardari of Pakistan and discussed our findings and the way forward together.  Today, I want to update the American people on our review —- our assessment of where we stand and areas where we need to do better.  I want to be clear.  This continues to be a very difficult endeavor.  But I can report that thanks to the extraordinary service of our troops and civilians on the ground, we are on track to achieve our goals.

It’s important to remember why we remain in Afghanistan.  It was Afghanistan where al Qaeda plotted the 9/11 attacks that murdered 3,000 innocent people.  It is the tribal regions along the Afghan-Pakistan border from which terrorists have launched more attacks against our homeland and our allies.  And if an even wider insurgency were to engulf Afghanistan, that would give al Qaeda even more space to plan these attacks.  

And that’s why, from the start, I’ve been very clear about our core goal.  It’s not to defeat every last threat to the security of Afghanistan, because, ultimately, it is Afghans who must secure their country.  And it’s not nation-building, because it is Afghans who must build their nation.  Rather, we are focused on disrupting, dismantling and defeating al Qaeda in Afghanistan and Pakistan, and preventing its capacity to threaten America and our allies in the future.  

In pursuit of our core goal we are seeing significant progress.  Today, al Qaeda’s senior leadership in the border region of Afghanistan and Pakistan is under more pressure than at any point since they fled Afghanistan nine years ago.  Senior leaders have been killed.  It’s harder for them to recruit; it’s harder for them to travel; it’s harder for them to train; it’s harder for them to plot and launch attacks.  In short, al Qaeda is hunkered down.  It will take time to ultimately defeat al Qaeda, and it remains a ruthless and resilient enemy bent on attacking our country.  But make no mistake -- we are going to remain relentless in disrupting and dismantling that terrorist organization.  

In Afghanistan, we remain focused on the three areas of our strategy:  our military effort to break the Taliban’s momentum and train Afghan forces so they can take the lead; our civilian effort to promote effective governance and development; and regional cooperation, especially with Pakistan, because our strategy has to succeed on both sides of the border.  

Indeed, for the first time in years, we’ve put in place the strategy and the resources that our efforts in Afghanistan demand.  And because we’ve ended our combat mission in Iraq, and brought home nearly 100,000 of our troops from Iraq, we’re in a better position to give our forces in Afghanistan the support and equipment they need to achieve their missions.  And our drawdown in Iraq also means that today there are tens of thousands fewer Americans deployed in harm’s way than when I took office.  

With those additional forces in Afghanistan, we are making considerable gains toward our military objectives.  The additional military and civilian personnel that I ordered in Afghanistan are now in place, along with additional forces from our coalition, which has grown to 49 nations.  Along with our Afghan partners, we’ve gone on the offensive, targeting the Taliban and its leaders and pushing them out of their strongholds.  

As I said when I visited our troops in Afghanistan earlier this month, progress comes slowly and at a very high price in the lives of our men and women in uniform.  In many places, the gains we’ve made are still fragile and reversible.  But there is no question we are clearing more areas from Taliban control and more Afghans are reclaiming their communities.

To ensure Afghans can take responsibility, we continue to focus on training.  Targets for the growth of Afghan security forces are being met.  And because of the contributions of additional trainers from our coalition partners, I’m confident we will continue to meet our goals.  

I would add that much of this progress —- the speed with which our troops deployed this year, the increase in recruits -- in recruiting and training of Afghan forces, and the additional troops and trainers from other nations —- much of this is the result of us having sent a clear signal that we will begin the transition of responsibility to Afghans and start reducing American forces next July.  

This sense of urgency also helped galvanize the coalition around the goals that we agreed to at the recent NATO summit in Lisbon —- that we are moving toward a new phase in Afghanistan, a transition to full Afghan lead for security that will begin early next year and will conclude in 2014, even as NATO maintains a long-term commitment to training and advising Afghan forces.  Now, our review confirms, however, that for these security gains to be sustained over time, there is an urgent need for political and economic progress in Afghanistan.     

Over the past year, we’ve dramatically increased our civilian presence, with more diplomats and development experts working alongside our troops, risking their lives and partnering with Afghans.  Going forward, there must be a continued focus on the delivery of basic services, as well as transparency and accountability.  We will also fully support an Afghan political process that includes reconciliation with those Taliban who break ties with al Qaeda, renounce violence and accept the Afghan constitution.  And we will forge a new strategic partnership with Afghanistan next year, so that we make it clear that the United States is committed to the long-term security and development of the Afghan people.

Finally, we will continue to focus on our relationship with Pakistan.  Increasingly, the Pakistani government recognizes that terrorist networks in its border regions are a threat to all our countries, especially Pakistan.  We’ve welcomed major Pakistani offensives in the tribal regions.  We will continue to help strengthen Pakistanis’ capacity to root out terrorists.  Nevertheless, progress has not come fast enough.  So we will continue to insist to Pakistani leaders that terrorist safe havens within their borders must be dealt with.  

At the same time, we need to support the economic and political development that is critical to Pakistan’s future.  As part of our strategic dialogue with Pakistan, we will work to deepen trust and cooperation.  We’ll speed up our investment in civilian institutions and projects that improve the lives of Pakistanis.  We’ll intensify our efforts to encourage closer cooperation between Pakistan and Afghanistan.

And, next year, I look forward to an exchange of visits, including my visit to Pakistan, because the United States is committed to an enduring partnership that helps deliver improved security, development, and justice for the Pakistani people.

Again, none of these challenges that I’ve outlined will be easy.  There are more difficult days ahead.  But as a nation, we can draw strength from the service of our fellow Americans.

On my recent visit to Afghanistan, I visited a medical unit and pinned Purple Hearts on some of our wounded warriors.  I met with a platoon that had just lost six of their teammates.  Despite the tough fight, despite all their sacrifice, they continue to stand up for our security and for our values that we hold so dear.

We’re going to have to continue to stand up.  We’ll continue to give our brave troops and civilians the strategy and resources they need to succeed.  We will never waver from our goal of disrupting, dismantling, and ultimately defeating al Qaeda.  We will forge enduring partnerships with people who are committed to progress and to peace.  And we will continue to do everything in our power to ensure the security and the safety of the American people.

So, with that, Vice President Biden and myself will depart, and I’m going to turn it over to Secretaries Clinton, Gates, as well as Vice Chairman Cartwright, and they will be able to answer your questions and give you a more detailed briefing.  

Thank you very much.

END
12:00 P.M. EST