The White House

Office of the Press Secretary

For Immediate Release
April 14, 2012

WEEKLY ADDRESS: It’s Time for Congress to Pass the Buffett Rule

WASHINGTON, DC— In this week’s address, President Obama urged Congress to pass the Buffett Rule, a principle of fairness that says if you make more than $1 million a year, you should pay at least the same percentage of your income in taxes as middle class families.  Meanwhile, if you make under $250,000 a year – like 98 percent of American families do – your taxes shouldn’t go up.  The President has been pushing Congress to pass the Buffett rule to help ensure we have a system that’s fair, where everyone plays by the same set of rules and we can continue to make the investments we need to grow our economy and help the middle class and those trying to get in it.

Remarks of President Obama
Weekly Address
The White House
April 14, 2012

One of the fundamental challenges of our time is building an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same rules.

And as many Americans rush to file their taxes this weekend, it’s worth pointing out that we’ve got a tax system that doesn’t always uphold the principle of everyone doing their part. 

Now, this is not just about fairness.  This is also about growth.  It’s about being able to make the investments we need to strengthen our economy and create jobs.  And it’s about whether we as a country are willing to pay for those investments. 

In a perfect world, of course, none of us would have to pay any taxes. We’d have no deficits to pay down.  And we’d have all the resources we needed to invest in things like schools and roads and a strong military and new sources of energy – investments that have always bolstered our economy and strengthened the middle class.

But we live in the real world, with real choices and real consequences. Right now, we’ve got significant deficits to close.  We’ve got serious investments to make to keep our economy growing.  And we can’t afford to keep spending more money on tax cuts for the wealthiest Americans who don’t need them and didn’t even ask for them.

Warren Buffett is one of the wealthiest men in the world.  But he pays a lower tax rate than his secretary.  That’s just the way the system is set up.  In fact, one in four millionaires pays a lower tax rate than millions of hardworking middle-class households.

As Warren points out, that’s not fair and it doesn’t make sense.  It’s wrong that middle-class Americans pay a higher share of their income in taxes than some millionaires and billionaires.

This week, Members of Congress are going to have a chance to set things right.  They get to vote on what we call the Buffett Rule. 

It’s simple:  If you make more than $1 million every year, you should pay at least the same percentage of your income in taxes as middle-class families do.  On the other hand, if you make less than $250,000 a year -- like 98 percent of American families do -- your taxes shouldn’t go up. 

That’s all there is to it.  It’s pretty sensible.  Most Americans support this idea. One survey found that two-thirds of millionaires do, too.  So do nearly half of all Republicans.

We just need some Republican politicians to get on board with where the country is. 

I know they’ll say that this is all about wanting to raise people’s taxes.  They probably won’t tell you that if you belong to a middle-class family, then I’ve cut your taxes each year that I’ve been in office, and I’ve cut taxes for small business owners 17 times.

But the thing is, for most Americans like me, tax rates are near their lowest point in 50 years. In 2001 and 2003, the wealthiest Americans received two huge new tax cuts.  We were told these tax cuts would lead to faster job growth. Instead, we got the slowest job growth in half a century, and the typical American family actually saw its income fall.

On the flip side, when the most well-off Americans were asked to pay a little more in the 1990s, we were warned that it would kill jobs. Instead, tens of millions of jobs followed.

So we’ve tried this trickle-down experiment before. It doesn’t work. And middle class families have seen too much of their security erode over the past few decades for us to tell them they’re going to have to do more because the wealthiest Americans are going to do less.  We can’t stop investing in the things that will help grow our economy and create jobs – things like education, research, new sources of energy – just so folks like me can get another tax cut. 

So I hope you’ll ask your Member of Congress to step up and echo that call this week by voting for the Buffett Rule. Remind them that in America, prosperity has never just trickled down from a wealthy few.  Prosperity has always been built by a strong, thriving middle class.  That’s a principle worth reaffirming right now.

Thank you, God bless you, and have a great weekend.

The White House

Office of the Press Secretary

For Immediate Release
April 13, 2012

Statement by the Press Secretary on Guinea Bissau

The United States strongly condemns the actions taken by certain elements of Guinea Bissau’s military to seize power from the country’s civilian leadership, and we call for the immediate restoration of the legitimate government.

We remain deeply concerned about the safety of the country’s interim president, senior figures, and others who may be put in harm’s way because of these actions. We call for the release of all government leaders and urge all parties to reconcile their differences through the democratic process.

We welcome the strong statement by the Economic Community of West African States (ECOWAS) condemning this unconstitutional seizure of power, and we applaud ECOWAS’s consistent efforts to reinforce constitutional rule.  We also welcome the United Nations Security Council’s attention to the situation in Guinea Bissau and its swift condemnation of the events there.

The White House

Office of the Press Secretary

For Immediate Release
April 13, 2012

Statements on the President’s Executive Order Supporting Safe and Responsible Development of Unconventional Domestic Natural Gas Resources

American Chemistry Council

WASHINGTON, D.C. (April 13, 2012) – The American Chemistry Council (ACC) issued the following statement in response to the Obama Administration’s release of an executive order calling for coordination in federal agency efforts related to unconventional natural gas resources.
 
“We welcome the President’s call to coordinate federal agency activities related to domestic shale gas.  As his order stated, this resource ‘creates jobs and provides economic benefits to the entire domestic production supply chain, as well as to chemical and other manufacturers, who benefit from lower feedstock and energy costs.’  With shale gas poised to play an important and growing role in the nation’s energy strategy, appropriate regulations and policies will be critical.

“We agree that ‘states are the primary regulators of onshore oil and gas activities,’ and indeed many states are paving the way in developing robust regulations. Nine federal agencies are also looking at shale gas issues, including the Bureau of Land Management, which will issue new rules covering production on public lands.  We are concerned that these rules may duplicate existing state regulations, creating additional barriers that will slow down permitting and increase production costs.

“Natural gas is important as a fuel and power source for American manufacturers, but to the chemistry industry, it’s much more.  We use ethane contained in natural gas as a raw material, or feedstock, for our products, which then go into 96 percent of all U.S.-manufactured goods.  Natural gas and natural gas liquids such as ethane require separate infrastructure systems, and we encourage the administration to consider the implications as it coordinates policy.

“The full potential from shale gas will only be realized with sound state regulatory policies that allow for aggressive production in an environmentally responsible way.  A coordinated approach to regulation can certainly help.  We will be watching closely as the President’s initiative develops.”

American Gas Association

Washington, D.C. – The American Gas Association (AGA) today released the following statement regarding the announcement that the Administration will create a new interagency working group to support safe and responsible development of unconventional domestic natural gas resources and associated infrastructure to help reduce our dependence on foreign oil.

“President Obama highlighted the benefits of natural gas in his State of the Union address, and has been promoting responsible production and broader use of this domestic, abundant, affordable, clean and reliable energy source,” said Dave McCurdy, president and CEO of AGA. “We are pleased to see this action today, which will help promote consistency between the Administration and policies that are put in place.

“This working group will foster improved government communication and coordination that will help our members continue to safely deliver this foundation fuel to 177 million Americans every day.”

American Petroleum Institute

WASHINGTON, April 13, 2012 – The American Petroleum Institute (API) welcomed President Obama’s executive order establishing an interagency working group to “facilitate coordinated Administration policy efforts to support safe and responsible unconventional domestic natural gas development.”
 
“We’re pleased that the White House recognizes the need to coordinate the efforts of the ten federal agencies that are reviewing, studying or proposing new regulations on natural gas development and hydraulic fracturing,”  said Jack Gerard, API president and CEO, after attending a White House meeting on the executive order today.  “We have called on the White House to rein in these uncoordinated activities to avoid unnecessary and overlapping federal regulatory efforts and are pleased to see forward progress.”
 
Gerard also cautioned that we need to look first to the states as the historic regulators of natural gas before applying additional layers of federal regulation from Washington.
 
“There are already strong state regulatory systems in place,” Gerard said.  “Adding potentially redundant federal regulation could stifle the kind of investment that has led to lower energy prices for consumers, more American jobs, and increased energy security.”
 
Gerard added that the natural gas boom, as well as the oil development in North Dakota and other tight oil areas, would not be possible without hydraulic fracturing technology.
 
“The president’s support of natural gas reminds us that we are reliant on technologies developed by the industry that make it possible to develop this energy resource,” Gerard said.  “We have one of the largest known reserves of natural gas in the world, and we need public policies based on sound science in order to develop this affordable source of energy.”

“API and its members remain committed to the safe and reliable production of American’s vast natural gas resources and look forward to working with the administration and continued coordination with the states to meet America’s growing energy demands,” Gerard said.

America's Natural Gas Alliance

Statement by Regina Hopper, President and Chief Executive Officer of America's Natural Gas Alliance, on the executive order establishing an interagency working group to coordinate executive branch efforts regarding production of clean, abundant, American natural gas.

“President Obama has expressed his strong support for the environmental, economic and energy security benefits of the safe and responsible development of America’s abundant natural gas resources. Therefore, we appreciate the Administration’s issuance of this Executive Order. It lays out a blueprint for the coordination of work among the federal agencies on this important domestic resource. We particularly note that the Administration, through the order, recognizes that the states are the primary regulators of natural gas activities. Each state has different geological conditions and state regulators have the on-the-ground presence and expertise to promulgate and oversee unique operating requirements. We look forward to continuing to work with both the Administration and the states in bringing the benefits of this clean, domestic resource to all Americans.”

Business Roundtable

Washington – John Engler, president of Business Roundtable (BRT), issued the following statement today in response to President Obama's executive order establishing a working group to coordinate federal oversight of hydraulic fracturing.

“Today's executive order is a solid first step toward coordinating and, we hope, improving federal oversight of hydraulic fracturing. Business Roundtable CEOs recently discussed with the President how federal handling of this technology threatened to become burdensome, with overlapping authorities and unnecessary and duplicative rules. We hope this working group can cut through these complications and ultimately encourage further investment in the energy sector."

Dow Chemical Company

MIDLAND, MICHIGAN – April 13, 2012 – The Dow Chemical Company (NYSE: DOW) issued a statement today applauding President Obama’s Executive Order commissioning an interagency working group to support the safe and responsible development of the country’s vast shale gas resources.

“We are pleased with the signing of this Executive Order and consider it a vital step toward ensuring that federal regulation of hydraulic fracturing for shale gas is not overly burdensome and duplicative of state efforts, and addresses real risks using sound scientific data,” stated Andrew Liveris, chairman and CEO of The Dow Chemical Company.  “Smart policy paves the way for business planning, and today’s announcement will help U.S. companies to responsibly capitalize on the tremendous shale gas opportunity, which will lead to further investment on our soil and thousands of job opportunities for Americans.”

Independent Petroleum Association Of America

Today, President Obama issued an executive order that establishes a working group to coordinate federal efforts on hydraulic fracturing. IPAA President and CEO Barry Russell welcomed this initiative:

“The White House executive order has a very good intent – centralizing the many ongoing reviews of hydraulic fracturing policies and proposals.  We hope this order provides the administration with a more comprehensive understanding of the federal government’s increasing regulatory grasp on the industry.

“A key mission of this new coordination effort should be to reach out to the state agencies who already regulate hydraulic fracturing and the industry’s other practices.”

Marcellus Shale Coalition

Canonsburg, PA – Today, President Barack Obama issued an executive order aimed at increasing coordination among federal agencies as it relates to hydraulic fracturing. Kathryn Klaber, president of the Marcellus Shale Coalition (MSC), issued the following statement:

“The responsible development of American natural gas has been, and continues to be, a tremendous source of job creation for our nation. At the same time, and as the President noted in his State of the Union address, clean-burning natural gas is ‘proving that we don’t have to choose between our environment and our economy.’

“Affordable, abundant supplies of domestic natural gas – which are helping to provide much-needed consumer savings while bringing about a manufacturing renaissance in America – could not be realized without hydraulic fracturing.

“To even further improve environmental performance, states like Pennsylvania continue to raise the bar on regulatory requirements. This proven and aggressively regulated technology is critical to the long-term economic, energy security and environmental health of our nation.

“As the inter-agency’s panel begins its work, we remain eager to provide real-time, on-the-ground insight in an effort to ensure that common sense regulations are in place, which is essential to leveraging the countless benefits of America’s natural gas resources.”

The National Association of Manufacturers

Washington, D.C., April 13, 2012 - National Association of Manufacturers (NAM) President and CEO Jay Timmons issued a statement in response to President Obama’s Executive Order coordinating natural gas activities through an inter-agency working group:

“President Obama's Executive Order is a step toward national recognition that shale is a game changer. As the consumers of one-third of our nation’s energy supply, manufacturers know that shale gas is a critical part in formulating an ‘all of the above’ energy policy.

We welcome a ‘one stop shop’ for research and information to promote the development of this badly needed resource and are pleased that there will be discussion and input on regulatory policy across agencies  Manufacturers also appreciate that the Executive Order recognizes that the states, who know the shale gas issue best, are the primary regulators of these policies.

The development of shale gas has the potential to drive economic growth and create one million manufacturing jobs. The NAM looks forward to providing input to the working group to ensure that manufacturers and our nation’s energy needs are well represented.”

The White House

Office of the Press Secretary

For Immediate Release
April 13, 2012

Readout of Meeting on Interagency Working Group to Support Safe and Responsible Development of Unconventional Natural Gas

Today, OIRA Administrator Cass Sunstein and Deputy Assistant to the President for Energy and Climate policy Heather Zichal convened a White House meeting with key stakeholders, including representatives from the American Chemistry Council, the American Gas Association, the American Natural Gas Association, the American Petroleum Institute, the U.S. Chamber of Commerce, and the National Association of Manufacturers, to discuss the recently issued Executive Order supporting safe and responsible development of unconventional domestic natural gas resources. The new Executive Order establishes a deputy-level interagency working group to coordinate policy and to promote sensible, cost-effective approaches. Today’s action is a key part of the administration’s ongoing commitment to an “all of the above” energy approach. Coordinated efforts to promote development of unconventional domestic natural gas resources enhance our energy security and create jobs. The participants in the meeting represented all components of the value chain – from the exploration and production companies to the manufacturers and other end users. The conversation focused on promoting cross-agency coordination and cost-effective approaches as well as additional opportunities for working together to take full advantage of our natural gas resources – all while also providing communities the confidence that environmental protection and public health will not be compromised.

The White House

Office of the Press Secretary

For Immediate Release
April 13, 2012

President Obama to Honor BCS National Champion University of Alabama Crimson Tide at the White House

WASHINGTON, DC -- On Thursday, April 19, President Obama will welcome the BCS National Champion University of Alabama Crimson Tide to the White House to honor their 14th championship and their exceptional 2011-2012 season.  The President will also continue his tradition of honoring sports teams for their efforts both on and off the field by recognizing the efforts by the Crimson Tide to give back to their community.

The White House

Office of the Press Secretary

For Immediate Release
April 13, 2012

Fact Sheet: The U.S. Economic Relationship with the Western Hemisphere

In Tampa, Florida today President Obama will underscore the interconnectedness of the U.S. economic and commercial relationship with Latin America.  Tampa has a long history of trade with Latin America: over 40 percent of total exports from the Port of Tampa are destined for countries throughout Latin America. 

As strengthened, market-based economic policies continue to lift millions of people in the region out of poverty and into the middle class, the Obama Administration is moving decisively to seize opportunities for U.S. firms.  The President reaffirms U.S. commitment to work with our partners in the region to further reduce the gap between developing and developed economies in the hemisphere, and promote the prosperity of all peoples. 

The United States and Western Hemisphere region enjoy extensive economic linkages, rich cultural people-to-people connections, and a shared belief in inclusive growth and broad-based opportunity.  Over decades of collaboration and partnership, the United States and the Western Hemisphere have built one of the most active trading relationships in the world, strong cooperation on cutting edge energy security, and a network of connections among our countries and people that allow the efficient movement of  knowledge, ideas and technology.

Policies that Promote Economic Growth and Job Creation at Home and Abroad

Through the National Export Initiative, the Obama Administration is partnering with U.S. businesses to promote American-made goods and services in the hemisphere through trade advocacy and export promotion efforts; increase access to credit, especially for small and medium-sized businesses; remove barriers to the sale of U.S. goods and services abroad; robustly enforce trade rules; and pursue policies at the global level to promote strong, sustainable, and balanced growth.   

Passage of the Colombia and Panama trade agreements and the resolution of the U.S.-Mexico trucking dispute underscore the President’s commitment to creating new opportunities for U.S. exporters, and support a rules-based trade.

Intensifying trade and investment ties are spurring demand for greater physical integration of our region.  Over the last year the United States joined Canada, Colombia, Mexico and Spain to create a groundbreaking donor trust fund at the Inter-American Development Bank (IDB) called the Crossroads Fund to incentivize countries to pursue investment in cross-border transport and logistics integration.

Our Relationship with the Western Hemisphere by the Numbers:

  • The Western Hemisphere is the destination for approximately 42 percent of U.S. exports, more than any other region across the globe. 
  • Since 2009, U.S.goods exports to the Western Hemisphere increased by over $200 billion, or 46%, to nearly $650 billion, supporting nearly 4 million U.S. jobs in 2011.
  • U.S. exports to the Western Hemisphere grew by more than 17 percent between 2010 and 2011, surpassing growth in exports to every part of the world, except Africa. 
  • The United States has free trade agreements with twelve Western Hemisphere countries, more than with any other region in the world. 
  • The North American Free Trade Agreement created the largest free trade area in the world, linking 457 million people producing $18 trillion worth of goods and services. 
  • Canada and Mexico each buy more goods from the United States than China; Canada buys more than the European Union.  In 2011, U.S. two-way trade with Canada and Mexico reached $1.06 trillion.
  • The United States accounted for approximately one-third of all foreign direct investment (FDI) flows into Latin America and the Caribbean over the last decade, and remains the largest individual source of foreign investment in the region. 
  • U.S. FDI in Canada is above $300 billion, and accounts for half of all Canada’s FDI.  The United States also currently has Open Skies agreements with 17 countries, vastly expanding international passenger and cargo flights to and from the United States. 

Building Vibrant Communities

At the same time, the United States is working actively with countries in the region to advance policies that promote economic diversification, encourage workforce formalization, and foster higher productivity.  The Americas Competitiveness Forum and the Pathways to Prosperity initiative provide structures for such a hemispheric dialogue where governments, private sector leaders, and academia are able to collaborate to address challenges to broad-based prosperity, and to identify opportunities that empower small businesses, facilitate trade, eliminate barriers for women entrepreneurs, and promote sustainable practices and environmental cooperation.

The Presidential Policy Directive on Global Development articulates a new model of development cooperation and underpins long-term commitment by the United States to promote security, strengthen democracy, and support broad-based economic growth in the region.

The work of the Millennium Challenge Corporation, as well as efforts under the Open Government Partnership initiative and the Partnership for Growth are part of this new engagement, where countries work together and jointly shared the responsibility for results.

The Feed the Future initiative is designed to improve the food security of the poorest communities in the region.  The Feed the Future strategy in Guatemala, Honduras, and Haiti supports country-driven approaches to address the root causes of hunger and poverty and forge long-term solutions to chronic food insecurity and under-nutrition.  Feed the Future assisted 12,375 small-scale Guatemalan producers in the production and marketing of horticulture, coffee products, timber and non-timber forest products, and sustainable tourism services contributing to $17.8 million in sales and 5,651 jobs.  In Haiti, rice yields increased by 64 percent, corn yields by 338 percent, bean crops by 97 percent, and plantain outputs by 21 percent for beneficiary farmers participating in USG programs.

Family and Friend Connections

From a population of approximately 313 million, over 50 million people of Latin American and Caribbean heritage live in the United States, constituting the United States’ largest ethnic population. 

Our Connections with the Western Hemisphere by the Numbers:

  • Members of the Latin American and Caribbean diaspora sent $61 billion in remittances to their countries of origin in 2011.  About 75 percent of these remittances come from family and friends in the United States. 
  • Remittances represent a tool for poverty alleviation and a vehicle for improving the quality of life for millions of families, in addition to serving as a gateway to financial services for those with inadequate access to them.
  • In seven countries in Latin America and the Caribbean, remittances still represent more than ten percent of GDP.  To ensure greater transparency for remittance transfers, the Consumer Financial Protection Bureau adopted new consumer protections that will provide clarity, inform consumer decisions, and instill consumer confidence on both ends of a remittance transfer. 

The White House

Office of the Press Secretary

For Immediate Release
April 13, 2012

Fact Sheet: Small Business Network of the Americas

President Obama has noted that “small businesses are the backbone of our economy and the cornerstones of our Nation’s promise.”  The same is true throughout the Western Hemisphere, where the small business sector plays a critical role in job creation and broad-based economic growth.  

Announced today in Tampa, the Small Business Network of the Americas (SBNA) will promote and support job creation in small and medium-sized enterprises (SMEs) and encourage greater trade among these businesses throughout the Western Hemisphere.  The SBNA will expand the pool of available resources for business development, enhance access to business counseling services for entrepreneurs, and foster SME growth by providing a framework to connect businesses across the hemisphere. 

To achieve these goals, SBNA will promote progress and strengthen networks by:

  • Expanding the successful Small Business Development Center (SBDC) model to other countries in the hemisphere:  SBDCs provide individualized, long-term business counseling, group training, and market research services.  The United States currently has nearly 1,000 SBDC service locations throughout the country.  Other examples include the Mexican Association of SBDCs, which has 104 SBDCs serving 32,000 businesses annually throughout Mexico.  El Salvador also has 10 SBDCs operating to-date, planning 4 more to cover each state, and an international trade specialty SBDC this year.
  • Connecting the more than 2,000 SBDCs and similar SME support centers throughout the hemisphere:  These centers already serve approximately two million small business clients, and we will continue to work to encourage new trading partners to join this network.  SBDCs helped created nearly 20,000 jobs in the United States in FY 2011.
  • Providing matchmaking services and export counseling through U.S. Export Assistance Centers (USEACs) and other platforms to SBDC clients seeking business partners in other countries.  Through ongoing referrals, SBDCs connect export-ready SME clients with the USEACs to receive in-depth export counseling and leverage the Department of Commerce’s Domestic and Foreign Commerce Service network of export and industry specialists located in more than 100 U.S. cities and 70 countries worldwide to provide counseling and assist small business export their products and services.
  • Enhancing the use and availability of virtual trade platforms like SBDCglobal.com:  These platforms help SBDCs expand their international relationships, allowing SME clients to access information on buyers and sellers in other countries.

The President also pledged to encourage diaspora entrepreneurship in the United States by:

  • Leveraging the dynamism of diaspora communities through the Latino American Idea Partnership (La IdEA) and the Caribbean Idea Marketplace (CIM) business competition platforms:  These competitions will award grants to the most transformative ideas for business and investment and promote the development of business relationships among entrepreneurs in the United States, Latin America, and the Caribbean.
  • Providing working capital grants in association with La IdEA and CIM partners to competition winners and up to $150 million in financing through the Overseas Private Investment Corporation for eligible applicants:  These grants will allow diaspora entrepreneurs to bring their international business plans to fruition.

Finally, the President reiterated his commitment to expanding available financing resources for SMEs by:

  • Providing up to $100 million in loan guarantees to encourage financial institutions in the region to increase lending to SBDC clients and other SMEs:  These loan guarantees will allow SMEs in Latin America and the Caribbean access to finance that is critical to expanded growth and job creation.
  • Catalyzing greater private sector lending to SMEs to address the estimated $160-190 billion credit gap these businesses face in Latin America and the Caribbean:  The U.S. government will work to promote secured lending in the region, as well as partnerships with governments to provide co-guarantees to lenders serving the SME sector, as part of an effort to secure increased access to capital for SMEs.

The White House

Office of the Press Secretary

For Immediate Release
April 12, 2012

Statement by the Press Secretary on North Korea’s Missile Launch

Despite the failure of its attempted missile launch, North Korea’s provocative action threatens regional security, violates international law and contravenes its own recent commitments. While this action is not surprising given North Korea’s pattern of aggressive behavior, any missile activity by North Korea is of concern to the international community. The United States remains vigilant in the face of North Korean provocations, and is fully committed to the security of our allies in the region. 

The President has been clear that he is prepared to engage constructively with North Korea.  However, he has also insisted that North Korea live up to its own commitments, adhere to its international obligations and deal peacefully with its neighbors. 

North Korea is only further isolating itself by engaging in provocative acts, and is wasting its money on weapons and propaganda displays while the North Korean people go hungry. North Korea's long-standing development of missiles and pursuit of nuclear weapons have not brought it security – and never will. North Korea will only show strength and find security by abiding by international law, living up to its obligations, and by working to feed its citizens, to educate its children, and to win the trust of its neighbors.

The White House

Office of the Press Secretary

For Immediate Release
April 12, 2012

Readout of the President’s Video Teleconference with President Sarkozy of France

Continuing their close consultations on global issues of common concern, the President and French President Sarkozy held a video teleconference today to discuss Syria, Iran, and stability in the oil markets.  On Syria, the President and President Sarkozy condemned the violence perpetrated by the regime against its own people and noted that the regime had yet to fully implement the agreement negotiated with Kofi Annan pursuant to the Annan plan.  The two leaders called for the regime to fully implement the Annan plan, noting that the international community would judge the regime by its actions and not its words.  On Iran, both leaders expressed hope that Iran would take advantage of the upcoming P5+1 talks to address the international community’s concerns about the Iranian nuclear program.  The President and President Sarkozy agreed to continue increasing the pressure on the Iranian regime through sanctions and other measures if Tehran remains unresponsive.  Finally, the President and President Sarkozy agreed to continue their consultations about the tightness in global oil markets.

The White House

Office of the Press Secretary

For Immediate Release
April 12, 2012

We Can’t Wait: Protecting Taxpayer Dollars from Wasteful Payment Errors and Fraud

Today, as families across the country are filing their taxes, the Obama Administration is launching a new online tool that will enable the Federal government to prevent the waste of taxpayer dollars on improper payments. The Do Not Pay tool will prevent the kind of payment errors that have occurred in government for too long,  such as sending funds out to dead people or entering into contracts with companies who have attempted to defraud the government. In his 2013 Budget, the President put forward a series of proposals that would save taxpayers $102 billion over the next decade by reducing payment errors and improving collection of outstanding debts owed to the government. These included provisions the President has submitted in multiple budgets and yet Congress has still not taken action. In the meantime, the Administration has been hard at work doing what it can without legislation, creating the Do Not Pay portal at the Department of the Treasury. The new tool brings together multiple government databases into one simple check point, and deploys advanced data matching and analytics to identify and stop wasteful errors before they happen.

President Obama said, “The American people expect their public servants to be good stewards of their tax dollars.  That’s why my Administration has made every effort to cut waste, from stopping payments to the deceased to cracking down on fraud.  I urge Congress to join these efforts by passing the reforms I put forward in my budget.”

Acting Director of the Office of Management and Budget Jeffrey Zients said, “As families across the country pay their taxes this week, we are committed to continuing an aggressive campaign to stop misdirected and erroneous payments that represent an unacceptable waste of these tax dollars. With advances in technology and data analytics, we are at a real turning point in this fight and the Do Not Pay tool will allow us to stop more of these payments before they occur.”

From the very beginning of this Administration, the President has made it a top priority to reduce improper payments, a longstanding challenge that occurs when funds go to the wrong person, in the wrong amount, or for the wrong reason.  When the President took office, the government-wide improper payment rate was on the rise, reaching an all-time high of 5.4 percent in 2009.  In response, the President has taken aggressive steps, including issuing two Presidential memoranda (which can be found here and here) on this subject, an Executive Order calling for reducing improper payments, and signing into law the Improper Payments Elimination and Recovery Act of 2010.  Moreover, the President and the Vice President have made improper payments a central focus of the Administration’s Campaign to Cut Waste.

As a result of the Administration’s reform efforts, the government-wide improper payment rate decreased to 4.7 percent last year, a sharp drop from the 2009 error rate of 5.4 percent.  Without such a steep decline in the error rate, the Government would have made an additional $20 billion in improper payments in 2010 and 2011 combined. 

Today, the Administration is also reporting that agencies have already exceeded the goal the President set in 2010 to recapture $2 billion in overpayments to contractors by the end of this fiscal year.  The Administration was able to surpass this goal nearly 6 months ahead of time, due in large part to hundreds of millions of dollars in recoveries from the Medicare Fee-for-Service Recovery Audit Contractor (RAC) program.

To help drive this continued success, OMB is issuing a memorandum today to all agencies directing them to use the new Do Not Pay tool.  Agencies such as the Treasury Department, the Government Printing Office, and the National Archives Records Administration are already using this solution, and others such as the Department of Agriculture, the Department of Veterans Affairs, the Small Business Administration and the Department of Labor will be on board in the coming months.  By the spring of next year, every major government agency will be leveraging the Do Not Pay solution to combat improper payments and cut down on government waste.  In conjunction with other innovative tools such as those pioneered by the Recovery Accountability and Transparency Board under the Recovery Act, the Do Not Pay solution represents critical progress in rooting out waste, fraud and abuse and protecting taxpayer dollars.

Additional information about improper payments is available at PaymentAccuracy.gov.