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Mr. Carney:
I'm sorry, Mr. Knoller,
did you have a request?
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The Press:
You bet.
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(laughter)
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Any chance your briefing
might be interrupted by a
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joint appearance?
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Mr. Carney:
Uhh -- no.
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(laughter)
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The Press:
Why not the historical
record, seriously --
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I mean, to view them together?
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We've seen other Presidents
and those that they defeated in
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presidential election
contests together.
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Why not something for
the historical record --
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visually or --
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Mr. Carney:
There's at least some chance
we'll release a photograph,
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which will go into
the historical record.
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It's a private lunch, and we're
going to leave it at that.
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The Press:
What's for lunch?
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The Press:
Yes, lunch.
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Mr. Carney:
I haven't looked at the menu,
but I bet it was -- and is --
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quite tasty, because they know
how to prepare very fine meals.
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The Press:
Is that a definite on stills?
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Mr. Carney:
Let me look into that.
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I don't know yet.
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I'm pretty sure we'll
release something.
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The Press:
Any plans for him to come
to the stakeout at all?
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Mr. Carney:
You'd have to ask his assistants
or whoever might have an answer
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for you on that because
that's not our decision.
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And since we actually
never said it,
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we're referring to the fact
that the President of the United
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States is having lunch as we
speak with Governor Romney.
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And I have, and will have,
no readout of that lunch,
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since it's ongoing,
from here today.
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I have no other
announcements to make.
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So I will go straight
to your questions.
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The Press:
One more on this, Jay -- did
the White House send a car for
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Mitt Romney?
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Mr. Carney:
I'm not aware that we did,
but I don't know the answer to
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that question.
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The Press:
Speaker Boehner said today
that there's been no substantive
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progress made between
Republicans and the White House
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over the past two weeks on
fiscal cliff negotiations.
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Is that an assessment that
the White House agrees with,
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that there's been no progress?
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Mr. Carney:
I'll say a couple
things on that.
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In the summer of 2011, there was
the possibility of reaching what
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was then called a grand bargain,
and the obstacle that prevented
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that was, in the end, the
refusal of Republicans to go
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along with the fundamental
principle that a deficit
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reduction needed balance and
it needed to include real,
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tangible revenues; that
the wealthy ought to pay a
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little bit more.
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Since that time, and I think
in an accelerated sense,
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in the last several weeks,
we have seen progress.
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We have seen that obstacle
partly overcome because
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Republicans have acknowledged
that revenue must be part of a
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balanced approach to
deficit reduction,
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and that that revenue must
come from those who can
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afford it most.
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We're not there yet because the
remaining obstacle here is --
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on the revenue side,
is that Republicans --
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at least Republican leaders --
have yet to accept the essential
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fact that in order to achieve
the kinds of revenue that are
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necessary for a balanced
proposal, balanced plan,
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rates on the top 2%, the
wealthiest earners in this
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country, are going up.
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They have to go up.
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The President will not sign any
legislation that extends the
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Bush-era tax cuts for top
earners in this country.
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This should not be news
to anyone on Capitol Hill.
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It is certainly not news to
anyone in America who was not in
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a coma during the
campaign season,
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because this was an
explicit, repeated,
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and high-profile debate
throughout the campaign.
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And then on the spending side,
the President has put forward,
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in September of 2011 with his
proposal to the so-called super
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committee, in his budget
in February of 2012,
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very specific spending cuts,
including savings from health
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care entitlement programs.
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So what we haven't seen yet from
Republicans is any movement,
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at least from
Republican leaders,
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on the fundamental second stage
of the obstacle that they need
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to clear, which is an
acknowledgement that you cannot
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achieve the revenues
unless rates go up.
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Rates have to go up for wage
earners, even as we absolutely,
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essentially, must sign into
law tax cuts for 98% of the
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American people.
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The Press:
So are you saying that there
is progress being made in the
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rhetoric or in perhaps the
attitude of Republicans,
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but not actually in the
negotiations themselves?
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Mr. Carney:
Look, I think that we have
seen some important signs of
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recognition of what needs to be
done, but we aren't there yet.
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Once the acknowledgement is made
that rates need to be part of
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this, I don't think it's
very difficult to --
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or all that difficult to achieve
the kind of balanced compromise
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that the President seeks and
that the American people seek,
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because there are specific cuts
already on the table that would
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make up -- that would be the
foundation of a discussion about
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the spending side
of this equation.
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So we remain optimistic
that this can get done.
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But the President's
principles are clear.
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And it's not like we didn't have
this discussion and debate for
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the past year; we did --
in fact, beyond that.
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And I understand that the
position that some held that
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rates would never go up, that
it was more important that
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millionaires and billionaires
get a tax cut than we get a
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comprehensive deal for the sake
and health of our economy --
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that that was a
position that was held.
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But it's not plausible anymore.
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And the American people have
spoken and the President has
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been very clear.
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The Press:
One last thing on this.
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You say that the President
has put forward specific
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spending cuts.
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Boehner said again this morning
that they haven't seen any plan.
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Where do they fall on this when
they actually talk in person,
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what they did last night or
what they did on Saturday?
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Has the President said that he's
put forward spending cuts and he
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doesn't plan to
put forth any more?
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Mr. Carney:
I'm glad you asked.
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This is available not just here
but to everyone in the world who
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has an Internet connection.
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And I know things are done the
old-fashioned way sometimes on
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Capitol Hill, but I believe they
have electricity and Internet
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connections and
they can get this.
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This is an 85-page plan
that is very detailed --
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sorry, maybe 65, going on 70
-- that's very detailed and it
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outlines -- it's the President's
Plan for Economic Growth and
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Deficit Reduction that was
submitted in September of 2011.
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It is of a piece with his
budget that he put forward in
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February 2012.
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And in terms of where we are
missing specifics is anything
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specific, politically feasible,
or substantial from the
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Republican side on revenues.
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And while there has been
progress of sorts on that
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subject, more needs to be done.
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But let me just say that we
remain optimistic that we
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can get there.
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It's important for the American
people to know that we
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can get there.
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The President has made
clear from the start that he
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understands that he will not get
every item in this proposal or
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in his budget proposal, that
compromise requires tough
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choices from all sides.
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He's acknowledged that up front.
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And in this proposal and others,
he has made clear in great
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specificity the kinds of tough
choices he's willing to make.
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And he is willing to make more.
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But a fundamental principle
here that was much discussed and
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debated during the campaign is
that broad deficit reduction on
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the scale that is essential
requires asking the wealthiest
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to pay more, and it requires
-- the only way to get the kind
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00:08:18,767 --> 00:08:22,100
of revenue that we need in order
to achieve that balance is for
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rates to go up for the
wealthiest earners in America
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even as we ensure that tax cuts
are extended for 98% of the
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American people.
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The Press:
Jay, does the President have
plans to meet or speak with
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Speaker Boehner?
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If not, at what point would that
direct contact be appropriate?
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Mr. Carney:
Well, I think you saw reported
that they spoke last night.
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So I haven't got a new
engagement to announce today.
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They spoke last night, they
spoke over the weekend,
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they met prior to the
President's trip to Asia,
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and I'm sure they
will speak again.
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But I don't have a specific
timeframe for that.
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As you know, Secretary Geithner
and Rob Nabors from the White
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House are up on Capitol Hill
right now having meetings on
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this subject, and that
process will continue.
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And the process that the
President has been engaged in
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all week, in addition to
the phone calls he's had,
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of engaging the broader American
community beyond the halls of
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the Capitol is ongoing.
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He's traveling to Pennsylvania
tomorrow, as you know,
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to visit a company that would be
affected adversely if Congress
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the House were to decide not to
extend tax cuts for the middle
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class -- because that is a very
important part of this debate.
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And it's very important --
contrary to suggestions that we
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heard a few days
ago in this room --
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that the President of the United
States engage with the American
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people about these critical
debates that affect
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their future.
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And it's entirely appropriate
that leaders on Capitol Hill do
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the same thing.
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It's really, really important.
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It's amazing if you look at some
of the data out there about what
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the American people
know about this debate.
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It's quite substantial.
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And they made clear -- at
least a majority of them --
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what path they prefer their
leaders in Washington take,
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and that's a path of both
compromise but a path
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of balance.
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And that's the path the
President has proposed,
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and that's the path
he's traveling in these
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days and weeks.
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The Press:
One of the things Speaker
Boehner said this morning was
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that any increase in the debt
limit would have to be matched
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by or exceeded by
further spending cuts.
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That's the same kind of
rhetoric that we heard in 2011.
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Are you concerned that that is
being used as leverage again in
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00:10:47,000 --> 00:10:48,700
a way that could be damaging
to the United States?
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Mr. Carney:
Well, that's a good question.
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I was struck by that myself.
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I'd say two things about that.
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Asking that a political price be
paid in order for Congress to do
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its job to ensure that the
United States of America pays
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its bills and does not default
for the first time in its
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history is deeply irresponsible.
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It was deeply irresponsible
in the summer of 2011,
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and it would be deeply
irresponsible if we were to see
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that kind of
approach taken again.
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The President absolutely
expects Congress to do its job.
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And one of the jobs that
Congress has is to make sure
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00:11:32,734 --> 00:11:35,033
that the United States
government pays its bills.
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00:11:35,033 --> 00:11:39,233
As the greatest economy and
greatest country on Earth,
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00:11:39,233 --> 00:11:42,199
we pay our bills.
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The President believes that it
is entirely appropriate that
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Congress take action on this as
part of an end-of-the-year deal,
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00:11:51,600 --> 00:11:54,867
if you will, on the
issues that confront us --
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00:11:54,867 --> 00:11:57,400
the fiscal cliff and
broader deficit reduction.
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It would be a terrible mistake
and I think would earn deserved
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00:12:05,467 --> 00:12:08,467
approbation from the American
public if Congress were to try
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to travel that path again.
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The harm done was done mostly
to the American middle class.
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We had our economy downgraded;
we had consumer confidence
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00:12:21,633 --> 00:12:26,033
plunge all because of this
brinksmanship that is entirely
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00:12:26,033 --> 00:12:29,767
inappropriate, and we hope
we won't see that again.
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The Press:
So you're looking for an
agreement to raise the debt
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00:12:31,400 --> 00:12:33,900
ceiling as part of the
negotiations before the end
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00:12:33,900 --> 00:12:36,632
of the year?
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00:12:36,633 --> 00:12:42,467
Mr. Carney:
In whatever manner it comes,
it should be done soon and
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without drama.
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But we cannot have the kind of
situation where there was harm
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done even with the
threat of default.
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There was significant
damage done to our economy,
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00:12:55,900 --> 00:13:00,567
significant damage done to
consumer confidence simply when
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00:13:00,567 --> 00:13:06,233
the prospect of default
was in the air in 2011,
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00:13:06,233 --> 00:13:09,199
and we shouldn't allow
that to happen again.
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00:13:09,200 --> 00:13:10,567
Let me move around a little bit.
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Yes, sir.
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00:13:11,300 --> 00:13:12,733
The Press:
Thank you, Jay.
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00:13:12,734 --> 00:13:15,467
South Korean newspapers
yesterday were reporting that
241
00:13:15,467 --> 00:13:19,300
back in August there were senior
members of the NSC that flew
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00:13:19,300 --> 00:13:23,567
into Pyongyang and were meeting
with the North Koreans to
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00:13:23,567 --> 00:13:25,800
prevent them from doing any
provocative actions before the
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00:13:25,800 --> 00:13:27,900
elections in the U.S.
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00:13:27,900 --> 00:13:28,834
What can you --
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00:13:28,834 --> 00:13:31,632
Mr. Carney:
I haven't seen those reports,
and they don't ring true to me,
247
00:13:31,633 --> 00:13:32,800
but I'll have to
take your question.
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00:13:32,800 --> 00:13:34,900
The Press:
Back in October, there were
similar reports out of North
249
00:13:34,900 --> 00:13:38,967
Korea that they met with
members of the NSC and the CIA.
250
00:13:38,967 --> 00:13:40,900
I mean North Koreans
and South Koreans --
251
00:13:40,900 --> 00:13:45,699
Mr. Carney:
You're citing reports I haven't
seen sourced to places I am not
252
00:13:45,700 --> 00:13:48,166
familiar with, so -- I'm
not sure what the sourcing
253
00:13:48,166 --> 00:13:49,166
is on that.
254
00:13:49,166 --> 00:13:50,033
I would have to
take your question.
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00:13:50,033 --> 00:13:53,033
That's not a question I can
answer because it is news to me.
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00:13:53,033 --> 00:13:55,233
The Press:
The only place this meeting
seems to be a secret is here in
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00:13:55,233 --> 00:13:57,333
the U.S., which gives the
impression that the President
258
00:13:57,333 --> 00:13:59,867
has some sort of
domestic political
259
00:13:59,867 --> 00:14:00,967
consideration or fear --
260
00:14:00,967 --> 00:14:02,834
Mr. Carney:
I think you're making an
editorial comment based on an
261
00:14:02,834 --> 00:14:05,266
article I haven't seen, so I'm
happy to take the question.
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00:14:05,266 --> 00:14:07,567
The Press:
Would you take the question and
include it in the transcript?
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00:14:07,567 --> 00:14:10,233
Mr. Carney:
I will take the question
and see what we find out.
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00:14:10,233 --> 00:14:11,065
Yes.
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00:14:11,066 --> 00:14:12,266
The Press:
Jay, thanks.
266
00:14:12,266 --> 00:14:15,099
Politico has characterized the
conversation between President
267
00:14:15,100 --> 00:14:18,333
Obama and House Speaker John
Boehner last night as "curt."
268
00:14:18,333 --> 00:14:20,199
How would you characterize
the conversation?
269
00:14:20,200 --> 00:14:21,467
Is that accurate?
270
00:14:21,467 --> 00:14:26,734
Mr. Carney:
Twenty-eight minutes
long is my understanding.
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00:14:26,734 --> 00:14:32,133
It was -- I would actually echo
what Speaker Boehner said in his
272
00:14:32,133 --> 00:14:36,567
remarks earlier today, which is
that it was frank and direct and
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00:14:36,567 --> 00:14:38,200
a good conversation.
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00:14:38,200 --> 00:14:40,066
I think the President would
agree with that characterization
275
00:14:40,066 --> 00:14:41,700
-- and it was also
28 minutes long.
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00:14:41,700 --> 00:14:46,266
The Press:
During the debt ceiling fight,
President Obama was criticized
277
00:14:46,266 --> 00:14:51,632
for not reaching out directly
enough to congressional leaders.
278
00:14:51,633 --> 00:14:52,367
Is his strategy --
279
00:14:52,367 --> 00:14:53,132
Mr. Carney:
During which fight?
280
00:14:53,133 --> 00:14:54,867
The Press:
During the debt ceiling debate.
281
00:14:54,867 --> 00:14:56,900
Mr. Carney:
My God, they practically lived
together down the hall here.
282
00:14:56,900 --> 00:14:58,500
I don't think that's the
case, not during the debt
283
00:14:58,500 --> 00:14:59,367
ceiling crisis.
284
00:14:59,367 --> 00:15:02,400
The Press:
People said that there were
not enough meetings between the
285
00:15:02,400 --> 00:15:03,266
President and --
286
00:15:03,266 --> 00:15:06,967
Mr. Carney:
As I recall, there was -- that
doesn't ring true from the debt
287
00:15:06,967 --> 00:15:07,834
ceiling fight.
288
00:15:07,834 --> 00:15:08,632
I think there were
a lot of meetings,
289
00:15:08,633 --> 00:15:14,400
a lot of conversations, a lot of
later reported on meetings that
290
00:15:14,400 --> 00:15:15,967
weren't even public at the time.
291
00:15:15,967 --> 00:15:17,533
The Press:
But I'm talking about
one-on-one conversations.
292
00:15:17,533 --> 00:15:18,400
Is his strategy any different?
293
00:15:18,400 --> 00:15:19,733
Mr. Carney:
So am I.
294
00:15:19,734 --> 00:15:22,066
And they were numerous
during the debt ceiling.
295
00:15:22,066 --> 00:15:25,667
What I often get asked about and
have been asked about subsequent
296
00:15:25,667 --> 00:15:29,800
to that was during the payroll
tax cut discussion debate at the
297
00:15:29,800 --> 00:15:33,367
end of last year, and during the
debate over whether or not we
298
00:15:33,367 --> 00:15:38,567
should allow rates for student
loans to rise dramatically --
299
00:15:38,567 --> 00:15:43,233
there were calls mostly from
colleagues of yours here in this
300
00:15:43,233 --> 00:15:45,934
room for more and more meetings
between the President and the
301
00:15:45,934 --> 00:15:47,033
Speaker to resolve these issues.
302
00:15:47,033 --> 00:15:49,700
And of course, there were
conversations between the White
303
00:15:49,700 --> 00:15:51,467
House and the Capitol in
resolving these issues.
304
00:15:51,467 --> 00:15:55,734
But the President also,
very appropriately,
305
00:15:55,734 --> 00:15:59,100
went out into the country to
make sure that the American
306
00:15:59,100 --> 00:16:02,667
people were engaged in this and
that their voices were heard in
307
00:16:02,667 --> 00:16:03,667
this kind of debate.
308
00:16:03,667 --> 00:16:05,667
And that's what
he's doing again --
309
00:16:05,667 --> 00:16:07,467
because that's how it should be.
310
00:16:07,467 --> 00:16:09,800
The Press:
In addition to going out --
going to Pennsylvania tomorrow,
311
00:16:09,800 --> 00:16:14,000
is part of his strategy to be
in regular contact with Speaker
312
00:16:14,000 --> 00:16:16,667
Boehner, as he was last night?
313
00:16:16,667 --> 00:16:20,367
Mr. Carney:
It has been less than 24
hours since they spoke.
314
00:16:20,367 --> 00:16:22,834
Prior to that it was
five days, four days,
315
00:16:22,834 --> 00:16:26,032
since Saturday I
think they spoke.
316
00:16:26,033 --> 00:16:30,066
In between that conversation
and the meeting they had,
317
00:16:30,066 --> 00:16:33,133
the President traveled to three
countries in Asia and there was
318
00:16:33,133 --> 00:16:35,467
a major American holiday.
319
00:16:35,467 --> 00:16:38,300
So I'd say that's
pretty regular contact.
320
00:16:38,300 --> 00:16:40,867
The Press:
So that is my question -- is
that a part of his strategy?
321
00:16:40,867 --> 00:16:43,000
Mr. Carney:
I don't have a --
it's not a strategy.
322
00:16:43,000 --> 00:16:51,066
The President's strategy is to
reach a deal with Congress that
323
00:16:51,066 --> 00:16:53,800
embodies the principles
that he has long espoused,
324
00:16:53,800 --> 00:16:57,300
which is to reduce our deficit
in a responsible way that allows
325
00:16:57,300 --> 00:16:59,500
the economy to continue
to grow and create jobs;
326
00:16:59,500 --> 00:17:04,300
that achieves that deficit
reduction through broad balance
327
00:17:04,300 --> 00:17:08,599
that includes spending cuts,
entitlement reform savings and
328
00:17:08,599 --> 00:17:12,332
revenues that come from
those who can afford it most,
329
00:17:12,333 --> 00:17:15,767
the top 2% of earners
in this country.
330
00:17:15,767 --> 00:17:18,266
And he has put
forward this proposal.
331
00:17:18,266 --> 00:17:20,734
He has put forward his budget.
332
00:17:20,733 --> 00:17:24,532
And so what his specific ideas
are on these issues are well
333
00:17:24,532 --> 00:17:26,532
known and documented.
334
00:17:27,967 --> 00:17:31,600
But he has also said, as he did
in the aftermath of the election
335
00:17:31,600 --> 00:17:36,199
to you, that he understands that
tough choices need to be made
336
00:17:36,200 --> 00:17:40,000
and he's, as he
has demonstrated,
337
00:17:40,000 --> 00:17:41,533
willing to make them.
338
00:17:41,533 --> 00:17:46,000
But there are principles
here that he will not alter,
339
00:17:46,000 --> 00:17:51,300
and one of them is that revenues
from top earners have to be part
340
00:17:51,300 --> 00:17:52,433
of this deal.
341
00:17:52,433 --> 00:17:54,667
That's what the
American people believe.
342
00:17:54,667 --> 00:17:56,600
It is what he believes.
343
00:17:56,600 --> 00:17:59,300
It is what we have seen
increasingly Republicans
344
00:17:59,300 --> 00:18:02,899
acknowledge, including --
increasingly, we've seen
345
00:18:02,900 --> 00:18:04,000
Republicans acknowledge that.
346
00:18:04,000 --> 00:18:07,900
We've seen business
leaders acknowledge that,
347
00:18:07,900 --> 00:18:12,433
because it's mathematically
self-evident.
348
00:18:12,433 --> 00:18:15,400
So we know where we need to go.
349
00:18:15,400 --> 00:18:19,867
And the President looks forward
to continuing the discussion and
350
00:18:19,867 --> 00:18:22,466
reaching a deal, a deal that's
good for the American people and
351
00:18:22,467 --> 00:18:24,033
good for the economy.
352
00:18:24,033 --> 00:18:27,000
The Press:
And one more on the lunch that
President Obama is having with
353
00:18:27,000 --> 00:18:28,467
Mitt Romney.
354
00:18:28,467 --> 00:18:31,200
One of Romney's former chief
strategists, Stuart Stevens,
355
00:18:31,200 --> 00:18:35,066
wrote an op-ed in which he
essentially suggests that Romney
356
00:18:35,066 --> 00:18:38,033
lost because minorities
overwhelmingly voted for
357
00:18:38,033 --> 00:18:39,367
President Obama.
358
00:18:39,367 --> 00:18:43,100
Does that op-ed -- do the
comments that Romney made in any
359
00:18:43,100 --> 00:18:48,199
way cloud or set a certain
backdrop to this lunch?
360
00:18:48,200 --> 00:18:50,200
Mr. Carney:
No, first of all.
361
00:18:50,200 --> 00:18:54,100
I think campaigns
are a tough business.
362
00:18:54,100 --> 00:18:57,632
Debates are sharp, and in this
case they were very substantive
363
00:18:57,633 --> 00:19:00,400
and important.
364
00:19:00,400 --> 00:19:04,967
There is I think an event up
in "Haavad," in Cambridge,
365
00:19:04,967 --> 00:19:08,834
tonight where a lot of these
issues will be discussed by the
366
00:19:08,834 --> 00:19:09,700
two campaigns --
367
00:19:09,700 --> 00:19:10,600
The Press:
Where is that?
368
00:19:10,600 --> 00:19:11,600
(laughter)
369
00:19:11,600 --> 00:19:14,332
Mr. Carney:
I was just trying it out.
370
00:19:14,333 --> 00:19:16,934
The Press:
Try "park" and
"quarter" and "water."
371
00:19:16,934 --> 00:19:20,734
Mr. Carney:
Paak the car, Haavad Yard.
372
00:19:20,734 --> 00:19:22,166
But seriously, I think
you know about this --
373
00:19:22,166 --> 00:19:25,433
the top campaign officials from
both sides have traditionally
374
00:19:25,433 --> 00:19:29,266
gotten together and had a
discussion about what transpired
375
00:19:29,266 --> 00:19:31,266
at the campaign strategy
level, so that --
376
00:19:31,266 --> 00:19:33,734
I'm sure we'll all take an
interest in seeing that.
377
00:19:33,734 --> 00:19:37,166
I think there's been a lot of
people who have effectively
378
00:19:37,166 --> 00:19:43,567
refuted the assertion
you made about this race.
379
00:19:43,567 --> 00:19:47,834
I mean, I think I don't
need to do that from here.
380
00:19:47,834 --> 00:19:48,533
Ed.
381
00:19:48,533 --> 00:19:50,166
The Press:
Jay, you mentioned the budget.
382
00:19:50,166 --> 00:19:52,233
Republicans point out it was
voted down unanimously and
383
00:19:52,233 --> 00:19:55,966
hasn't moved forward, but you
quite correctly note there are
384
00:19:55,967 --> 00:19:56,967
spending cuts in there.
385
00:19:56,967 --> 00:19:59,300
I guess my question would
be, can you also hold up that
386
00:19:59,300 --> 00:20:01,332
budget, look in
the camera and say,
387
00:20:01,333 --> 00:20:04,934
dear fellow Democrats on
Capitol Hill, vote for,
388
00:20:04,934 --> 00:20:08,600
include some of these spending
cuts in this deal to avoid the
389
00:20:08,600 --> 00:20:09,600
fiscal cliff?
390
00:20:09,600 --> 00:20:10,833
Because that's not what
they're doing right now.
391
00:20:10,834 --> 00:20:12,834
Should they include those?
392
00:20:12,834 --> 00:20:15,166
Mr. Carney:
Yes.
393
00:20:15,166 --> 00:20:19,633
And I think that -- and I know
that Democrats accept that there
394
00:20:19,633 --> 00:20:24,734
have -- that this has to be a
balanced package that includes
395
00:20:24,734 --> 00:20:27,899
revenues and cuts -- and
spending cuts, and --
396
00:20:27,900 --> 00:20:31,300
The Press:
But Senator Durbin said
entitlement cuts should not be
397
00:20:31,300 --> 00:20:31,899
part of this.
398
00:20:31,900 --> 00:20:32,633
So I just want to --
399
00:20:32,633 --> 00:20:36,633
Mr. Carney:
No, "this" is a loose, even
though short, word, which is --
400
00:20:36,633 --> 00:20:38,633
The Press:
He said even as the
fiscal cliff --
401
00:20:38,633 --> 00:20:40,734
Mr. Carney:
And I think everybody
understands that there are two
402
00:20:40,734 --> 00:20:42,466
parts, two pieces of this.
403
00:20:42,467 --> 00:20:49,433
We have the deadlines bearing
down on us related to automatic
404
00:20:49,433 --> 00:20:51,967
tax hikes that would occur
and automatic across-the-board
405
00:20:51,967 --> 00:20:55,700
spending cuts that would occur
if some sort of agreement isn't
406
00:20:55,700 --> 00:20:57,400
reached on that issue.
407
00:20:57,400 --> 00:21:00,967
There is the broader issue,
which reflects the President's
408
00:21:00,967 --> 00:21:04,100
longstanding interest and
oft-expressed interest in a big
409
00:21:04,100 --> 00:21:09,199
deal that achieves broadly $4
trillion in cuts and reduction
410
00:21:09,200 --> 00:21:11,300
that he believes ought
to be part of this.
411
00:21:11,300 --> 00:21:16,567
In that broader
context, absolutely,
412
00:21:16,567 --> 00:21:19,567
savings from health care
entitlements need to be and will
413
00:21:19,567 --> 00:21:24,433
be part of it; other savings
need to and will be part of it.
414
00:21:24,433 --> 00:21:27,367
The President has already signed
into law over a trillion dollars
415
00:21:27,367 --> 00:21:29,033
in non-defense
discretionary spending cuts.
416
00:21:29,033 --> 00:21:30,567
The Press:
But when he said
yesterday, "next year,"
417
00:21:30,567 --> 00:21:32,900
you're saying clearly
that this year --
418
00:21:32,900 --> 00:21:35,867
Mr. Carney:
I heard Speaker Boehner talk
today about the framework that
419
00:21:35,867 --> 00:21:37,533
they -- I'm just
using his words,
420
00:21:37,533 --> 00:21:41,065
I'm not reading out paper that
they give us or meetings that we
421
00:21:41,066 --> 00:21:43,100
had with them, but
just citing him --
422
00:21:43,100 --> 00:21:45,332
he talked about a framework
and a two-stage process.
423
00:21:45,333 --> 00:21:49,533
And that may be
how it works out.
424
00:21:49,533 --> 00:21:51,600
I'm not going to prejudge
that because that's why
425
00:21:51,600 --> 00:21:53,166
they're negotiating.
426
00:21:53,166 --> 00:21:56,500
But the broader point is there
are two elements to this that
427
00:21:56,500 --> 00:21:58,700
are linked: One is the fiscal
cliff and one is the broader
428
00:21:58,700 --> 00:22:01,767
deficit reduction package
that the President seeks.
429
00:22:01,767 --> 00:22:02,767
The Press:
Okay.
430
00:22:02,767 --> 00:22:03,767
Finally, I would note there are
colleagues in the back of the
431
00:22:03,767 --> 00:22:05,467
room who have been
complaining about not getting
432
00:22:05,467 --> 00:22:06,467
enough questions.
433
00:22:06,467 --> 00:22:08,400
I appreciate you moving around.
434
00:22:08,400 --> 00:22:10,133
Some of them asked me, as
president of the association,
435
00:22:10,133 --> 00:22:12,667
to set rules on how many
questions everyone gets.
436
00:22:12,667 --> 00:22:17,100
We don't police people, but in
the spirit of sharing the ball,
437
00:22:17,100 --> 00:22:19,766
I yield back the balance of my
time and encourage my colleagues
438
00:22:19,767 --> 00:22:20,834
to do the same.
439
00:22:20,834 --> 00:22:21,767
(laughter)
440
00:22:21,767 --> 00:22:23,633
Mr. Carney:
I want to commend Ed for that.
441
00:22:23,633 --> 00:22:25,900
And I'll -- with that, I'll
go to the back of the room.
442
00:22:25,900 --> 00:22:26,900
Cheryl.
443
00:22:26,900 --> 00:22:27,967
The Press:
Thank you.
444
00:22:27,967 --> 00:22:30,633
Thanks, Ed.
445
00:22:30,633 --> 00:22:33,734
I was going to ask about
some Northeast lawmakers in
446
00:22:33,734 --> 00:22:36,867
particular are very anxious
about getting a spending
447
00:22:36,867 --> 00:22:40,066
supplemental for the
Hurricane Sandy disaster.
448
00:22:40,066 --> 00:22:41,834
And when is the White House
going to send that up,
449
00:22:41,834 --> 00:22:45,066
and do you know how
much that's going to be?
450
00:22:45,066 --> 00:22:48,100
Mr. Carney:
I do not have any
detail for you.
451
00:22:48,100 --> 00:22:51,100
We're obviously looking at the
requests that have come in,
452
00:22:51,100 --> 00:22:52,265
studying them very closely.
453
00:22:52,266 --> 00:22:54,934
The President's been enormously
focused, as you know --
454
00:22:54,934 --> 00:22:57,533
I was in a meeting with
him earlier today where the
455
00:22:57,533 --> 00:23:03,699
discussion -- we spent some time
talking about Hurricane Sandy
456
00:23:03,700 --> 00:23:10,767
and the lasting impact that that
terrible storm has had on the
457
00:23:10,767 --> 00:23:13,000
residents of New Jersey and
New York and some parts
458
00:23:13,000 --> 00:23:14,000
of Connecticut.
459
00:23:14,000 --> 00:23:16,633
And so he remains
focused on this.
460
00:23:16,633 --> 00:23:23,066
He remains focused on ensuring
that the federal team is doing
461
00:23:23,066 --> 00:23:25,800
everything it can to help
with this effort in the
462
00:23:25,800 --> 00:23:26,800
Cabinet meeting.
463
00:23:26,800 --> 00:23:29,265
As you know -- or maybe
as you don't know,
464
00:23:29,266 --> 00:23:33,567
but this was discussed -- also
Shaun Donovan is leading a task
465
00:23:33,567 --> 00:23:36,433
force, at the
President's request,
466
00:23:36,433 --> 00:23:41,500
for the continued efforts at the
federal level to assist states
467
00:23:41,500 --> 00:23:44,033
and localities in
response to this storm.
468
00:23:44,033 --> 00:23:46,966
So this is very much on
the President's mind.
469
00:23:46,967 --> 00:23:50,734
But I don't have a specific
number for you or anything about
470
00:23:50,734 --> 00:23:51,766
a supplemental at this time.
471
00:23:51,767 --> 00:23:53,633
Yes, sir.
472
00:23:53,633 --> 00:23:56,266
The Press:
I would love to see
quotes from the meeting --
473
00:23:56,266 --> 00:23:58,133
or the phone call
with Speaker Boehner.
474
00:23:58,133 --> 00:24:01,734
If not, can you characterize --
did the President say what you
475
00:24:01,734 --> 00:24:04,132
just said to the American
people to the Speaker,
476
00:24:04,133 --> 00:24:07,800
that there will be tax
rate increases on --
477
00:24:07,800 --> 00:24:10,133
Mr. Carney:
I think you'll find that I
won't read out the contents of
478
00:24:10,133 --> 00:24:13,467
conversations that
the President has.
479
00:24:13,467 --> 00:24:16,500
But I will say what the
President's positions are,
480
00:24:16,500 --> 00:24:19,200
and I think it's fair to say
that the President's positions
481
00:24:19,200 --> 00:24:21,200
are consistent in
public and in private.
482
00:24:23,700 --> 00:24:28,233
So in terms of the nature of
and character of the phone call,
483
00:24:28,233 --> 00:24:32,734
I would echo what
Speaker Boehner said,
484
00:24:32,734 --> 00:24:37,433
and he said that it was
frank and direct and good.
485
00:24:37,433 --> 00:24:39,867
The Press:
With Mr. Romney here, one of his
proposals that some Democrats
486
00:24:39,867 --> 00:24:43,533
seem to think makes a little bit
of sense is capping deductions.
487
00:24:43,533 --> 00:24:46,567
Where does the President
stand on that specific issue?
488
00:24:46,567 --> 00:24:50,633
Mr. Carney:
Well, if you look at his plan
and go to the revenue section in
489
00:24:50,633 --> 00:24:55,166
it, you'll notice that we
talk a lot about rates.
490
00:24:55,166 --> 00:24:57,833
And one of the points that I've
been making and others have been
491
00:24:57,834 --> 00:25:00,333
making is that you cannot get
the kind of revenue that you
492
00:25:00,333 --> 00:25:03,834
need simply from capping
deductions or closing loopholes
493
00:25:03,834 --> 00:25:07,734
without taxing the heck
out of the middle class --
494
00:25:07,734 --> 00:25:09,600
and that's unacceptable
for the President --
495
00:25:09,600 --> 00:25:14,833
or without basically ending the
charitable deduction or doing
496
00:25:14,834 --> 00:25:17,633
other things that would
never fly on Capitol Hill,
497
00:25:17,633 --> 00:25:20,567
for good economic as well
as political reasons.
498
00:25:20,567 --> 00:25:21,934
So there's that.
499
00:25:21,934 --> 00:25:25,834
But the President has put
forward as part of his revenue
500
00:25:25,834 --> 00:25:30,567
proposals caps on some
deductions for top earners and
501
00:25:30,567 --> 00:25:32,400
closing of some loopholes.
502
00:25:32,400 --> 00:25:35,333
Our point has always been
that you need to do both,
503
00:25:35,333 --> 00:25:37,800
that rates need to go up for
the wealthiest Americans --
504
00:25:37,800 --> 00:25:40,867
and when we say go up,
like this is not --
505
00:25:40,867 --> 00:25:44,166
let's remember what
we're talking about here.
506
00:25:44,166 --> 00:25:47,533
The top rates for earners that
will happen when the Bush-era
507
00:25:47,533 --> 00:25:52,533
tax cuts expire for them are the
rates that were in place in the
508
00:25:52,533 --> 00:25:58,367
1990s when President
Clinton was in office,
509
00:25:58,367 --> 00:26:02,800
rates that were decried by some
of the leaders in the Republican
510
00:26:02,800 --> 00:26:05,433
Party on Capitol
Hill at the time --
511
00:26:05,433 --> 00:26:10,233
I mean, today's leaders who
were members back then --
512
00:26:10,233 --> 00:26:14,899
and yet, the result of the
economic policies that were
513
00:26:14,900 --> 00:26:18,834
adopted in that period was
the longest sustained economic
514
00:26:18,834 --> 00:26:22,133
expansion, peacetime,
in our history;
515
00:26:22,133 --> 00:26:24,767
the creation of over
23 million jobs;
516
00:26:24,767 --> 00:26:27,934
the transformation of budget
deficits into budget surpluses
517
00:26:27,934 --> 00:26:32,033
-- basically a record that I
think most Americans would want
518
00:26:32,033 --> 00:26:34,433
to see happen again.
519
00:26:34,433 --> 00:26:39,400
So these are not -- there's
nothing extreme about asking
520
00:26:39,400 --> 00:26:45,333
millionaires and billionaires,
wealthy Americans to pay at
521
00:26:45,333 --> 00:26:48,767
rates that were in place during
the strongest economy of
522
00:26:48,767 --> 00:26:49,800
our lifetime.
523
00:26:49,800 --> 00:26:51,899
The Press:
But if you got the rate
hikes you're looking for,
524
00:26:51,900 --> 00:26:54,800
would the President agree to an
overall cap of deductions for
525
00:26:54,800 --> 00:26:55,700
all Americans?
526
00:26:55,700 --> 00:26:57,633
Mr. Carney:
Well, I don't think that
we'd have to do an --
527
00:26:57,633 --> 00:27:00,967
I think I would point to --
there are ways to address caps
528
00:27:00,967 --> 00:27:06,166
on deductions and I think we
proposed 28% for top earners,
529
00:27:06,166 --> 00:27:09,867
closing loopholes, some of them,
like corporate jets and things
530
00:27:09,867 --> 00:27:11,033
like that, but
closing loopholes.
531
00:27:11,033 --> 00:27:17,300
One of the problems with the
suggestion that you can achieve
532
00:27:17,300 --> 00:27:21,700
substantial revenues out of --
without touching rates is that
533
00:27:21,700 --> 00:27:27,033
you have to do Draconian things
when it comes to deductions and
534
00:27:27,033 --> 00:27:29,833
loopholes that aren't
economically wise or
535
00:27:29,834 --> 00:27:32,600
politically feasible.
536
00:27:32,600 --> 00:27:35,899
So that's why, when I talk
about we need something that's
537
00:27:35,900 --> 00:27:38,333
realistic and
mathematically sound,
538
00:27:38,333 --> 00:27:40,934
not just something that
adds up on paper --
539
00:27:40,934 --> 00:27:43,399
that's why the President is
taking the approach he has had,
540
00:27:43,400 --> 00:27:46,667
which includes allowing the
rates to rise for top earners,
541
00:27:46,667 --> 00:27:50,199
but also includes changes
to our tax code --
542
00:27:50,200 --> 00:27:54,266
deductions and loopholes --
that are plausible as well
543
00:27:54,266 --> 00:27:57,700
as revenue-producing.
544
00:27:57,700 --> 00:27:58,467
Yes.
545
00:27:58,467 --> 00:27:59,834
The Press:
I've been told that
on that phone call,
546
00:27:59,834 --> 00:28:01,934
the President did say
to Speaker Boehner,
547
00:28:01,934 --> 00:28:05,000
there will be no deal without
an increase on the tax rates for
548
00:28:05,000 --> 00:28:05,834
the wealthiest.
549
00:28:05,834 --> 00:28:07,367
So you're not going
to read out the call.
550
00:28:07,367 --> 00:28:11,834
My question is, is the President
sticking to the Clinton rates?
551
00:28:11,834 --> 00:28:13,100
You said it worked in that time.
552
00:28:13,100 --> 00:28:15,800
Does it have to be
the Clinton rates?
553
00:28:15,800 --> 00:28:18,533
Mr. Carney:
Again, without reading
out the phone call,
554
00:28:18,533 --> 00:28:21,265
quoting any member of that --
participant in that phone call,
555
00:28:21,266 --> 00:28:27,567
I would say that there can be
no deal without rates on top
556
00:28:27,567 --> 00:28:30,533
earners going up.
557
00:28:30,533 --> 00:28:36,332
The President has been very
clear about his proposal and the
558
00:28:36,333 --> 00:28:40,500
revenues that would be part of
that proposal that would result
559
00:28:40,500 --> 00:28:44,500
from and flow from extending
tax cuts to the middle class and
560
00:28:44,500 --> 00:28:48,066
allowing rates to go back up
to the Clinton levels for top
561
00:28:48,066 --> 00:28:51,767
earners, and then going
to my earlier point,
562
00:28:51,767 --> 00:28:57,867
and that would then be coupled
with other changes that would
563
00:28:57,867 --> 00:29:01,332
produce additional revenue --
changes to the tax code on
564
00:29:01,333 --> 00:29:07,300
capping deductions and closing
loopholes for top earners.
565
00:29:07,300 --> 00:29:08,800
Going back to my first
point with Julie,
566
00:29:08,800 --> 00:29:11,966
we haven't seen any kind of
proposal from the Republicans on
567
00:29:11,967 --> 00:29:14,000
rates -- there has not even
been an acknowledgement from
568
00:29:14,000 --> 00:29:16,700
Republican leaders of the
fundamental fact that rates have
569
00:29:16,700 --> 00:29:18,200
to go up.
570
00:29:18,200 --> 00:29:22,900
The Press:
But the offer here is
Clinton rates for the top 2%,
571
00:29:22,900 --> 00:29:25,066
for the top two marginal rates?
572
00:29:25,066 --> 00:29:26,233
Mr. Carney:
I'm not going to
negotiate the deal.
573
00:29:26,233 --> 00:29:30,166
I don't have an offer
to make from the podium.
574
00:29:30,166 --> 00:29:32,133
What is in the
President's proposal,
575
00:29:32,133 --> 00:29:35,633
in this proposal and his budget,
what he talked about repeatedly
576
00:29:35,633 --> 00:29:41,066
throughout the year, is that he
will sign tomorrow a bill that
577
00:29:41,066 --> 00:29:43,633
would extend tax cuts
for the middle class,
578
00:29:43,633 --> 00:29:46,767
and that he will not sign under
any circumstances legislation
579
00:29:46,767 --> 00:29:49,867
that would keep rates
where they are for the
580
00:29:49,867 --> 00:29:50,966
wealthiest Americans.
581
00:29:50,967 --> 00:29:51,900
The Press:
(inaudible)
582
00:29:51,900 --> 00:29:58,033
Mr. Carney:
Well, but my point is -- you can
speak hypothetically about 39.5
583
00:29:58,033 --> 00:29:59,833
versus 39.6.
584
00:29:59,834 --> 00:30:00,900
Let's be realistic.
585
00:30:00,900 --> 00:30:04,767
The realistic proposals that
are on the table involve --
586
00:30:04,767 --> 00:30:07,667
that create the kind of revenues
absolutely essential for real
587
00:30:07,667 --> 00:30:11,100
balance in this proposal
involve raising the rates --
588
00:30:11,100 --> 00:30:13,166
letting the rates return
to where they were.
589
00:30:13,166 --> 00:30:14,734
Because remember this
whole thing about --
590
00:30:14,734 --> 00:30:16,132
that we sort of got
into the other day,
591
00:30:16,133 --> 00:30:19,166
maybe it was yesterday -- about
whether we're asking people to
592
00:30:19,166 --> 00:30:21,767
vote for a tax hike -- no, we're
just asking people not to vote
593
00:30:21,767 --> 00:30:23,834
for a tax cut for rich people.
594
00:30:23,834 --> 00:30:26,000
We're saying that we can't
afford it economically,
595
00:30:26,000 --> 00:30:29,066
that the American people
overwhelmingly don't support and
596
00:30:29,066 --> 00:30:33,900
that many -- increasing numbers
of business leaders don't think
597
00:30:33,900 --> 00:30:35,100
it's the right thing to do.
598
00:30:35,100 --> 00:30:36,699
The Press:
Can you just clarify one
thing on a different topic
599
00:30:36,700 --> 00:30:37,567
so we can --
600
00:30:37,567 --> 00:30:38,433
Mr. Carney:
Sure.
601
00:30:38,433 --> 00:30:41,333
The Press:
For people who are still curious
about whether the President has
602
00:30:41,333 --> 00:30:44,800
an offer for Mitt Romney
when they're meeting today,
603
00:30:44,800 --> 00:30:46,633
has something changed overnight?
604
00:30:46,633 --> 00:30:53,066
Is the President offering
Governor Romney a job?
605
00:30:53,066 --> 00:30:54,600
Mr. Carney:
I really just don't
have a readout on that.
606
00:30:54,600 --> 00:30:57,433
I think this is -- but
without giving any specifics,
607
00:30:57,433 --> 00:31:01,133
this was a conversation the
President wanted to have with
608
00:31:01,133 --> 00:31:05,033
Governor Romney, as he
mentioned I think the night of
609
00:31:05,033 --> 00:31:06,033
the election.
610
00:31:06,033 --> 00:31:11,533
And there was not an agenda that
involves that kind of proposal
611
00:31:11,533 --> 00:31:12,533
that I'm aware of.
612
00:31:12,533 --> 00:31:14,367
I think that he's very
interested in some of Governor
613
00:31:14,367 --> 00:31:16,300
Romney's ideas.
614
00:31:16,300 --> 00:31:22,100
And I'm sure they will or have
already compared experiences on
615
00:31:22,100 --> 00:31:22,934
the campaign trail.
616
00:31:22,934 --> 00:31:29,367
I mean, it is -- there have
only been 28 press secretaries,
617
00:31:29,367 --> 00:31:31,100
so it's a pretty --
but think about it,
618
00:31:31,100 --> 00:31:34,567
there aren't that many people
who have been nominees for their
619
00:31:34,567 --> 00:31:37,700
party, right, there aren't that
many people you can talk to who
620
00:31:37,700 --> 00:31:40,467
know what it's like to do what
these two gentlemen did for
621
00:31:40,467 --> 00:31:41,734
the past year.
622
00:31:41,734 --> 00:31:44,265
And I think that they'll
probably talk a lot about that,
623
00:31:44,266 --> 00:31:47,600
which is I think will be
very interesting for them.
624
00:31:47,600 --> 00:31:49,199
The Press:
But to follow, Jay, you
said yesterday specifically
625
00:31:49,200 --> 00:31:50,000
there was no --
626
00:31:50,000 --> 00:31:51,500
Mr. Carney:
You're not going to follow on
the fact that there have only
627
00:31:51,500 --> 00:31:52,633
been 29 press secretaries?
628
00:31:52,633 --> 00:31:53,367
The Press:
No, no, no.
629
00:31:53,367 --> 00:31:54,133
You said yesterday --
630
00:31:54,133 --> 00:31:55,000
The Press:
You said 28.
631
00:31:55,000 --> 00:31:57,000
Mr. Carney:
Twenty-eight prior to me.
632
00:31:57,000 --> 00:31:58,667
The Press:
You said yesterday
there would be no ask.
633
00:31:58,667 --> 00:32:00,833
You're not saying
that as clearly today.
634
00:32:00,834 --> 00:32:01,700
Mr. Carney:
I'll say it clearly.
635
00:32:01,700 --> 00:32:03,633
The Press:
Okay, there is no ask?
636
00:32:03,633 --> 00:32:04,767
Mr. Carney:
That I'm aware of.
637
00:32:04,767 --> 00:32:10,333
Now, I don't -- I can't
dictate what the President says,
638
00:32:10,333 --> 00:32:11,600
let alone what
Governor Romney says,
639
00:32:11,600 --> 00:32:14,600
but I don't think that's what
this conversation is about.
640
00:32:14,600 --> 00:32:17,433
The President is very
interested in his ideas and very
641
00:32:17,433 --> 00:32:20,233
appreciative that Governor
Romney is here to have
642
00:32:20,233 --> 00:32:21,533
lunch with him.
643
00:32:21,533 --> 00:32:23,132
But beyond that, I think it's --
644
00:32:23,133 --> 00:32:24,500
The Press:
What ideas does he like?
645
00:32:24,500 --> 00:32:27,533
Mr. Carney:
I think we talked -- the
President mentioned that
646
00:32:27,533 --> 00:32:31,699
Governor Romney very
successfully resuscitated and
647
00:32:31,700 --> 00:32:33,266
ran the Olympics
in Salt Lake City.
648
00:32:33,266 --> 00:32:34,233
The Press:
That's not an idea --
649
00:32:34,233 --> 00:32:39,700
Mr. Carney:
No, but I think Governor Romney
certainly knows how to manage an
650
00:32:39,700 --> 00:32:41,400
operation like that.
651
00:32:41,400 --> 00:32:45,500
And the President
is -- as I know,
652
00:32:45,500 --> 00:32:48,500
because I've sat in the room and
heard him go into detail on this
653
00:32:48,500 --> 00:32:49,667
and get very passionate
about it --
654
00:32:49,667 --> 00:32:55,132
is very interested in creating
greater efficiencies in this
655
00:32:55,133 --> 00:32:57,266
government, making
it run better,
656
00:32:57,266 --> 00:33:02,166
making it more effective
in the 21st century,
657
00:33:02,166 --> 00:33:04,133
because we have a lot of
agencies and institutions that
658
00:33:04,133 --> 00:33:07,900
were created long ago and
they can be improved upon.
659
00:33:07,900 --> 00:33:10,100
And that's reflected in
the proposal for government
660
00:33:10,100 --> 00:33:12,100
reorganization that the
President put forward.
661
00:33:12,100 --> 00:33:14,300
And he can be pretty
wonky about this stuff.
662
00:33:14,300 --> 00:33:19,966
And somebody with Governor
Romney's experience clearly
663
00:33:19,967 --> 00:33:24,300
would have insight into how
to maximize efficiency in an
664
00:33:24,300 --> 00:33:26,834
operation like the
federal government.
665
00:33:26,834 --> 00:33:29,767
Again, I just know that's
what interests the President.
666
00:33:29,767 --> 00:33:32,333
I can't guarantee you at this
stage that that's what they're
667
00:33:32,333 --> 00:33:34,333
talking about, but I know that
is a subject that interests
668
00:33:34,333 --> 00:33:35,000
the President.
669
00:33:35,000 --> 00:33:37,100
The Press:
-- ideas he advanced during the
campaign the President has come
670
00:33:37,100 --> 00:33:39,667
around to think maybe that was
not such a bad idea after all --
671
00:33:39,667 --> 00:33:41,433
economic idea, social
ideas, policy ideas?
672
00:33:41,433 --> 00:33:43,734
Mr. Carney:
Well, I mean, there were
certainly things that the two
673
00:33:43,734 --> 00:33:44,734
men agreed on.
674
00:33:44,734 --> 00:33:46,734
I mean, if you watch the debates
there were certain like "I agree
675
00:33:46,734 --> 00:33:48,399
"with the President" on this
or "I agree with Governor
676
00:33:48,400 --> 00:33:49,266
"Romney on this."
677
00:33:49,266 --> 00:33:50,533
I wouldn't say it was
the majority of things.
678
00:33:50,533 --> 00:33:52,632
It wasn't.
679
00:33:52,633 --> 00:33:54,900
And they clearly had very
starkly different ideas about
680
00:33:54,900 --> 00:33:59,333
how to move the economy
forward and the like.
681
00:33:59,333 --> 00:34:02,834
I haven't heard the President
reference specific things put
682
00:34:02,834 --> 00:34:07,300
forward during the campaign,
but I'm confident that there are
683
00:34:07,300 --> 00:34:10,199
ideas that the two men agree on.
684
00:34:10,199 --> 00:34:12,699
The Press:
-- that he could play a
role in solving this fiscal
685
00:34:12,699 --> 00:34:14,466
cliff impact --
686
00:34:14,467 --> 00:34:16,567
Mr. Carney:
I'm just not going to speculate.
687
00:34:16,567 --> 00:34:19,667
Again, I think that the fiscal
cliff is upon us at the moment.
688
00:34:19,667 --> 00:34:22,667
We're dealing with
that with Congress.
689
00:34:22,667 --> 00:34:26,833
This is I think an initial
conversation in the wake of the
690
00:34:26,833 --> 00:34:29,065
election that the President
and Governor are having.
691
00:34:29,065 --> 00:34:31,466
The Press:
Jay, a couple of questions
to follow up on the
692
00:34:31,467 --> 00:34:32,834
Sandy supplemental.
693
00:34:32,833 --> 00:34:34,899
Will the administration
put that proposal forward
694
00:34:34,900 --> 00:34:35,900
before year-end?
695
00:34:35,900 --> 00:34:39,533
And does he want it wrapped up
as part of whatever needs to be
696
00:34:39,533 --> 00:34:41,232
done to avoid the fiscal cliff?
697
00:34:41,233 --> 00:34:44,133
And does he believe as a matter
of policy it should not be
698
00:34:44,132 --> 00:34:45,966
offset with any spending
cuts, it should be added to
699
00:34:45,967 --> 00:34:47,400
the deficit?
700
00:34:47,400 --> 00:34:49,133
Mr. Carney:
Major, I just confess
that I haven't --
701
00:34:49,132 --> 00:34:51,366
I've been so focused
on these other issues,
702
00:34:51,367 --> 00:34:54,033
the fiscal cliff and others,
that I haven't had a real
703
00:34:54,033 --> 00:34:57,400
discussion with folks
here about that.
704
00:34:57,400 --> 00:35:00,400
So I just don't know the
framework within which we want
705
00:35:00,400 --> 00:35:01,400
to proceed on that.
706
00:35:01,400 --> 00:35:05,033
We're definitely looking at the
proposals put forward by the
707
00:35:05,033 --> 00:35:07,100
states and the requests
put forward by the states.
708
00:35:07,100 --> 00:35:08,600
But I just don't have
more detail on it.
709
00:35:08,600 --> 00:35:09,967
I wouldn't want to guess.
710
00:35:09,967 --> 00:35:11,166
The Press:
How close is the
administration --
711
00:35:11,166 --> 00:35:15,166
Mr. Carney:
I haven't had it described in my
presence as something that would
712
00:35:15,166 --> 00:35:16,900
be part of the
fiscal cliff deal.
713
00:35:16,900 --> 00:35:17,967
The Press:
It would not?
714
00:35:17,967 --> 00:35:18,967
Mr. Carney:
I haven't heard that discussed.
715
00:35:18,967 --> 00:35:20,100
But, again, I just haven't --
716
00:35:20,100 --> 00:35:21,366
The Press:
But you don't rule it out?
717
00:35:21,367 --> 00:35:22,600
Mr. Carney:
Well, no.
718
00:35:22,600 --> 00:35:23,467
The Press:
Okay.
719
00:35:23,467 --> 00:35:26,433
How close is the administration
to recognizing and arming the
720
00:35:26,433 --> 00:35:27,333
Syrian opposition?
721
00:35:27,333 --> 00:35:30,800
And what has changed to lead
those discussions to what
722
00:35:30,800 --> 00:35:34,500
appears to be a culmination
in the affirmative?
723
00:35:34,500 --> 00:35:36,233
Mr. Carney:
Well, look, we've had
discussions in the past.
724
00:35:36,233 --> 00:35:38,066
I mean, I've been asked about
this in the past when stories
725
00:35:38,066 --> 00:35:42,767
have been written
that this is an issue.
726
00:35:42,767 --> 00:35:46,299
Our position on assistance
to the Syrian opposition
727
00:35:46,300 --> 00:35:47,400
has not changed.
728
00:35:47,400 --> 00:35:49,967
And the United States remains
committed to providing
729
00:35:49,967 --> 00:35:52,633
humanitarian assistance to the
Syrian people and providing
730
00:35:52,633 --> 00:35:55,734
non-lethal equipment
and training to unarmed,
731
00:35:55,734 --> 00:35:57,734
civilian-led opposition groups.
732
00:35:57,734 --> 00:36:01,333
We have not provided any
support to the armed opposition.
733
00:36:01,333 --> 00:36:04,767
It is also the case, as I've
said periodically when asked
734
00:36:04,767 --> 00:36:09,834
that we're always reviewing the
kinds of assistance that we're
735
00:36:09,834 --> 00:36:12,100
providing to the Syrian people
and the Syrian opposition.
736
00:36:12,100 --> 00:36:13,165
And we'll continue to do that.
737
00:36:13,166 --> 00:36:14,834
But we have not changed
our position on the --
738
00:36:14,834 --> 00:36:17,700
The Press:
You categorically deny the
reports today that suggest the
739
00:36:17,700 --> 00:36:21,100
administration is on the cusp of
recognizing and beginning to arm
740
00:36:21,100 --> 00:36:23,066
the Syrian opposition?
741
00:36:23,066 --> 00:36:28,399
Mr. Carney:
Well, I just said that we're
always look at and reviewing our
742
00:36:28,400 --> 00:36:31,133
assistance programs to
the Syrian opposition,
743
00:36:31,133 --> 00:36:32,667
the Syrian people.
744
00:36:32,667 --> 00:36:37,200
I can categorically state that
today our position is what it
745
00:36:37,200 --> 00:36:42,567
has been, which is we are not
providing lethal assistance to
746
00:36:42,567 --> 00:36:45,567
the Syrian opposition.
747
00:36:45,567 --> 00:36:46,867
Yes, sir.
748
00:36:46,867 --> 00:36:48,767
The Press:
Jay, can I come back
to the budget talks,
749
00:36:48,767 --> 00:36:50,200
and specifically
the spending side?
750
00:36:50,200 --> 00:36:53,466
Because I think that's what
Speaker Boehner's main complaint
751
00:36:53,467 --> 00:36:56,500
is -- that there are
these talks going on,
752
00:36:56,500 --> 00:36:58,400
they wanted to be flexible
on the revenue side,
753
00:36:58,400 --> 00:37:03,533
but they want to see a specific
proposal for additional cuts on
754
00:37:03,533 --> 00:37:05,232
the spending entitlement side.
755
00:37:05,233 --> 00:37:07,734
And you were just holding
up the President's budget.
756
00:37:07,734 --> 00:37:10,799
Are you saying that's
it, that's all you get,
757
00:37:10,800 --> 00:37:13,166
what's in here is our
proposal and nothing more?
758
00:37:13,166 --> 00:37:14,266
Mr. Carney:
Well, I didn't say that.
759
00:37:14,266 --> 00:37:17,367
I said, in fact, that the
President made clear and
760
00:37:17,367 --> 00:37:22,667
continues to make clear
that he knows he will not --
761
00:37:22,667 --> 00:37:24,799
he is not wedded to every
detail in his proposals,
762
00:37:24,800 --> 00:37:27,467
and will not get every
detail in his proposals.
763
00:37:27,467 --> 00:37:30,066
But we have, in answer to the
question of where are your
764
00:37:30,066 --> 00:37:35,567
spending cut proposals, it must
be a rhetorical question because
765
00:37:35,567 --> 00:37:38,433
those who ask it know that we
have put forward very specific
766
00:37:38,433 --> 00:37:39,433
spending cut proposals.
767
00:37:39,433 --> 00:37:43,633
As I noted the other day, in
this proposal are $340 billion
768
00:37:43,633 --> 00:37:46,899
of savings from our health care
entitlement programs over 10
769
00:37:46,900 --> 00:37:48,834
years -- $340 billion.
770
00:37:48,834 --> 00:37:52,232
That number exceeds what was
contained in the Simpson-Bowles
771
00:37:52,233 --> 00:37:54,734
proposals -- exceeds --
in the first 10 years.
772
00:37:54,734 --> 00:37:57,633
So this is real.
773
00:37:57,633 --> 00:38:01,600
The President has always engaged
in this with real numbers.
774
00:38:01,600 --> 00:38:03,767
When you talk about
flexibility on revenue,
775
00:38:03,767 --> 00:38:06,133
all we've heard so far
-- and it's welcome,
776
00:38:06,133 --> 00:38:08,165
don't get me wrong -- but
we've heard that, yes,
777
00:38:08,166 --> 00:38:13,266
revenue is on the table,
but we need more than that.
778
00:38:13,266 --> 00:38:18,333
We need concrete proposals and
acknowledgement that the only
779
00:38:18,333 --> 00:38:21,867
way we can achieve the kind
of target that's necessary for
780
00:38:21,867 --> 00:38:26,100
balance in revenues and be
realistic about it in terms of
781
00:38:26,100 --> 00:38:31,567
what can pass Congress, and hold
true to the President's absolute
782
00:38:31,567 --> 00:38:34,166
insistence that the middle class
doesn't get stuck with the bill,
783
00:38:34,166 --> 00:38:36,667
is to have rates go
up on top earners.
784
00:38:36,667 --> 00:38:41,066
And this is not -- remember when
the President talked about he's
785
00:38:41,066 --> 00:38:43,366
familiar with the literature
of second-term Presidents who
786
00:38:43,367 --> 00:38:47,567
overreach, you know what
he's talking about?
787
00:38:47,567 --> 00:38:49,500
Absolutely what he talked
about during the campaign.
788
00:38:49,500 --> 00:38:52,500
None of this is news to anybody
who has followed this debate.
789
00:38:52,500 --> 00:38:53,333
The Press:
I understand.
790
00:38:53,333 --> 00:38:55,900
My question, though, was
on the spending cut side.
791
00:38:55,900 --> 00:38:58,600
Are you saying to them, look, if
you guys want more than what was
792
00:38:58,600 --> 00:39:01,266
in this budget that the
President has been very specific
793
00:39:01,266 --> 00:39:03,433
about, you need to ask for it?
794
00:39:03,433 --> 00:39:04,300
Is that your position?
795
00:39:04,300 --> 00:39:07,000
Mr. Carney:
Well, look, we want to have
a discussion about what the
796
00:39:07,000 --> 00:39:11,033
overall compromise
would look like.
797
00:39:11,033 --> 00:39:13,900
But what is non-negotiable,
if you will,
798
00:39:13,900 --> 00:39:17,667
is that revenues from the
wealthiest Americans have to be
799
00:39:17,667 --> 00:39:21,200
a part of this, and the only way
to get to that revenue target,
800
00:39:21,200 --> 00:39:25,232
as I said, is -- so
that has to happen.
801
00:39:25,233 --> 00:39:26,500
The Press:
But revenue has to come first?
802
00:39:26,500 --> 00:39:28,767
Mr. Carney:
It's not a first --
it all goes together.
803
00:39:28,767 --> 00:39:35,799
But the President has already
put forward substantial savings
804
00:39:35,800 --> 00:39:39,333
in health care entitlements,
as well as non-defense
805
00:39:39,333 --> 00:39:40,800
discretionary savings.
806
00:39:40,800 --> 00:39:41,967
The Press:
Because the only thing --
the reason I'm asking is the
807
00:39:41,967 --> 00:39:44,867
political ownership of this.
808
00:39:44,867 --> 00:39:49,900
They're saying, well, you guys
want us to take the political
809
00:39:49,900 --> 00:39:52,166
heat for cutting
granny's Medicare,
810
00:39:52,166 --> 00:39:54,000
and that sort of thing.
811
00:39:54,000 --> 00:39:58,700
Mr. Carney:
The President -- look, as
I noted during the last two
812
00:39:58,700 --> 00:40:03,533
election cycles, Republicans
pummeled Democrats,
813
00:40:03,533 --> 00:40:09,400
including my boss, because he
had the temerity to include in
814
00:40:09,400 --> 00:40:13,266
the Affordable Care Act $716
billion in savings from our
815
00:40:13,266 --> 00:40:16,000
health care entitlements.
816
00:40:16,000 --> 00:40:20,266
Just pummeled them, right?
817
00:40:20,266 --> 00:40:21,834
He did that because it
was the right thing to do;
818
00:40:21,834 --> 00:40:25,332
it was important to achieve
the Affordable Care Act.
819
00:40:25,333 --> 00:40:30,266
These savings were achievable
without harming beneficiaries.
820
00:40:30,266 --> 00:40:33,133
And now he has put forward
additional savings from those
821
00:40:33,133 --> 00:40:34,600
health care
entitlement programs --
822
00:40:34,600 --> 00:40:37,700
again, savings that are
reasonable and don't ask,
823
00:40:37,700 --> 00:40:42,033
as Republicans did earlier
this year with their budget
824
00:40:42,033 --> 00:40:45,734
proposals, seniors to accept a
plan that ends Medicare as we
825
00:40:45,734 --> 00:40:47,400
know it, turns Medicare
into a voucher --
826
00:40:47,400 --> 00:40:50,300
all so that we didn't have to
ask the wealthiest to pay more.
827
00:40:50,300 --> 00:40:52,567
So a lot -- this debate
has been engaged.
828
00:40:52,567 --> 00:40:55,934
The President's seriousness
has been demonstrated,
829
00:40:55,934 --> 00:41:00,767
and he is going to continue
to be very serious about it.
830
00:41:00,767 --> 00:41:06,567
And he owns his
proposals, and he will --
831
00:41:06,567 --> 00:41:11,767
he looks forward to working on
a package proposal that includes
832
00:41:11,767 --> 00:41:14,033
the elements that we've talked
about and includes tough choices
833
00:41:14,033 --> 00:41:15,667
for everyone.
834
00:41:15,667 --> 00:41:18,433
April and then Roger
and then Peter.
835
00:41:18,433 --> 00:41:21,367
The Press:
Jay, we understand that Governor
Romney has left the building.
836
00:41:21,367 --> 00:41:24,667
(laughter)
837
00:41:24,667 --> 00:41:25,767
The Press:
Like Elvis.
838
00:41:25,767 --> 00:41:27,700
The Press:
Uh, well...okay.
839
00:41:27,700 --> 00:41:30,200
Is there any way, any chance
that we can get a readout at
840
00:41:30,200 --> 00:41:32,866
least, something later
on today from you?
841
00:41:32,867 --> 00:41:33,900
Could you do that?
842
00:41:33,900 --> 00:41:36,667
Mr. Carney:
Well, we'll see -- yes,
we'll provide something.
843
00:41:36,667 --> 00:41:39,533
I just haven't spoken to the
President yet about the lunch,
844
00:41:39,533 --> 00:41:42,133
but I'm sure we'll provide
something on paper for you.
845
00:41:42,133 --> 00:41:47,200
The Press:
And also speaking about this
Romney luncheon and just the
846
00:41:47,200 --> 00:41:51,500
phone call with the Speaker, I
remember at the onset of this
847
00:41:51,500 --> 00:41:54,934
administration about four years
ago when they were conversations
848
00:41:54,934 --> 00:41:56,734
about transparency.
849
00:41:56,734 --> 00:41:58,933
What do you think about
transparency today?
850
00:41:58,934 --> 00:42:00,500
Mr. Carney:
I think transparency
is very important.
851
00:42:00,500 --> 00:42:03,367
I think that this is the most
-- indisputably the most
852
00:42:03,367 --> 00:42:04,567
transparent White
House that has --
853
00:42:04,567 --> 00:42:07,533
The Press:
As you shut us down all
throughout this briefing
854
00:42:07,533 --> 00:42:08,433
pretty much?
855
00:42:08,433 --> 00:42:09,400
Mr. Carney:
What are you talking about?
856
00:42:09,400 --> 00:42:10,233
The Press:
What am I talking about?
857
00:42:10,233 --> 00:42:10,967
Governor Romney.
858
00:42:10,967 --> 00:42:12,734
Oh, I'm not going to let
you in, can't talk about it.
859
00:42:12,734 --> 00:42:17,033
Mr. Carney:
The President had a private
lunch with his opponent from the
860
00:42:17,033 --> 00:42:18,933
campaign, as is
entirely appropriate.
861
00:42:18,934 --> 00:42:21,133
Nothing is preventing you from
speaking with Governor Romney
862
00:42:21,133 --> 00:42:22,133
about it --
863
00:42:22,133 --> 00:42:23,265
The Press:
We're just trying to get --
864
00:42:23,266 --> 00:42:26,667
Mr. Carney:
Well, I mean, that's obviously
up to former Governor Romney to
865
00:42:26,667 --> 00:42:28,866
decide whether he wants to
have a conversation with you.
866
00:42:28,867 --> 00:42:33,867
But the -- and you are welcome
when the President next appears
867
00:42:33,867 --> 00:42:35,400
before you to ask him about it.
868
00:42:35,400 --> 00:42:37,000
We will provide a readout.
869
00:42:37,000 --> 00:42:39,667
But we didn't -- I think
they wanted to have --
870
00:42:39,667 --> 00:42:42,266
each man wanted to have
a private conversation.
871
00:42:42,266 --> 00:42:44,400
They didn't want to turn
it into a press event.
872
00:42:44,400 --> 00:42:46,333
The Press:
But you're bringing in -- on
the Speaker's conversation --
873
00:42:46,333 --> 00:42:47,900
you're bringing all
these people in,
874
00:42:47,900 --> 00:42:50,433
the stakeholders and bringing
them into the conversation,
875
00:42:50,433 --> 00:42:53,734
but shutting them off and not
letting people know exactly
876
00:42:53,734 --> 00:42:57,500
what's going on in conversations
or parts of that with
877
00:42:57,500 --> 00:42:58,200
the Speaker.
878
00:42:58,200 --> 00:42:59,466
I mean transparency is not --
879
00:42:59,467 --> 00:43:01,633
Mr. Carney:
I think participants in the
conversations that have taken
880
00:43:01,633 --> 00:43:06,433
place in this building have
volubly discussed those
881
00:43:06,433 --> 00:43:09,600
conversations with the press,
many members right out here at
882
00:43:09,600 --> 00:43:11,933
the stakeout and
others elsewhere.
883
00:43:11,934 --> 00:43:16,734
So we're hardly --
I just don't agree.
884
00:43:16,734 --> 00:43:21,700
I think the President is very
interested in having business
885
00:43:21,700 --> 00:43:23,600
leaders who have met
with him, regular --
886
00:43:23,600 --> 00:43:25,633
ordinary Americans
who have met with him,
887
00:43:25,633 --> 00:43:27,899
labor leaders and
others, civic leaders,
888
00:43:27,900 --> 00:43:34,734
talk about what they're hearing
from the President and his team
889
00:43:34,734 --> 00:43:38,299
and what their ideas are
about how we move forward.
890
00:43:38,300 --> 00:43:39,433
Roger and then Peter.
891
00:43:39,433 --> 00:43:40,200
The Press:
Thanks.
892
00:43:40,200 --> 00:43:41,366
Okay, two questions.
893
00:43:41,367 --> 00:43:43,266
First some old business I
had asked yesterday about
894
00:43:43,266 --> 00:43:45,867
Mississippi River closing
and Senator Harkin --
895
00:43:45,867 --> 00:43:48,233
I understand you
might have some --
896
00:43:48,233 --> 00:43:50,300
Mr. Carney:
Well, I did look into
this a little bit more,
897
00:43:50,300 --> 00:43:53,000
and I can tell you that the
President remains very concerned
898
00:43:53,000 --> 00:43:55,100
about the devastating
impact of the drought.
899
00:43:55,100 --> 00:43:58,933
He actually raised this with
Secretary Vilsack yesterday in
900
00:43:58,934 --> 00:43:59,934
the Cabinet meeting.
901
00:43:59,934 --> 00:44:01,166
The Press:
I'm sorry, who?
902
00:44:01,166 --> 00:44:03,467
Mr. Carney:
The President raised it with
Secretary Vilsack yesterday in
903
00:44:03,467 --> 00:44:04,300
the Cabinet meeting.
904
00:44:04,300 --> 00:44:07,633
He asked about the drought and
for an update from Secretary
905
00:44:07,633 --> 00:44:08,734
Vilsack in this.
906
00:44:08,734 --> 00:44:10,433
And going back to the
summer, he directed --
907
00:44:10,433 --> 00:44:13,734
he, the President, directed his
administration to take every
908
00:44:13,734 --> 00:44:16,400
step within our authority to
mitigate the damage caused by
909
00:44:16,400 --> 00:44:19,867
the drought, and the Army Corps
has taken proactive action over
910
00:44:19,867 --> 00:44:24,266
the time to ensure navigability
of the river system.
911
00:44:24,266 --> 00:44:27,600
However, we also share the
specific concerns from lawmakers
912
00:44:27,600 --> 00:44:31,734
and others about the decreasing
water level of the Mississippi.
913
00:44:31,734 --> 00:44:36,165
And while there is a complex set
of legal technical and policy
914
00:44:36,166 --> 00:44:39,367
questions around these
issues, we are exploring all
915
00:44:39,367 --> 00:44:40,667
possible options.
916
00:44:40,667 --> 00:44:41,967
The Press:
We, meaning the White House?
917
00:44:41,967 --> 00:44:43,000
Mr. Carney:
We the White House.
918
00:44:43,000 --> 00:44:43,934
The Press:
Okay, fine.
919
00:44:43,934 --> 00:44:46,767
Mr. Carney:
And the administration
writ large.
920
00:44:46,767 --> 00:44:50,066
The Press:
Second question,
different topic.
921
00:44:50,066 --> 00:44:54,299
Ambassador Susan Rice and
her husband hold stock in
922
00:44:54,300 --> 00:44:57,367
TransCanada Corporation valued
at between $300,000 and
923
00:44:57,367 --> 00:45:01,834
$600,000 -- TransCanada being
the outfit that wants to build
924
00:45:01,834 --> 00:45:04,299
the pipeline under review
at the State Department.
925
00:45:04,300 --> 00:45:07,600
If she were nominated
as Secretary of State,
926
00:45:07,600 --> 00:45:10,299
would that pose any
sort of conflict?
927
00:45:10,300 --> 00:45:13,200
Mr. Carney:
Well, I'll give
two answers here.
928
00:45:13,200 --> 00:45:16,399
First of all, the President has
not made a decision about that
929
00:45:16,400 --> 00:45:22,533
or other personnel moves that
he has to make because Secretary
930
00:45:22,533 --> 00:45:25,900
Clinton is leaving, Secretary
Geithner is leaving.
931
00:45:25,900 --> 00:45:28,000
So that's one point.
932
00:45:28,000 --> 00:45:31,066
So I have no -- I'm not going
to speculate about a personnel
933
00:45:31,066 --> 00:45:33,165
decision the President
has not made,
934
00:45:33,166 --> 00:45:36,033
a nomination he has
not put forward.
935
00:45:36,033 --> 00:45:38,400
Secondly, I would commend
Republican opposition
936
00:45:38,400 --> 00:45:43,033
researchers for the intellectual
bandwidth that is required to
937
00:45:43,033 --> 00:45:45,366
read a financial
disclosure form,
938
00:45:45,367 --> 00:45:49,500
because this was all documented
in a financial disclosure form,
939
00:45:49,500 --> 00:45:52,834
entirely, appropriately,
legally and by the books.
940
00:45:52,834 --> 00:45:58,799
So what this represents I think
in vivid fashion is what I've
941
00:45:58,800 --> 00:46:01,166
been talking about
for a while now,
942
00:46:01,166 --> 00:46:06,900
which is that none of this has
anything to do with the tragedy
943
00:46:06,900 --> 00:46:08,100
that occurred in Benghazi.
944
00:46:08,100 --> 00:46:10,700
This is about politics.
945
00:46:10,700 --> 00:46:13,100
And that's a shame.
946
00:46:13,100 --> 00:46:16,165
So I actually, in part of my
old-school presentation here
947
00:46:16,166 --> 00:46:19,467
that included a hard copy
of the President's proposal,
948
00:46:19,467 --> 00:46:24,467
I brought an interesting news
article here that begins with
949
00:46:24,467 --> 00:46:27,133
the fact that a member of
Congress requested those
950
00:46:27,133 --> 00:46:29,933
original talking points from the
intelligence community that have
951
00:46:29,934 --> 00:46:31,133
been so much discussed.
952
00:46:31,133 --> 00:46:32,966
And I liked this
couple of sentences.
953
00:46:32,967 --> 00:46:35,967
"More than 10 weeks later,
the four pallid sentences that
954
00:46:35,967 --> 00:46:39,166
"intelligence analysts
cautiously delivered are the
955
00:46:39,166 --> 00:46:41,834
"unlikely center of a
quintessential Washington drama
956
00:46:41,834 --> 00:46:45,466
"in which a genuine tragedy has
been fed into the meat grinder
957
00:46:45,467 --> 00:46:48,000
"of election-year politics.
958
00:46:48,000 --> 00:46:49,834
"In the process, the most
important questions about
959
00:46:49,834 --> 00:46:53,200
"Benghazi, where Ambassador J.
Christopher Stevens and three
960
00:46:53,200 --> 00:46:56,033
"other Americans were
killed...have largely
961
00:46:56,033 --> 00:46:57,900
"gotten lost."
962
00:46:57,900 --> 00:46:58,900
I agree with that.
963
00:46:58,900 --> 00:47:00,500
The Press:
Jay, the question wasn't
about Benghazi at all.
964
00:47:00,500 --> 00:47:02,533
The question is about
why the conflict.
965
00:47:02,533 --> 00:47:03,900
If you don't think
it's a conflict,
966
00:47:03,900 --> 00:47:05,467
explain to us why it isn't.
967
00:47:05,467 --> 00:47:06,367
Mr. Carney:
It's a hypothetical.
968
00:47:06,367 --> 00:47:08,233
The Press:
What has that got to do
with Benghazi at all?
969
00:47:08,233 --> 00:47:12,467
Mr. Carney:
Well, because, Major, I know
you're not so naïve to believe
970
00:47:12,467 --> 00:47:15,066
that we're not seeing these
articles because of the
971
00:47:15,066 --> 00:47:18,600
continued assault that's been
taking place on Ambassador Rice
972
00:47:18,600 --> 00:47:24,033
that has all started with the
non-event of her appearances on
973
00:47:24,033 --> 00:47:25,633
Sunday shows, one.
974
00:47:25,633 --> 00:47:26,466
Two --
975
00:47:26,467 --> 00:47:27,333
The Press:
No, I'm just trying
to help my colleague.
976
00:47:27,333 --> 00:47:28,200
He asked you a
specific question --
977
00:47:28,200 --> 00:47:29,100
Mr. Carney:
And I answered that question.
978
00:47:29,100 --> 00:47:30,834
I'm not going to speculate about
a nomination process that hasn't
979
00:47:30,834 --> 00:47:31,633
even occurred.
980
00:47:31,633 --> 00:47:32,700
The Press:
Do you believe it's a
conflict, and if not, why not?
981
00:47:32,700 --> 00:47:34,700
Mr. Carney:
That's based on speculation.
982
00:47:34,700 --> 00:47:36,700
The Press:
Well, if --
983
00:47:36,700 --> 00:47:39,834
Mr. Carney:
If somebody were nominated,
would there be a conflict?
984
00:47:39,834 --> 00:47:42,232
Let's address this once
we have a nomination.
985
00:47:42,233 --> 00:47:43,967
The Press:
It's not a disqualifier,
in other words?
986
00:47:43,967 --> 00:47:46,433
Mr. Carney:
As the President has said
and others have said,
987
00:47:46,433 --> 00:47:50,433
I have said to the extent
that my opinion matters,
988
00:47:50,433 --> 00:47:55,633
that Susan Rice is eminently
qualified for any number of
989
00:47:55,633 --> 00:47:57,834
high-level foreign
policy positions,
990
00:47:57,834 --> 00:48:00,933
including the one she has
where she has performed with
991
00:48:00,934 --> 00:48:04,867
great distinction.
992
00:48:04,867 --> 00:48:06,667
I owe Peter.
993
00:48:06,667 --> 00:48:10,333
The Press:
I want to go back to -- I think
what the Republican point would
994
00:48:10,333 --> 00:48:13,867
be is that they have come off
the position that they had a
995
00:48:13,867 --> 00:48:16,066
year and a half ago where
you all put that forward.
996
00:48:16,066 --> 00:48:17,265
Mr. Carney:
Have you seen a proposal
that demonstrates that?
997
00:48:17,266 --> 00:48:17,967
The Press:
No.
998
00:48:17,967 --> 00:48:18,667
Mr. Carney:
Okay.
999
00:48:18,667 --> 00:48:19,467
The Press:
I haven't seen one
from you, either.
1000
00:48:19,467 --> 00:48:20,233
I'm questioning whether --
1001
00:48:20,233 --> 00:48:21,100
Mr. Carney:
You have.
1002
00:48:21,100 --> 00:48:22,133
The Press:
No, that's the same
proposal from last year.
1003
00:48:22,133 --> 00:48:23,834
They're saying they're
willing to go beyond --
1004
00:48:23,834 --> 00:48:24,633
Mr. Carney:
But, Peter --
1005
00:48:24,633 --> 00:48:25,567
The Press:
Can I finish the question?
1006
00:48:25,567 --> 00:48:26,367
Mr. Carney:
Okay.
1007
00:48:26,367 --> 00:48:29,166
The Press:
They're saying they're willing
to come beyond the proposal that
1008
00:48:29,166 --> 00:48:31,900
they agreed to last year in
terms of non-tax revenues.
1009
00:48:31,900 --> 00:48:33,867
They have not given
a specific proposal.
1010
00:48:33,867 --> 00:48:36,367
You are going to that as a
proposal you had last year,
1011
00:48:36,367 --> 00:48:37,367
which is reasonable.
1012
00:48:37,367 --> 00:48:39,934
Are you willing to come beyond
that proposal of last year?
1013
00:48:39,934 --> 00:48:42,667
Mr. Carney:
I have said, as the --
echoing the President,
1014
00:48:42,667 --> 00:48:46,066
that he is not wedded to every
detail in his plan and he
1015
00:48:46,066 --> 00:48:50,232
understands that tough choices
are required and compromise
1016
00:48:50,233 --> 00:48:52,934
means moving off
of your position.
1017
00:48:52,934 --> 00:48:57,567
So I'm not going to get into
specifics or numbers about what
1018
00:48:57,567 --> 00:48:59,567
cuts will look like
in this area or that.
1019
00:48:59,567 --> 00:49:01,867
But he is committed
to spending cuts.
1020
00:49:01,867 --> 00:49:04,367
But to go back to
your question here,
1021
00:49:04,367 --> 00:49:09,600
the issue is "we haven't seen
any spending cuts from the White
1022
00:49:09,600 --> 00:49:12,467
"House," and that's just
fundamentally not the case.
1023
00:49:12,467 --> 00:49:14,133
They have not been adopted.
1024
00:49:14,133 --> 00:49:16,667
They are still
serious, substantive,
1025
00:49:16,667 --> 00:49:19,866
viable proposals that
have not been adopted.
1026
00:49:19,867 --> 00:49:22,300
What we've never seen, going
back even to the passing of
1027
00:49:22,300 --> 00:49:26,800
paper in 2011, are
anything like --
1028
00:49:26,800 --> 00:49:28,667
when it comes to revenue,
anything like the kind of
1029
00:49:28,667 --> 00:49:30,933
specificity we've provided
on cuts from the Republicans
1030
00:49:30,934 --> 00:49:31,934
on revenue.
1031
00:49:31,934 --> 00:49:33,433
And to this day we
haven't seen that.
1032
00:49:33,433 --> 00:49:36,400
And to this day, I believe
on the floor of one of the
1033
00:49:36,400 --> 00:49:38,333
chambers, one of the
Republican leaders said --
1034
00:49:38,333 --> 00:49:40,800
as if we didn't
have this debate,
1035
00:49:40,800 --> 00:49:43,500
and as if the American
people haven't spoken --
1036
00:49:43,500 --> 00:49:47,133
that there is no way we're
going to raise rates on
1037
00:49:47,133 --> 00:49:48,133
high-income Americans.
1038
00:49:48,133 --> 00:49:51,033
I mean, another way to look
at that is that they insist on
1039
00:49:51,033 --> 00:49:54,232
voting for a tax cut,
again, for the top 2%.
1040
00:49:54,233 --> 00:50:00,400
And if they don't get that,
you, 98% of the American people,
1041
00:50:00,400 --> 00:50:01,934
get a tax hike.
1042
00:50:01,934 --> 00:50:03,834
That's just not a
position that plausible.
1043
00:50:03,834 --> 00:50:04,734
The Press:
Can I just ask a question --
1044
00:50:04,734 --> 00:50:05,533
Mr. Carney:
No, let me give Peter some time.
1045
00:50:05,533 --> 00:50:06,400
Yes.
1046
00:50:06,400 --> 00:50:07,400
The Press:
I'm sorry, you said he is
not wedded to the details,
1047
00:50:07,400 --> 00:50:10,834
but he is saying he is willing
to go with spending cuts that
1048
00:50:10,834 --> 00:50:16,433
are broader, larger, deeper,
more in total amount than that
1049
00:50:16,433 --> 00:50:18,500
would encompass?
1050
00:50:18,500 --> 00:50:22,300
Mr. Carney:
Look, I think that, without
getting into a negotiating
1051
00:50:22,300 --> 00:50:25,000
posture here, that when the
President says that he is
1052
00:50:25,000 --> 00:50:29,400
willing to move off
of his proposals,
1053
00:50:29,400 --> 00:50:31,333
acknowledge that he doesn't
get everything he wants,
1054
00:50:31,333 --> 00:50:37,500
that he's acknowledging that
this is a negotiation and that
1055
00:50:37,500 --> 00:50:39,867
you don't get everything
you want in a negotiation.
1056
00:50:39,867 --> 00:50:45,467
And clearly, Republicans are
interested in spending cuts,
1057
00:50:45,467 --> 00:50:48,967
and he looks forward to
having that discussion.
1058
00:50:48,967 --> 00:50:51,367
But a fundamental
proposition here,
1059
00:50:51,367 --> 00:50:53,600
which at least rhetorically has
been addressed but not in any
1060
00:50:53,600 --> 00:50:56,400
substantive way, is that
revenues have to be a
1061
00:50:56,400 --> 00:50:57,400
part of this.
1062
00:50:57,400 --> 00:51:00,066
And the only way to get to the
revenues that are necessary to
1063
00:51:00,066 --> 00:51:04,265
achieve the balance that the
American people want is to not
1064
00:51:04,266 --> 00:51:06,533
give another tax cut to
millionaires and billionaires.
1065
00:51:06,533 --> 00:51:07,600
That's pretty simple.
1066
00:51:07,600 --> 00:51:09,767
And as I talked about
before, it's sort of a --
1067
00:51:09,767 --> 00:51:12,232
it's like a two-step
hurdle here.
1068
00:51:12,233 --> 00:51:17,700
They've cleared one hurdle by
saying that revenues need to be
1069
00:51:17,700 --> 00:51:19,332
part of this.
1070
00:51:19,333 --> 00:51:23,066
Now we get to the next stage,
which is what those revenues
1071
00:51:23,066 --> 00:51:24,700
look like and what
they have to look like.
1072
00:51:24,700 --> 00:51:28,399
Because there has not been any
credible proposal that anyone
1073
00:51:28,400 --> 00:51:32,834
has seen that could pass
Congress or makes economic sense
1074
00:51:32,834 --> 00:51:39,633
that creates the kind of revenue
necessary without raising rates.
1075
00:51:39,633 --> 00:51:40,633
Good?
1076
00:51:40,633 --> 00:51:41,633
Thanks very much.
