Today on CNN President Obama had his first press conference since he was re-elected about
passing a law right now that would prevent any
tax hike whatsoever on the first $250,000 of everybody's income.
(CNN) - President Barack Obama
took questions from the press Wednesday at the sixteenth press
conference of his presidency - the first one since he was re-elected.
OBAMA: Good afternoon, everybody. Please have a seat.
I hear you have some questions for me.
(LAUGHTER)
But, let me just make a few remarks at the top and then I'll open it up.
First of all, I want to reiterate what I said on Friday. Right now,
our economy is still recovering from a very deep and damaging crisis, so
our top priority has to be jobs and growth. We've got to build on the
progress that we've made because this nation succeeds when we've got a
growing, thriving middle class.
OBAMA: And that's the idea at the core of the plan that I talked
about on the campaign trail over the last year: rewarding manufacturers
and small businesses that create jobs here, not overseas; providing more
Americans the chance to learn the skills that businesses are looking
for right now; keeping this country at the forefront of research,
technology and clean energy; putting people back to work rebuilding our
roads, our bridges and our schools; and reducing our deficit in a
balanced and responsible way.
Now, on this last item, we face a very clear deadline that requires
us to make some big decisions on jobs, taxes and deficits by the end of
the year. Both parties voted to set this deadline and I believe that
both parties can work together to make these decisions in a balanced and
responsible way.
Yesterday, I had a chance to meet with labor and civic leaders for
their input. Today, I'm meeting with CEOs of some of America's largest
companies. And I'll meet with leaders of both parties of Congress before
the week is out, because there's only one way to solve these challenges
and that is to do it together.
As I've said before, I'm open to compromise and I'm open to new
ideas, and I've been encouraged over the past week to hear Republican
after Republican agree on the need for more revenue from the wealthiest
Americans as part of our arithmetic if we're going to be serious about
reducing the deficit. Because when it comes to taxes, there are two
pathways available.
OBAMA: Option one, if Congress fails to act by the end of this year,
everybody's taxes will automatically go up, including the 98 percent of
Americans who make less than $250,000 a year, and the 97 percent of
small businesses who earn less than $250,000 a year. That doesn't make
sense. Our economy can't afford that right now. Certainly, no middle
class family can afford that right now. And nobody in either party says
that they want it to happen.
The other option is to pass a law right now that would prevent any
tax hike whatsoever on the first $250,000 of everybody's income. And by
the way, that means every American, including the wealthiest Americans,
get a tax cut. It means that 98 percent of all Americans and 97 percent
of all small businesses won't see their taxes go up a single dime.
The Senate has already passed a law like this. Democrats in the House
are ready to pass a law like this. And I hope Republicans in the House
come on board too. We should not hold the middle class hostage, while we
debate tax cuts for the wealthy. We should at least do what we agree
on, and that's to keep middle class taxes low.
And I'll bring everyone in to sign it right away, so we can give
folks some certainty before the holiday season. I won't pretend that
figuring out everything else will be easy, but I'm confident we can do
it, and I know we have to. I know that, that's what the American people
want us to do.
That was a - the very clear message from the election last week. And
that was the message of a letter that I received over the weekend. It
came from a man in Tennessee who began by writing that he didn't vote
for me. Which is OK. But, what he said was, even though he didn't give
me his vote, he's giving me his support to move this country forward.
And he said the same to his Republican representatives in Washington.
He said that, he'll back each of us regardless of party as long as we
work together to make life better for all of us. And he made it clear
that if we don't make enough progress he'll be back in touch.
So my hope, he wrote, is that we can make progress in light of
personal and party principles, special interest groups and years of
business as usual. We've got to work together and put our differences
aside.
I couldn't say it better myself. That's precisely what I intend to
do. And with that, let me open it up for your questions. And I'm gonna
start off with Ben Feller of AP.
QUESTION: Thank you, Mr. President.
Can you assure the American people that there have been no breaches
of national security or classified information in the scandal involving
Generals Petraeus and Allen?
And do you think that you as commander in chief and the American
people should have been told that the CIA chief was under investigation
before the election?
OBAMA: Well, I have no evidence at this point from what I've seen
that classified information was disclosed that in any way would have had
a negative impact on our national security. Obviously, there's an
ongoing investigation. I don't want to comment on the specifics of the
investigation.
The FBI has its own protocols in terms of how they proceed, and I'm
gonna let rector Mueller and others examine those protocols and make
some statements to the public generally.
I do want to emphasize what I've said before. General Petraeus had an
extraordinary career. He served this country with great distinction in
Iraq, in Afghanistan and as head of the CIA. By his own assessment, he
did not meet the standards that he felt were necessary as the director
of CIA with respect to this personal matter that he is now dealing with
with his family and with his wife. And it's on that basis that he
tendered his resignation and it's on that basis that I accepted it.
But I want to emphasize that from my perspective, at least, he has
provided this country an extraordinary service. We are safer because of
the work that Dave Petraeus has done. And my main hope right now is that
he and his family are able to move on and that this ends up being a
single side-note on what has otherwise been an extraordinary career.
QUESTION: (inaudible).
OBAMA: You know, again, I think you're going to have to talk to the
FBI in terms of what their general protocols are when it comes to what
started off as a potential criminal investigation. You know, one of the
challenges here is that we're not supposed to meddle in, you know,
criminal investigations and that's been our practice.
And, you know, I think that there are certain procedures that both
the FBI follow or DOJ follow when they're involved in these
investigations. That's traditionally been how we view things in part
because people are innocent until proven guilty and we want to make sure
that we don't pre-judge these kinds of situations.
OBAMA: And so my expectation is that they followed protocols that they already established.
(CROSSTALK)
QUESTION: Mr. President, on the fiscal cliff, two years ago, sir, you
said that you wouldn't extend the Bush-era tax cuts, but at the end of
the day, you did. So, respectfully, sir, why should the American people
and the Republicans believe that you won't cave again this time?
OBAMA: Well, two years ago the economy was in a different situation.
We were still very much in the early parts of recovering from the worst
economic crisis since The Great Depression, and ultimately we came
together, not only to extend the Bush tax cuts, but also a wide range of
policies that were going to be good for the economy at that point;
unemployment insurance extensions, payroll tax extension, all of which
made a difference and is part of the reason why what we've seen now is
32 consecutive months of job growth, and over 5.5 million jobs created,
and the unemployment rate coming down.
But what I said at the time is what I mean, which is this was a
one-time proposition. And, you know what I had told leaders privately as
well as publicly, is that we cannot afford to extend the Bush tax cuts
for the wealthy. What we can do is make sure that middle-class taxes
don't go up. And so, the most important step we can take right now, and I
think the foundation for a deal that helps the economy, creates jobs,
gives consumers certainty, which means gives businesses confidence that
they're going to have consumers during the holiday season is if we right
away say, 98 percent of Americans are not going to see their taxes go
up, 97 percent of small businesses are not going to see their taxes go
up.
If we get that in place, we are actually removing half of the fiscal
cliff. Half of the danger to our economy is removed by that single step.
And what we can then do is shape a process whereby we look at tax
reform - which I'm very eager to do. I think we can simplify our tax
system. I think we can make it more efficient. We can eliminate
loopholes and deductions that have a distorting effect on our economy.
I believe that we have to continue to take a serious look at how we
reform our entitlements, because health care costs continue to be the
biggest driver of our deficits.
So there is a package to be shaped, and I'm confident that parties -
folks of goodwill in both parties can make that happen. But what I'm not
going to do is to extend Bush tax cuts for the wealthiest 2 percent
that we can't afford and, according to economists, will have the least
positive impact on our economy.
QUESTION: You've said that the wealthiest must pay more. Would closing loopholes instead of raising rates for them satisfy you?
OBAMA: I think that there are loopholes that can be closed, and we
should look at how we can make the process of deductions, the filing
process easier, simpler. But when it comes to the top 2 percent, what
I'm not going to do is to extend further a tax cut for folks who don't
need it, which would cost close to a trillion dollars.
And it's very difficult to see how you make up that trillion dollars -
if we're serious about deficit reduction - just by closing loopholes
and deductions. You know, the math tends not to work. And I think it's
important to establish a basic principle that was debated extensively
during the course of this campaign.
OBAMA: I mean, this shouldn't be a surprise to anybody. This was - if
there was one thing that everybody understood was a big difference
between myself and Mr. Romney, it was, when it comes to how we reduce
our deficit, I argued for a balanced, responsible approach, and part of
that included making sure that the wealthiest Americans pay a little bit
more.
I think every voter out there understood that, that was an important
debate, and the majority of voters agreed with me. Not - by the way,
more voters agreed with me on this issue than voted for me. So, we've
got a clear majority of the American people who recognize, if we're
going to be serious about deficit reduction, we've got to do it in a
balanced way.
The only question now is are we going to hold the middle class hostage in order to go ahead and let that happen?
Or, can we all step back and say, here's something we agree on, we
don't want middle class taxes to go up. Let's go ahead and lock that in.
That will be good for the economy. It will be good for consumers. It
will be good for businesses. It takes the edge off the fiscal cliff, and
let's also then commit ourselves to the broader package of deficit
reduction that includes entitlement changes and it includes potentially
tax reform as well as I'm willing to look at additional work we can do
on the discretionary spending side.
So, I want a - big deal. I want a comprehensive deal. I want to see
if we can, you know, at least for the foreseeable future, provide
certainty to businesses and the American people so that we can focus on
job growth, so that we're also investing in the things that we need, but
right now what I want to make sure is that the taxes on middle class
families don't go up, and there's an easy way to do that. We could get
that done by next week.
Rory Montenegro (ph), Telemundo.
QUESTION: Thank you, Mr. President.
QUESTION: On immigration reform, the criticism in the past has been
that you did not put forth legislation with specific ideas and send it
up to the Hill. This time around, you have said again that this will be
one of the top priorities for a second term. Will you, then, send
legislation to the Hill? And exactly what do you envision is broad
immigration reform? Does that include a legalization program?
And also, what lessons, if any, did Democrats learn from this last election and the Latino vote?
OBAMA: Well, I think what was incredibly encouraging was to see a
significant increase in Latino turnout. This is the fastest-growing
group in the country and, you know, historically what you've seen is
Latino vote - vote at lower rates than the broader population. And
that's beginning to change.
You're starting to see a sense of empowerment and civic participation
that I think is going to be powerful and good for the country. And it
is why I'm very confident that we can get immigration reform done.
Before the election, I had given a couple of interviews where I
predicted that Latino vote was going to be strong and that that would
cause some reflection on the part of Republicans about their position on
immigration reform. I think we're starting to see that already.
I think that's a positive sign. This has not historically been a
partisan issue. We've had President Bush and John McCain and others who
have supported comprehensive immigration reform in the past. So, we need
to seize the moment.
And my expectation is that we get a bill introduced and we begin the process in Congress very soon after my inauguration.
OBAMA: And, in fact, some conversations I think are already beginning
to take place among senators and congressmen and my staff about what
would this look like. And when I say comprehensive immigration reform,
it's very similar to the outlines of previous immigration reform. I
think it should include a continuation of the strong border security
measures that we've taken. Because we have to secure our border. I think
it should contain serious penalties for companies that are purposely
hiring undocumented workers and - and taking advantage of them.
And I do think that there should be a pathway for legal status for
those who are living in this country, are not engaged in criminal
activity, are here to - simply to work. I've - it's important for them
to pay back taxes. It's important for them to learn English. It's
important for them to potentially pay a fine, but to give them the
avenue whereby they can resolve their legal status here in this country,
I think is very important. Obviously making sure that we put into law
what - the first step that we've taken administratively dealing with the
DREAM Act kids is very important as well.
The one thing that I'm - I'm very clear about is that young people
who are brought here through no fault of their own, who have gone to
school here, pledged allegiance to our flag, want to serve in our
military, want to go to school and contribute to our society, that they
shouldn't be under the cloud of deportation. That we should give them
every opportunity to earn their citizenship. And so, you know there are
other components to it, obviously. The business community continues to
be concerned about getting enough high-skilled workers.
And I am a believer that if you've got a PhD in physics, or computer
science who wants to stay here, and start a business here, we shouldn't
make it harder for them to stay here, we should try to encourage him to
contribute to this society. I think that the agricultural sector,
obviously has very specific concerns about making sure that they've got a
workforce that helps deliver food to our table. So there're gonna be a
bunch of components to it, but I think whatever process we have needs to
make sure border security's strong, needs to deal with employers
effectively, needs to provide a pathway for the undocumented here, needs
to deal with the DREAM Act kids.
And I think that's something that we can get done.
Chuck Todd? Where's Chuck?
QUESTION: Mr. President, I just want to follow up on both Ben's
question and Jessica's (ph) question. On having to do with Ben's
question...
OBAMA: How about Laurie's (ph) question, you want to follow up on that one too?
(LAUGHTER)
QUESTION: I - I - you know - no, I feel like you answered that one completely.
(LAUGHTER)
Are you withholding judgment on whether you should have known sooner
that there was a potential - that there was an investigation into
whether your CIA director - potentially there was a national security
breach with your CIA director? Do you believe you should have known
sooner or are you withholding judgment until the investigation is
complete on that front?
And then the follow-up to Jessica's (ph) question, tax rates. Are you
- is there no deal at the end of the year if tax rates for the top 2
percent aren't the Clinton tax rates, period? No ifs, ands or buts and
any room in negotiating on that specific aspect of the fiscal cliff?
OBAMA: I am - I am withholding judgment with respect to how the
entire process surrounding General Petraeus came up. You know, we don't
have all the information yet. But I want to say that I have a lot of
confidence generally in the FBI.
And they've got a difficult job. And so I'm gonna wait and see to see if there's any other...
QUESTION: (OFF-MIKE)
OBAMA: Well, I mean, Chuck, what I'll say is that if - it is also
possible that had we been told, then you'd be sitting here asking a
question about why were you interfering in a criminal investigation? So,
you know, I - I think it is best right now for us to just see how this
whole process is unfolding.
With respect to the tax rates, I - I just want to emphasize, I am
open to new ideas. If the Republican counterparts, or some Democrats,
have a great idea for us to raise revenue, maintain progressivity, make
sure the middle class isn't getting hit, reduces our deficit, encourages
growth, I'm not going to just slam the door in their face. I want to
hear - I want to hear ideas from everybody.
QUESTION: (OFF-MIKE) red line.
OBAMA: Well look, I believe this is solvable.
I think that fair minded people can come to an agreement that does
not cause the economy to go back into recession, that protects middle
class families, that focuses on jobs and growth, and reduces our
deficit. I'm confident it can be done. My budget frankly doesn't. I
understand that I don't expect the Republicans simply to adopt my
budget. That's not realistic. So, I recognize we're going to have to
compromise. And, as I said on election night, compromise is hard. And
not everybody gets 100 percent of what they want, and not everybody is
going to be perfectly happy.
But, what I will not do is to have a process that is vague, that says
we're gonna sort of, kind of raise revenue through dynamic scoring or
closing loopholes that have not been identified.
OBAMA: And the reason I won't do that, is because I don't want to
find ourselves in the position, six months from now or a year from now,
where low and behold, the only way to close the deficit is to sock it to
middle-class families or to burden families that have disabled kids or,
you know, have a parent in a nursing home, or suddenly we've got to cut
more out of our basic research budget that is the key to growing the
economy in the long term.
So, that's my concern. I'm less concerned about red lines per se.
What I'm concerned about is not finding ourselves in a situation where
the wealthy aren't paying more or aren't paying as much as they should.
Middle-class families one way or another are making up the difference.
That's the kind of status quo that has been going on here too long, and
that's exactly what I argued against during this campaign.
And if there's one thing that I'm pretty confident about is the
American people understood what they were getting when they gave me this
incredible privilege of being in office for another four years. They
want compromise. They want action. But they also want to make sure that
middle-class folks aren't bearing the entire burden and sacrifice when
it comes to some of these big challenges. They expect that folks at the
top are doing their fair share as well, and that's going to be my
guiding principle during these negotiations, but more importantly during
the next four years of my administration.
Nancy Cordes.
QUESTION: Mr. President, on election night you said that you were
looking forward to speaking with Governor Romney, sitting down in the
coming weeks to discuss ways that you could work together on this
nation's problems. Have you extended that invitation? Has he accepted?
And in what ways do you think you can work together?
OBAMA: You know, we haven't scheduled something yet. I think
everybody forgets that the election was only a week ago. And I know I've
forgotten. I forgot on Wednesday.
(LAUGHTER)
So I think everybody needs to catch their breath. I'm sure that Governor Romney is spending some time with his family.
And my hope is before the end of the year, though, we have a chance
to sit down and talk. You know, there - there're certain aspects of
Governor Romney's record and his ideas that I think could be very
helpful. And, well, to give you one example, I do think he did a
terrific job running the Olympics. And, you know, that skillset of
trying to figure out how do we make something work better applies to the
federal government.
There are a lot of ideas that I don't think are partisan ideas but
are just smart ideas about how can we make the federal government more
customer friendly, how can we make sure that, you know, we're
consolidating programs that are duplicative; you know, how can we
eliminate additional waste.
He presented some ideas during the course of the campaign that I
actually agree with. And so it'd be interesting to talk to him about
something like that.
There may be ideas that he has with respect to jobs and growth that can help middle-class families that I want to hear.
So, you know, I'm not either prejudging what he's interested in doing
nor am I suggesting I've got some specific assignment, but what I want
to do is to - is to get ideas from him and see if - see if there's some
ways that we can potentially work together.
QUESTION: But when it comes to your relationships with Congress, one
of the most frequent criticisms we've heard over the past few years from
members on both sides is that you haven't done enough to reach out and
build relationships. Are there concrete ways that you plan to approach
your relationships with Congress in the second term?
OBAMA: Look, I think there is no doubt that I can always do better.
And so I will, you know, examine ways that I can make sure to
communicate my desire to work with everybody, so long as it's advancing
the cause of strengthening our middle class, and improving our economy.
You know, I've got a lot of good relationships with folks both in the
House and the Senate. I have a lot of relationships on both sides of the
aisle. It hasn't always manifested itself in the kind of agreements
that I'd like to see between Democrats and Republicans.
And so, I think all of us have responsibilities to see if there are
things that we can improve on, and I don't exempt myself from needing
to, you know, do some self reflection and see if I can improve our
working relationship.
There are probably going to be still some very sharp differences, and
as I said during the campaign, there are going to be times where there
are fights, and I think those are fights that need to be had, but what I
think the American people don't want to see is a focus on the next
election, instead of a focus on them. And I don't have another election.
And, you know, Michelle and I were talking last night about, you
know, what an incredible honor and privilege it is to - to be put in
this position. And there are people all across this country, millions of
folks, who've worked so hard to help us get elected, but they're also
millions of people who may not have voted for us, but are also counting
on us.
OBAMA: And, you know, we take that responsibility very seriously. I
take that responsibility very seriously. And I hope and intend to be an
even better president in the second term, than I was in the first.