Presidential News Conference - Debt Talks Update

A Presidential News Conference was called on the morning of July 11, 2011 after legislatures failed to reach an agreement during deficit and debt ceiling talks. During negotiations, taking place over the preceding weekend, President Obama had hoped that Republican and Democratic leaders would be able to reach a balanced debt and deficit agreement. The President had hoped that the agreement would have been reached by Sunday July 10, 2011.

Failure to reach fruition came as Speaker Boehner backed away from the potential $4 trillion dollar deal the President was asking for and instead began pushing for a $2 trillion dollar deal. The $4 trillion deal had initially been suggested by Boehner himself and would have included $1 trillion dollars in revenues.

Prior to opening the news conference for questioning, the president said that the "good news"
was that all of our leaders believe it would not be acceptable to fail to raise the debt ceiling or to allow the U.S. to default for the first time in American history.

The President said we should use this opportunity to do something big and meaningful on debts and deficits and that he wants to do the biggest thing possible in order to do the most for the longest period. He alluded to the fact that he has no intentions of signing any short-term deals (stop gaps) that represents a mere 30, 60, or 90 day package. The President says he wants to deal with big and pressing issues now because it is a moral imperative to tackle debts and deficits by constructing a balanced package.

The President went on to say that things will be worse when leaders are up for reelection next year and that our leaders need to "pull off their band-aids" and "eat their peas". The President said he is ready to take heat from his caucus and that Republicans should be ready to do the same if they are as serious as they say they are about getting something done. Millionaires and billionaires and people like him could afford to pay a little more, the President emphasized.

If Republicans don't want to go for reducing tax breaks for the wealthy, said the President, they should go with increased tax breaks for lower income people - speaking of which - he tossed in - Republicans need to allow extension of $1,000 tax break he gave the middle class  because disallowing an extension could make the economy worse.

Chip Reid asked the President if the a portion of the negotiations had to do with pressure from the Tea Party and other Americans outside of government? The President's response centered around the fact that the general public did not pay close attention to treasury options - that that was the elected official's jobs. The President went on to state that the American People would not believe it to be a good idea for our leaders not to pay America's bills and cause a recession that will put more people out of work. He assured the questioner that the American people would agree with him despite any polls to which the reporter was referring. Rephrasing his point, the President said that more people would back him in raising the debt ceiling once they understood the consequences of not doing so.

Regarding the debt ceiling, the President also said that some professional politicians that know better than saying we should not raise the debt ceiling are acting in a irresponsible manner. That he and Tim Geitener were not making up the fiscal problems. The President alluded to the fact that he would rather be talking about something else like resolving NFL problems but that debt and deficit problems are what he must be talking about because this is what is on his plate.

Regarding Medicare, the President said that the vast majority of leaders on Capitall Hill would prefer not to have to make any tough calls on entitlements. Medicare, however, would run out of money and we will not be able to sustain it regardless of whether or not taxes go up if necessary changes are not made to the program. He added that progressives who value programs such as head start, student loans, and other progressive values that allow for a shot at the American dream must be interested in figuring out how we pay for these things in a responsible way.The President also added that it is hard to persuade people to do hard things; that people keep avoiding these hard things, and that he thinks it is important to take on the difficulties.

President Obama touched on the Social Security portion of the negotiations talks by pointing out that this entitlement is not a source of deficit problems. He said Social Security is a part of a package that would ascertain means to strengthen the program for the out years. Strengthening Social Security is necessary, said the President, it called for some tough votes, and so they might as well do it now.

The President said that in obtaining a balanced package, he knew he would not be able to get exactly everything he wants because, in the end, he would likely still want more for his constituents. He is ready, however, to move in the other side's direction - that the system dictates compromise among our political leaders. The President "only inferred", however, that the Right Wing still refuses to move an inch - despite rhetoric they push in public that suggests they want to do the right thing by the American People.

The President noted that he wants to deal with acquiring revenue from those who can afford it. That he does not want to wait till the elections begin in 2012 to start discussing revenue problems again. He noted that seniors, poor kids, infrastracture, medical procedures, and so forth, continue to suffer by waiting to tackle these issues at later date;s and that he, himself, is willing to give up $100k for the sake of helping the less fortunate. He also noted, once again, that without revenues, the people who can least afford it will continue to pay more than those who can afford to pay higher tax rates continue to not do their share. This why he accepts that a balanced deal may not be what everyone wants - including himself.

On payroll taxes the President said that payroll tax cuts may not be exactly what he would design to boost employment, however, these cuts would be better than nothing right now because they would improve business when people have more money in their pockets and are able to buy things. The House, however, still has yet to pass the President's latest proposal for extension of these payroll tax cuts. On unemployment, the President noted, unemployment funds also puts money into the economy and spurs hiring.

Although short-term steps, such as payroll tax cuts and extended unemployment benefits, put people back to work, we must still do a bunch of stuff such as passing bills that are still sitting in Congress awaiting the Republican held House's approval. On that note, the President began to reiterate things we could do right now, referring to bills he put before Congress some time ago and had expected the House to act on by now. The President also pointed out how Republicans keep going out before cameras saying, "Mr. President, what are you doing about jobs?" despite their lack of action on this front. All the while that Republicans refuse to act on bills to put Americans back to work they continue to claim that adding jobs to the market would be a big boost for the economy.

President Obama mentioned the fact that Speaker Boehner faces tough politics with his caucus. Just the same, however, the President said his experience with Boehner has been good and that he thinks Boehner wants to do the right thing for the country.

Alluding to some of the newly hired Tea Partiers, the President said that Republicans need to realize that American government works when people work together to solve big problems. That some Republicans have not yet come to this realization. The President used the metaphor that everybody getting in a boat at same time prevents the boat from tipping in response to a question about Cantor walking out on previous negotiations.

The President told the audience that things he is obsessed with and has been obsessed with since coming into office revolve around families struggling and finding it harder and harder to make it despite their continuance in trying to do the right thing. Hundreds of  thousands of folks are seeing an economy that is worse than it has been our lifetimes. Although he stabilized the economy, it was not enough to spur jobs to an acceptable level considering all the job losses that began to occur prior to his coming into office and have continued thereafter. Things we need to do, for example, in order to make certain the economy continues to grow include removing unnecessary regulations that prevent business from investing.

The President made it clear that we cannot take an approach that involves trillions of dollars because we don't have that kind of money right now. Strategies we could pursue should focus on targeting job growth, such as in infrastructure projects he has proposed. Some of these projects may be small, however, smart grids, extensive road building or rebuilding, and similar projects could be good for 20 to 30 years.

President Obama also emphasized that we must get our fiscal problems under control in order to position ourselves to make the types of investments he believes are right for winning the future. Freeing up some of the long-term challenges make it possible to work on more short-term challenges.

A FEW SHORT POINTS:

Tax revenues the President is requesting will not kick in until 2013.

The President is ready to take heat from his party.

Obama says he believes Speaker Boehner would like to do something big.

Republicans are holding strong on their refusal to meet the President halfway.

The President inferred that Speaker Boehner's hands are tied by his caucus.

The President noted that he and people like him do not need $100,000 tax cuts.

Republicans claim they want to go with a $2 trillion plan that Vice President Biden introduced earlier this year; a plan that Republican leaders rejected.

Party members from both sides will continue to meet everyday until the debt and deficit issues are resolved.

The President said his strong preference would be to figure out how to provide help across the board.

The President also mentioned the Republican Party's claim that it is a moral imperative to tackle debts and deficits in responsible a way. The President has responded to their claim by telling them, "Let's Go!" The Republican rhetoric, however, continues to suggest that tax hikes are "job killers", knowing full well that tax hikes the President is asking for will help the economy and will not prevent job growth because those holding money they obtained from ridiculously low tax rates have no interest in creating jobs.

The President was very relaxed and took out a good deal of time in answering questions.
He said he will continue to push for a long-term deal and the largest deal possible.