Q Are there any specific places where he's willing to soften his stance, any compromise areas?

DIRECTOR PORTMAN: Well, by saying there are no preconditions and we should all come to the table and talk, that was a change in position. And by putting into the budget some specific ideas, the President is, again, taking the next step, which is not just the need to discuss, but the need to actually start to put solutions on the table.

Q Mr. Portman, you said there are no preconditions. But in the Cabinet meeting a couple hours ago, the President said no tax increases. That sounds like a precondition.

DIRECTOR PORTMAN: What the President said was, that we can balance the budget in five years without increasing taxes, and that, in fact, to increase taxes would put at risk the economy that's generated the revenues that are largely responsible for putting us in a better fiscal condition. So he was very explicit about that issue, but it was in relation to this proposal.

Q So he would welcome tax increases beyond those five years?

DIRECTOR PORTMAN: No, that's not what he said. I'm just telling you that -- unless I missed something -- I was sitting next to him at that Cabinet meeting -- what he was talking about there was his strong belief that it is incumbent upon us to keep the tax relief in place. It's encouraging innovation, encouraging investment. It's been very responsible, as we saw on those charts, since 2003 for the growth in jobs, the growth in productivity, and the ability for us to see these increased revenues. And it would be exactly the wrong thing to do to put the economy at risk and raise taxes on the American people at this point.

Instead, what we should be doing, restraining spending a little bit better, which is in this budget, and continuing with solid economic growth so that we can, indeed, balance the budget for the American people. It's an exciting opportunity, and we don't need to raise taxes to do it.

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Posted by White House Press Corps @ 12:34 AM