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 The President Made A Commitment - White House Press Briefing by Robert Gibbs 8/3/09 — Monday, August 03, 2009 —  Q Thanks, Robert. The President has been pretty clear he wants to cut the deficit in half within a decade; he wants a health care overhaul that's deficit-neutral; and during the campaign he promised no tax increase on the middle class. Is there a point where you just say two out of three of these ain't bad? And can you get everything done, all three of these done?MR. GIBBS: The President is committed to doing those things. The President was clear in the campaign about that. I think in some ways those goals overlap. We're not going to make progress on the deficit without dealing with health care. So some of those goals actually work in tandem. I don't think we're going to get the deficit under -- begin to get the deficit under better control until we get the economy moving again. In order to get -- lay that new foundation, the President strongly believes that health care reform is important. The President was clear during the campaign about his commitment on not raising taxes on middle-class families. And I don't think any economist would believe that in the environment that we're in raising taxes on middle-class families would make any sense, and the President agrees. Q Then why didn't Secretary Geithner and Dr. Summers say that they would not raise taxes on those families? MR. GIBBS: Well, having -- I did not watch the shows; I read some of the transcripts -- I think they allowed themselves to get into a little bit of a hypothetical back and forth. I will say this, and I think this is important for all of us to understand, and we've talked about this issue throughout the team that we've been here: We do have big, structural deficits that are going to have to be dealt with in order to meet the President's commitment of cutting this deficit in half and getting us back on a path toward fiscal responsibility. That there's no question about. And I think what they both talked about was, one, we're not going to have -- we're not going to be able to sustain any sort of economic recovery unless or until we do have a path toward fiscal responsibility. But they also said that that shouldn't be done in a -- as a way of burdening middle-class families. So I think the President's commitment on this is clear. We have a lot of big challenges. We're already looking at ways to cut wasteful spending. As part of health care reform, the President has identified half a trillion dollars in spending that he thinks can be cut. We've worked just in the past two weeks on a bipartisan basis to look at a program like the F-22 and cut some of that wasteful spending out of the budget as well. [...] Q Robert, in terms of what Geithner and Summers had to say yesterday, it really wasn't too much of a hypothetical back and forth. It was about the -- do they think it's possible to do deficit reduction. But that's not a -- that's -- MR. GIBBS: Well, we can quibble about whether the word "possible" -- Q No, that's not what the word "hypothetical" -- is it possible to do everything the President wants to do without increasing revenues from the middle class? MR. GIBBS: Right, and I want to just state again clearly here that the President has made a very clear commitment to not raise taxes on middle-class families, period. Q But if economists, including the President's own economists, don't necessarily think that it's possible to do so without raising taxes on the middle class, how is that dealing candidly with the American people? MR. GIBBS: Well, again, Jake, there are a series of things that have to be done. I think you'll actually hear an announcement from Treasury later this afternoon about how much money has to be borrowed versus what they thought was going to have to be borrowed and what will have to be borrowed as a result of financial stabilization. In terms of cutting the amount of money that's needed, again, I think the President has been clear on this. The first thing that we can do -- the most important thing that we can do right now is get our economy growing again. We know that the deficit -- part of the reason that the deficit is up right now is that the economy has slowed down so much that tax revenues -- because it's what happens in an economic slowdown -- have regressed a lot. I think the President -- obviously we're going to have to make some decisions down the road on some of the President's legislative priorities and some of the things that Congress wants to do to evaluate how we move back towards -- on a path toward fiscal sustainability. Q So did Geithner and Summers go off script or were they sort of testing the temperature out there of what something like this would -- MR. GIBBS: I don't know. I know the President has been clear about his commitment on it. Q So there is no -- there's no real scenario there, as the administration sees it, where middle-class taxpayers might be hit with a hike? There's no scenario right now -- MR. GIBBS: The President has been clear, very clear. Q Could I make that even a little more precise? The President, as you well know, is -- not just middle class, but he's been very precise about it: no family -- MR. GIBBS: Let me be precise. Q Go ahead. MR. GIBBS: Let me be precise: The President's clear commitment is not to raise taxes on those making less than $250,000 a year. Q So any implication anybody drew from Geithner and Summers yesterday to the contrary is flatly wrong? MR. GIBBS: I think the President has been clear. I think you heard him reiterate it not that long ago right outside this room in the Rose Garden. Q But you can understand why people took what they said yesterday as Geithner and Summers trying to open the door a little bit? MR. GIBBS: Well, I hope you'll take my reiteration of his clear commitment as an update. Q So they were not -- the door is closed? They did not open the door at all? MR. GIBBS: I am reiterating the President's clear commitment in the clearest terms possible, that he's not raising taxes on those who make less than $250,000 a year. Q Did he speak to them about the fact that they did raise this little bit of a -- MR. GIBBS: We talked about a number of economic issues this morning in the Oval Office as part of the daily briefing. Q So is everybody going to be on message now, that absolutely no tax cuts [sic] for families -- MR. GIBBS: Promising that everybody is going to be on message may be a bar that's too high for me to leap over. Q But that's the goal -- everybody is on -- MR. GIBBS: The goal is to get the economy moving again. The goal is to get our government back on -- Q Without any tax cut [sic] for any family making less than $250,000 -- MR. GIBBS: Our goal is to get our government back on a path toward fiscal sustainability; to lay the long-term foundation for economic growth. And let's also -- one point that I forget that I think is important in this: Within the very first month of the President taking office, 95 percent of Americans received a tax cut. That's everybody in the middle class. The President ran because for eight long years the middle class had borne the brunt of bad economic policies. Even when jobs were being created, even when you saw positive economic growth, for the very first time in our history you actually saw wages for the middle class decline. That's one of the reasons that led the President of the United States to want to run for President of the United States: to protect the middle class, to cut their taxes -- which he did -- and to make sure that their voices were heard in the economic policymaking of this country. Q The door is not open even a millimeter on raising taxes? MR. GIBBS: I hope you'll take seriously what I said. [...] Q Just to clarify, is this confusion on the tax thing -- this is something that Summers and Geithner maybe got caught up in hypothetical questions? Or is this a media interpretation? I mean, who is -- MR. GIBBS: I think a confluence of some of that stuff, sure. [...] Q Were you in the morning meeting on the economic topics you talked about a moment ago? MR. GIBBS: Yes. Q Who else was there? Was Mr. Geithner and Mr. Summers there, I guess? MR. GIBBS: They were there; Peter Orszag, Rahm Emanuel, Anita Dunn. Q Did the President bring up what was discussed in the Sunday talk shows, or did Mr. Summers and Mr. Geithner volunteer -- MR. GIBBS: I don't believe -- Q -- did either one of them volunteer the hypothetical back-and-forth characterization -- MR. GIBBS: I'm sorry, what? Q Did either one of them explain -- MR. GIBBS: No, I made that up all by myself. Q That's how you interpreted it, as a hypothetical back and forth? MR. GIBBS: Well, I read the transcript a few times. And I do think that -- yes, I think there was some -- Q Did the President seek an explanation from either Mr. Summers or Mr. Geithner about what they were trying to do? MR. GIBBS: We talked about it as an issue, but we didn't -- it wasn't sort of -- this wasn't a, you know, like "school is in" type of thing. Q Or a woodshed type of thing? MR. GIBBS: Right. No. [...] Q Robert, not to belabor the tax thing, but when the President was talking to the team this morning, did he say to Geithner and Summers: You guys should not have left this open, it should have been clearer? MR. GIBBS: No. We talked about this going forward. And there were -- Dr. Romer talked about the recent numbers on international manufacturing. Q But did the President reiterate his position on middle-class taxes? MR. GIBBS: Yes. Q In that -- Q In that meeting -- to them? MR. GIBBS: To all of them. Q To make sure there was no confusion? MR. GIBBS: Yes. [...] Q Just to close a loop on taxes, is there any time -- MR. GIBBS: I was pretty sure I did that by at least the end of the second row, but -- (laughter.) Q I want to take one last crack at you. MR. GIBBS: Okay. Q Is there any time limit to -- because one of the things you said to the front row -- MR. GIBBS: This is the hypothetical game I'm not -- again the President -- Q No, but you said in this -- in this environment -- MR. GIBBS: I'm going to say this. I'm going to deal with this and I'll do this one more time. The President was clear; he made a commitment in the campaign; that commitment stands. Q And he will never raise taxes on -- MR. GIBBS: That commitment stands. Q But commitment doesn't mean he'll do it, Robert. I mean, I can be committed to losing -- MR. GIBBS: What else are you going ask then? You asked if the President is going to make his commitment. I'm saying he's made a commitment. Q But that's not completely shutting the door. You can say I'm committed to doing something, but you may not do it. MR. GIBBS: Fine. Ignore everything I've said in the last 45 minutes. Bill. Q Robert, back on health care, yesterday -- MR. GIBBS: If you don't trust what I'm going to tell you, then I don't know why we do this. Q Well, you keep using that "commitment" word -- if someone says yes or no -- is he closing -- MR. GIBBS: The President made a commitment in the campaign. The President made a commitment in the campaign, he's clear about that commitment, and he's going to keep it. I don't know much more clear about the commitment I can be. Q Then why didn't Geithner and Summers say it? MR. GIBBS: They left it to me. (Laughter.) Bill. Elections | Health Care | President Obama | Press Briefing | Robert Gibbs | Taxes | Treasury Secretary Timothy Geithner | White House Press Corps Labels: Elections, Health Care, President Obama, Press Briefing, Robert Gibbs, Taxes, Treasury Secretary Timothy Geithner, White House Press Corps >> Full Story
Posted by White House Press Corps @ 11:53:00 PM
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