Here are the remarks the president made this afternoon in the East Room of the White House. It was a strong argument before he won reelection and it is an even stronger argument today. However, John Boehner can’t legislate his way out of a paper bag and his caucus is clinically insane. So…
THE PRESIDENT: Thank you. (Applause.) Thank you so much. (Applause.) Thank you very much, everybody. Everybody, please have a seat. (Applause.)
Well, good afternoon, everybody. Now that those of us on the campaign trail have had a chance to get a little sleep — (laughter) — it’s time to get back to work. And there is plenty of work to do.
As I said on Tuesday night, the American people voted for action, not politics as usual. You elected us to focus on your jobs, not ours. And in that spirit, I’ve invited leaders of both parties to the White House next week, so we can start to build consensus around the challenges that we can only solve together. And I also intend to bring in business and labor and civic leaders from all across the country here to Washington to get their ideas and input as well.
At a time when our economy is still recovering from the Great Recession, our top priority has to be jobs and growth. That’s the focus of the plan I talked about during the campaign. (Applause.) It’s a plan to reward small businesses and manufacturers that create jobs here, not overseas. It’s a plan to give people the chance to get the education and training that businesses are looking for right now. It’s a plan to make sure this country is a global leader in research and technology and clean energy, which will attract new companies and high-wage jobs to America. It’s a plan to put folks back to work, including our veterans, rebuilding our roads and our bridges, and other infrastructure. And it’s a plan to reduce our deficit in a balanced and responsible way.
Our work is made that much more urgent because at the end of this year, we face a series of deadlines that require us to make major decisions about how to pay our deficit down — decisions that will have a huge impact on the economy and the middle class, both now and in the future. Last year, I worked with Democrats and Republicans to cut a trillion dollars’ worth of spending that we just couldn’t afford. I intend to work with both parties to do more — and that includes making reforms that will bring down the cost of health care so we can strengthen programs like Medicaid and Medicare for the long haul.
But as I’ve said before, we can’t just cut our way to prosperity. If we’re serious about reducing the deficit, we have to combine spending cuts with revenue — and that means asking the wealthiest Americans to pay a little more in taxes. (Applause.) That’s how we did it in the 1990s, when Bill Clinton was President. That’s how we can reduce the deficit while still making the investments we need to build a strong middle class and a strong economy. That’s the only way we can still afford to train our workers, or help our kids pay for college, or make sure that good jobs in clean energy or high-tech manufacturing don’t end up in countries like China.
Now, already, I’ve put forward a detailed plan that allows us to make these investments while reducing our deficit by $4 trillion over the next decade. I want to be clear — I’m not wedded to every detail of my plan. I’m open to compromise. I’m open to new ideas. I’m committed to solving our fiscal challenges. But I refuse to accept any approach that isn’t balanced. I am not going to ask students and seniors and middle-class families to pay down the entire deficit while people like me, making over $250,000, aren’t asked to pay a dime more in taxes. I’m not going to do that. (Applause.)
And I just want to point out this was a central question during the election. It was debated over and over again. And on Tuesday night, we found out that the majority of Americans agree with my approach — and that includes Democrats, independents, and a lot of Republicans across the country, as well as independent economists and budget experts. That’s how you reduce the deficit — with a balanced approach.
So our job now is to get a majority in Congress to reflect the will of the American people. And I believe we can get that majority. I was encouraged to hear Speaker Boehner agree that tax revenue has to be part of this equation — so I look forward to hearing his ideas when I see him next week.
And let me make one final point that every American needs to hear. Right now, if Congress fails to come to an agreement on an overall deficit reduction package by the end of the year, everybody’s taxes will automatically go up on January 1st — everybody’s — including the 98 percent of Americans who make less than $250,000 a year. And that makes no sense. It would be bad for the economy and would hit families that are already struggling to make ends meet.
Now, fortunately, we shouldn’t need long negotiations or drama to solve that part of the problem. While there may be disagreement in Congress over whether or not to raise taxes on folks making over $250,000 a year, nobody — not Republicans, not Democrats — want taxes to go up for folks making under $250,000 a year. So let’s not wait. Even as we’re negotiating a broader deficit reduction package, let’s extend the middle-class tax cuts right now. Let’s do that right now. (Applause.)
That one step — that one step — would give millions of families — 98 percent of Americans and 97 percent of small businesses — the certainty that they need going into the new year. It would immediately take a huge chunk of the economic uncertainty off the table, and that will lead to new jobs and faster growth. Business will know that consumers, they’re not going to see a big tax increase. They’ll know that most small businesses won’t see a tax increase. And so a lot of the uncertainty that you’re reading about, that will be removed.
In fact, the Senate has already passed a bill doing exactly this, so all we need is action from the House. And I’ve got the pen ready to sign the bill right away. I’m ready to do it. (Applause.) I’m ready to do it. (Applause.)
The American people understand that we’re going to have differences and disagreements in the months to come. They get that. But on Tuesday, they said loud and clear that they won’t tolerate dysfunction. They won’t tolerate politicians who view compromise as a dirty word. Not when so many Americans are still out of work. Not when so many families and small business owners are still struggling to pay the bills.
What the American people are looking for is cooperation. They’re looking for consensus. They’re looking for common sense. Most of all, they want action. I intend to deliver for them in my second term, and I expect to find willing partners in both parties to make that happen. So let’s get to work.
Thank you very much, everybody. Thank you. (Applause.)
Your move, Boner.
Isn’t there some legislative maneuver in the House by which proposed legislation(such as a bill for middle class tax cuts only) can be introduced by gathering enough signatures? This would force every member to take a stand.
I think it requires a majority…which the Dems don’t have.
Sounded like Harry Reid and the Pres aren’t going to put up with the hostage takers this round. Pretty transparent, but oh so welcomed, to see the Pres suggest clearing the tax cuts for the middle class off the table now and just having the fight on the top left to fight over come end of the year.
Obama made the announcement with the middle class at his back; no questions from the floor and very clearly said only those who are ready to offer a balanced negotiation are allowed in the room from now on.
This Obama is going to be tough minded, that was his message.
Harry Reid and the Pres are the hostage takers this time around.
I like the “let’s extend the middle-class tax cuts right now” line.
It shifts the window (I don’t know if it’s Overton’s or someone else’s) of negotiations to the left.
I also like the killing-with-kindness line aimed at Boehner: “I was encouraged to hear Speaker Boehner agree that tax revenue has to be part of this equation — so I look forward to hearing his ideas when I see him next week.”
That means next week’s meeting goes something like this:
O – John, as you know, I welcomed your statement last week agreeing that tax revenue has to be part of the solution. What’s your proposal?
B – ?????
He will just say that “growth” will produce the existing tax revenues – provided that Obama gives tax cuts to the rich. Never mind that there is no empirical evidence for this. It’s dogma. So it must be true.
Then Obama can say, “Okay, have you had your proposal scored by the CBO? No? Well, once you’ve done that we can talk about it? Any other ideas? No? Okay. I really do want to find a compromise solution to this problem, but I can’t do it without some concrete proposals from your side. Get back to me as so as you have some.”
I used to be the speech writer for the CEO of my former employer, but I am in awe of the Obama speech writing team. They seem to be able to produce at least one good speech a day – perfect in pitch and timing, perfect in length, presentation and – most importantly substance – sending the correct messages and rarely putting a foot wrong. This speech was suitably short. Avoid confusing the issue. There is only one immediate issue on the table: middle class tax cuts “we can all agree on”. We can talk about the rest later. Simple, but brilliant.
The secret is that Obama is the most talented member of his own speechwriting staff.
Speech writing takes time. I doubt he has more than a few minuets to read over prepared remarks and make a few small edits.
Probably, but even so, he is still a very talented speechwriter, who does play a role in the speechwriting team.
Even if it’s small, think about what that means for the ability to write a speech for Obama, in a voice and words that express his thoughts well, for him to be a real contributor to the team, and not just the politician who looks over the professionals’ work and has some edits.
His most important role is actually to give the brief to the speech writing team:
Agree. As one of those weird people who gets a charge out of a well crafted presentation, I too marvel at how pitch-perfect so many things like this are. I picture these people high-fiving each other and giving a big “Fuck Yeah, man! That shit ROCKS!” after proofreading each others stuff.
Wonder if Trump is invited to the WH next week?
No – he’s marching there at the head of a revolutionary army…
Generallissimo Dufus P. Trump, commanding!
“You’re all fired!!”
[musket blasts in The Donald’s general direction]
But WTF???? Trump’s a “maker” and not a taker!!!
Remember last time we balanced the budget? We killed the Clinton boom.
Why on earth is our Democratic President, fresh off a strong re-election, pledging to work with Boehner to enact more contractionary fiscal policy just as the economy is showing signs of getting back on its feet?
There is a simple equation in economics. Public sector deficit=private sector credit. Reduce the deficit and you also reduce the ability of the private sector to make money for nothing by lending to the Government. Rich folk actually hate this despite all their rhetoric. Even now they are getting negative returns on Government bonds, poor dears.
What they hate even more is the Government simply paying off the debt by printing more money – this can create inflation if the economy is already operating at capacity – but that simply isn’t the case now. But even if it did – inflation disproportionately reduces the wealth of those who have loads of wealth in the first place – the simplest way of redistributing wealth (as opposed to income).
The fiscal cliff is actually a largely desireale outcome for Dems. It reduces military spending and increases tax revenues. Their business backers will absolutely scream at the Repugs to cut a deal, any deal, quick if the Dems allow that to happen.
If you read the president’s remarks carefully, that’s not what he’s doing. What he’s doing is opening the door for Republicans to walk into a trap where either they cut a deal that favors Democrats (and the president gets the credit, while the Republican base howls at the betrayal by their leaders) or they refuse to cut a deal (and take all the blame when everyone’s taxes go up, and the economy slows down).
Lemme get this straight: you are so worried about contractionary fiscal policy that…you don’t want the President to try to avoid a big tax increase and big spending cuts scheduled to kick in this coming January?
Why are you assuming that any deal the President cuts with the party that desperately wants to extend the tax cut is going to be contractionary?
Biggest question?
How many Republican (
house sitters) House members will follow Christie’s lead and start to shift away from the right and towards the middle. If they begin to realize that most of the current “leadership” of the RatPub Party is only a step or two away from the tarpits and thus cannot really threaten their jobs by not supporting them in the nextselection(s), how many will opt for safety in numbers? How many will act like the rodent-like little mammals that most of them resemble rather than throw in with the doomed dinosaurs?Gonna be interesting.
Watch.
Once one or two break ranks the stampede will begin.
A stampede of mice, but nevertheless quite important.
Watch.
Gonna be fun, too.
Watch.
AG
Been waiting for years, hasn’t even begun to happen yet. The most they do is talk smack AFTER they retire, like that bullshitter Steve LaTourette is doing right now.
Based on the experience with Blue Dog Democrats, they will never see the handwriting on the wall until they are defeated in an election–and then only the sharp ones. That means 2014 at the earliest.
Maybe.
We’ll see.
AG
They need to look at transaction taxes plus raising capital gains to a reasonable level and capping deductions. This country needs revenue to provide basic services. I can’t believe this siren song of trickle down will not die a well deserved death.
It won’t take as much as people think to get the deficit under the growth rate.
High time for the Tobin Tax.
Global Tax on Banks Coming?
I’m in agreement with Yglesias on this; Boehner has no leverage at all.
http://www.slate.com/articles/business/moneybox/2012/11/boehner_and_the_fiscal_cliff_the_house_speak
er_is_bluffing_about_the_bush.html
Yes, and Obama has show he has he balls, or Congress will walk all over him for the next 2 year