President Obama is holding a press conference this morning to talk about the status of the debt ceiling negotiations. In statements made prior to the press conference, Democratic House leaders Nancy Pelosi and Steny Hoyer said they support President Obama in his effort to find a "grand bargain," but Pelosi added that they will not support reducing the deficit and providing tax cuts to the wealthy "on the backs of the middle class."
We'll post the video feed when it's available.
8:02 AM PT: "We have the opportunity to do something big." The "shared sacrifice" and "balanced approach" means taking down domestic spending to levels we haven't seen since Eisenhower, and included defense cuts. It requires Medicare "stabilization." It also requires revenues. So at least he's still talking revenue, meaning that maybe the McConnell/Reid deal will have to include some.
8:04 AM PT: He does read the polls. Stresses that the majority of Republicans in all polls recognize that revenues are necessary.
8:05 AM PT: He is "still pushing for us to do a big deal," but if they can't do the biggest deal possible, let's at least get a "down payment on deficit reduction" without huge changes in revenue or significant changes in entitlements. The fall-back is raising the ceiling but not dealing with the deficit or debt.
8:08 AM PT: Tapper: On shared sacrifice, we know about the taxes, we don't yet know what you're willing to do on entitlements. What's one structural reform you'd be willing to do to make life harder for old people?
Obama: We're willing to look at all those approaches (means testing, raising the retirement age) and to make "as much as possible" current beneficiaries aren't hurt.
8:09 AM PT: More on SS/Medicare: Sounds very supportive of means testing of Medicare (which would turn it into a welfare program), but is unwilling to restructure the program along the lines of the Ryan plan. SS and Medicare are the "most important safety net programs we have" but will go to them to find cuts, including on the provider side.
8:13 AM PT: Q2: What middle of the road policy would you go with? How about the House BBA idea?
Obama: hasn't seen it yet, the House will be voting on these for political reason, but if you go to over $2 trillion in cuts without revenues, won't agree to it. The WH has identified significant domestic and military cuts already (that's probably Medicaid and SS COLA) around $2 trillion w/revenue. Has not seen a credible plan that allows you to get to $2.4 trillion that doesn't really "hurt folks."
8:16 AM PT: Advocating payroll tax cut again. Might help free up some money and offset increased cost of living, we'd benefit to keep that going. Unfortunately, the Social Security system does not. Adds importance of including unemployment benefits.
8:18 AM PT: We can fix this thing for a decade or more if "everyone is willing to compromise." Which, of course, they aren't.
8:21 AM PT: Todd: Stupid meta question. Does he regret his role in the nastiness? Does he regret not using the Bowles/Simpson plan as his? (Once again perpetuating the lie that it was a real report.)
Obama brushes it off as "reality TV" or "chatter in this town" but not something people care about. Re: B/S, "not the approach I would take." Too much defense spending cuts, components of B/S we are willing to embrace—the domestic spending cuts (catfood!) we'll take, but not the degree of defense cuts.
8:22 AM PT: Eighty percent of Americans support the balanced approach, taxes and cuts. What about 80% of Americans also support is keeping Social Security, Medicare, and Medicaid as is, with no cuts. He doesn't bring up that part.
8:24 AM PT: Q: Comment on the McConnell/Reid idea? Another BBA question.
Obama, BBA meaning Balanced Budget Amendment. "We don't need a constitutional amendment to do our jobs." "We simply need to make these tough choices and take on our bases." Also, "we don't have to do anything radical" to make these changes. That's true, btw, of SS and Medicare. Radical would be benefits cuts, which aren't necessary.
8:25 AM PT: We don't need to "gut" Social Security, Medicare, Medicaid, veterans benefits, but "modest adjustments."
8:28 AM PT: On McConnell, could avoid "armageddon," so it's a possibility. The genuine underlying problem is that the debt and deficits are too big. The McConnell approach solves the first problem of the debt ceiling, but not the second problem of the deficit. Doesn't address the specific Reid/McConnell proposal, just McConnell's clean debt ceiling hike.
8:29 AM PT: Q: Back to "tone" of debate. The Village speaks. Does McConnell's 2012 statement poison the well.
Obama: "don't want to poke at you guys," but doesn't pay attention to what cable and DC press says about him. Whatever McConnell says isn't an impediment to getting something done.
8:32 AM PT: Still have a lot of work to do: unemployment and mortgage crisis. Those are the issues we'll have to work on once the debt ceiling is dealt with. His job creation efforts have "traditionally been bipartisan," the trade deals, infrastructure bank. "Surely we can come up with a compromise."
8:36 AM PT: Q: Any sign in daily meetings that Rs are moving? Or still in the same place as Monday?
Obama: ask them. Boehner was, in good faith, trying to get the "big deal" done. There might be some movement or interest in getting more than the bare minimum done. We have time to do the "big deal." Expecting some answers from all congressional leaders in the next couple of days.
8:37 AM PT: His selling job is with the progressives who should be concerned with debt and deficit, because if that's the only thing we'd be talking about in the next several years then we can't deal with everything else. (As if making this deal will make Republicans stop using the deficit as a political hammer on Democrats.)
8:42 AM PT: It's clear that Obama is not at all interested in a clean debt ceiling hike. He wants his grand bargain which makes domestic spending cuts and some revenue.