President Obama’s press conference regarding Middle Class Tax Cuts and Unemployment Insurance Agreement.

TRANSCRIPT

Press Conference by the President in the James S. Brady Press Briefing Room

THE PRESIDENT: Good afternoon, everybody. Before I answer a few questions, I just wanted to say a few words about the agreement we’ve reached on tax cuts.

My number one priority is to do what’s right for the American people, for jobs, and for economic growth. I’m focused on making sure that tens of millions of hardworking Americans are not seeing their paychecks shrink on January 1st just because the folks here in Washington are busy trying to score political points.

And because of this agreement, middle-class Americans won’t see their taxes go up on January 1st, which is what I promised — a promise I made during the campaign, a promise I made as President.

Because of this agreement, 2 million Americans who lost their jobs and are looking for work will be able to pay their rent and put food on their table. And in exchange for a temporary extension of the high-income tax breaks — not a permanent but a temporary extension — a policy that I opposed but that Republicans are unwilling to budge on, this agreement preserves additional tax cuts for the middle class that I fought for and that Republicans opposed two years ago.

I’ll cite three of them. Number one, if you are a parent trying to raise your child or pay college tuition, you will continue to see tax breaks next year. Second, if you’re a small business looking to invest and grow, you’ll have a tax cut next year. Third, as a result of this agreement, we will cut payroll taxes in 2011, which will add about $1,000 to the take-home pay of a typical family.

So this isn’t an abstract debate. This is real money for real people that will make a real difference in the lives of the folks who sent us here. It will make a real difference in the pace of job creation and economic growth. In other words, it’s a good deal for the American people.

Now, I know there are some who would have preferred a protracted political fight, even if it had meant higher taxes for all Americans, even if it had meant an end to unemployment insurance for those who are desperately looking for work.

And I understand the desire for a fight. I’m sympathetic to that. I’m as opposed to the high-end tax cuts today as I’ve been for years. In the long run, we simply can’t afford them. And when they expire in two years, I will fight to end them, just as I suspect the Republican Party may fight to end the middle-class tax cuts that I’ve championed and that they’ve opposed.

So we’re going to keep on having this debate. We’re going to keep on having this battle. But in the meantime I’m not here to play games with the American people or the health of our economy. My job is to do whatever I can to get this economy moving. My job is to do whatever I can to spur job creation. My job is to look out for middle-class families who are struggling right now to get by and Americans who are out of work through no fault of their own.

A long political fight that carried over into next year might have been good politics, but it would be a bad deal for the economy and it would be a bad deal for the American people. And my responsibility as President is to do what’s right for the American people. That’s a responsibility I intend to uphold as long as I am in this office.

So with that, let me take a couple of questions.

Ben Feller.

Q Thank you, Mr. President. You’ve been telling the American people all along that you oppose extending the tax cuts for the wealthier Americans. You said that again today. But what you never said was that you oppose the tax cuts, but you’d be willing to go ahead and extend them for a couple years if the politics of the moment demand it.

So what I’m wondering is when you take a stand like you had, why should the American people believe that you’re going to stick with it? Why should the American people believe that you’re not going to flip flop?

THE PRESIDENT: Hold on a second, Ben. This isn’t the politics of the moment. This has to do with what can we get done right now. So the issue — here’s the choice. It’s very stark. We can’t get my preferred option through the Senate right now. As a consequence, if we don’t get my option through the Senate right now, and we do nothing, then on January 1st of this — of 2011, the average family is going to see their taxes go up about $3,000. Number two: At the end of this month, 2 million people will lose their unemployment insurance.

Now, I have an option, which is to say, you know what, I’m going to keep fighting a political fight, which I can’t win in the Senate — and by the way, there are going to be more Republican senators in the Senate next year sworn in than there are currently. So the likelihood that the dynamic is going to improve for us getting my preferred option through the Senate will be diminished. I’ve got an option of just holding fast to my position and, as a consequence, 2 million people may not be able to pay their bills and tens of millions of people who are struggling right now are suddenly going to see their paychecks smaller. Or alternatively, what I can do is I can say that I am going to stick to my position that those folks get relief, that people get help for unemployment insurance. And I will continue to fight before the American people to make the point that the Republican position is wrong.

Now, if there was not collateral damage, if this was just a matter of my politics or being able to persuade the American people to my side, then I would just stick to my guns, because the fact of the matter is the American people already agree with me. There are polls showing right now that the American people, for the most part, think it’s a bad idea to provide tax cuts to the wealthy.

But the issue is not me persuading the American people; they’re already there. The issue is, how do I persuade the Republicans in the Senate who are currently blocking that position. I have not been able to budge them. And I don’t think there’s any suggestion anybody in this room thinks realistically that we can budge them right now.

And in the meantime, there are a whole bunch of people being hurt and the economy would be damaged. And my first job is to make sure that the economy is growing, that we’re creating jobs out there, and that people who are struggling are getting some relief. And if I have to choose between having a protracted political battle on the one hand, but those folks being hurt or helping those folks and continuing to fight this political battle over the next two years, I will choose the latter.

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