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Video: Obama: Boehner walking from ‘extraordinarily fair’ debt deal

  1. Closed captioning of: Obama: Boehner walking from ‘extraordinarily fair’ debt deal

    >> i wanted to give you an update on the current situation around the debt ceiling. i just got a call about half hour ago, from speaker boehner , who indicated he was going to be walking away from the negotiations we have been engaged in here at the white house for a big deficit reduction and debt reduction package. and i thought it would be useful for me to just give you some insight into where we were and why i think that we should have moved forward with a big deal . essentially what was offered to speaker boehner was over a billion cuts in discretionary spending both domestic and defense. we then offered additional $650 billion in cuts to entitlement programs . medicare, medicaid, social security . we believe that it was possible to shape those in way that preserved the integrity of the system, made them available for the next generation, and did not affect current beneficiaries in an adverse way. in addition, what we sought was revenues that were actually less than what the gang of six signed off on. so you add bipartisan group of senators, including republicans who are leadership and the senate. calling for what effectively was about $2 trillion above the republican baseline that they've been working off of. what we said was, give us 1.2 trillion in additional revenues, which could, accomplished without hiking tax rates but could simply be accomplished by eliminating loop holes. eliminating some deductions. and engaging in tax reform process that could have lowered rates generally while broadening the base. so let me reiterate what we were offering. we were offering a deal that called for as much discretionary savings as the gang of six. we were calling for taxes that were less than what the gang of six had proposed. and we were calling for modifications to entitlement programs would have saved just as much over the ten-year window. in other words, this was an extraordinarily fair deal . if it was unbalanced, it was unbalanced in the direction of not enough revenue. but in the interest of being serious about deficit reduction, i was willing to take a lot of heat from my party, and i spoke to democratic leaders yesterday. and although they didn't sign off on a plan, they were willing to engage in serious negotiations. despite a lot of heat from a lot of interest groups around the country, in toward make sure that we actually dealt with this problem. it is hard to understand why speaker boehner would walk away from this kind of deal and frankly, if you look at the commentary out there, there are a lot of republicans that are puzzled as to why it couldn't get done. in fact, there are a lot of republican voters out there who are puzzled as to why it couldn't get done. because the fact of the matter is the vast majority of the american people believe we should have a balanced approach. now, if you do not have any revenues as the most recent republican plan that's been put forward both in house and senate proposed, if you have no revenues at all, what that means is, more after burden on seniors. more traffic cuts to education. more drastic cuts to research. a bigger burden on services that are going to middle class families all across the country. and it essentially excess nothing of corporate jet owners. it asks nothing of oil and gas companies. it asks nothing from folks like me. who have done extremely well. and can afford to do a little bit more. in other words, if you don't have revenues, the entire thing ends up being tilted on the backs of the poor and middle class families. and the majority of americans don't agree on that approach. so here's what we're going to do. we have now run out of time. i've told speaker boehner . i've told nancy pelosi . i've told harry reid . and i've told mitch mcconnell , i want them here at 11:00 tomorrow. we have run out of time and they are going to have to explain to me how it is that we are going to avoid default. and they can come up with any plans that they want and bring them up here and we will work on them. the only bottom line that i have is that we have to extend this debt ceiling through the next election. into 2013 . and the reason for it, is we have now seen how difficult it is to get any kind of deal done. the economy is already weakened. and the notion that five or six or eight months from now we'll be in a better position to try and solve this problem makes no sense. in addition, if we can't come up with a serious plan for actual deficit and debt reduction and all we're doing is extending the debt ceiling for another six, seven, ail eight months, then the probabilities of downgrading u.s. credit are increased. and that will be an additional cloud over the economy and make it more difficult for us and more difficult tore businesses to create jobs that american people so desperately need. so they will come down here at 11:00 tomorrow. i expect them to have an answer in terms of how they intend to get this thing done over the course of the next week. the american people expect action. i continue to believe that a package that is balanced and actually has serious debt and deficit reduction is the right way to go. and the american people , i think, are fed up with political posturing. and an inability for politicians to take responsibility actions as opposed to dodge their responsibilities.

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