English subtitles for clip: File:04-05-2016 - White House Press Briefing.webm

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The President: Good
afternoon, everybody.

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I'm horning in on Josh's
time just for a hot second.

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As we learned last week,
America's economy added

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215,000 jobs in March.

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That means that our
businesses extended the

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longest streak of private
sector job creation on

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record -- 73 straight
months, 14.4 million new

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jobs, unemployment about
half of what it was six

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years ago.

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This progress is due
directly to the grit and

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determination and hard work
and the fundamental optimism

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of the American people.

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As I travel around the
country, what always stands

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out is the fact that the
overwhelming majority of

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folks work hard and they
play by the rules, and they

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deserve to see their
hard work rewarded.

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They also deserve to know
that big corporations aren't

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playing by a different
set of rules; that the

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wealthiest among us aren't
able to game the system.

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That's why I've been pushing
for years to eliminate some

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of the injustices
in our tax system.

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So I am very pleased that
the Treasury Department has

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taken new action to prevent
more corporations from

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taking advantage of one
of the most insidious tax

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loopholes out there, and
fleeing the country just to

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get out of paying
their taxes.

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This got some attention
in the business press

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yesterday, but I wanted
to make sure that we

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highlighted the importance
of Treasury's action and why

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it did what it did.

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This directly goes at what's
called corporate inversions.

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They are not new.

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Simply put, in layman's
terms, it's when big

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corporations acquire small
companies, and then change

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their address to another
country on paper in order to

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get out of paying their fair
share of taxes here at home.

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As a practical matter, they
keep most of their actual

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business here in the United
States because they benefit

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from American infrastructure
and technology and rule

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of law.

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They benefit from our
research and our development

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and our patents.

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They benefit from American
workers, who are the best in

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the world.

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But they effectively
renounce their citizenship.

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They declare that they're
based somewhere else,

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thereby getting all the
rewards of being an American

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company without fulfilling
the responsibilities to pay

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their taxes the way
everybody else is supposed

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to pay them.

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When companies exploit
loopholes like this, it

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makes it harder to invest in
the things that are going to

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keep America's economy
going strong for

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future generations.

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It sticks the rest
of us with the tab.

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And it makes hardworking
Americans feel like the deck

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is stacked against them.

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So this is something that
I've been pushing for a

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long time.

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Since I became President,
we've made our tax code

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fairer, and we've taken
steps to make sure our tax

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laws are actually enforced,
including leading efforts to

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crack down on
offshore evasion.

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I will say that it gets
tougher sometimes when the

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IRS is starved for resources
and squeezed by the

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congressional appropriation
process so that there are

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not enough people to
actually pay attention to

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what all the lawyers and
accountants are doing all

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the time.

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But we have continued to
emphasize the importance of

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basic tax enforcement.

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In the news over the last
couple of days, we've had

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another reminder in this big
dump of data coming out of

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Panama that tax avoidance
is a big, global problem.

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It's not unique to other
countries because, frankly,

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there are folks here in
America who are taking

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advantage of the same stuff.

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A lot of it is legal, but
that's exactly the problem.

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It's not that they're
breaking the laws, it's that

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the laws are so poorly
designed that they allow

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people, if they've got
enough lawyers and enough

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accountants, to wiggle out
of responsibilities that

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ordinary citizens are
having to abide by.

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Here in the United States,
there are loopholes that

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only wealthy individuals and
powerful corporations have

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access to.

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They have access to offshore
accounts, and they are

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gaming the system.

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Middle-class families are
not in the same position to

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do this.

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In fact, a lot of these
loopholes come at the

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expense of middle-class
families, because that lost

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revenue has to be
made up somewhere.

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Alternatively, it means that
we're not investing as much

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as we should in schools,
in making college more

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affordable, in putting
people back to work

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rebuilding our roads, our
bridges, our infrastructure,

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creating more opportunities
for our children.

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So this is important stuff.

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And these new actions by the
Treasury Department build on

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steps that we've already
taken to make the

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system fairer.

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But I want to be clear:
While the Treasury

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Department actions will make
it more difficult and less

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lucrative for companies to
exploit this particular

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corporate inversions
loophole, only Congress can

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close it for good, and only
Congress can make sure that

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all the other loopholes that
are being taken advantage of

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are closed.

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I've often said the best
way to end this kind of

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irresponsible behavior is
with tax reform that lowers

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the corporate tax rate,
closes wasteful loopholes,

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simplifies the tax
code for everybody.

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And in recent years, I've
put forward plans --

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repeatedly -- that would
make our tax system more

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competitive for all
businesses, including

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small businesses.

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So far, Republicans in
Congress have yet to act.

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My hope is that they start
getting serious about it.

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When politicians perpetuate
a system that favors the

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wealthy at the expense of
the middle class, it's not

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surprising that people feel
like they can't get ahead.

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It's not surprising that
oftentimes it may produce a

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politics that is directed
at that frustration.

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Rather than doubling down on
policies that let a few big

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corporations or the
wealthiest among us play by

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their own rules, we should
keep building an economy

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where everybody has a fair
shot and everybody plays by

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the same rules.

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Rather than protect wasteful
tax loopholes for the few at

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the top, we should be
investing more in things

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like education and job
creation and job training

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that we know grow the
economy for everybody.

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And rather than lock in tax
breaks for millionaires, or

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make it harder to actually
enforce existing laws, let's

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give tax breaks to help
working families pay for

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child care or for college.

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And let's stop rewarding
companies that are shipping

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jobs overseas and profit
overseas, and start

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rewarding companies that
create jobs right here at

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home and are good
corporate citizens.

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That's how we're going to
build America together.

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That's how we battled back
from this Great Recession.

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That's the story of
these past seven years.

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That can be the story for
the next several decades if

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we make the right
decisions right now.

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And so I hope this topic
ends up being introduced

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into the broader political
debate that we're going to

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be having leading up
to election season.

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And with that, I turn it
over to Mr. Josh Earnest.

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The Press: A question about
the Panama Papers,

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Mr. President?

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The President: Yes.

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The Press: Given the release of
these millions of pages of

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financial information, are
you concerned that that

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reflects on the ability of
the Treasury Department to

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sort of be able to see all
the financial transactions

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across the globe -- they
clearly didn't see these --

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and whether that suggests
that the sanctions regime

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that you've put in place in
a bunch of places around the

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world might not be as
strong as you think it is?

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The President: Well, we know
the sanctions regime is

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strong because Iran wouldn't
have, for example, cut a

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deal to end their nuclear
program in the absence of

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strong sanctions
enforcement.

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But there is no doubt that
the problem of global tax

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avoidance, generally,
is a huge problem.

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It's been brought
up in G7 meetings.

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It's been brought
up in G20 meetings.

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There has been some progress
made in coordinating between

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tax authorities of different
countries so that we can

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make sure that we're
catching some of the most

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egregious examples.

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But as I said before, one
of the big problems that we

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have, Michael, is that a lot
of this stuff is legal --

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not illegal.

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And unless the United States
and other countries lead by

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example in closing some
of these loopholes and

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provisions, then in many
cases you can trace what's

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taking place, but
you can't stop it.

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And there is always going to
be some illicit movement of

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funds around the world.

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But we shouldn't
make it easy.

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We shouldn't make it legal
to engage in transactions

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just to avoid taxes.

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And that's why I think it is
important that the Treasury

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acted on something that's
different from what happened

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in Panama.

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The corporate inversions
issue is a financial

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transaction that is brokered
among major Fortune 500

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companies to avoid
paying taxes.

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But the basic principle
of us making sure that

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everybody is paying their
fair share, and that we

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don't just have a few
people who are able to take

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advantage of tax provisions,
that's something that we

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really have to
pay attention to.

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Because as I said, this is
all net outflows of money

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that could be spent on the
pressing needs here in the

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United States.

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And the volume that you
start seeing when you

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combine legal tax avoidance
with illicit tax avoidance,

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or some of the activities
that we're seeing, this is

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not just billions
of dollars.

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It's not even just hundreds
of billions of dollars.

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Estimates are this may
be trillions of dollars

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worldwide, and it could make
a big difference in terms of

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what we can do here.

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I'm going to take one more
question and then I'm going

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to turn it over to Josh.

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One last one, go ahead.

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The Press: Mr. President, the
Republican frontrunner today

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outlined his plan to --

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The President: Oh, no.

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(laughter)

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The Press: -- pay for a wall
along the border --

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The Press: Climate change?

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The Press: -- barring undocumented immigrants

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in the U.S. from sending
money back home.

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What would be the real
implication of this plan?

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And are his foreign policy
proposals already doing

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damage to U.S.

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relations abroad?

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The President: The answer to
the latter question is yes.

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I think that I've been very
clear earlier that I am

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getting questions constantly
from foreign leaders about

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some of the wackier
suggestions that are

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being made.

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I do have to emphasize that
it's not just Mr.

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Trump's proposals.

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You're also hearing concerns
about Mr. Cruz's proposals,

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which in some ways are just
as draconian when it comes

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to immigration, for example.

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The implications with
respect to ending

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remittances -- many of
which, by the way, are from

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legal immigrants and from
individuals who are sending

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money back to their
families -- are enormous.

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First of all,
they're impractical.

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We just talked about the
difficulties of trying to

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enforce huge
outflows of capital.

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The notion that we're going
to track every Western Union

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bit of money that's being
sent to Mexico, good luck

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with that.

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Then we've got the issue of
the implications for the

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Mexican economy, which in
turn, if it's collapsing,

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actually sends more
immigrants north because

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they can't find
jobs back in Mexico.

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00:11:56,415 --> 00:12:01,685
But this is just one more
example of something that is

248
00:12:01,687 --> 00:12:04,887
not thought through and is
primarily put forward for

249
00:12:04,890 --> 00:12:06,590
political consumption.

250
00:12:06,592 --> 00:12:11,032
And as I've tried to
emphasize throughout, we've

251
00:12:11,030 --> 00:12:13,470
got serious problems here.

252
00:12:13,466 --> 00:12:15,606
We've got big issues
around the world.

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00:12:15,601 --> 00:12:19,801
People expect the President
of the United States and the

254
00:12:19,805 --> 00:12:22,605
elected officials in this
country to treat these

255
00:12:22,608 --> 00:12:25,848
problems seriously, to put
forward policies that have

256
00:12:25,845 --> 00:12:31,815
been examined, analyzed, are
effective, where unintended

257
00:12:34,386 --> 00:12:36,686
consequences are
taken into account.

258
00:12:36,689 --> 00:12:40,589
They don't expect half-baked
notions coming out of the

259
00:12:40,593 --> 00:12:41,593
White House.

260
00:12:41,594 --> 00:12:44,164
We can't afford that.

261
00:12:44,163 --> 00:12:44,533
All right?

262
00:12:44,530 --> 00:12:44,860
I'm turning it over to Josh.

263
00:12:44,864 --> 00:12:47,904
Thank you, guys.

264
00:13:13,893 --> 00:13:15,063
Mr. Earnest: It's pretty
good when the opening act

265
00:13:15,060 --> 00:13:17,130
brings its own
seal and flags.

266
00:13:17,129 --> 00:13:21,869
So, Josh, do you want to
get us started with our

267
00:13:21,867 --> 00:13:23,867
regularly scheduled
programming here?

268
00:13:23,869 --> 00:13:24,869
The Press: Sure.

269
00:13:24,870 --> 00:13:25,870
Thanks, Josh.

270
00:13:25,871 --> 00:13:27,871
Let's go back to the Panama
Papers for a minute.

271
00:13:27,873 --> 00:13:31,243
The Prime Minister of
Iceland has resigned, facing

272
00:13:31,243 --> 00:13:34,483
questions about potential
conflict of interest

273
00:13:34,480 --> 00:13:37,350
regarding his funds
disclosed as a result of

274
00:13:37,349 --> 00:13:38,349
these papers.

275
00:13:38,350 --> 00:13:40,820
Do you think that
step was called for?

276
00:13:40,819 --> 00:13:43,659
Do you think that there are
other leaders that also may

277
00:13:43,656 --> 00:13:46,926
need to step aside in the
wake of these disclosures?

278
00:13:46,926 --> 00:13:51,866
Mr. Earnest: I'm not aware
of what the newly released

279
00:13:51,864 --> 00:13:55,904
documents indicate about the
financial situation of any

280
00:13:55,901 --> 00:13:58,641
world leaders, let alone
the leader of Iceland.

281
00:13:58,637 --> 00:14:00,577
Obviously that was a
decision that the leader of

282
00:14:00,573 --> 00:14:05,273
Iceland made based on a
variety of considerations.

283
00:14:05,277 --> 00:14:09,377
And I don't have a specific
comment on that

284
00:14:09,381 --> 00:14:12,921
ultimate decision.

285
00:14:12,918 --> 00:14:15,858
Obviously there are a lot
of materials that have been

286
00:14:15,854 --> 00:14:19,494
released and that will
continue to be reviewed by

287
00:14:19,491 --> 00:14:22,591
the general public and
certainly by many of your

288
00:14:22,595 --> 00:14:24,595
news organizations.

289
00:14:26,832 --> 00:14:29,332
As the President noted, it
does sort of highlight some

290
00:14:29,335 --> 00:14:31,605
issues that the President
has been focused on for

291
00:14:31,604 --> 00:14:33,474
quite a long time.

292
00:14:33,472 --> 00:14:36,572
And I did actually want to
add to one aspect of his

293
00:14:36,575 --> 00:14:40,875
answer about this.

294
00:14:40,879 --> 00:14:43,319
There are some specific
steps that the

295
00:14:43,315 --> 00:14:46,955
administration has succeeded
in implementing that has

296
00:14:46,952 --> 00:14:50,522
been effective in countering
some of the international

297
00:14:50,522 --> 00:14:55,232
tax avoidance schemes that
were revealed in the context

298
00:14:55,227 --> 00:14:58,167
of this document.

299
00:14:58,163 --> 00:15:00,333
Many of you will recall --
or at least some of you will

300
00:15:00,332 --> 00:15:02,872
recall, in 2010 the
President signed into law

301
00:15:02,868 --> 00:15:05,338
the Foreign Account
Tax Compliance Act.

302
00:15:05,337 --> 00:15:08,277
FATCA was a piece of
legislation that this

303
00:15:08,274 --> 00:15:13,144
administration aggressively
pushed Congress to pass.

304
00:15:13,145 --> 00:15:16,445
This was legislation that
was targeted at countering

305
00:15:16,448 --> 00:15:17,918
tax evasion by U.S.

306
00:15:17,916 --> 00:15:22,086
taxpayers using
offshore accounts.

307
00:15:22,087 --> 00:15:24,527
The benefits of this
legislation were significant

308
00:15:24,523 --> 00:15:26,023
in a variety of ways.

309
00:15:26,025 --> 00:15:28,025
Let me discuss a
couple of them.

310
00:15:28,027 --> 00:15:31,997
The first is that the law
actually prompted countries

311
00:15:31,997 --> 00:15:35,637
around the world to begin
reciprocal financial

312
00:15:35,634 --> 00:15:37,874
information-sharing
agreements.

313
00:15:37,870 --> 00:15:42,940
That's beneficial because
there are now 112 countries

314
00:15:42,941 --> 00:15:45,411
that exchange information
with the United States about

315
00:15:45,411 --> 00:15:47,411
financial transactions that
are occurring in their

316
00:15:47,413 --> 00:15:50,153
countries that were
initiated, or at least that

317
00:15:50,149 --> 00:15:55,859
involve the other
countries' citizens.

318
00:15:55,854 --> 00:15:59,254
So this is helpful in
getting -- in providing

319
00:15:59,258 --> 00:16:01,428
greater transparency into
the details of these

320
00:16:01,427 --> 00:16:03,067
financial transactions.

321
00:16:03,062 --> 00:16:08,802
So as a result, more than
150,000 foreign financial

322
00:16:08,801 --> 00:16:11,841
institutions have now
registered under FATCA;

323
00:16:11,837 --> 00:16:15,807
150,000 financial
institutions that the U.S.

324
00:16:15,808 --> 00:16:18,648
government now has greater
clarity into as a result of

325
00:16:18,644 --> 00:16:23,144
the effective implementation
of FATCA legislation.

326
00:16:23,148 --> 00:16:25,148
In addition to the
legislation, the Department

327
00:16:25,150 --> 00:16:30,920
of Justice has a Swiss bank
program because of the

328
00:16:30,923 --> 00:16:33,293
peculiar regulations that
apply to Swiss banks.

329
00:16:33,292 --> 00:16:35,192
Because of the greater
insight that they have

330
00:16:35,194 --> 00:16:38,734
obtained through this
program, since the end of

331
00:16:38,731 --> 00:16:41,131
last month the Department
has entered into 78

332
00:16:41,133 --> 00:16:44,933
different agreements with 80
Swiss banks that have paid

333
00:16:44,937 --> 00:16:49,747
more than $1.3
billion in penalties.

334
00:16:49,742 --> 00:16:52,742
And when it relates to the
IRS -- that is the agency

335
00:16:52,745 --> 00:16:55,545
that's chiefly responsible
for enforcing these tax

336
00:16:55,547 --> 00:16:57,887
regulations -- they have
also, because of their

337
00:16:57,883 --> 00:17:01,783
efforts, gotten greater
insight into the conduct of

338
00:17:01,787 --> 00:17:04,557
these specific foreign
financial transactions.

339
00:17:04,556 --> 00:17:10,196
Since 2009, the IRS has
received more than 54,000

340
00:17:10,195 --> 00:17:13,165
offshore voluntary
disclosures.

341
00:17:13,165 --> 00:17:16,705
The disclosures are
voluntary because taxpayers

342
00:17:16,702 --> 00:17:22,842
understand that the IRS is
paying new attention to

343
00:17:22,841 --> 00:17:26,441
these kinds of transactions,
and people are interested in

344
00:17:26,445 --> 00:17:27,915
getting right with the law.

345
00:17:27,913 --> 00:17:31,113
And so we're seeing greater
compliance with these laws

346
00:17:31,116 --> 00:17:33,116
because of the effective
implementation and the

347
00:17:33,118 --> 00:17:37,458
effective work of the IRS.

348
00:17:37,456 --> 00:17:42,096
The number of reports that
are filed by foreign bank

349
00:17:42,094 --> 00:17:45,394
and financial accounts --
these are FBARs, for those

350
00:17:45,397 --> 00:17:47,767
who follow these issues
closely -- have increased

351
00:17:47,766 --> 00:17:52,376
significantly over the last
five or six years, from

352
00:17:52,371 --> 00:17:58,081
about 330,000 filings in
2008 to more than 1.1

353
00:17:58,076 --> 00:18:00,076
million of them in 2015.

354
00:18:02,314 --> 00:18:05,814
All told, the IRS has
conducted thousands of

355
00:18:05,818 --> 00:18:08,988
offshore-related civil
audits resulting in millions

356
00:18:08,987 --> 00:18:10,587
of dollars of assessments.

357
00:18:10,589 --> 00:18:13,859
And the Department of
Treasury and the IRS has

358
00:18:13,859 --> 00:18:17,599
pursued criminal
investigations leading to

359
00:18:17,596 --> 00:18:20,366
billions of dollars
in criminal fines

360
00:18:20,365 --> 00:18:21,365
and restitution.

361
00:18:21,366 --> 00:18:24,536
So there are a variety
of ways to chronicle the

362
00:18:24,536 --> 00:18:27,106
success that this
administration has had in

363
00:18:27,105 --> 00:18:29,075
cracking down on some of
these international tax

364
00:18:29,074 --> 00:18:31,474
avoidance schemes that are
now in the news in a way

365
00:18:31,477 --> 00:18:33,477
that they haven't
been previously.

366
00:18:33,479 --> 00:18:36,419
As the President points
out, we're obviously quite

367
00:18:36,415 --> 00:18:39,285
focused on those areas and
those transactions that are

368
00:18:39,284 --> 00:18:40,984
not in compliance
with the law.

369
00:18:40,986 --> 00:18:43,286
But there are significant
concerns that are raised by

370
00:18:43,288 --> 00:18:47,058
financial transactions that,
while technically legal, are

371
00:18:47,059 --> 00:18:49,199
egregiously unfair.

372
00:18:49,194 --> 00:18:52,064
They're unfair because these
are tax maneuvers that are

373
00:18:52,064 --> 00:18:54,064
not available to
middle-class families.

374
00:18:54,066 --> 00:18:56,336
They're only available to
wealthy individuals or

375
00:18:56,335 --> 00:19:00,635
powerful corporations.

376
00:19:00,639 --> 00:19:04,679
And not only is that unfair,
the consequences of these

377
00:19:04,676 --> 00:19:09,116
actions leads to significant
loss of tax revenue that

378
00:19:09,114 --> 00:19:12,514
could otherwise be devoted
to improving our schools,

379
00:19:12,518 --> 00:19:14,518
making college more
affordable, or even putting

380
00:19:14,520 --> 00:19:16,520
people back to work building
our infrastructure.

381
00:19:16,522 --> 00:19:18,722
So the policy questions
are significant.

382
00:19:18,724 --> 00:19:20,724
These are questions that
we've been grappling with

383
00:19:20,726 --> 00:19:23,166
since the President's
earliest days in office.

384
00:19:23,161 --> 00:19:25,901
And, frankly, we're pleased
that this is an issue that's

385
00:19:25,898 --> 00:19:27,898
now in the news that's
getting the kind of

386
00:19:27,900 --> 00:19:28,930
attention that it deserves.

387
00:19:28,934 --> 00:19:32,504
Hopefully it will prompt
long-overdue action in the

388
00:19:32,504 --> 00:19:33,804
United States Congress.

389
00:19:33,805 --> 00:19:35,675
Right now, we've got too
many Republicans in Congress

390
00:19:35,674 --> 00:19:41,844
who are looking out for
their wealthy donors or

391
00:19:41,847 --> 00:19:43,847
wealthy corporate interests
as opposed to pushing for

392
00:19:43,849 --> 00:19:45,989
the kinds of policies that
would be more fair to

393
00:19:45,984 --> 00:19:48,624
middle-class families and
better for our economy.

394
00:19:48,620 --> 00:19:50,720
The Press: Aside, though,
from the issue of tax

395
00:19:50,722 --> 00:19:53,292
avoidance and the revenues,
does the fact that the

396
00:19:53,292 --> 00:19:56,862
leaders of so many key
economies -- China, Russia,

397
00:19:56,862 --> 00:20:01,132
Argentina -- are now
embroiled in this scandal

398
00:20:01,133 --> 00:20:04,073
over their finances, are
the President's economic

399
00:20:04,069 --> 00:20:06,869
advisors concerned that that
will have some negative

400
00:20:06,872 --> 00:20:08,612
effects on the
economy or on markets?

401
00:20:08,607 --> 00:20:14,047
Mr. Earnest: Well, I haven't
heard any specific concern

402
00:20:14,046 --> 00:20:17,486
expressed in the context
of this document release.

403
00:20:17,482 --> 00:20:23,192
I can tell you that one of
the leading items on our

404
00:20:23,188 --> 00:20:27,088
broader diplomatic agenda
is fighting corruption.

405
00:20:27,092 --> 00:20:30,892
And when the President has
traveled to other countries,

406
00:20:30,896 --> 00:20:35,536
he's talked about how
important it is and how

407
00:20:35,534 --> 00:20:38,674
beneficial it can be for
governments to prioritize

408
00:20:38,670 --> 00:20:40,540
transparency measures that
will give people greater

409
00:20:40,539 --> 00:20:43,609
confidence in the
trustworthiness of their

410
00:20:43,609 --> 00:20:50,279
government and in senior
government officials.

411
00:20:50,282 --> 00:20:53,482
Obviously, the United States
is a strong advocate for that.

412
00:20:53,485 --> 00:20:58,495
There are a variety of
multilateral fora -- things

413
00:20:58,490 --> 00:21:00,630
like ASEAN and
even at the U.N.

414
00:21:00,626 --> 00:21:03,096
-- where the United States
has pushed for higher

415
00:21:03,095 --> 00:21:05,565
transparency standards when
it comes to good governance.

416
00:21:05,564 --> 00:21:08,734
That's going to continue to
be a diplomatic priority.

417
00:21:08,734 --> 00:21:11,074
Again, I think this would
also fall in the category of

418
00:21:11,069 --> 00:21:16,109
not a particularly sexy
piece of diplomacy but still

419
00:21:16,108 --> 00:21:19,878
is important to the
broader functioning of the

420
00:21:19,878 --> 00:21:22,048
international system --
both of governance and

421
00:21:22,047 --> 00:21:23,217
of finance.

422
00:21:23,215 --> 00:21:25,155
The Press: And China has
essentially imposed some

423
00:21:25,150 --> 00:21:27,820
type of a media blackout
over this issue.

424
00:21:27,819 --> 00:21:29,489
They're not reporting about
it in the state media.

425
00:21:29,488 --> 00:21:33,328
And searches on the Internet
for terms related to these

426
00:21:33,325 --> 00:21:35,565
Panama Papers have
been prohibited.

427
00:21:35,560 --> 00:21:36,330
Is that something the U.S.

428
00:21:36,328 --> 00:21:37,358
is watching?

429
00:21:37,362 --> 00:21:38,962
Are you raising those
concerns about freedom of

430
00:21:38,964 --> 00:21:41,664
information with the
Chinese government?

431
00:21:41,667 --> 00:21:43,667
Mr. Earnest: I don't know
if we've raised a specific

432
00:21:43,669 --> 00:21:44,839
concern about this issue.

433
00:21:44,836 --> 00:21:48,536
But the United States
regularly advocates for

434
00:21:48,540 --> 00:21:50,540
greater transparency and
greater press freedoms

435
00:21:50,542 --> 00:21:52,182
around the world,
including in China.

436
00:21:52,177 --> 00:21:53,307
Tim.

437
00:21:53,311 --> 00:21:56,381
The Press: Back
to tax inversions.

438
00:21:56,381 --> 00:22:03,921
Why is this coming out now,
since some big deals were in

439
00:22:03,922 --> 00:22:06,822
the works back in
November and given the

440
00:22:06,825 --> 00:22:11,095
administration's long-term
abhorrence of tax avoidance?

441
00:22:11,096 --> 00:22:14,296
Mr. Earnest: Yes, look, the
President has spoken out

442
00:22:14,299 --> 00:22:17,899
quite a bit about how
unfair tax inversions are.

443
00:22:17,903 --> 00:22:19,903
And the President for more
than two years has been

444
00:22:19,905 --> 00:22:22,475
calling on Congress to
update the rules that are on

445
00:22:22,474 --> 00:22:25,244
the books that would limit
the ability of corporations

446
00:22:25,243 --> 00:22:27,813
to essentially renounce
their American citizenship,

447
00:22:27,813 --> 00:22:31,213
to relocate their business
interests, on paper, all in

448
00:22:31,216 --> 00:22:34,516
an effort to avoid
paying their taxes.

449
00:22:34,519 --> 00:22:35,519
That's not fair.

450
00:22:35,520 --> 00:22:37,020
It's not good
for the economy.

451
00:22:37,022 --> 00:22:39,292
And the President has spoken
out strongly against it.

452
00:22:39,291 --> 00:22:44,261
Unfortunately, we've seen
Republicans, frankly, spend

453
00:22:44,262 --> 00:22:47,862
more time worrying about
protecting the tax loopholes

454
00:22:47,866 --> 00:22:50,566
that benefit their wealthy
contributors as opposed to

455
00:22:50,569 --> 00:22:52,939
looking for tax policies
that would benefit

456
00:22:52,938 --> 00:22:55,378
middle-class families
and the broader economy.

457
00:22:55,373 --> 00:23:02,913
We've made no bones about
our distaste for the

458
00:23:02,914 --> 00:23:04,884
Republicans' approach
to this policy.

459
00:23:04,883 --> 00:23:07,283
That's why the President I
think has spoken in rather

460
00:23:07,285 --> 00:23:09,725
colorful terms in the
past about this issue.

461
00:23:09,721 --> 00:23:13,821
And we have seen previous
steps by the Treasury

462
00:23:13,825 --> 00:23:16,325
Department because the
President has said Congress

463
00:23:16,328 --> 00:23:18,368
needs to act to close
these loopholes and to

464
00:23:18,363 --> 00:23:23,003
definitively prevent these
kinds of transactions.

465
00:23:23,001 --> 00:23:27,141
But short of that, the
President vowed to use all

466
00:23:27,139 --> 00:23:29,139
of the executive authority
that's vested in the

467
00:23:29,141 --> 00:23:31,141
executive branch to
take a look at this.

468
00:23:31,143 --> 00:23:33,143
That authority is vested in
the Treasury Department.

469
00:23:33,145 --> 00:23:35,115
And it's the Secretary of
the Treasury, Jack Lew, who

470
00:23:35,113 --> 00:23:39,153
has been at the forefront of
putting in place regulations

471
00:23:39,151 --> 00:23:43,351
that could limit the ability
of large corporations to

472
00:23:43,355 --> 00:23:46,225
benefit from these
unfair tax practices.

473
00:23:46,224 --> 00:23:48,564
And there have been a series
of announcements over the

474
00:23:48,560 --> 00:23:50,560
last couple of years from
the Treasury Department.

475
00:23:50,562 --> 00:23:51,562
This is just the latest one.

476
00:23:51,563 --> 00:23:55,533
But at the same time, I
think some of the coverage

477
00:23:55,534 --> 00:24:00,974
has described these actions
as the most significant

478
00:24:00,972 --> 00:24:05,782
administrative effort to
prevent corporate inversions

479
00:24:05,777 --> 00:24:07,817
that the administration
has taken.

480
00:24:07,813 --> 00:24:09,813
And I wouldn't
quibble with that.

481
00:24:09,815 --> 00:24:11,785
I certainly have a layman's
understanding of these kinds

482
00:24:11,783 --> 00:24:12,783
of decisions.

483
00:24:12,784 --> 00:24:16,524
But I do think that this
announcement that Treasury

484
00:24:16,521 --> 00:24:19,191
made at the end of the
day yesterday reflects a

485
00:24:19,191 --> 00:24:28,931
careful, but aggressive
effort to make our tax

486
00:24:28,934 --> 00:24:30,064
system more fair.

487
00:24:30,068 --> 00:24:33,008
And it certainly doesn't
eliminate the need for

488
00:24:33,004 --> 00:24:34,974
Congress to take action.

489
00:24:34,973 --> 00:24:37,973
But I think it does
demonstrate how serious the

490
00:24:37,976 --> 00:24:40,216
administration
thinks this issue is.

491
00:24:40,212 --> 00:24:41,812
The Press: Is the
administration worried about

492
00:24:41,813 --> 00:24:44,053
getting sued by companies
or groups, having these

493
00:24:44,049 --> 00:24:46,649
regulations weakened?

494
00:24:46,651 --> 00:24:50,521
Mr. Earnest: Well, it
certainly has been a common

495
00:24:50,522 --> 00:24:53,022
tactic of our Republican
political opponents to sue

496
00:24:53,024 --> 00:24:55,024
the administration over
policies that they

497
00:24:55,026 --> 00:24:57,566
don't like.

498
00:24:57,562 --> 00:25:01,132
I've got full confidence
that the kinds of executive

499
00:25:01,132 --> 00:25:04,932
actions that were announced
yesterday to make our tax

500
00:25:04,936 --> 00:25:09,906
system more fair are well
within the legal authority

501
00:25:09,908 --> 00:25:11,478
of the administration
to take.

502
00:25:11,476 --> 00:25:13,776
The Press: And
just one on Syria.

503
00:25:13,778 --> 00:25:18,118
News today of rebels shot
down a Syrian jet, the

504
00:25:18,116 --> 00:25:19,046
second one in a month.

505
00:25:19,050 --> 00:25:21,450
Is this cause for concern?

506
00:25:21,453 --> 00:25:23,493
Mr. Earnest: I've
seen those reports.

507
00:25:23,488 --> 00:25:25,488
And obviously our
intelligence community has

508
00:25:25,490 --> 00:25:26,830
seen them, as well.

509
00:25:26,825 --> 00:25:29,065
At this point those are
reports that we are not able

510
00:25:29,060 --> 00:25:30,560
to corroborate at this time.

511
00:25:30,562 --> 00:25:31,592
Michelle.

512
00:25:31,596 --> 00:25:34,136
The Press: There are some
concerns that these new

513
00:25:34,132 --> 00:25:36,502
rules, because they are so
aggressive, will also affect

514
00:25:36,501 --> 00:25:38,671
foreign investment
coming into the U.S.

515
00:25:38,670 --> 00:25:41,140
The expansion of foreign
companies that are here;

516
00:25:41,139 --> 00:25:43,179
that that could
then affect jobs.

517
00:25:43,174 --> 00:25:44,374
What do you say about that?

518
00:25:44,376 --> 00:25:48,516
Obviously, in your view, the
breadth was needed for

519
00:25:48,513 --> 00:25:49,683
this round.

520
00:25:49,681 --> 00:25:52,751
But is it possible that this
breadth now could have a

521
00:25:52,751 --> 00:25:55,091
real chilling effect
on foreign investment?

522
00:25:55,086 --> 00:25:57,086
Mr. Earnest: Again, I
have only a layman's

523
00:25:57,088 --> 00:25:59,088
understanding of these
specific policies.

524
00:25:59,090 --> 00:26:01,130
What I can tell you is that
the Treasury Department did

525
00:26:01,126 --> 00:26:07,136
include certain provisions
in the regulations that do

526
00:26:10,936 --> 00:26:15,376
not dis-incentivize foreign
corporations from investing

527
00:26:15,373 --> 00:26:16,373
in the United States.

528
00:26:16,374 --> 00:26:19,144
There essentially is a way
to write these rules that

529
00:26:19,144 --> 00:26:23,544
would target people who are
looking to avoid their tax

530
00:26:23,548 --> 00:26:29,058
bill, while not negatively
affecting foreign companies

531
00:26:29,054 --> 00:26:31,794
that are interested in doing
legitimate business inside

532
00:26:31,790 --> 00:26:32,790
the United States.

533
00:26:32,791 --> 00:26:34,791
After all, the
administration has actually

534
00:26:34,793 --> 00:26:37,533
gone to great lengths to
encourage foreign businesses

535
00:26:37,529 --> 00:26:40,169
to invest in the United
States, to benefit from

536
00:26:40,165 --> 00:26:42,165
hiring the best
workers in the world.

537
00:26:42,167 --> 00:26:44,837
We view that as good
for our economy.

538
00:26:44,836 --> 00:26:47,836
We view that as good
for job creation.

539
00:26:47,839 --> 00:26:50,009
And we have put forward a
whole set of incentives to

540
00:26:50,008 --> 00:26:52,648
encourage companies to
locate inside the

541
00:26:52,644 --> 00:26:53,644
United States.

542
00:26:53,645 --> 00:26:55,645
That's been beneficial for
our economy because we've

543
00:26:55,647 --> 00:26:58,587
seen a steady increase in
that investment over the

544
00:26:58,583 --> 00:27:00,783
last several years, and we
want to make sure that that

545
00:27:00,785 --> 00:27:03,585
trend continues.

546
00:27:03,588 --> 00:27:06,828
The Press: Also, we just
heard the President say in

547
00:27:06,825 --> 00:27:08,825
response to the same
question from yesterday --

548
00:27:08,827 --> 00:27:11,497
does he feel that Donald
Trump and other candidates'

549
00:27:11,496 --> 00:27:16,236
rhetoric has already done
damage in terms of the U.S.

550
00:27:16,234 --> 00:27:19,004
standing in the world -- and
he unequivocally said yes,

551
00:27:19,004 --> 00:27:20,234
right off the bat.

552
00:27:20,238 --> 00:27:22,378
But yesterday you said no.

553
00:27:22,374 --> 00:27:25,044
So how do you sort
of smooth that out?

554
00:27:25,043 --> 00:27:29,243
What damage is done, if any,
by this rhetoric already?

555
00:27:29,247 --> 00:27:30,617
Mr. Earnest: Well, as I
acknowledged yesterday, the

556
00:27:30,615 --> 00:27:35,055
fact is the President does
get these kinds of questions

557
00:27:35,053 --> 00:27:36,053
from world leaders.

558
00:27:36,054 --> 00:27:38,224
Secretary of State John
Kerry was on television

559
00:27:38,223 --> 00:27:40,793
today just indicating that
every conversation he has

560
00:27:40,792 --> 00:27:44,262
with world leaders includes
a conversation about their

561
00:27:44,262 --> 00:27:47,162
concerns about the political
rhetoric coming from the

562
00:27:47,165 --> 00:27:49,735
Republican presidential
candidates.

563
00:27:49,734 --> 00:27:51,104
That is concerning.

564
00:27:51,102 --> 00:27:53,502
I think the point that I was
making, Michelle, is that

565
00:27:53,505 --> 00:27:58,175
that damage can be
mitigated, if not outright

566
00:27:58,176 --> 00:28:01,176
eliminated, if the American
people choose to elect

567
00:28:01,179 --> 00:28:06,789
someone that's serious about
protecting American values

568
00:28:06,785 --> 00:28:08,755
and advancing American
interests around the globe

569
00:28:08,753 --> 00:28:12,323
in a way that acknowledges
the important relationships

570
00:28:12,323 --> 00:28:15,063
we have with allies and
partners around the world.

571
00:28:15,060 --> 00:28:17,300
Mr. Trump's rhetoric and the
rhetoric of other Republican

572
00:28:17,295 --> 00:28:19,295
candidates, including
Senator Cruz, doesn't

573
00:28:19,297 --> 00:28:20,297
reflect that.

574
00:28:20,298 --> 00:28:22,698
That is harmful to
the United States.

575
00:28:22,700 --> 00:28:27,710
But over the long term,
electing a successor to

576
00:28:27,705 --> 00:28:29,705
President Obama who
understands how important

577
00:28:29,707 --> 00:28:31,877
those relationships are
and how important it is to

578
00:28:31,876 --> 00:28:38,546
advocate for and defend
consistently good,

579
00:28:38,550 --> 00:28:41,350
old-fashioned American
values, that's going to be

580
00:28:41,352 --> 00:28:42,352
good for the country.

581
00:28:42,353 --> 00:28:45,223
And that will protect our
standing in the world.

582
00:28:45,223 --> 00:28:48,923
And I'm confident this will
be an important part of the

583
00:28:48,927 --> 00:28:50,257
argument you'll hear the
President making into the

584
00:28:50,261 --> 00:28:52,901
summer and fall.

585
00:28:52,897 --> 00:28:53,997
The Press: This is
confusing, though, because

586
00:28:53,998 --> 00:28:56,968
you're trying to make the
point that you don't want

587
00:28:56,968 --> 00:29:00,038
this rhetoric,
that it's not good.

588
00:29:00,038 --> 00:29:02,378
But when we're talking about
something like damage being

589
00:29:02,373 --> 00:29:04,943
done -- I mean, you were
quick to say yesterday, no,

590
00:29:04,943 --> 00:29:06,943
I don't think that the
damage has been done, where

591
00:29:06,945 --> 00:29:09,885
today the President was
just as quick to say, yes,

592
00:29:09,881 --> 00:29:11,881
there's damage
that has been done.

593
00:29:11,883 --> 00:29:14,453
So could you just describe
what is the damage?

594
00:29:14,452 --> 00:29:18,222
Because there are concerns
out there -- nobody has been

595
00:29:18,223 --> 00:29:19,223
elected yet.

596
00:29:19,224 --> 00:29:21,094
So what is damaging?

597
00:29:21,092 --> 00:29:22,292
What exactly is it?

598
00:29:22,293 --> 00:29:24,763
And how does it affect U.S. standing?

599
00:29:24,762 --> 00:29:26,432
Or whatever you
see the damage --

600
00:29:26,431 --> 00:29:28,401
The Press: Well, look, when
you have a political leader

601
00:29:28,399 --> 00:29:32,369
who is given a large
platform and is using that

602
00:29:32,370 --> 00:29:36,470
opportunity to give voice to
values that are inconsistent

603
00:29:36,474 --> 00:29:38,474
with the kinds of values
that the American people

604
00:29:38,476 --> 00:29:40,876
have long stood and fought
for -- in some cases, we're

605
00:29:40,879 --> 00:29:44,919
talking about values that
American servicemen and

606
00:29:44,916 --> 00:29:47,886
women have fought and
died for -- that sends a

607
00:29:47,886 --> 00:29:49,416
confusing signal.

608
00:29:49,420 --> 00:29:54,990
And the fact that important
conversations that are

609
00:29:54,993 --> 00:29:57,463
hosted by the President of
the United States or the

610
00:29:57,462 --> 00:30:02,502
United States Secretary of
State are clouded by these

611
00:30:02,500 --> 00:30:04,870
kinds of discussions
is not good.

612
00:30:04,869 --> 00:30:05,969
It's harmful.

613
00:30:05,970 --> 00:30:08,240
It makes those meetings less
productive than they would

614
00:30:08,239 --> 00:30:09,379
otherwise be.

615
00:30:09,374 --> 00:30:13,814
That's what makes the stakes
of this next election

616
00:30:13,811 --> 00:30:14,851
so important.

617
00:30:14,846 --> 00:30:19,516
And electing a President who
does give voice to those

618
00:30:19,517 --> 00:30:23,117
values that we've long stood
for, who does continue to

619
00:30:23,121 --> 00:30:28,491
see America has a beacon of
human rights and fairness

620
00:30:28,493 --> 00:30:34,603
and justice and equality and
democracy is a good thing

621
00:30:34,599 --> 00:30:38,069
not just for our government
here at home, but for the

622
00:30:38,069 --> 00:30:40,739
standing of the United
States around the world.

623
00:30:40,738 --> 00:30:44,138
The Press: So you would say
that the harm done is in

624
00:30:44,142 --> 00:30:46,142
time taken up in
conversations?

625
00:30:46,144 --> 00:30:48,384
Mr. Earnest: Well, and I
guess the questions that are

626
00:30:48,379 --> 00:30:50,619
raised in the minds of world
leaders about what it is the

627
00:30:50,615 --> 00:30:53,185
United States is
willing to stand for.

628
00:30:53,184 --> 00:30:57,354
And given the platform that
people like Mr. Trump and

629
00:30:57,355 --> 00:31:01,055
Senator Cruz have used
to give voice to values,

630
00:31:01,059 --> 00:31:04,059
frankly, that most Americans
don't stand for is harmful.

631
00:31:04,062 --> 00:31:05,062
It's damaging.

632
00:31:05,063 --> 00:31:08,333
And that's why it's
important, in the

633
00:31:08,333 --> 00:31:11,673
President's mind, to elect
a President who understands

634
00:31:11,669 --> 00:31:15,939
that this kind of rhetoric
is, in fact, damaging, and

635
00:31:15,940 --> 00:31:20,310
that electing a President
who does demonstrate a

636
00:31:20,311 --> 00:31:24,751
commitment to core American
values, again, is critical

637
00:31:24,749 --> 00:31:26,849
to making sure we have a
government that the American

638
00:31:26,851 --> 00:31:29,221
people can be proud of,
but it's also critical to

639
00:31:29,220 --> 00:31:33,090
shoring up the kinds of
relationships that President

640
00:31:33,091 --> 00:31:35,091
Obama over the course of the
last seven or eight years

641
00:31:35,093 --> 00:31:36,063
has spent repairing.

642
00:31:36,060 --> 00:31:38,100
The Press: A couple of times
these conversations with

643
00:31:38,096 --> 00:31:40,066
world leaders have been
brought up in terms of how

644
00:31:40,064 --> 00:31:41,064
this is harmful.

645
00:31:41,065 --> 00:31:44,335
So do you feel that these
world leaders now see the U.S.

646
00:31:44,335 --> 00:31:47,035
in a different light because
of this election cycle?

647
00:31:47,038 --> 00:31:49,578
Mr. Earnest: I think you'd
have to ask them exactly how

648
00:31:49,574 --> 00:31:50,574
it's changed their view.

649
00:31:50,575 --> 00:31:52,575
The Press: You're saying
that there's been harm

650
00:31:52,577 --> 00:31:53,577
and damage.

651
00:31:53,578 --> 00:31:55,218
So I'm trying to get a sense
of what you see it

652
00:31:55,213 --> 00:31:56,583
being, exactly.

653
00:31:56,581 --> 00:31:58,581
Mr. Earnest: Well, look, I
think I've taken a couple of

654
00:31:58,583 --> 00:32:00,583
shots at trying to answer
your question here, so

655
00:32:00,585 --> 00:32:03,025
you've got some
material to work with.

656
00:32:03,021 --> 00:32:04,021
Chris.

657
00:32:04,022 --> 00:32:06,622
The Press: Josh, just a
minute ago, in the aftermath

658
00:32:06,624 --> 00:32:09,064
of North Carolina enacting
the anti-LGBT law in the

659
00:32:09,060 --> 00:32:11,430
state, Mississippi Governor
Phil Bryant has signed into

660
00:32:11,429 --> 00:32:14,399
a law a religious freedom
bill seemed to enable

661
00:32:14,399 --> 00:32:16,969
sweeping anti-LGBT
discrimination.

662
00:32:16,968 --> 00:32:20,138
Does your sentiment that
the North Carolina law is

663
00:32:20,138 --> 00:32:23,878
mean-spirited apply to this
brand-new Mississippi law?

664
00:32:23,875 --> 00:32:26,045
Mr. Earnest: Chris, I have
to acknowledge this is the

665
00:32:26,044 --> 00:32:28,044
first I'm hearing of
the Mississippi law.

666
00:32:28,046 --> 00:32:35,186
But if it is as you
described, the President and

667
00:32:35,186 --> 00:32:37,686
the administration has long
been on the side of justice

668
00:32:37,689 --> 00:32:39,059
and equality.

669
00:32:39,057 --> 00:32:42,827
And some of the laws that
we've seen passed that

670
00:32:42,827 --> 00:32:49,597
target LGBT Americans are
not consistent with those

671
00:32:49,600 --> 00:32:52,300
values of fairness
and equality.

672
00:32:52,303 --> 00:32:55,303
And in some cases,
those laws are outright

673
00:32:55,306 --> 00:32:59,406
mean-spirited, and it's
not something that most

674
00:32:59,410 --> 00:33:01,050
Americans are
comfortable with.

675
00:33:01,045 --> 00:33:07,185
But, again, I think, more
importantly, a state like

676
00:33:07,185 --> 00:33:09,185
North Carolina in
particular, you've got an

677
00:33:09,187 --> 00:33:10,217
influential
business community.

678
00:33:10,221 --> 00:33:14,961
And over the last generation
or so, the North Carolina

679
00:33:14,959 --> 00:33:19,159
economy has been revitalized
because they have turned

680
00:33:19,163 --> 00:33:22,803
that state into a magnet
for businesses, both in the

681
00:33:22,800 --> 00:33:27,340
technology sector but also
in the financial sector.

682
00:33:27,338 --> 00:33:29,738
They've done that by
creating a hospitable

683
00:33:29,741 --> 00:33:31,541
business environment.

684
00:33:31,542 --> 00:33:36,612
Passing laws that put those
companies' employees or

685
00:33:36,614 --> 00:33:39,384
their customers at greater
risk of being discriminated

686
00:33:39,384 --> 00:33:43,524
against is not a hospitable
business environment.

687
00:33:43,521 --> 00:33:45,521
And look, the companies
themselves are going to pass

688
00:33:45,523 --> 00:33:47,523
judgment on this and they're
going to have to decide what

689
00:33:47,525 --> 00:33:49,795
impact this is going to have
on any range of decisions

690
00:33:49,794 --> 00:33:51,794
that they may make about
traveling to the state of

691
00:33:51,796 --> 00:33:53,796
North Carolina, about doing
business in the state of

692
00:33:53,798 --> 00:33:55,798
North Carolina, about
locating in the state of

693
00:33:55,800 --> 00:33:57,400
North Carolina.

694
00:33:57,402 --> 00:33:59,402
Businesses are going to
have to make those kinds of

695
00:33:59,404 --> 00:34:00,404
decisions for themselves.

696
00:34:00,405 --> 00:34:05,275
But clearly, laws like this
will be a factor in

697
00:34:05,276 --> 00:34:06,276
those decisions.

698
00:34:06,277 --> 00:34:08,347
The Press: It's been
reported that the

699
00:34:08,346 --> 00:34:10,816
administration -- the
agencies are reviewing

700
00:34:10,815 --> 00:34:12,985
whether the North Carolina
law will impact federal

701
00:34:12,984 --> 00:34:15,954
funding for that state.

702
00:34:15,953 --> 00:34:17,953
Any update on when
that's to be completed?

703
00:34:17,955 --> 00:34:21,495
And could that investigation
apply to other states that

704
00:34:21,492 --> 00:34:23,462
are considering similar
laws, like the recently

705
00:34:23,461 --> 00:34:26,331
enacted law in Mississippi?

706
00:34:26,330 --> 00:34:28,400
Mr. Earnest: You'd have
to talk to the individual

707
00:34:28,399 --> 00:34:29,399
agencies about this.

708
00:34:29,400 --> 00:34:31,400
Obviously, the individual
agencies are taking a look

709
00:34:31,402 --> 00:34:35,142
to determine what impact
at least the law in North

710
00:34:35,139 --> 00:34:37,909
Carolina would have on a
range of legal and policy

711
00:34:37,909 --> 00:34:40,749
questions that are under
their jurisdiction.

712
00:34:40,745 --> 00:34:42,745
The individual agencies
will ensure that they're

713
00:34:42,747 --> 00:34:44,747
coordinating with the
Department of Justice and

714
00:34:44,749 --> 00:34:47,989
with each other to
ensure sort of a uniform

715
00:34:47,985 --> 00:34:53,655
interpretation of these laws
if a legal interpretation

716
00:34:53,658 --> 00:34:55,658
is necessary.

717
00:34:58,196 --> 00:35:02,236
But you'd have to ask the
individual agencies for a

718
00:35:02,233 --> 00:35:04,703
timeframe about when a
decision would be made.

719
00:35:04,702 --> 00:35:06,972
You'd also have to ask those
agencies about whether or

720
00:35:06,971 --> 00:35:08,671
not the law that apparently
was signed into law in

721
00:35:08,673 --> 00:35:12,713
Mississippi would
trigger a similar review.

722
00:35:12,710 --> 00:35:13,950
Toluse.

723
00:35:13,945 --> 00:35:15,245
The Press: Thanks, Josh.

724
00:35:15,246 --> 00:35:17,946
You said you wouldn't
quibble with the idea that

725
00:35:17,949 --> 00:35:19,749
this is the most aggressive
action that the President

726
00:35:19,750 --> 00:35:21,820
and the administration has
taken against inversions.

727
00:35:21,819 --> 00:35:24,359
This is coming just a few
weeks after Pfizer and

728
00:35:24,355 --> 00:35:28,025
Allergan planned
to do their merger.

729
00:35:28,025 --> 00:35:32,335
And I know you guys said
that this doesn't target one

730
00:35:32,330 --> 00:35:34,730
specific company, but why
should we not come to the

731
00:35:34,732 --> 00:35:38,772
conclusion that you all were
not hoping to block this

732
00:35:38,769 --> 00:35:40,439
deal from going forward?

733
00:35:40,438 --> 00:35:43,538
Mr. Earnest: Well, I guess
I can say that for two reasons.

734
00:35:43,541 --> 00:35:48,951
One is this review of --
well, let me say it this way.

735
00:35:48,946 --> 00:35:51,086
Considering what sort
of executive action was

736
00:35:51,082 --> 00:35:56,422
available to the
administration to fight

737
00:35:56,420 --> 00:35:59,820
corporate inversions is
something that was underway

738
00:35:59,824 --> 00:36:03,864
long before the specific
deal that you referenced

739
00:36:03,861 --> 00:36:05,501
was announced.

740
00:36:05,496 --> 00:36:07,766
So this is something that
has long been in the works

741
00:36:07,765 --> 00:36:10,935
in terms of considering what
options are available to the

742
00:36:10,935 --> 00:36:13,205
Treasury Department to
taking steps to close

743
00:36:13,204 --> 00:36:14,374
these loopholes.

744
00:36:14,372 --> 00:36:17,272
And, after all, the Treasury
Department is not focused on

745
00:36:17,275 --> 00:36:19,515
a specific transaction;
they're focused on

746
00:36:19,510 --> 00:36:20,980
specific loopholes.

747
00:36:20,978 --> 00:36:22,978
And we know that there are
corporations that are using

748
00:36:22,980 --> 00:36:25,720
these loopholes to avoid
paying taxes -- that's why

749
00:36:25,716 --> 00:36:27,716
we're targeting them
in the first place.

750
00:36:27,718 --> 00:36:30,088
And when I say "them," I
mean the loopholes, not the

751
00:36:30,087 --> 00:36:31,227
individual transactions.

752
00:36:31,222 --> 00:36:38,262
But that is the process that
has been underway at the

753
00:36:38,262 --> 00:36:41,202
Treasury Department for
a couple of years now.

754
00:36:41,198 --> 00:36:43,198
And, as you point out,
again, the deal that you

755
00:36:43,200 --> 00:36:45,200
announced was something that
was just referenced in -- or

756
00:36:45,202 --> 00:36:47,202
just announced in
the last few weeks.

757
00:36:47,204 --> 00:36:50,844
The Press: And there are
signs that this deal could

758
00:36:50,841 --> 00:36:52,641
be starting to unravel.

759
00:36:52,643 --> 00:36:55,343
Stock has gone down, and
there are analysts who say

760
00:36:55,346 --> 00:36:58,116
that stock is basically
trading as if the deal was

761
00:36:58,115 --> 00:37:00,785
being more or
less cancelled.

762
00:37:00,785 --> 00:37:03,755
I know you can't comment
specifically on stock

763
00:37:03,754 --> 00:37:06,354
movements, but would the
administration be happy if

764
00:37:06,357 --> 00:37:09,857
this deal did not go through
or deals like this did not

765
00:37:09,860 --> 00:37:13,100
through in the future
because of these rules?

766
00:37:13,097 --> 00:37:14,397
Mr. Earnest: Well, I think
it is fair to say that the

767
00:37:14,398 --> 00:37:16,638
administration would be
pleased if corporate

768
00:37:16,634 --> 00:37:18,904
inversions that are
undertaken solely to prevent

769
00:37:18,903 --> 00:37:26,443
companies from paying their
fair share in taxes don't

770
00:37:26,444 --> 00:37:27,444
go through.

771
00:37:27,445 --> 00:37:28,445
That would be a good thing.

772
00:37:28,446 --> 00:37:30,446
That would be a good thing
for our economy, and that

773
00:37:30,448 --> 00:37:32,448
would be consistent with the
goals of the policy that

774
00:37:32,450 --> 00:37:33,480
we announced.

775
00:37:33,484 --> 00:37:37,384
How this specific policy
applies to any deals that

776
00:37:37,388 --> 00:37:40,828
have been announced but not
yet completed, or any deals

777
00:37:40,825 --> 00:37:43,595
that have not yet been
announced, that's something

778
00:37:43,594 --> 00:37:45,394
that I think individual
analysts can probably speak

779
00:37:45,396 --> 00:37:47,266
to better than I can.

780
00:37:47,264 --> 00:37:51,034
But as a policy matter, yes,
this action is being taken

781
00:37:51,035 --> 00:37:53,235
by the United States
government to prevent

782
00:37:53,237 --> 00:37:59,147
companies from being able
to engage in a complicated

783
00:37:59,143 --> 00:38:01,943
transaction that would
prevent them from paying

784
00:38:01,946 --> 00:38:03,276
their fair share in taxes.

785
00:38:03,280 --> 00:38:05,280
That's exactly
what our goal is.

786
00:38:05,282 --> 00:38:08,282
And how it applies to
individual transactions is

787
00:38:08,285 --> 00:38:10,725
something I can't speak to,
but in terms of our policy

788
00:38:10,721 --> 00:38:12,961
goals, I think we've been
pretty clear about what

789
00:38:12,957 --> 00:38:13,957
exactly they are.

790
00:38:13,958 --> 00:38:15,828
The Press: I wanted to ask
you about Iran and the issue

791
00:38:15,826 --> 00:38:20,496
of U.S. dollars being used in
transactions -- financial

792
00:38:20,498 --> 00:38:23,398
transactions by European
foreign

793
00:38:23,401 --> 00:38:27,501
financial institutions.

794
00:38:27,505 --> 00:38:31,175
I know the President said
that that's not the tactic

795
00:38:31,175 --> 00:38:32,005
that the U.S.

796
00:38:32,009 --> 00:38:34,009
is hoping to take, but I was
hoping to get a little bit

797
00:38:34,011 --> 00:38:36,581
more clarity on if there
is a European company or

798
00:38:36,580 --> 00:38:38,720
European financial
institution that wants to

799
00:38:38,716 --> 00:38:42,186
use dollars in its own
transactions with Iran.

800
00:38:42,186 --> 00:38:43,386
Is that something
that the U.S.

801
00:38:43,387 --> 00:38:46,187
is considering allowing,
which it seems like it's not

802
00:38:46,190 --> 00:38:48,790
clear whether or not that's
allowed right now to go on?

803
00:38:48,793 --> 00:38:54,233
Mr. Earnest: Well, let me do
my best to try to clarify at

804
00:38:54,231 --> 00:38:55,971
least a little bit here.

805
00:38:55,966 --> 00:38:57,966
For the details of your
question, you may have to

806
00:38:57,968 --> 00:38:59,968
check with the Treasury
Department, because they'll

807
00:38:59,970 --> 00:39:01,970
understand how these complex
regulations are implemented

808
00:39:01,972 --> 00:39:05,212
and what impact they could
have on specific or

809
00:39:05,209 --> 00:39:07,049
pending transactions.

810
00:39:07,044 --> 00:39:12,384
What I can say, at least
specifically, is that the

811
00:39:12,383 --> 00:39:15,223
United States is not
preparing to reinstate

812
00:39:15,219 --> 00:39:17,619
so-called U-turn
authorization.

813
00:39:17,621 --> 00:39:19,261
This is something that got
some attention because we

814
00:39:19,256 --> 00:39:21,096
actually did make some
policy changes that would

815
00:39:21,092 --> 00:39:25,832
allow U-turn transactions
with respect to Cuba.

816
00:39:25,830 --> 00:39:28,930
We are not considering
reinstating U-turn

817
00:39:28,933 --> 00:39:32,373
authorization with respect
to transactions emanating

818
00:39:32,369 --> 00:39:34,469
from Iran.

819
00:39:34,472 --> 00:39:38,012
Secondly, I can tell you
that reports that the United

820
00:39:38,008 --> 00:39:41,508
States is considering
allowing Iran to get access

821
00:39:41,512 --> 00:39:48,082
to the U.S. financial system are false.

822
00:39:48,085 --> 00:39:50,955
But what we are interested
in doing -- and this has

823
00:39:50,955 --> 00:39:54,995
been true for almost a year
now -- we are interested in

824
00:39:54,992 --> 00:39:56,992
making sure that the United
States and the rest of the

825
00:39:56,994 --> 00:39:58,994
international community
lives up to the commitments

826
00:39:58,996 --> 00:40:00,996
that we made in the context
of the Joint Comprehensive

827
00:40:00,998 --> 00:40:02,198
Plan of Action.

828
00:40:02,199 --> 00:40:04,199
We're only prepared to
follow through on the

829
00:40:04,201 --> 00:40:07,841
commitments that we made
because we have verified

830
00:40:07,838 --> 00:40:09,838
that Iran has followed
through on the commitments

831
00:40:09,840 --> 00:40:10,940
that they have made.

832
00:40:10,941 --> 00:40:14,041
Iran, for example, reduced
their nuclear stockpile by

833
00:40:14,044 --> 00:40:15,584
98 percent.

834
00:40:15,579 --> 00:40:17,649
They unplugged thousands
of centrifuges.

835
00:40:17,648 --> 00:40:21,248
They have taken steps to
render their heavy-water

836
00:40:21,252 --> 00:40:26,922
plutonium reactor harmless
and incapable of producing

837
00:40:26,924 --> 00:40:29,394
fuel that could be used
for a nuclear weapon.

838
00:40:29,393 --> 00:40:32,763
There are a whole variety of
steps that Iran committed to

839
00:40:32,763 --> 00:40:35,603
implement, including the
most intrusive set of

840
00:40:35,599 --> 00:40:37,599
inspections that have ever
been imposed on a country's

841
00:40:37,601 --> 00:40:38,601
nuclear program.

842
00:40:38,602 --> 00:40:42,072
Because Iran has followed
through on all of those

843
00:40:42,072 --> 00:40:44,072
steps, the United States
and the rest of the

844
00:40:44,074 --> 00:40:46,044
international community has
an obligation to follow

845
00:40:46,043 --> 00:40:49,183
through on giving them the
kind of sanctions relief

846
00:40:49,180 --> 00:40:51,620
that we promised in return.

847
00:40:51,615 --> 00:40:53,615
That's something that we're
going to follow through on.

848
00:40:53,617 --> 00:40:56,187
But we can do that without
reinstating U-turn

849
00:40:56,187 --> 00:40:59,527
authorization or giving
Iran access to the U.S.

850
00:40:59,523 --> 00:41:00,523
financial system.

851
00:41:00,524 --> 00:41:03,324
The Press: Congressman
Pompeo said yesterday that

852
00:41:03,327 --> 00:41:05,697
he's considering doing
an inquiry to figure out

853
00:41:05,696 --> 00:41:08,196
whether or not
administration officials,

854
00:41:08,199 --> 00:41:11,669
like Secretary of State
John Kerry, misled the U.S.

855
00:41:11,669 --> 00:41:16,139
Congress when they were
saying what's in this deal.

856
00:41:16,140 --> 00:41:19,040
Now that the deal is coming
to fruition, they believe in

857
00:41:19,043 --> 00:41:21,583
some ways that they may have
been misled simply on this

858
00:41:21,579 --> 00:41:23,979
issue of dollar transactions
and European

859
00:41:23,981 --> 00:41:26,781
financial institutions.

860
00:41:26,784 --> 00:41:28,654
So I'm wondering if you
have a response to that.

861
00:41:28,652 --> 00:41:30,452
Mr. Earnest: Well, I don't
think there's any evidence

862
00:41:30,454 --> 00:41:32,324
to substantiate
that kind of claim.

863
00:41:32,323 --> 00:41:35,993
To the extent that you care
about my opinion, I think

864
00:41:35,993 --> 00:41:38,533
you should take a rather
dim view of that suggestion

865
00:41:38,529 --> 00:41:41,229
because Congressman Pompeo
-- or however you say his

866
00:41:41,232 --> 00:41:46,072
name -- didn't approve the
deal and certainly didn't

867
00:41:46,070 --> 00:41:47,070
vote in favor of it.

868
00:41:47,071 --> 00:41:49,311
So it's a little hard for
him to suggest that he was

869
00:41:49,306 --> 00:41:51,306
misled about a deal he
didn't support in the

870
00:41:51,308 --> 00:41:52,308
first place.

871
00:41:52,309 --> 00:41:56,209
What I am confident in is
that the administration has

872
00:41:56,213 --> 00:41:59,553
been extraordinarily
transparent about the terms

873
00:41:59,550 --> 00:42:01,550
of the deal when
communicating with Congress

874
00:42:01,552 --> 00:42:02,552
about it.

875
00:42:02,553 --> 00:42:05,493
Time and time again,
Congress has been briefed on

876
00:42:05,489 --> 00:42:06,729
the details of the deal.

877
00:42:06,724 --> 00:42:08,964
That was true even while the
deal was being negotiated.

878
00:42:08,959 --> 00:42:11,099
And after the deal was
finalized, I know that there

879
00:42:11,095 --> 00:42:13,095
were a variety of briefings
that were held with

880
00:42:13,097 --> 00:42:15,097
interested administration
officials.

881
00:42:15,099 --> 00:42:17,099
I don't know whether or not
Congressman Pompeo took the

882
00:42:17,101 --> 00:42:19,101
time to actually attend
those briefings, but that

883
00:42:19,103 --> 00:42:21,743
would be an interesting
fact to learn.

884
00:42:21,739 --> 00:42:23,739
Because, in fact, I know
that there were actually

885
00:42:23,741 --> 00:42:25,741
briefings that were hosted
by national security

886
00:42:25,743 --> 00:42:28,243
officials for the entire
House of Representatives.

887
00:42:28,245 --> 00:42:30,745
Every member of Congress was
given access to a classified

888
00:42:30,748 --> 00:42:33,188
briefing, to say nothing of
the variety of documents

889
00:42:33,183 --> 00:42:35,683
that were provided to
members of Congress to take

890
00:42:35,686 --> 00:42:38,686
a look at in person.

891
00:42:38,689 --> 00:42:42,359
So we've got a lot of
confidence in the deal that

892
00:42:42,359 --> 00:42:44,759
we have reached with the
rest of the international

893
00:42:44,762 --> 00:42:46,762
community to prevent Iran
from obtaining a

894
00:42:46,764 --> 00:42:47,764
nuclear weapon.

895
00:42:47,765 --> 00:42:49,735
It's going to enhance the
national security of the

896
00:42:49,733 --> 00:42:50,733
United States.

897
00:42:50,734 --> 00:42:52,734
It's going to enhance the
national security of our

898
00:42:52,736 --> 00:42:54,736
partners in the region,
including our closest ally

899
00:42:54,738 --> 00:42:55,738
in the Middle East, Israel.

900
00:42:55,739 --> 00:42:58,709
The President is proud
of this foreign

901
00:42:58,709 --> 00:43:01,109
policy accomplishment.

902
00:43:01,111 --> 00:43:05,651
And we are pleased that thus
far we've able to verify

903
00:43:05,649 --> 00:43:10,089
that Iran has lived up to
the agreement that was signed.

904
00:43:10,087 --> 00:43:11,087
Margaret.

905
00:43:11,088 --> 00:43:12,688
The Press: Josh, back to
the timing of this --

906
00:43:12,690 --> 00:43:15,390
on inversions.

907
00:43:15,392 --> 00:43:19,092
If this Allergan-Pfizer
deal had gone through, the

908
00:43:19,096 --> 00:43:21,836
savings would have been
close to $40 billion, or in

909
00:43:21,832 --> 00:43:23,002
that range.

910
00:43:23,000 --> 00:43:24,740
It was being called one of
the largest inversions of

911
00:43:24,735 --> 00:43:26,175
all time.

912
00:43:26,170 --> 00:43:29,270
Are you really saying that
the timing of this move was

913
00:43:29,273 --> 00:43:31,673
just purely coincidental?

914
00:43:31,675 --> 00:43:33,215
Mr. Earnest: Well, I guess
for the specifics about the

915
00:43:33,210 --> 00:43:35,580
timing, you can check with
the Treasury Department.

916
00:43:35,579 --> 00:43:39,219
What I can tell you is that
this kind of action is

917
00:43:39,216 --> 00:43:41,416
something that the Treasury
Department had been looking

918
00:43:41,418 --> 00:43:47,558
at for literally for years.

919
00:43:47,558 --> 00:43:49,758
Certainly their
consideration of the use of

920
00:43:49,760 --> 00:43:52,030
this authority predated
the announcement of

921
00:43:52,029 --> 00:43:54,029
this agreement.

922
00:43:55,132 --> 00:43:57,632
But again, for specifics
on the timing of the

923
00:43:57,634 --> 00:43:59,774
announcement, I'd refer you
to the Treasury Department.

924
00:43:59,770 --> 00:44:02,410
The Press: But to have the
President come out at this

925
00:44:02,406 --> 00:44:04,076
time, as well,
underscores it.

926
00:44:04,074 --> 00:44:06,074
It's not just some
Treasury action.

927
00:44:06,076 --> 00:44:07,446
Mr. Earnest: No, it's not.

928
00:44:07,444 --> 00:44:08,074
The Press: I mean,
it's a significant one.

929
00:44:08,078 --> 00:44:08,478
Mr. Earnest: It is.

930
00:44:08,479 --> 00:44:09,009
The Press: And it's
amplified by having the

931
00:44:09,013 --> 00:44:09,713
President speak to it.

932
00:44:09,713 --> 00:44:10,383
Mr. Earnest: That's correct.

933
00:44:10,381 --> 00:44:13,221
The Press: So you had to
be aware of the symbolic

934
00:44:13,217 --> 00:44:13,787
resonance --

935
00:44:13,784 --> 00:44:14,854
Mr. Earnest: We're in vigorous agreement on this one, Margaret.

936
00:44:14,852 --> 00:44:16,152
(laughter)

937
00:44:16,153 --> 00:44:17,123
The Press: Well, yeah.

938
00:44:17,121 --> 00:44:19,461
But that's why it doesn't
really hold water to say,

939
00:44:19,456 --> 00:44:22,126
oh, we've just been waiting
and the paperwork is ready

940
00:44:22,126 --> 00:44:22,696
to go.

941
00:44:22,693 --> 00:44:25,963
This was symbolically
resonant, this moment.

942
00:44:25,963 --> 00:44:29,733
And this deal in
particular made it so.

943
00:44:29,733 --> 00:44:32,073
Mr. Earnest: Well, I think
-- so maybe we finally found

944
00:44:32,069 --> 00:44:34,069
the place where you and I
disagree, which is simply

945
00:44:34,071 --> 00:44:35,911
this: That the President
has been talking about this

946
00:44:35,906 --> 00:44:38,576
issue for more
than two years.

947
00:44:38,575 --> 00:44:40,615
And there has been -- and
the reason he started

948
00:44:40,611 --> 00:44:43,181
talking about it, frankly,
was because there was a new

949
00:44:43,180 --> 00:44:47,480
loophole that was carved out
by corporations that they

950
00:44:47,484 --> 00:44:48,524
were taking advantage of.

951
00:44:48,519 --> 00:44:51,159
We did see a steady increase
in the number of corporate

952
00:44:51,155 --> 00:44:54,895
inversion transactions that
were being carried out by

953
00:44:54,892 --> 00:44:57,392
companies who essentially
were renouncing their U.S.

954
00:44:57,394 --> 00:45:00,094
citizenship, relocating
their operations -- only on

955
00:45:00,097 --> 00:45:02,267
paper -- just to
avoid paying U.S. taxes.

956
00:45:02,266 --> 00:45:05,706
And there were a variety of
these kinds of transactions

957
00:45:05,702 --> 00:45:08,842
that were undertaken prior
to this announcement about

958
00:45:08,839 --> 00:45:10,779
the Allergan-Pfizer deal.

959
00:45:10,774 --> 00:45:12,344
The Press: It's been
going on for a long time.

960
00:45:12,342 --> 00:45:14,442
Mr. Earnest: So the
President has been quite

961
00:45:14,445 --> 00:45:16,645
outspoken about this.

962
00:45:16,647 --> 00:45:19,487
And there have been previous
Treasury actions that have

963
00:45:19,483 --> 00:45:24,053
also been significant,
both in 2014 and 2015.

964
00:45:24,054 --> 00:45:27,794
And there were constant
questions about whether

965
00:45:27,791 --> 00:45:29,791
there were additional steps
that the administration

966
00:45:29,793 --> 00:45:31,633
could take to
fight inversions.

967
00:45:31,628 --> 00:45:34,068
And that's something that
Treasury officials have been

968
00:45:34,064 --> 00:45:37,204
working on, like I said,
for more than two years.

969
00:45:37,201 --> 00:45:40,971
At each stage, the decisions
about moving forward with

970
00:45:40,971 --> 00:45:44,341
these policies is focused
on the specific loophole

971
00:45:44,341 --> 00:45:45,411
in question.

972
00:45:45,409 --> 00:45:47,979
And look, there's no denying
that the loophole that is

973
00:45:47,978 --> 00:45:51,748
closed by this action is
one that companies have

974
00:45:51,748 --> 00:45:53,148
previously taken
advantage of.

975
00:45:53,150 --> 00:45:55,150
That's the reason we're
closing it in the first place.

976
00:45:55,152 --> 00:45:57,452
But we're not closing it
because one specific company

977
00:45:57,454 --> 00:45:59,854
is trying to take
advantage of the loophole.

978
00:45:59,857 --> 00:46:00,927
We're closing it because --

979
00:46:00,924 --> 00:46:01,724
The Press: Because the

980
00:46:01,725 --> 00:46:02,755
largest tax inversion of all
time was about to happen?

981
00:46:02,759 --> 00:46:04,129
Mr. Earnest: We're closing
it because a variety of

982
00:46:04,128 --> 00:46:05,798
companies have taken
advantage of this loophole,

983
00:46:05,796 --> 00:46:07,196
and we're looking
to prevent it.

984
00:46:07,197 --> 00:46:09,937
The Press: Can I also ask
you on the comments about

985
00:46:09,933 --> 00:46:15,643
the proposal made to stop
remittances to pay for the

986
00:46:15,639 --> 00:46:18,239
wall with Mexico
that Trump made?

987
00:46:18,242 --> 00:46:20,582
The President talked too
-- I mean, "Draconian,"

988
00:46:20,577 --> 00:46:26,147
"wacky," "half-baked."
Focused specifically on just

989
00:46:26,150 --> 00:46:29,290
stopping remittances from
Mexican immigrants, would

990
00:46:29,286 --> 00:46:31,756
you add "discriminatory"
to that?

991
00:46:31,755 --> 00:46:35,055
Or is that laundry list of
problems about where you want?

992
00:46:35,058 --> 00:46:37,728
Mr. Earnest: Well, I haven't
seen the entirety of

993
00:46:37,728 --> 00:46:40,598
Mr. Trump's remarks on this.

994
00:46:40,597 --> 00:46:44,137
But to the extent that there
are any details behind this

995
00:46:44,134 --> 00:46:50,204
suggestion, it certainly
does sound consistent with

996
00:46:50,207 --> 00:46:54,947
the kinds of discriminatory
policies and discriminatory

997
00:46:54,945 --> 00:46:57,145
rhetoric that has
unfortunately been the

998
00:46:57,147 --> 00:46:59,217
hallmark of Mr.
Trump's stump speech.

999
00:47:01,852 --> 00:47:03,322
Shannon, nice to
see you today.

1000
00:47:03,320 --> 00:47:04,920
The Press: Dovetailing off
of that, the President

1001
00:47:04,922 --> 00:47:08,092
seemed to enjoy fielding a
question dealing with the

1002
00:47:08,091 --> 00:47:09,061
GOP field.

1003
00:47:09,059 --> 00:47:12,359
Mr. Earnest: I think you
might have been misreading

1004
00:47:12,362 --> 00:47:12,792
his body language
a little bit.

1005
00:47:12,796 --> 00:47:13,796
(laughter)

1006
00:47:13,797 --> 00:47:14,597
The Press: Well, no, he
enjoyed responding to

1007
00:47:14,598 --> 00:47:15,598
it, maybe.

1008
00:47:15,599 --> 00:47:18,469
And based on the reports
today, that there is some

1009
00:47:18,468 --> 00:47:20,438
level of angst that he's out
in the campaign trail --

1010
00:47:20,437 --> 00:47:22,507
that there's a protracted
Democratic primary at

1011
00:47:22,506 --> 00:47:23,536
this point.

1012
00:47:23,540 --> 00:47:25,610
How anxious is he to be
out there campaigning?

1013
00:47:25,609 --> 00:47:26,949
Mr. Earnest: I think the
President is certainly

1014
00:47:26,944 --> 00:47:30,244
looking forward to the
opportunity to make a strong

1015
00:47:30,247 --> 00:47:36,487
case in favor of a
Democratic candidate for

1016
00:47:36,486 --> 00:47:39,656
President that is looking
to build on the important

1017
00:47:39,656 --> 00:47:41,656
progress that our country
has made, both at home and

1018
00:47:41,658 --> 00:47:44,458
abroad, under President
Obama's leadership.

1019
00:47:44,461 --> 00:47:49,731
The President feels that
that is a strong case, and

1020
00:47:49,733 --> 00:47:52,033
I'm sure the President is
looking forward to spending

1021
00:47:52,035 --> 00:47:59,945
hours talking publicly about
the evidence available to

1022
00:47:59,943 --> 00:48:02,413
describe how exactly the
United States can benefit

1023
00:48:02,412 --> 00:48:05,112
from building on the
progress that we've made.

1024
00:48:05,115 --> 00:48:07,715
The case that is made by the
Republican candidates for

1025
00:48:07,718 --> 00:48:11,458
President is to actually
roll back that progress by

1026
00:48:11,455 --> 00:48:13,425
going back to the policies
that were in place before

1027
00:48:13,423 --> 00:48:14,693
President Obama took office.

1028
00:48:14,691 --> 00:48:19,331
President Obama feels
strongly about making an

1029
00:48:19,329 --> 00:48:22,499
argument against that, in
part because he loves his

1030
00:48:22,499 --> 00:48:24,899
country and he wants to
ensure America succeeds.

1031
00:48:24,901 --> 00:48:26,901
That's the most
important thing.

1032
00:48:26,903 --> 00:48:28,903
The second thing is, he
obviously feels a little bit

1033
00:48:28,905 --> 00:48:29,875
of a personal investment.

1034
00:48:29,873 --> 00:48:32,413
He obviously has dedicated
the last eight years of his

1035
00:48:32,409 --> 00:48:37,579
life to focusing on these
policies that have led us to

1036
00:48:37,581 --> 00:48:38,581
make so much progress.

1037
00:48:38,582 --> 00:48:40,282
And he doesn't want to see
so much of that work

1038
00:48:40,284 --> 00:48:42,924
be undone.

1039
00:48:42,919 --> 00:48:46,759
So the President is
certainly ready to make an

1040
00:48:46,757 --> 00:48:50,257
affirmative case about the
progress that we have made

1041
00:48:50,260 --> 00:48:52,760
and about the prospects of
continuing that progress

1042
00:48:52,763 --> 00:48:55,433
under a Democratic
leadership here in the

1043
00:48:55,432 --> 00:48:56,432
White House.

1044
00:48:56,433 --> 00:48:59,603
I will say I had not
detected significant concern

1045
00:48:59,603 --> 00:49:02,203
on his part about the
longer-than-expected

1046
00:49:02,205 --> 00:49:03,275
Democratic primary.

1047
00:49:03,273 --> 00:49:05,873
As I've described on a
couple of occasions, the

1048
00:49:05,876 --> 00:49:09,116
longer-than-expected
Democratic primary in 2008

1049
00:49:09,112 --> 00:49:12,082
actually accrued to the
benefit of Democrats in the

1050
00:49:12,082 --> 00:49:13,182
general election.

1051
00:49:13,183 --> 00:49:15,323
There was a lot of concern
right around this time, in

1052
00:49:15,319 --> 00:49:21,759
2008, that the protracted
Democratic contest between

1053
00:49:21,758 --> 00:49:24,298
Senator Hillary Clinton and
Senator Barack Obama was

1054
00:49:24,294 --> 00:49:25,994
going to be bad
for Democrats.

1055
00:49:25,996 --> 00:49:29,296
But I've often cited the
example of the aggressively

1056
00:49:29,299 --> 00:49:33,599
contested Indiana
primary in May of 2008.

1057
00:49:33,603 --> 00:49:36,373
It had been a generation,
at least, since an Indiana

1058
00:49:36,373 --> 00:49:39,073
primary had been so
aggressively contested by

1059
00:49:39,076 --> 00:49:40,876
Democratic candidates.

1060
00:49:40,877 --> 00:49:44,277
But yet, there was a good
four- or five-week period

1061
00:49:44,281 --> 00:49:47,421
where Senator Clinton
and Senator Obama were

1062
00:49:47,417 --> 00:49:50,987
campaigning aggressively
in the state of Indiana.

1063
00:49:50,987 --> 00:49:53,287
That allowed both of those
candidates to get to know

1064
00:49:53,290 --> 00:49:55,290
that state, to spend some
time in those communities

1065
00:49:55,292 --> 00:49:57,432
making the case for
Democratic policies.

1066
00:49:57,427 --> 00:50:01,597
Their campaigns made
significant organizational

1067
00:50:01,598 --> 00:50:04,538
investments in the state,
built a grassroots

1068
00:50:04,534 --> 00:50:07,504
infrastructure that in the
general election in 2008

1069
00:50:07,504 --> 00:50:09,674
actually yielded important
electoral fruit for the

1070
00:50:09,673 --> 00:50:13,643
Democratic Party because
Barack Obama won the state

1071
00:50:13,643 --> 00:50:16,043
of Indiana and their
electoral votes in the

1072
00:50:16,046 --> 00:50:17,046
2008 election.

1073
00:50:17,047 --> 00:50:20,987
That ended up being good for
the Democratic Party and for

1074
00:50:20,984 --> 00:50:23,154
the Democratic
candidate for President.

1075
00:50:23,153 --> 00:50:25,423
I think it's too early to
predict exactly what the

1076
00:50:25,422 --> 00:50:29,122
long-term impact will be of
this longer-than-expected

1077
00:50:29,126 --> 00:50:30,126
Democratic primary.

1078
00:50:30,127 --> 00:50:34,927
But I wouldn't -- and I
don't -- automatically

1079
00:50:34,931 --> 00:50:37,831
assume that the impact on
the Democratic Party's

1080
00:50:37,834 --> 00:50:39,404
electoral prospects
will be negative.

1081
00:50:39,403 --> 00:50:41,403
Ron.

1082
00:50:41,405 --> 00:50:45,475
The Press: On this inversion
issue, once again this is an

1083
00:50:45,475 --> 00:50:48,115
example of the
administration using

1084
00:50:48,111 --> 00:50:50,011
executive action to
get something done.

1085
00:50:50,013 --> 00:50:51,913
Mr. Earnest: Because
Congress has failed to act.

1086
00:50:51,915 --> 00:50:56,115
The Press: Because Congress
has failed to act.

1087
00:50:56,119 --> 00:50:58,119
Is there anything that
you can point to as we go

1088
00:50:58,121 --> 00:51:00,421
forward now where the
administration expects to

1089
00:51:00,424 --> 00:51:03,024
get anything done
with this Congress?

1090
00:51:03,026 --> 00:51:05,026
Mr. Earnest: Well, it's been
a little while since I've

1091
00:51:05,028 --> 00:51:07,028
gone through this list --
let's see if I still have it

1092
00:51:07,030 --> 00:51:09,030
in here -- but
it's a long list.

1093
00:51:09,032 --> 00:51:11,032
I want to make sure I don't
forget anything off of it.

1094
00:51:11,034 --> 00:51:13,034
The Press: But it's a list
of things to do, not the

1095
00:51:13,036 --> 00:51:14,336
things getting done.

1096
00:51:14,337 --> 00:51:15,837
Mr. Earnest: Well, I guess
you asked about sort of is

1097
00:51:15,839 --> 00:51:17,909
there potential for us
to get some things done.

1098
00:51:17,908 --> 00:51:19,178
The Press: No, I'm asking
is there anything, not

1099
00:51:19,176 --> 00:51:22,246
potentially -- what's
getting done now --

1100
00:51:22,245 --> 00:51:24,245
Mr. Earnest: Well, I think
right now we see a lot of

1101
00:51:24,247 --> 00:51:26,247
Republicans in the United
States Senate that are not

1102
00:51:26,249 --> 00:51:27,249
doing their jobs.

1103
00:51:27,250 --> 00:51:28,250
That's certainly true.

1104
00:51:28,251 --> 00:51:30,591
The President has put
forward a consensus nominee

1105
00:51:30,587 --> 00:51:33,357
to the Supreme Court,
for example, and we see

1106
00:51:33,356 --> 00:51:36,126
Republicans basically saying
that they're not even going

1107
00:51:36,126 --> 00:51:38,266
to hold hearings to
consider his nomination.

1108
00:51:38,261 --> 00:51:40,501
So they're not doing their
jobs in that regard.

1109
00:51:40,497 --> 00:51:42,497
I think you're going to have
to go ask somebody else to

1110
00:51:42,499 --> 00:51:45,439
try to defend the work ethic
of Republicans in the United

1111
00:51:45,435 --> 00:51:47,435
States Senate right now,
because I've got -- and I

1112
00:51:47,437 --> 00:51:49,437
think everybody else here
at the White House has --

1113
00:51:49,439 --> 00:51:51,439
significant
concerns about that.

1114
00:51:51,441 --> 00:51:53,441
There are some available
opportunities, though.

1115
00:51:53,443 --> 00:51:55,443
Certainly confirming a
consensus nominee to the

1116
00:51:55,445 --> 00:51:57,945
Supreme Court would be
something important that the

1117
00:51:57,948 --> 00:51:59,948
United States
Congress could do.

1118
00:51:59,950 --> 00:52:01,950
It would be good
for the country.

1119
00:52:01,952 --> 00:52:03,952
It wouldn't require anybody
to fold on their principles.

1120
00:52:03,954 --> 00:52:05,954
But it would require the
United States Senate to do

1121
00:52:05,956 --> 00:52:06,956
their job.

1122
00:52:06,957 --> 00:52:09,527
There's been a lot of talk
about criminal justice reform.

1123
00:52:09,526 --> 00:52:11,966
Obviously, there are some
Republicans in both the

1124
00:52:11,962 --> 00:52:13,962
House and the Senate that
are supportive of

1125
00:52:13,964 --> 00:52:14,964
that effort.

1126
00:52:14,965 --> 00:52:18,765
We heard some positive
comments from Speaker Ryan

1127
00:52:18,768 --> 00:52:22,538
10 days or so ago
about that legislation.

1128
00:52:22,539 --> 00:52:25,839
We obviously would welcome
continued bipartisan work to

1129
00:52:25,842 --> 00:52:27,282
advance that legislation.

1130
00:52:27,277 --> 00:52:32,217
The President is hoping that
at some point this year

1131
00:52:32,215 --> 00:52:34,955
Congress will take action
to ratify the

1132
00:52:34,951 --> 00:52:36,191
Trans-Pacific Partnership.

1133
00:52:36,186 --> 00:52:39,586
This is a trade agreement
with about a dozen other

1134
00:52:39,589 --> 00:52:42,029
countries in the
Asia Pacific region.

1135
00:52:42,025 --> 00:52:45,765
This would have important
benefits for the U.S.

1136
00:52:45,762 --> 00:52:47,902
economy, and the President
has made a strong case that

1137
00:52:47,898 --> 00:52:50,538
Democrats and Republicans
should support it.

1138
00:52:50,534 --> 00:52:52,534
We're hopeful that we can
work with Republicans on that.

1139
00:52:52,536 --> 00:52:54,536
But look, we can also fight
poverty by expanding the

1140
00:52:54,538 --> 00:52:56,538
EITC, something Speaker
Ryan has talked about.

1141
00:52:56,540 --> 00:52:58,540
We can fight heroin
addiction, something the

1142
00:52:58,542 --> 00:53:00,542
President talked
about last week.

1143
00:53:00,544 --> 00:53:02,544
Republicans have been on the
campaign trail saying this

1144
00:53:02,546 --> 00:53:03,546
is a top issue.

1145
00:53:03,547 --> 00:53:05,547
So there are a whole host
of issues that we should be

1146
00:53:05,549 --> 00:53:06,549
able to work together on.

1147
00:53:06,550 --> 00:53:09,120
The Press: Why would they
give him any victories on

1148
00:53:09,119 --> 00:53:11,119
any of this in the
final months of

1149
00:53:11,121 --> 00:53:12,121
his administration?

1150
00:53:12,122 --> 00:53:14,122
And isn't this really the
end of that part of this

1151
00:53:14,124 --> 00:53:15,664
Obama presidency, working
with Congress to get things

1152
00:53:15,659 --> 00:53:19,559
done, and therefore I would
expect that there's going to

1153
00:53:19,563 --> 00:53:24,033
be more aggressive executive
actions taken to try and

1154
00:53:24,034 --> 00:53:25,604
nail some of these things
down that are still on his

1155
00:53:25,602 --> 00:53:26,302
to-do list?

1156
00:53:26,303 --> 00:53:28,073
Mr. Earnest: Well, I
certainly am not going to

1157
00:53:28,071 --> 00:53:32,581
rule out aggressive
executive actions.

1158
00:53:32,576 --> 00:53:34,976
But I will say, in general,
the list that I've gone

1159
00:53:34,978 --> 00:53:39,618
through, Ron, is not the
list of priorities of the

1160
00:53:39,616 --> 00:53:40,886
Obama administration.

1161
00:53:40,884 --> 00:53:42,884
There are a whole host of
things we would love for

1162
00:53:42,886 --> 00:53:45,326
Congress to do that they
won't do because Republicans

1163
00:53:45,322 --> 00:53:47,962
are in power, and, frankly,
we've got some

1164
00:53:47,958 --> 00:53:49,088
different priorities.

1165
00:53:49,092 --> 00:53:51,662
So closing the inversions
loophole, for example, is

1166
00:53:51,661 --> 00:53:53,661
something we would love
for Congress to do.

1167
00:53:53,663 --> 00:53:55,663
I'm not standing up here
saying that that's likely

1168
00:53:55,665 --> 00:53:56,635
to happen.

1169
00:53:56,633 --> 00:53:58,633
In fact, I don't think it's
going to because Republicans

1170
00:53:58,635 --> 00:54:00,635
are so committed to
protecting corporate

1171
00:54:00,637 --> 00:54:02,637
interests as opposed to
looking out for

1172
00:54:02,639 --> 00:54:03,639
middle-class families.

1173
00:54:03,640 --> 00:54:05,640
Another thing that Congress
could do that the President

1174
00:54:05,642 --> 00:54:07,642
believes would be a really
good thing would be raising

1175
00:54:07,644 --> 00:54:08,644
the minimum wage.

1176
00:54:08,645 --> 00:54:10,645
This is a way we could give
some of the hardest-working

1177
00:54:10,647 --> 00:54:12,847
people in America the
opportunity to raise a

1178
00:54:12,849 --> 00:54:17,989
family, save for retirement,
send their kids to college,

1179
00:54:17,988 --> 00:54:20,088
buy a house.

1180
00:54:20,090 --> 00:54:23,490
And right now, the minimum
wage is so low that if you

1181
00:54:23,493 --> 00:54:25,493
are the head of a family
of four and you're working

1182
00:54:25,495 --> 00:54:27,765
full-time making minimum
wage, you're raising that

1183
00:54:27,764 --> 00:54:29,364
family below the
poverty line.

1184
00:54:29,366 --> 00:54:31,366
And that's not right, and
that's something that

1185
00:54:31,368 --> 00:54:32,368
Congress should address.

1186
00:54:32,369 --> 00:54:34,809
But again, Republicans
haven't demonstrated a

1187
00:54:34,804 --> 00:54:36,804
willingness to considering
that kind of proposal,

1188
00:54:36,806 --> 00:54:39,676
again, because their
corporate benefactors don't

1189
00:54:39,676 --> 00:54:41,176
support it.

1190
00:54:41,177 --> 00:54:42,877
So there are a whole host of
things we would like to see

1191
00:54:42,879 --> 00:54:43,949
Congress do.

1192
00:54:43,947 --> 00:54:45,247
But those things
weren't on my list.

1193
00:54:45,248 --> 00:54:47,188
The things that were on my
list were actually things

1194
00:54:47,183 --> 00:54:49,983
that Republicans themselves
say that they support.

1195
00:54:49,986 --> 00:54:52,326
These are things that
Republicans themselves in

1196
00:54:52,322 --> 00:54:55,822
many cases have previously
been on the record supporting.

1197
00:54:55,825 --> 00:54:57,995
So the question really for
Republicans is, are they

1198
00:54:57,994 --> 00:54:59,094
willing to do their job?

1199
00:54:59,095 --> 00:55:01,235
Are they prepared to
demonstrate that they can be

1200
00:55:01,231 --> 00:55:03,471
entrusted to govern the
greatest country in the world?

1201
00:55:03,466 --> 00:55:06,906
And if not, I think voters
may have something to say

1202
00:55:06,903 --> 00:55:08,143
about that.

1203
00:55:08,138 --> 00:55:10,338
The Press: And just lastly,
on Judge Garland, the

1204
00:55:10,340 --> 00:55:12,340
meeting with Senator
Collins just wrapped up.

1205
00:55:12,342 --> 00:55:14,942
It was "excellent," as I'm
reading, they say, so on and

1206
00:55:14,944 --> 00:55:15,844
so forth.

1207
00:55:15,845 --> 00:55:16,545
Mr. Earnest: Good.

1208
00:55:16,546 --> 00:55:21,216
The Press: Is there any,
today, news about any other

1209
00:55:21,217 --> 00:55:25,287
movement by any Republicans
on the Hill in a very

1210
00:55:25,288 --> 00:55:29,328
positive direction towards
actually not just meeting --

1211
00:55:29,325 --> 00:55:33,265
let's start with meeting and
then a hearing and a vote --

1212
00:55:33,263 --> 00:55:34,263
on the Judge Garland issue?

1213
00:55:34,264 --> 00:55:37,134
Mr. Earnest: Well, listen, I
made a reference to Senator

1214
00:55:37,133 --> 00:55:38,203
Cornyn's comments yesterday.

1215
00:55:38,201 --> 00:55:41,841
I mean, he is somebody who
has acknowledged that it's a

1216
00:55:41,838 --> 00:55:43,338
slippery slope
for Republicans.

1217
00:55:43,339 --> 00:55:45,439
That is why I think you've
seen so many Republicans,

1218
00:55:45,442 --> 00:55:49,042
including Leader McConnell,
rule out having any sort of

1219
00:55:49,045 --> 00:55:51,285
private meeting with
Chief Judge Garland.

1220
00:55:51,281 --> 00:55:53,921
Because it is a slippery
slope -- that once you have

1221
00:55:53,917 --> 00:55:56,217
a private meeting, then it
starts to beg questions,

1222
00:55:56,219 --> 00:55:58,219
well, why wouldn't you have
a conversation with Chief

1223
00:55:58,221 --> 00:55:59,221
Judge Garland in public?

1224
00:55:59,222 --> 00:56:01,222
You say that you've got
tough questions you want to

1225
00:56:01,224 --> 00:56:03,564
ask him, and you're just
going to ask him these

1226
00:56:03,560 --> 00:56:05,230
questions over
breakfast, for example.

1227
00:56:05,228 --> 00:56:06,698
Well, okay.

1228
00:56:06,696 --> 00:56:08,696
Those kinds of private
meetings are sort of part

1229
00:56:08,698 --> 00:56:11,038
and parcel of the regular
process for considering a

1230
00:56:11,034 --> 00:56:13,374
nominee, but why would you
have those conversations

1231
00:56:13,369 --> 00:56:14,369
in private?

1232
00:56:14,370 --> 00:56:16,370
And why wouldn't you let
the American people get the

1233
00:56:16,372 --> 00:56:18,372
benefit of seeing
that exchange?

1234
00:56:18,374 --> 00:56:19,374
So it's Republicans --

1235
00:56:19,375 --> 00:56:21,375
The Press: So there's
nothing more on his calendar?

1236
00:56:21,377 --> 00:56:23,377
Mr. Earnest: But it's
Republicans who indicate

1237
00:56:23,379 --> 00:56:25,379
that the American people
should have some sort of voice.

1238
00:56:25,381 --> 00:56:27,381
Well, shouldn't the American
people, if they're going to

1239
00:56:27,383 --> 00:56:29,383
make their voices heard,
have the opportunity to

1240
00:56:29,385 --> 00:56:31,385
actually hear directly
from Chief Judge Garland?

1241
00:56:31,387 --> 00:56:33,387
There haven't been that many
concerns that have been

1242
00:56:33,389 --> 00:56:34,389
raised by Chief
Judge Garland.

1243
00:56:34,390 --> 00:56:36,390
He's somebody with
impeccable legal credentials.

1244
00:56:36,392 --> 00:56:38,392
He's somebody that's
described by Republicans as

1245
00:56:38,394 --> 00:56:39,394
a consensus candidate.

1246
00:56:39,395 --> 00:56:41,365
But to the extent that
people have concerns about

1247
00:56:41,364 --> 00:56:43,364
his nomination, he should
have the opportunity to talk

1248
00:56:43,366 --> 00:56:44,366
about them in public.

1249
00:56:44,367 --> 00:56:47,137
And here's the thing: He's
prepared to do exactly that,

1250
00:56:47,137 --> 00:56:50,877
under oath, on camera,
in front of the American

1251
00:56:50,874 --> 00:56:52,814
people, for hours at a time.

1252
00:56:52,809 --> 00:56:54,479
And he's willing to take
tough questions from

1253
00:56:54,477 --> 00:56:54,877
Democrats and Republicans,
from the left and the right,

1254
00:56:54,878 --> 00:56:57,218
to explain his approach.

1255
00:56:57,213 --> 00:56:59,253
He is somebody who has a
track record -- who has

1256
00:56:59,249 --> 00:57:01,919
demonstrated that he
understands the role of a

1257
00:57:01,918 --> 00:57:03,518
judge is to interpret the
law, not to advance a

1258
00:57:03,520 --> 00:57:06,590
political agenda.

1259
00:57:06,589 --> 00:57:07,589
And he's prepared
to do that.

1260
00:57:07,590 --> 00:57:10,490
Now, as it relates to the
process, Chief Judge Garland

1261
00:57:10,493 --> 00:57:12,393
met with a couple of
Republicans today.

1262
00:57:12,395 --> 00:57:13,835
You mentioned his meeting
with Senator Collins; he's

1263
00:57:13,830 --> 00:57:17,830
meeting with Senator
Boozman later today.

1264
00:57:17,834 --> 00:57:24,404
And we have seen Chairman
Grassley from the Judiciary

1265
00:57:24,407 --> 00:57:26,947
Committee indicate that the
committee is prepared to

1266
00:57:26,943 --> 00:57:29,883
accept the questionnaire
when he fills it out.

1267
00:57:29,879 --> 00:57:33,119
So that sort of is another
step in this process.

1268
00:57:33,116 --> 00:57:35,786
And I would anticipate that
there will be additional

1269
00:57:35,785 --> 00:57:38,425
meetings with additional
Republican senators over the

1270
00:57:38,421 --> 00:57:39,421
next couple of weeks.

1271
00:57:39,422 --> 00:57:42,192
There are still a dozen or
so other senators, beyond

1272
00:57:42,192 --> 00:57:45,132
the three now, that Chief
Judge Garland will have met

1273
00:57:45,128 --> 00:57:47,928
with by the end of the
day today who have also

1274
00:57:47,931 --> 00:57:50,071
indicated an openness
to a meeting.

1275
00:57:50,066 --> 00:57:52,466
I think the other thing
about this is it's also

1276
00:57:52,468 --> 00:57:56,938
going to start to beg
questions for other

1277
00:57:56,940 --> 00:57:57,940
Republican senators.

1278
00:57:57,941 --> 00:57:59,781
So let's take one example.

1279
00:57:59,776 --> 00:58:02,576
Senator Boozman from
Arkansas has indicated that

1280
00:58:02,579 --> 00:58:07,689
he's willing, just out of
good, old fashioned courtesy

1281
00:58:07,684 --> 00:58:10,224
-- and I think probably a
commitment to doing his job

1282
00:58:10,220 --> 00:58:13,920
-- that Senator Boozman has
agreed to have a meeting

1283
00:58:13,923 --> 00:58:14,923
with Chief Judge Garland.

1284
00:58:14,924 --> 00:58:17,924
Well, where does that
leave Senator Cotton?

1285
00:58:17,927 --> 00:58:20,667
Is he not going to show that
same old-fashioned Southern

1286
00:58:20,663 --> 00:58:22,663
hospitality to
Chief Judge Garland?

1287
00:58:22,665 --> 00:58:29,005
Is he somehow concerned
about even having a private

1288
00:58:29,005 --> 00:58:34,515
meeting with
the Chief Judge?

1289
00:58:34,510 --> 00:58:36,510
I don't know the
answer to that.

1290
00:58:36,512 --> 00:58:38,512
But it certainly begs that
question now that his

1291
00:58:38,514 --> 00:58:40,514
colleague from the great
state of Arkansas has agreed

1292
00:58:40,516 --> 00:58:42,186
to meet with Chief
Judge Garland.

1293
00:58:42,185 --> 00:58:43,785
And I guess we'll have to
see what Senator Cotton's

1294
00:58:43,786 --> 00:58:45,726
response to it is.

1295
00:58:45,722 --> 00:58:49,222
But again, I think Senator
Cotton's refusal to have the

1296
00:58:49,225 --> 00:58:51,265
meeting thus far is an
indication that he doesn't

1297
00:58:51,261 --> 00:58:54,161
want to edge farther out
on the slippery slope that

1298
00:58:54,163 --> 00:58:56,803
Senator Cornyn
has described.

1299
00:58:56,799 --> 00:59:00,499
Tara.

1300
00:59:00,503 --> 00:59:01,003
The Press: I'm hoping you
can tell me a little bit

1301
00:59:01,004 --> 00:59:03,504
about the incident with Boko
Haram and their kidnapping

1302
00:59:03,506 --> 00:59:05,906
of girls in 2014,
and what the U.S.

1303
00:59:05,909 --> 00:59:09,709
has done since that time to
help get the girls back.

1304
00:59:09,712 --> 00:59:11,582
Mr. Earnest: Well, Tara,
obviously the United States

1305
00:59:11,581 --> 00:59:15,651
government has been quite
concerned about the tactic

1306
00:59:15,652 --> 00:59:21,822
that Boko Haram has used to
terrorize communities all

1307
00:59:21,824 --> 00:59:24,794
across Nigeria.

1308
00:59:24,794 --> 00:59:27,134
And the United States has
been strongly supportive of

1309
00:59:27,130 --> 00:59:32,040
the Nigerian government's
efforts to find those girls,

1310
00:59:32,035 --> 00:59:35,475
but frankly, to find the
large number of people that

1311
00:59:35,471 --> 00:59:37,371
have been kidnapped
by Boko Haram.

1312
00:59:37,373 --> 00:59:42,313
The United States has some
areas of expertise that we

1313
00:59:42,312 --> 00:59:45,552
can leverage to
assist in that search.

1314
00:59:45,548 --> 00:59:49,348
So there have been military
resources that have been

1315
00:59:49,352 --> 00:59:54,092
committed to Nigeria to
offer some intelligence

1316
00:59:54,090 --> 00:59:58,590
assistance and some training
to Nigerian security forces.

1317
00:59:58,594 --> 01:00:03,604
The United States has also
offered some assistance in

1318
01:00:03,599 --> 01:00:09,339
helping Nigeria set up
programs that would allow

1319
01:00:09,339 --> 01:00:14,749
the victims of these acts
of terror to recover.

1320
01:00:14,744 --> 01:00:17,984
And some of these
individuals have just been

1321
01:00:17,981 --> 01:00:21,751
through unthinkable
situations.

1322
01:00:21,751 --> 01:00:23,751
And the humanitarian
assistance that they need

1323
01:00:23,753 --> 01:00:30,323
and the recovery to which
they're entitled is

1324
01:00:30,326 --> 01:00:32,996
something that the United
States can assist the

1325
01:00:32,996 --> 01:00:36,066
Nigerian government
in providing.

1326
01:00:36,065 --> 01:00:43,305
And part of the President's
strategy to combat terrorism

1327
01:00:43,306 --> 01:00:47,806
has been to build up the
capacity of local forces in

1328
01:00:47,810 --> 01:00:49,810
countries around the world
that are partners of the

1329
01:00:49,812 --> 01:00:52,682
United States, like Nigeria,
to do a better job of

1330
01:00:52,682 --> 01:00:54,682
providing for the security
situation in their own

1331
01:00:54,684 --> 01:00:57,054
country, to protect their
citizens and to root

1332
01:00:57,053 --> 01:00:59,253
out terrorists.

1333
01:00:59,255 --> 01:01:04,525
And the United States is
committed to assisting the

1334
01:01:04,527 --> 01:01:06,967
Nigerians and other
countries in Africa that

1335
01:01:06,963 --> 01:01:09,863
have submitted military
resources to combatting this

1336
01:01:09,866 --> 01:01:12,966
terror threat in Africa.

1337
01:01:12,001 --> 01:01:14,771
The Press: Thank you, Josh.

1338
01:01:12,969 --> 01:01:14,939
John.

1339
01:01:14,771 --> 01:01:17,641
Two political questions.

1340
01:01:17,640 --> 01:01:21,140
First, you spoke of world
leaders expressing their

1341
01:01:21,144 --> 01:01:23,614
concerns about some of the
statements of the Republican

1342
01:01:23,613 --> 01:01:26,253
presidential candidates.

1343
01:01:26,249 --> 01:01:29,389
I'd like you to
flesh it out for us.

1344
01:01:29,385 --> 01:01:34,155
Has, for example, President
PeĂąa Nieto of Mexico or any

1345
01:01:34,157 --> 01:01:37,927
of the Latin American
leaders voiced to the

1346
01:01:37,927 --> 01:01:42,267
President or Secretary Kerry
their concerns about his --

1347
01:01:42,265 --> 01:01:44,365
Mr. Trump's call for
building a wall?

1348
01:01:44,367 --> 01:01:47,467
Mr. Earnest: Well, President
PeĂąa Nieto of Mexico, I have

1349
01:01:47,470 --> 01:01:49,710
seen him publicly express
his concerns about this

1350
01:01:49,705 --> 01:01:51,005
specific policy proposal.

1351
01:01:51,007 --> 01:01:55,407
And I know that at least one
of his predecessors, former

1352
01:01:55,411 --> 01:01:57,581
President Vicente Fox, has
expressed some concerns

1353
01:01:57,580 --> 01:02:01,280
about -- and I think he puts
it mildly particularly as it

1354
01:02:01,284 --> 01:02:04,524
relates to President Fox's
comments -- some concerns

1355
01:02:04,520 --> 01:02:06,590
about Mr. Trump's proposals.

1356
01:02:08,758 --> 01:02:10,998
And as President Obama just
acknowledged when he was

1357
01:02:10,993 --> 01:02:12,993
standing up here, obviously
the United States has an

1358
01:02:12,995 --> 01:02:14,995
important economic
relationship with Mexico.

1359
01:02:14,997 --> 01:02:19,167
And it is in our country's
interest to see the Mexican

1360
01:02:19,168 --> 01:02:25,678
economy continue to at least
be healthy, because if it

1361
01:02:25,675 --> 01:02:28,845
starts to collapse, you
would see a much greater

1362
01:02:28,845 --> 01:02:31,285
influx of migrants from
Mexico into the United

1363
01:02:31,280 --> 01:02:33,950
States, at least
headed this direction.

1364
01:02:33,950 --> 01:02:35,950
And that wouldn't be good
for Mexico or the

1365
01:02:35,952 --> 01:02:36,952
United States.

1366
01:02:36,953 --> 01:02:38,553
So that's just one example.

1367
01:02:38,554 --> 01:02:41,454
I don't have details of
private conversations to

1368
01:02:41,457 --> 01:02:44,057
share with you.

1369
01:02:44,060 --> 01:02:45,900
But look, we've seen Mr.
Trump's comments about

1370
01:02:45,895 --> 01:02:47,895
barring Muslims from
entering the United States;

1371
01:02:47,897 --> 01:02:50,367
Mr. Trump's comments about
suggesting it would be just

1372
01:02:50,366 --> 01:02:55,576
fine with him if countries
in Asia, including allies of

1373
01:02:55,571 --> 01:02:57,571
the United States, like
Japan and South Korea,

1374
01:02:57,573 --> 01:02:59,843
started to develop their
own nuclear program.

1375
01:02:59,842 --> 01:03:02,842
We've seen him advocate for
the breakup of NATO, for

1376
01:03:02,845 --> 01:03:05,045
example -- or at
least the U.S.

1377
01:03:05,047 --> 01:03:06,287
withdrawal from NATO.

1378
01:03:06,282 --> 01:03:08,282
I think I've covered just
about every region of the

1379
01:03:08,284 --> 01:03:09,284
world now.

1380
01:03:09,285 --> 01:03:10,625
And these are comments that
he's offered up in just the

1381
01:03:10,620 --> 01:03:12,420
last week or so.

1382
01:03:12,421 --> 01:03:17,531
So I don't think it's a
particular surprise to any

1383
01:03:17,527 --> 01:03:19,997
of you that world leaders
have expressed these

1384
01:03:19,996 --> 01:03:22,836
concerns to people like
President Obama or to

1385
01:03:22,832 --> 01:03:23,862
Secretary Kerry.

1386
01:03:23,866 --> 01:03:25,866
I think in many cases you've
heard these world leaders

1387
01:03:25,868 --> 01:03:27,508
express these
concerns publicly.

1388
01:03:27,503 --> 01:03:29,243
The Press: Another
question on this.

1389
01:03:29,238 --> 01:03:32,138
I was in Pennsylvania
over the weekend, and the

1390
01:03:32,141 --> 01:03:34,281
President created quite a
bit of news when he, along

1391
01:03:34,277 --> 01:03:39,817
with Vice President Biden,
made a near-unprecedented

1392
01:03:39,815 --> 01:03:46,655
step of endorsing Ms. Katie
McGinty for the Democratic

1393
01:03:46,656 --> 01:03:49,826
nomination for the Senate
over former Congressman and

1394
01:03:49,825 --> 01:03:53,365
narrow 2010
loser, Joe Sestak.

1395
01:03:53,362 --> 01:03:58,372
Now, the President did
endorse one or two incumbent

1396
01:03:58,367 --> 01:04:01,267
House members who had
primaries in 2010.

1397
01:04:01,270 --> 01:04:05,010
But more often than not, he
does not get involved in

1398
01:04:05,007 --> 01:04:07,577
primaries unless an
incumbent is there.

1399
01:04:07,577 --> 01:04:09,577
What led him to
make this decision?

1400
01:04:09,579 --> 01:04:13,419
And has he received
any comments back from

1401
01:04:13,416 --> 01:04:16,286
Pennsylvania Democrats,
including Mr. Sestak?

1402
01:04:16,285 --> 01:04:21,825
Mr. Earnest: Well, we talked
about this a little bit last

1403
01:04:21,824 --> 01:04:25,164
week, that there are other
Senate races that are in the

1404
01:04:25,161 --> 01:04:27,831
midst of primaries where the
President has weighed in

1405
01:04:27,830 --> 01:04:28,830
with an endorsement.

1406
01:04:28,831 --> 01:04:30,101
Florida is a good example.

1407
01:04:30,099 --> 01:04:32,099
There is a vigorous
Democratic primary going on

1408
01:04:32,101 --> 01:04:34,271
in Florida right now, and
the President weighed in in

1409
01:04:34,270 --> 01:04:38,170
support of Congressman
Patrick Murphy from Florida,

1410
01:04:38,174 --> 01:04:40,174
even though -- The Press: Or
Congressman Grayson,

1411
01:04:40,176 --> 01:04:41,176
another Democrat.

1412
01:04:41,177 --> 01:04:42,177
Mr. Earnest: Correct.

1413
01:04:42,178 --> 01:04:44,178
So there are a couple of
examples where the President

1414
01:04:44,180 --> 01:04:46,180
has weighed in in
Democratic primaries.

1415
01:04:46,182 --> 01:04:48,182
And I think in each case,
the President and his team

1416
01:04:48,184 --> 01:04:52,254
have carefully considered
the record and agenda that

1417
01:04:52,255 --> 01:04:54,255
is being put forward by
the individual candidates.

1418
01:04:54,257 --> 01:04:56,927
And in some cases, the
President and the Vice

1419
01:04:56,926 --> 01:05:00,096
President have
chosen to weigh in.

1420
01:05:00,096 --> 01:05:03,596
I don't have more detail
to share with you about

1421
01:05:03,599 --> 01:05:05,939
Ms. McGinty's race beyond
what was included in the

1422
01:05:05,935 --> 01:05:07,435
public statement.

1423
01:05:07,436 --> 01:05:10,476
But obviously those kinds
of public statements are

1424
01:05:10,473 --> 01:05:13,473
carefully considered, and I
think that's why voters in

1425
01:05:13,476 --> 01:05:16,516
these individual states
where the President does

1426
01:05:16,512 --> 01:05:19,252
weigh in should recognize
that that's a carefully

1427
01:05:19,248 --> 01:05:20,248
considered decision.

1428
01:05:20,249 --> 01:05:23,789
And the President only makes
a decision to weigh in when

1429
01:05:23,786 --> 01:05:25,786
he feels strongly about the
benefits of one

1430
01:05:25,788 --> 01:05:27,388
particular candidate.

1431
01:05:27,390 --> 01:05:31,730
In most cases, it shouldn't
necessarily be considered a

1432
01:05:31,727 --> 01:05:34,427
criticism of the
other Democrats.

1433
01:05:34,430 --> 01:05:35,700
In some cases, it might.

1434
01:05:35,698 --> 01:05:38,098
But in many cases, it
shouldn't necessarily be

1435
01:05:38,100 --> 01:05:42,240
viewed as a criticism of
any of the candidates, but

1436
01:05:42,238 --> 01:05:48,008
rather the President's
strong feelings about the

1437
01:05:48,010 --> 01:05:51,150
potential of the candidate
that he endorsed.

1438
01:05:51,147 --> 01:05:53,087
The Press: We don't have
primaries until September.

1439
01:05:53,082 --> 01:05:55,982
Can we expect any other
involvement in the

1440
01:05:55,985 --> 01:05:59,125
internecine races for the
Senate or House on the

1441
01:05:59,121 --> 01:06:01,921
President's behalf
between now and then?

1442
01:06:01,924 --> 01:06:03,024
Mr. Earnest: I'm confident
that there will be

1443
01:06:03,025 --> 01:06:05,095
additional endorsements.

1444
01:06:05,094 --> 01:06:08,464
I, at this point, don't know
-- I can't telegraph at this

1445
01:06:08,464 --> 01:06:10,464
point about whether or not
there will be additional

1446
01:06:10,466 --> 01:06:12,606
contested primaries where
the President will weigh in,

1447
01:06:12,601 --> 01:06:16,301
but I certainly wouldn't
rule out that prospect.

1448
01:06:16,305 --> 01:06:17,305
We'll just do a couple more.

1449
01:06:17,306 --> 01:06:18,276
Dave.

1450
01:06:18,274 --> 01:06:20,074
The Press: Back on the
Garland nomination.

1451
01:06:20,076 --> 01:06:23,346
Senator McConnell and
Senator Cornyn both said

1452
01:06:23,346 --> 01:06:26,516
today that essentially all
the money and advertising in

1453
01:06:26,515 --> 01:06:29,185
grassroots activism that
progressives had done during

1454
01:06:29,185 --> 01:06:33,455
the Easter recess to compel
Republicans to accept the

1455
01:06:33,456 --> 01:06:37,796
confirmation hearing for
the nominee were a wasted

1456
01:06:37,793 --> 01:06:40,963
effort, because we started
the Easter recess two weeks

1457
01:06:40,963 --> 01:06:45,033
ago with three Republican
senators talking about

1458
01:06:45,034 --> 01:06:47,974
allowing confirmation
hearings, and now we're back

1459
01:06:47,970 --> 01:06:49,270
to two.

1460
01:06:49,271 --> 01:06:51,071
Do you disagree with
that assessment?

1461
01:06:51,073 --> 01:06:53,473
Mr. Earnest: I do disagree
with that assessment

1462
01:06:53,476 --> 01:06:56,546
primarily because I think
what we have seen is

1463
01:06:56,545 --> 01:06:59,685
actually a significant
change in the position of

1464
01:06:59,682 --> 01:07:02,052
many Republican senators
when it comes to the

1465
01:07:02,051 --> 01:07:04,051
prospect of having a private
meeting with

1466
01:07:04,053 --> 01:07:05,153
Chief Judge Garland.

1467
01:07:05,154 --> 01:07:07,424
Traditionally, the private
meeting is the first step in

1468
01:07:07,423 --> 01:07:08,863
the confirmation process.

1469
01:07:08,858 --> 01:07:12,028
So we were certainly pleased
to see now more than a dozen

1470
01:07:12,027 --> 01:07:16,197
Republican senators come out
and indicate a willingness

1471
01:07:16,198 --> 01:07:18,198
to meet with Chief
Judge Garland.

1472
01:07:18,200 --> 01:07:20,500
I recognize that many of
them hastened to add that

1473
01:07:20,503 --> 01:07:23,673
they wouldn't vote for him,
but they also -- many of

1474
01:07:23,672 --> 01:07:25,672
them, not all of them -- but
many of them started out by

1475
01:07:25,674 --> 01:07:27,214
saying that they didn't
want to meet with him.

1476
01:07:27,209 --> 01:07:31,619
So I think that is at least
one evidence in the kind of

1477
01:07:31,614 --> 01:07:32,744
change that we've seen.

1478
01:07:32,748 --> 01:07:34,748
I mentioned earlier the
openness of the Senate

1479
01:07:34,750 --> 01:07:37,490
Judiciary Committee to
accepting the questionnaire

1480
01:07:37,486 --> 01:07:40,826
from Chief Judge Garland.

1481
01:07:40,823 --> 01:07:44,493
And I think what we will
continue to see is continued

1482
01:07:44,493 --> 01:07:45,493
pressure on Republicans.

1483
01:07:45,494 --> 01:07:47,494
I made the reference
to Senator Cotton.

1484
01:07:47,496 --> 01:07:49,736
It begs questions now that
he has met with Senator

1485
01:07:49,732 --> 01:07:51,932
Boozman about whether or
not Senator Cotton will

1486
01:07:51,934 --> 01:07:53,934
participate in
the same meetings.

1487
01:07:53,936 --> 01:07:55,936
And once a number of these
meetings have taken place,

1488
01:07:55,938 --> 01:07:57,938
then it's going to start to
beg the question, "Well, why

1489
01:07:57,940 --> 01:07:59,440
do Republicans want to
have all these private

1490
01:07:59,442 --> 01:08:02,312
conversations with Chief
Judge Garland, but yet they

1491
01:08:02,311 --> 01:08:05,081
don't want to have those
conversations in public?"

1492
01:08:05,080 --> 01:08:08,720
Exactly what is it
they're concerned about?

1493
01:08:08,717 --> 01:08:10,717
Are they concerned that they
don't actually have tough

1494
01:08:10,719 --> 01:08:12,719
questions for Chief
Judge Garland?

1495
01:08:12,721 --> 01:08:14,721
Are they concerned that
Chief Judge Garland would do

1496
01:08:14,723 --> 01:08:16,723
so well in public that it
would be very difficult for

1497
01:08:16,725 --> 01:08:20,125
them to oppose him if the
vote came to the floor?

1498
01:08:20,129 --> 01:08:23,069
I'm not really sure exactly
what the explanation is.

1499
01:08:23,065 --> 01:08:27,265
And what's true is, we have
seen -- in editorials and in

1500
01:08:27,269 --> 01:08:30,409
news stories, and even in
polls -- that the position

1501
01:08:30,406 --> 01:08:32,706
that Republicans have taken
to not do their job is

1502
01:08:32,708 --> 01:08:34,548
extraordinarily unpopular.

1503
01:08:34,543 --> 01:08:37,683
I think I have a pretty
good explanation for that.

1504
01:08:37,680 --> 01:08:39,680
The only explanation they
can put forward for why

1505
01:08:39,682 --> 01:08:42,252
they're not doing their job
is because the Republican

1506
01:08:42,251 --> 01:08:44,251
leadership in Washington,
D.C. told them not to do

1507
01:08:44,253 --> 01:08:45,353
their job.

1508
01:08:45,354 --> 01:08:48,154
As Mr. Trump can attest, the
Republican leadership in

1509
01:08:48,157 --> 01:08:50,697
Washington, D.C. is not
particularly popular right now.

1510
01:08:50,693 --> 01:08:52,733
So I think it would be a
tough case to make to voters

1511
01:08:52,728 --> 01:08:54,928
in an election year that
you're not going to do your

1512
01:08:54,930 --> 01:08:56,370
job under any circumstances.

1513
01:08:56,365 --> 01:08:58,335
But when your best
explanation is I'm not going

1514
01:08:58,334 --> 01:09:00,934
to do my job because the
Republican leader in the

1515
01:09:00,936 --> 01:09:03,576
Senate told me not to, I
don't think that there are

1516
01:09:03,572 --> 01:09:06,572
many Republican voters,
let alone Democrats and

1517
01:09:06,575 --> 01:09:08,575
independents, who are going
to find that an

1518
01:09:08,577 --> 01:09:09,577
acceptable explanation.

1519
01:09:09,578 --> 01:09:13,378
And I think that is why
we're going to continue to

1520
01:09:13,382 --> 01:09:15,082
see the pressure on
Republicans continue to

1521
01:09:15,084 --> 01:09:16,854
ramp up.

1522
01:09:16,852 --> 01:09:19,952
And we're going to continue
to make a strong case -- not

1523
01:09:19,955 --> 01:09:21,755
that Republicans should do
the President a favor, not

1524
01:09:21,757 --> 01:09:26,057
that the Republicans should
somehow fold on their

1525
01:09:26,061 --> 01:09:31,571
principles, but rather than
Republicans should just do

1526
01:09:31,567 --> 01:09:32,597
their job.

1527
01:09:32,601 --> 01:09:34,471
They should meet with
Chief Judge Garland.

1528
01:09:34,470 --> 01:09:36,240
They should give
him a hearing.

1529
01:09:36,238 --> 01:09:38,308
And they should give
him an up or down vote.

1530
01:09:38,307 --> 01:09:41,347
This is exactly what
Democrats did back in 1988.

1531
01:09:41,343 --> 01:09:44,983
That was the last time that
there was a President in

1532
01:09:44,980 --> 01:09:46,450
office who was calling on
the Senate to confirm a

1533
01:09:46,448 --> 01:09:49,148
nominee to the Supreme
Court in their last year

1534
01:09:49,151 --> 01:09:51,551
in office.

1535
01:09:51,554 --> 01:09:53,554
Democrats had the majority
at the time; President

1536
01:09:53,556 --> 01:09:54,556
Reagan was in office.

1537
01:09:54,557 --> 01:09:57,127
Democrats at the time
confirmed Justice Kennedy;

1538
01:09:57,126 --> 01:09:58,626
they did so unanimously.

1539
01:09:58,627 --> 01:10:01,227
We're looking to -- we're
only asking Republicans to

1540
01:10:01,230 --> 01:10:03,870
meet the same standard that
Democrats did when the show

1541
01:10:03,866 --> 01:10:06,336
was on the other foot,
and we're only asking

1542
01:10:06,335 --> 01:10:08,605
Republicans to fulfill their
basic constitutional duty.

1543
01:10:08,604 --> 01:10:11,004
And we're only asking
Republicans to consider the

1544
01:10:11,006 --> 01:10:13,006
nomination of somebody that
Republicans themselves has

1545
01:10:13,008 --> 01:10:15,008
described as a
consensus candidate.

1546
01:10:15,010 --> 01:10:18,180
So I don't really understand
why this is complicated, but

1547
01:10:18,180 --> 01:10:21,020
I do understand why it's so
difficult for Republicans to

1548
01:10:21,016 --> 01:10:23,316
assume a position of saying
I'm not even going to

1549
01:10:23,319 --> 01:10:24,319
consider the guy.

1550
01:10:24,320 --> 01:10:26,490
The Press: The President's
event in Chicago, on

1551
01:10:26,488 --> 01:10:29,388
Thursday, do you expect him
to make those arguments that

1552
01:10:29,391 --> 01:10:31,491
you just outlined, or
talk about the judge's

1553
01:10:31,493 --> 01:10:32,863
qualifications more?

1554
01:10:32,861 --> 01:10:35,461
Or is he going to start
going after individual

1555
01:10:35,464 --> 01:10:37,804
Republican senators
like you are today?

1556
01:10:37,800 --> 01:10:40,840
Mr. Earnest: Well, I'm not
sure that I've gone after

1557
01:10:40,836 --> 01:10:43,336
Republican senators.

1558
01:10:43,339 --> 01:10:44,869
The Press: You've been a
little more specific than usual.

1559
01:10:44,873 --> 01:10:45,873
Mr. Earnest: I've been
a little more specific.

1560
01:10:45,874 --> 01:10:47,574
I would not anticipate that
the President would be

1561
01:10:47,576 --> 01:10:52,086
particularly specific.

1562
01:10:52,081 --> 01:10:54,051
I think the President is
interested in making a

1563
01:10:54,049 --> 01:10:56,849
broader legal argument in
the context of a law school

1564
01:10:56,852 --> 01:11:00,292
where he previously taught
constitutional law about the

1565
01:11:00,289 --> 01:11:04,159
importance of the United
States Senate doing its job

1566
01:11:04,159 --> 01:11:07,459
and the impact that that has
on public confidence in the

1567
01:11:07,463 --> 01:11:12,503
Court -- and not just the
Supreme Court, but actually

1568
01:11:12,501 --> 01:11:16,201
the entire federal
judicial system.

1569
01:11:16,205 --> 01:11:20,405
If it gets overly
politicized and starts to

1570
01:11:20,409 --> 01:11:25,819
break down on party lines,
that's going to undermine

1571
01:11:25,814 --> 01:11:30,124
the public confidence in the
notion that when it comes to

1572
01:11:30,119 --> 01:11:33,789
interpreting the law and the
rule of law, that politics

1573
01:11:33,789 --> 01:11:35,429
should be set aside.

1574
01:11:35,424 --> 01:11:38,194
And so you will hear the
President talk a little bit

1575
01:11:38,193 --> 01:11:40,893
more about this, and I think
it's an important argument

1576
01:11:40,896 --> 01:11:42,336
for the American
people to hear.

1577
01:11:42,331 --> 01:11:46,901
The Press: Speaking of
constitutional law,

1578
01:11:46,902 --> 01:11:51,472
Secretary Clinton recently
referred to the topic of

1579
01:11:51,473 --> 01:11:54,873
abortions, saying that the
unborn person doesn't have a

1580
01:11:54,877 --> 01:11:57,877
constitutional right.

1581
01:11:57,880 --> 01:12:00,320
Does the President
agree with her on this?

1582
01:12:00,315 --> 01:12:02,555
Mr. Earnest: Well, the
President certainly talked

1583
01:12:02,551 --> 01:12:07,421
about his view of a woman's
right to make her own health

1584
01:12:07,423 --> 01:12:10,123
care decisions.

1585
01:12:10,125 --> 01:12:12,995
And I recognize this has
gone through the wringer

1586
01:12:12,995 --> 01:12:13,995
quite a bit.

1587
01:12:13,996 --> 01:12:16,196
I did not see the comments
of Secretary Clinton.

1588
01:12:16,198 --> 01:12:20,668
But we can certainly do
the work to pull for you

1589
01:12:20,669 --> 01:12:22,669
President Obama's previous
thoughts on this issue.

1590
01:12:22,671 --> 01:12:23,911
The Press: Well, back in
2008 he said that the topic

1591
01:12:23,906 --> 01:12:29,816
was above his pay
grade, I believe.

1592
01:12:29,812 --> 01:12:31,812
Has he evolved on
that by any chance?

1593
01:12:31,814 --> 01:12:33,814
Mr. Earnest: Well, it sounds
like you've done a little

1594
01:12:33,816 --> 01:12:35,816
more work in looking at his
past comments than I have.

1595
01:12:35,818 --> 01:12:36,748
So why don't we take a look
and we'll get back to you.

1596
01:12:36,752 --> 01:12:37,622
Thanks, everybody.

1597
01:12:37,619 --> 01:12:38,349
We'll see you tomorrow.