THE PRESIDENT: Good afternoon. As you all know, last summer I signed a law that will cut nearly $1 trillion of spending over the next 10 years. Part of that law also required Congress to reduce the deficit by an additional $1.2 trillion by the end of this year.
In September, I sent them a detailed plan that would have gone above and beyond that goal. It's a plan that would reduce the deficit by an additional $3 trillion, by cutting spending, slowing the growth of Medicare and Medicaid, and asking the wealthiest Americans to pay their fair share.
In addition to my plan, there were a number of other bipartisan plans for them to consider from both Democrats and Republicans, all of which promoted a balanced approach. This kind of balanced approach to reducing our deficit -- an approach where everybody gives a little bit, and everyone does their fair share -- is supported by an overwhelming majority of Americans -- Democrats, independents, and Republicans. It's supported by experts and economists from all across the political spectrum. And to their credit, many Democrats in Congress were willing to put politics aside and commit to reasonable adjustments that would have reduced the cost of Medicare, as long as they were part of a balanced approach.
But despite the broad agreement that exists for such an approach, there's still too many Republicans in Congress who have refused to listen to the voices of reason and compromise that are coming from outside of Washington. They continue to insist on protecting $100 billion worth of tax cuts for the wealthiest 2 percent of Americans at any cost, even if it means reducing the deficit with deep cuts to things like education and medical research. Even if it means deep cuts in Medicare.
So at this point, at least, they simply will not budge from that negotiating position. And so far, that refusal continues to be the main stumbling block that has prevented Congress from reaching an agreement to further reduce our deficit.
Now, we are not in the same situation that we were -- that we were in in August. There is no imminent threat to us defaulting on the debt that we owe. There are already $1 trillion worth of spending cuts that are locked in. And part of the law that I signed this summer stated that if Congress could not reach an agreement on the deficit, there would be another $1.2 trillion of automatic cuts in 2013 --- divided equally between domestic spending and defense spending.
One way or another, we will be trimming the deficit by a total of at least $2.2 trillion over the next 10 years. That's going to happen, one way or another. We've got $1 trillion locked in, and either Congress comes up with $1.2 trillion, which so far they've failed to do, or the sequester kicks in and these automatic spending cuts will occur that bring in an additional $1.2 trillion in deficit reduction.
Now, the question right now is whether we can reduce the deficit in a way that helps the economy grow, that operates with a scalpel, not with a hatchet, and if not, whether Congress is willing to stick to the painful deal that we made in August for the automatic cuts. Already, some in Congress are trying to undo these automatic spending cuts.
My message to them is simple: No. I will veto any effort to get rid of those automatic spending cuts to domestic and defense spending. There will be no easy off ramps on this one.
We need to keep the pressure up to compromise -- not turn off the pressure. The only way these spending cuts will not take place is if Congress gets back to work and agrees on a balanced plan to reduce the deficit by at least $1.2 trillion. That's exactly what they need to do. That's the job they promised to do. And they've still got a year to figure it out.
Although Congress has not come to an agreement yet, nothing prevents them from coming up with an agreement in the days ahead. They can still come together around a balanced plan. I believe Democrats are prepared to do so. My expectation is, is that there will be some Republicans who are still interested in preventing the automatic cuts from taking place. And, as I have from the beginning, I stand ready and willing to work with anybody that's ready to engage in that effort to create a balanced plan for deficit reduction.
Now, in the meantime, we've got a lot of work left to do this year. Before Congress leaves next month, we have to work together to cut taxes for workers and small business owners all across America. If we don't act, taxes will go up for every single American, starting next year. And I'm not about to let that happen. Middle-class Americans can't afford to lose $1,000 next year because Congress won't act. And I can only hope that members of Congress who've been fighting so hard to protect tax breaks for the wealthy will fight just as hard to protect tax breaks for small business owners and middle-class families.
We still need to put construction workers back on the job rebuilding our roads and our bridges. We still need to put our teachers back in the classroom educating our kids.
So when everybody gets back from Thanksgiving, it's time to get some work done for the American people. All around the country, Americans are working hard to live within their means and meet their responsibilities. And I know they expect Washington to do the same.