Q Speaking of revenue, as you know, the President has this inflation-adjustment proposal in this plan. Time and again, the President has said that he would not raise taxes on the middle class. One of the effects of that so-called chained CPI inflation adjustment is that it kicks people into higher tax brackets faster. Thats an impact on the middle class. Isnt that an increase on the middle class, and is the President backtracking on this --
MR. CARNEY: Well, lets be clear, this is a technical adjustment to the so-called CPI -- called chained CPI that has been advocated by Republicans, that Mitch McConnell asked for in a letter that he presented during the negotiations over these budget issues. The offer that the President made to Speaker Boehner, and which is incorporated in the Presidents budget, is not the Presidents ideal approach to our budget challenges, but it is a serious compromise proposition that demonstrates that he wants to get things done, that he believes that we in Washington ought to do the business of the American people by coming together and finding common ground.
Q A follow-up on Jims question -- you do not and the White House does not dispute that if the chained CPI were put in -- to be put into effect, it would raise taxes on middle-income Americans?
MR. CARNEY: The chained CPI, which is a technical adjustment to how we measure the consumer price index --
Q But its practical effect would be --
MR. CARNEY: Again --
Q -- to raise taxes on --
MR. CARNEY: Im not disputing that, but Im saying that it is not the Presidents ideal policy. It is in a letter from the Senate Minority Leader requesting that it be part of a negotiation deal.
Q All right, I'm just saying you dont disagree, that those things happen?
MR. CARNEY: Right, but Major, and --
Q -- a tax increase?
MR. CARNEY: -- lets be clear, as weve said all along, that the offer was on the table. The President made that offer because he was hopeful that we would see commensurate willingness to compromise from Republicans. Unfortunately, we havent seen that.
The President is engaged in conversations with Republicans in the Senate in particular but also in the House in an effort to find common ground, to see if there is a willingness to embrace the idea that we can reduce our deficits in a balanced way and continue to invest in our economy and middle-class families. And if there is, then well be able to get something done.