Full text of the president's remarks

[Towntalk]

Full text of the president's remarks

7/31/11 9:37 PM EDT

Here is the full text of President Obama's announcement:
"Good evening. There are still some very important votes to be taken by members
of Congress, but I want to announce that the leaders of both parties, in both
chambers, have reached an agreement that will reduce the deficit and avoid
default — a default that would have had a devastating effect on our economy.

"The first part of this agreement will cut about $1 trillion in
spending over the next 10 years — cuts that both parties had agreed to early on
in this process. The result would be the lowest level of annual domestic
spending since Dwight Eisenhower was President — but at a level that still
allows us to make job-creating investments in things like education and
research. We also made sure that these cuts wouldn't happen so abruptly that
they'd be a drag on a fragile economy.

"Now, I've said from the beginning that the ultimate solution to our deficit
problem must be balanced. Despite what some Republicans have argued, I believe
that we have to ask the wealthiest Americans and biggest corporations to pay
their fair share by giving up tax breaks and special deductions. Despite what
some in my own party have argued, I believe that we need to make some modest
adjustments to programs like Medicare to ensure that they're still around for
future generations.

"That's why the second part of this agreement is so important. It establishes a
bipartisan committee of Congress to report back by November with a proposal to
further reduce the deficit, which will then be put before the entire Congress
for an up or down vote. In this stage, everything will be on the table. To hold
us all accountable for making these reforms, tough cuts that both parties would
find objectionable would automatically go into effect if we don't act. And over
the next few months, I'll continue to make a detailed case to these lawmakers
about why I believe a balanced approach is necessary to finish the job.

"Now, is this the deal I would have preferred? No. I believe that we could have
made the tough choices required — on entitlement reform and tax reform — right
now, rather than through a special congressional committee process. But this
compromise does make a serious down payment on the deficit reduction we need,
and gives each party a strong incentive to get a balanced plan done before the
end of the year.

"Most importantly, it will allow us to avoid default and end the crisis that
Washington imposed on the rest of America. It ensures also that we will not face
this same kind of crisis again in six months, or eight months, or 12 months. And
it will begin to lift the cloud of debt and the cloud of uncertainty that hangs
over our economy.

"Now, this process has been messy; it's taken far too long. I've been concerned
about the impact that it has had on business confidence and consumer confidence
and the economy as a whole over the last month. Nevertheless, ultimately, the
leaders of both parties have found their way toward compromise. And I want to
thank them for that.

"Most of all, I want to thank the American people. It's been your voices — your
letters, your emails, your tweets, your phone calls — that have compelled
Washington to act in the final days. And the American people's voice is a very,
very powerful thing.

"We're not done yet. I want to urge members of both parties to do the right
thing and support this deal with your votes over the next few days. It will
allow us to avoid default. It will allow us to pay our bills. It will allow us
to start reducing our deficit in a responsible way. And it will allow us to turn
to the very important business of doing everything we can to create jobs, boost
wages, and grow this economy faster than it's currently growing.

"That's what the American people sent us here to do, and that's what we should
be devoting all of our time to accomplishing in the months ahead.
"Thank you very much, everybody."