Obama makes pitch for economic fairness in State of the Union address
President Barack Obama gives State of the Union address on Capitol in Washington, Tuesday, Jan. 24, 2012. Vice President Joe Biden is behind the president. (AP Photo/Pablo Martinez Monsivais)
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AP
Updated: 11:19 p.m. ET
In his third State of the Union address on Tuesday, President Obama made a strong pitch for economic fairness in America, outlining a plan that painted a stark contrast between his vision for the nation's future and those of many Republicans -- from those sitting before him to the Republican candidates for president.
Speaking before a joint session of the bitterly divided Congress, Mr. Obama described America as he hopes to see it become: "Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs. A future where we're in control of our own energy, and our security and prosperity aren't so tied to unstable parts of the world. An economy built to last, where hard work pays off, and responsibility is rewarded," he said.
"We can do this," Mr. Obama said. "I know we can, because we've done it before."
Keeping America's "promise alive," Mr. Obama said, is "the defining issue of our time."
According to the president, that question is about making sure that in the economic sector, "everyone does their fair share, and everyone plays by the same set of rules."
Mr. Obama reflected on the factors that led to the 2008 financial collapse.
"We learned that mortgages had been sold to people who couldn't afford or understand them. Banks had made huge bets and bonuses with other people's money. Regulators had looked the other way, or didn't have the authority to stop the bad behavior," he said. "It was wrong. It was irresponsible. And it plunged our economy into a crisis that put millions out of work, saddled us with more debt, and left innocent, hard-working Americans holding the bag."
Now, he said, "the state of our Union is getting stronger. And we've come too far to turn back."
"We can either settle for a country where a shrinking number of people do really well, while a growing number of Americans barely get by. Or we can restore an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules. What's at stake are not Democratic values or Republican values, but American values. We have to reclaim them."
Mr. Obama pledged his commitment to working with Republicans and Democrats alike to "build on" the strengthening U.S. economy. But, he pledged, "I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place."
"No, we will not go back to an economy weakened by outsourcing, bad debt, and phony financial profits. Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that's built to last - an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values," he said.
"I will not go back to the days when Wall Street was allowed to play by its own set of rules," he added later.
The president reiterated his call for Congress to impose the so-called "Buffett rule," which would implement a tax overhaul requiring that capital gains and dividends be taxed at the same rate as income earned from work. (According to a new CBS News/New York Times poll, most Americans agree with the concept of the "Buffett rule.")
To underscore his point, Buffett's secretary, Debbie Bosanek, sat with First Lady Michelle Obama during the speech.
"Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households," Mr. Obama said. "Right now, Warren Buffett pays a lower tax rate than his secretary."
"Do we want to keep these tax cuts for the wealthiest Americans?" he asked. "Or do we want to keep our investments in everything else - like education and medical research; a strong military and care for our veterans? Because if we're serious about paying down our debt, we can't do both."
Mr. Obama said he was willing to "rein in" the costs of Medicare, Medicaid and Social Security, "so long as those programs remain a guarantee of security for seniors."
In return, however, he reiterated a familiar demand: "Tax reform should follow the Buffett rule: If you make more than $1 million a year, you should not pay less than 30 percent in taxes. And my Republican friend Tom Coburn is right: Washington should stop subsidizing millionaires. In fact, if you're earning a million dollars a year, you shouldn't get special tax subsidies or deductions."
The plan is one that has previously been a nonstarter with congressional Republicans, most of whom oppose tax hikes of any nature - but it drew a particularly sharp contrast on Tuesday between the president and GOP presidential candidate Mitt Romney, who earlier in the day released tax returns showing that he paid a 14.5 percent tax rate on $42 million in earnings in the past two years. (Most of those earnings came from profits, dividends or interest from investments, which is why he was able to benefit from the low tax rate.)
The president seemed undeterred by the sea of unsmiling Republican faces when he framed the demand.
"The American people know what the right choice is," he said. "So do I."
Mr. Obama also outlined a series of proposals for creating jobs and improving the economy, primarily pointing to industries like high-tech manufacturing, science, technology and energy as those with the greatest potential to provide economic growth. But he acknowledged that "our commitment to skills and education has to start earlier" in order to achieve those goals.
He called on Congress to stop "bashing" teachers, and urged all 50 states to require students to stay in high school until graduation or until they turn 18. (Currently, students may legally drop out of school at age 16.)
"When students aren't allowed to walk away from their education, more of them walk the stage to get their diploma," he said.
Pivoting to immigration, an issue which will undoubtedly play a crucial role in the 2012 election, Mr. Obama reiterated his call for an overhaul of the American immigration system, and asked Congress to send him a bill addressing the issue.
"The opponents of action are out of excuses," he said. "We should be working on comprehensive immigration reform right now. But if election-year politics keeps Congress from acting on a comprehensive plan, let's at least agree to stop expelling responsible young people who want to staff our labs, start new businesses, and defend this country. Send me a law that gives them the chance to earn their citizenship. I will sign it right away."
Mr. Obama then circled back to the role of innovation in America's economic future, calling for legislation easing regulations for Americans who want to start small businesses, and urging Congress not to "gut" funding for research and development.
"After all, innovation is what America has always been about," he said.
He added: "You see, an economy built to last is one where we encourage the talent and ingenuity of every person in this country. That means women should earn equal pay for equal work. It means we should support everyone who's willing to work; and every risk-taker and entrepreneur who aspires to become the next Steve Jobs."
He cited the particular importance of investing in the development of alternative gas and energy resources, and lauded America's progress so far in developing those industries. He acknowledged, however, that "public investments don't always come right away."
"Some technologies don't pan out; some companies fail," he said, obliquely referencing the failure of Solyndra, a now-bankrupt solar energy company that received hundreds of millions of dollars from the government.
"But I will not walk away from the promise of clean energy," he said. "I will not cede the wind or solar or battery industry to China or Germany because we refuse to make the same commitment here. We have subsidized oil companies for a century. That's long enough. It's time to end the taxpayer giveaways to an industry that's rarely been more profitable, and double-down on a clean energy industry that's never been more promising."
The president also decried the "corrosive" influence of money in politics, and outlined a series of measures he said could help re-establish trust between "Main Street and Wall Street."
"Send me a bill that bans insider trading by Members of Congress, and I will sign it tomorrow," he said. "Let's limit any elected official from owning stocks in industries they impact. Let's make sure people who bundle campaign contributions for Congress can't lobby Congress, and vice versa - an idea that has bipartisan support, at least outside of Washington."
In light of the notoriously divisive state of affairs in Washington, Mr. Obama spoke of the need to "lower the temperature in this town."
"We need to end the notion that the two parties must be locked in a perpetual campaign of mutual destruction; that politics is about clinging to rigid ideologies instead of building consensus around common sense ideas," he said.
Invoking the philosophy of Abraham Lincoln, Mr. Obama touted his belief in a government that helps Americans without infringing on their rights.
"I'm a Democrat. But I believe what Republican Abraham Lincoln believed: That Government should do for people only what they cannot do better by themselves, and no more," he said. "The point is, we should all want a smarter, more effective government. And while we may not be able to bridge our biggest philosophical differences this year, we can make real progress."
The president called on Congress to work with him. Still, he vowed to proceed with his mission either way.
"With or without this Congress, I will keep taking actions that help the economy grow. But I can do a whole lot more with your help. Because when we act together, there is nothing the United States of America can't achieve.
In a Republican rebuttal following the speech, Republican Indiana Governor Mitch Daniels lambasted Mr. Obama for his handling of the economy, which he said had become "radically worse" under the president's guidance.
"In three short years, an unprecedented explosion of spending, with borrowed money, has added trillions to an already unaffordable national debt," he said. "And yet, the president has put us on a course to make it radically worse in the years ahead."
He blasted Mr. Obama for what he called his "constant disparagement" of the business community, and argued that the private sector held the keys to economic success.
"The routes back to an America of promise, and to a solvent America that can pay its bills and protect its vulnerable, start in the same place," he said. "The only way up for those suffering tonight, and the only way out of the dead end of debt into which we have driven, is a private economy that begins to grow and create jobs, real jobs, at a much faster rate than today."
The most stark absence from President Obama's SOTU address was the fact that he totally ignored the massive debt we have accumulated under his administration. It grew under most Presidents, but it accelerated dramatically under him. He talked about making major cuts to defense - but did he indicate that he would use those savings to bring down the debt? NO. He talked about spending that money on other federal projects. He has NO PLAN to deal with our racing toward national bankruptcy. He has ZERO plans to stop this reckless and irresponsible nonsense.
I listened to the President Obama's third State of the Union Address, and I have come to the conclusion that he is a schizophrenic. He talked about everyone playing by the same rules, after giving out $100s of billions of taxpayer dollars to corporations of his choice while allowing other businesses to fend for themselves. He talked about reducing federal regulations on business, after burying American businesses under increased regulations contained in his disastrous health care law, He talked about national unity, after he has divided Americans and pitted one group of Americans against another for three years. He announced that "America is back", after burying the nation under deficit spending like no other President in American history. He announced "no more bailouts", after being the king of bailouts. He talked about energy independence, after stopping a oil pipeline that would have made American less dependent on middle-eastern oil and would have created more than 20,000 jobs. I have never heard a more twisted, muddled, and conflicted speech in all my life.
GOP and Mitt Romney said that they understand middle class; however, middle class are the one that make the different on Mitt 13.9 % tax rate, middle class make the different on his tax when he put his money in offshore accounts to avoid paying tax rate here in U.S. Mitt Romney made hundred of million on the back of American workers and now he wants ordinary American people to pay the different on his tax. In fact, he's promoting to the public that when he becomes president, he should pay half of 13.9 % while ordinary American will pay more than today tax rate. Is Mitt Romney and GOP for ordinary American or they are on the side of their elites friends?
Do you know that we borrow China $700 billion dollars a year to pay for super rich tax cut, because this is what the GOP wants? Further, in the eyes of GOP, this $700 billion dollars do not drive federal deficit, but jobs growth. Where are the jobs creations from $700 billion dollars tax cut? According to Newt, we're still affected by 911. Isn't this more than 10 years ago? Apparently, Newt, Mitt, and GOP are still in denial or in a coma. Not too long ago, GOP & Bush brought down the U.S and global economy, and now they're an expert on fixing this?
GOP and Tear Party, please stop pretending like you care about federal deficit when you're the one that drive the federal deficit sky rock--from two wars that unpaid for and borrow $700 billion dollars a year from China to pay for super rich tax cut that they don't need. Warren Buffett told ABC that his secretary's Debbie works just as hard as he does and she pays twice the rate he pays. He thinks that's outrageous. However, GOP think working people like Debbie tax rate in compare to the super rich is fair. It's like Sadam Hussein saying that he loves his people.
We must all be ready to unite when Obama tries to make any deals with the devil (Republicons or giant corporations).
This year when Obama makes the deal with the corporations to bring their corrupt money back from their tax havens at pennies on the dollar (instead of the 35% corporate tax rate) we should be ready to General Strike.
Next year when Obama and the Congress vote to extend the Bush tax cuts for the rich that will cost us $4.5 trillion, we need to be ready to revolt.
This is the time to start lining up support with all progressive and other organizations. Talk to people in your clubs, groups, meetings, churches, etc., etc, so we can be ready for the new government of the 99% (as opposed to the current corrupt one completely run for the Top 1%).
Oh no, socialism. Oh no, government that serves the people. Oh no, socialist roads, museums, street lights, parks and schools. Oh no, regulation of the criminal Wall Street Banksters and vulture capitalists like Mint RawMoney. Oh no, socialist Social Security, unemployment insurance and Medicare. Oh no!
Be afraid Ray, be very afraid. The socialists are coming, the socialists are coming.
We can't afford a third of the stuff he proposed, even if we raise taxes on a few rich folk. Do we really want financial suicide like the bankrupt socialists across the ocean? It doesn't work in reality or theory, give it a rest and instead figure out how we can get out of the mess we're in (thanks to the trillions spent on socialism)
The 'Rich' pay most of the taxes. Almost half pay no income tax. Many live off of the 'Riches' taxes. We must have the rich to support the dimos. who failed to get an education or who had uneducated parents living off the 'Riches' taxes also.We cannot afford so many deadbeats. The world will not long continue to accept the dollar
Funny there are a lot of republicans living off the government. a bunch of deadbeats that would rather collect unemployment and food stamps instead of getting a job.
The giant corporations and the Top 1% have somehow convinced us they are on a godlike pedestal and that we should worship them. That they are the ones who should run the government for their profit and that somehow their rape and pillage of the world will "trickle down" to the rest of us.
Well that couldn't be more of a lie. Their idea of "free trade" is their freedom to enslave workers throughout the world for their personal profits. In fact what has occurred is massive debt, unemployment, huge disparity in income and millions and millions of ruined lives.
I don't know which is worse, these slimewad, evil, fake free market job destroyers or the fools who buy into that. Are you hearing me Republicons? Are you hearing me notblu?
Corporations and small business are what make America great, without corporations there would be no innovation, no cures for disease, no improvements in technology or lifestyles. Obama's campaign of deflection by vilifying and targeting the most successful in society obviously work on the uneducated. Here are some facts. Annually we pay 450 billion in interest alone on our national debt, if Obama took 50% of those evil rich peoples money it would amount to paying off 50% of the interest on the debt annually doing nothing to reduce the actual defecit. It is unfortunate turnips like noloyalisti enable and support this agenda of failure. Some people have been convinced that if you turn to communism and destroy everything that made America great prosperity will return. This assertion couldn't be further from the truth, every country on the planet that has adopted such policies have failed miserably, yet people somehow can ignore history and these truths by blindly accepting whatever Obama says. As long as this ignorance encompasses 50% of society no solutions to the debt or unemployment can be produced.
Please do not include the giant corporations who have been gaming the system since the get go with corporations and small business. One exist to benefit the Top 1% and their shareholders (the same people) while the others exist to serve America and its people. It's like night and day.
idiot, corporations exist to benefit all americans, how is it you are soooooo ignorant to reality????? Please leave these posts and stop using all consumables, or your just a hypocrite. That computer you clack away on was created and manufactured by those corporations you vilify and critisize every damn day, why not do something productive with your time for a change.
Obama successfully presented the argument about whether we want democracy to rule or capitalism. If we want democracy we can have capitalism but it has to be regulated and controlled and thus part of our society.
If we want capitalism to rule, then we have to put up with the lack of democratic principles and have the unregulated market create a class of corporate elites who run everything. And have people like the Wall Street Banksters, Robmee and Gingrinch decide who works, for how much, who will have health care and who will die, who will be educated, and whether we have a real country for the benefit of the 99%.
noloyalist......Capitalism works fine and it would have worked had not Obama intervened with his bailouts and TARP. Failure, and the consequences of failure, are an essential component of capitalism. The imbecilic President acted "stupidly" and screwed the whole thing up. It's Obama who wants to define via the death panels who is to stop receiving care and "allowed" to die. It's Obama who just cut $500 billion out of Medicare. It's Obama who stopped the Keystone jobs and energy independence program. You are confused and we understand why you vote for the liar-in-chief.
It's the republicans that want to eliminate Social Security and Medicare, let the seniors die therefore that's a death panal. It was bush not Obama that bailed out the banks(TARP) of course republicans would never let thew banks fail. It was the republicans who started the decline of medicare with their plan "D" that did nothing but create more profits for the drug companies. The pipeline is a scam, that oil will be exported not used here in the U.S. Why send it to the Gulf of Mexico when there are refineries closer, including five in Alberta Canada, closer to the oil fields.
We do not need giant corporations or the Top 1% running anything in America. We are the job creators by having a strong middle class. I can see that this year we the 99% are going to have Obama reelected and start empowering the unions, cooperatives and other responsible organizations that help the 99%.
It is time to cut the legs off of the corporate elite who do little to nothing for America. Starting with the criminal Wall Street Banksters.
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I listened to the President Obama's third State of the Union Address, and I have come to the conclusion that he is a schizophrenic. He talked about everyone playing by the same rules, after giving out $100s of billions of taxpayer dollars to corporations of his choice while allowing other businesses to fend for themselves. He talked about reducing federal regulations on business, after burying American businesses under increased regulations contained in his disastrous health care law, He talked about national unity, after he has divided Americans and pitted one group of Americans against another for three years. He announced that "America is back", after burying the nation under deficit spending like no other President in American history. He announced "no more bailouts", after being the king of bailouts. He talked about energy independence, after stopping a oil pipeline that would have made American less dependent on middle-eastern oil and would have created more than 20,000 jobs. I have never heard a more twisted, muddled, and conflicted speech in all my life.
2008-2011 Obama: 800 billion stimulus, financial sector bailout, auto sector bailout, QE1, QE2.
2013 Obama: Would you like fries with that?
Do you know that we borrow China $700 billion dollars a year to pay for super rich tax cut, because this is what the GOP wants? Further, in the eyes of GOP, this $700 billion dollars do not drive federal deficit, but jobs growth. Where are the jobs creations from $700 billion dollars tax cut? According to Newt, we're still affected by 911. Isn't this more than 10 years ago? Apparently, Newt, Mitt, and GOP are still in denial or in a coma. Not too long ago, GOP & Bush brought down the U.S and global economy, and now they're an expert on fixing this?
GOP and Tear Party, please stop pretending like you care about federal deficit when you're the one that drive the federal deficit sky rock--from two wars that unpaid for and borrow $700 billion dollars a year from China to pay for super rich tax cut that they don't need.
Warren Buffett told ABC that his secretary's Debbie works just as hard as he does and she pays twice the rate he pays. He thinks that's outrageous. However, GOP think working people like Debbie tax rate in compare to the super rich is fair. It's like Sadam Hussein saying that he loves his people.
This year when Obama makes the deal with the corporations to bring their corrupt money back from their tax havens at pennies on the dollar (instead of the 35% corporate tax rate) we should be ready to General Strike.
Next year when Obama and the Congress vote to extend the Bush tax cuts for the rich that will cost us $4.5 trillion, we need to be ready to revolt.
This is the time to start lining up support with all progressive and other organizations. Talk to people in your clubs, groups, meetings, churches, etc., etc, so we can be ready for the new government of the 99% (as opposed to the current corrupt one completely run for the Top 1%).
Be afraid Ray, be very afraid. The socialists are coming, the socialists are coming.
Source, just another one of your baseless posts.
Well that couldn't be more of a lie. Their idea of "free trade" is their freedom to enslave workers throughout the world for their personal profits. In fact what has occurred is massive debt, unemployment, huge disparity in income and millions and millions of ruined lives.
I don't know which is worse, these slimewad, evil, fake free market job destroyers or the fools who buy into that. Are you hearing me Republicons? Are you hearing me notblu?
If we want capitalism to rule, then we have to put up with the lack of democratic principles and have the unregulated market create a class of corporate elites who run everything. And have people like the Wall Street Banksters, Robmee and Gingrinch decide who works, for how much, who will have health care and who will die, who will be educated, and whether we have a real country for the benefit of the 99%.
It's the republicans that want to eliminate Social Security and Medicare, let the seniors die therefore that's a death panal. It was bush not Obama that bailed out the banks(TARP) of course republicans would never let thew banks fail. It was the republicans who started the decline of medicare with their plan "D" that did nothing but create more profits for the drug companies. The pipeline is a scam, that oil will be exported not used here in the U.S. Why send it to the Gulf of Mexico when there are refineries closer, including five in Alberta Canada, closer to the oil fields.
It is time to cut the legs off of the corporate elite who do little to nothing for America. Starting with the criminal Wall Street Banksters.