calling it pathetic, using very sharp terms, going after it. what are you thinking -- what are you seeing tonight in terms of the republican attitude toward the president at this point in the presidency and this speech? >> rachel, an objective statement since the day he was inaugurated they sought to stymy his program. what an ironic position they took, they wanted to display the fact he couldn't cross party lines, he couldn't cross the aisle to make deals, because they believe from the beginning if he was successful in making deals with them, whether to have a compromise stimulus package, compromise on health care even, then he would succeed historically. i believe and i know the president believes that from the beginning they've sought to kill his place in history by refusing to let him be bipartisan. i think it's a damning criticism, you can't decide to be a member of congress if you take the oath of office and i believe history will show mitch mcconnell led the way and they are showing it tonight, they want him to fail, they want it to be one-term, a pathetic one term. they have been operating like this since the faced him opposition. >> lawrence, we saw the outgoing white house chief of staff bill daley followed by jack loo, wa is your opinion on how much the white house itself has changed in response to not only the mid-term election results but that kind of republican attitude chris was describing there. >> ryan liza has a great piece in the new yorker talking about that using white house memos, decision memos and he traces the president's evolution in understanding just how locked in the republicans were and ultimately how impossible bipartisanship became and one of the simple measures of that is the simple political fact that the most conservative democrat in the senate is more liberal than the most liberal republican fifth in the senate. and once you have that, you have completely divided parties. it was in the 90s during bill clinton's time you had at least half a dozen republicans in the senate who were always available for discussion of democratic ideas, and by the way, at least half a dozen democrats from the south. we had a democratic senators from alabama then, georgia, texas, oklahoma who were available to the republicans, and so that stuff i bipartisanship actually did not even exist when the president took office. >> i think part of that and i read that new yorker piece, is that i think the president had to deal with the reality of what -- how in flexible the republicans were. i don't think it was a matter of he or the white house staff changing as much as they had to deal with the reality of a hardened partisan environment that no matter what they did, including angering his own base, was going to move the inflexibility of the republicans and i think that in the long run will backfire on the republicans. >> one of the things i think about the president, the white house talked about this, the vision, i read the same piece, he's tried to move forward with the vision and the big idea and the white house would say the ideas you will hear tonight you heard in kansas, you heard when he spoke at georgetown in 2009, you heard it frankly when he spoke to the democratic convention in boston in 2004 about a vision for america. what i read in that piece was also this president trying to move forward, little bit by little bit as much as he could within that political reality. >> i think to watch for in the speech they blame in part the effectiveness about strategies based upon congressional rules like the filibuster, hold up nominees, look for them to begin the unpopularity of congress and why things aren't getting done. taking on some of the rules directly tonight. >> clinton had another peculiar advantage in bipartisanship. he did three big things, one was a big budget bill, with no republican votes because it involved a tax increase. other two were international trade bills --. >> hold on. >> mr. speaker, the president of the united states! [ applause ] >> president entering the house chamber, it will take him a long time to get up the aisle, sorry i interrupted you. carry on, lawrence. >> two out of the three big things clinton did in the first two years were republican-initiated ideas, republican-initiated international trade bills, he had to work with them on a daily basis in order to get the bills done and president obama has had no such initiative that actually had a republican base to it that he could begin. >> of course president clinton attempted health care reform, one thing that separates the presidencies, and ryan's article is eloquent, obama using a partisan strategy got the health care bill down. president clinton had 57 democrats not 60, did not have reconciliation for his health care bill, was not able to pass it through congress. >> i think you will hear him talk about ideas which have been republican ideas that were good ideas when they introduced by president obama. >> payroll tax cuts. >> takes them on a little bit. >> magically became negative. >> even ideas in the tax code you had some of the republican members talking this summer about no welfare for millionaires, they had different versions what that meant i think the president will speak to that as well. >> various points in his evolution as a policy thinker, newt gingrich supported major initiative of barack obama. >> only as a historian. >> there is a point to only as a historian, the one thing to be clear about, republicans and individual mandate, there is not a republican alive whoever voted for it. it never actually came to the point of a republican in the house or the senate voting for an individual mandate because the more they looked at it, the more they all turned away from it including under gingrich's leadership. >> they co-sponsored it, kept perkolating, it didn't go away until pretty much until 2009. in june, 2009, chuck grassley said the individual mandate was part of the bill that had bipartisan support. >> this i think you have to think about the strategy here. i have to say i miss michele bachmann crowding the line. there was a lot of michele bachmann kissing the president. now she raised her public profile and been a candidate we get no more michele bachmann kissing on the aisle which is a drag. the president refusing to let go, there is scott brown of massachusetts. i think probably both as a gesture of kindness and strategic one upsman ship. we are expecting as the president greets the chief justice, john roberts, we're expecting to see the president able to talk, i believe one-on-one with gabrielle giffords coming in the chamber. >> there is only five justices i see justice thomas recused himself. >> justice thomas did recuse himself, that's right. >> president greeting chairman of the joint chiefs, the army chief of staff. >> i can tell you having scheduled this for a president we never put enough time in for how long it will take to actually get, you would think a short distance, but you never can calculate how long a president will take to shake hands because it's totally at his discretion, you try to warn him you're on a schedule and deadline and the networks and they do what they want to do. >> here's the president approaching gabby giffords. >> wow. >> a very long embrace between the president and gabby giffords and emotional thing to see. seeing the president take this much time and speak to this many people, you can never tell how long it will take, it doesn't matter who the president is, this is about respecting the presidency and a constitutionally mandated event in any president's career and the reason we all watch this and pay attention and gets this much applause, this much pomp and circumstance is because we as americans believe the presidency deserves it. and there aren't very many moments like this on the american political calendar, this is unique, a privilege to cover. [ applause ] members of congress, i have the high privilege and distinct honor of presenting to you the president of the united states. [ applause ] >> thank you. thank you. thank you so much. thank you very much. thank you. thank you. please be seated. mr. speaker, mr. vice president, members of congress, distinguished guests, and fellow americans, last month i went to andrews air force base and welcomed home some of our last troops to serve in iraq. together, we offered a final proud salute to the colors under which more than a million of our fellow citizens fought. several thousand gave their lives. we gather tonight knowing that this generation of heros has made the united states safer and more respected around the world. [ applause ] for the first time in nine years, there are no americans fighting in iraq. [ applause ] for the first time in two decades, osama bin laden is not a threat to this country. [ applause ] most of al qaeda's top lieutenants have been defeated. the taliban's momentum has been broken, some troops in afghanistan have begun to come home. these achievements are a testament to the courage, selflessness and team work of america's armed forces. at a time when too many of our institutions have let us down, they exceed all expectations. they are not consumed with personal ambition. they don't obsess over their differences. they focus on the mission at hand. they work together. imagine what we could accomplish if we followed their example. [ applause ] 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 world. an economy built to last where hard work pays off and responsibility is rewarded. we can do this. i know we can because we've done it before. at the end of world war ii when another generation returned home from combat they built the strongest economy and middle class the world has ever known. [ applause ] my grandfather, a veteran of patton's army got the chance to go to college on the g.i. bill. my grandmother, who worked on a bomber assembly line was part of a workforce that turned out the best products on earth. the two of them shared the optimism of a nation that had triumphed over a depression and fascism. they understand they were part of something larger. they were contributing to a story of success that every american had a chance to share. the basic american promise that if you worked hard, you could do well enough to raise a family, own a home, send your kids to college and put a little away for retirement. the defining issue of our time is how to keep that promise alive. no challenge is more urgent, no debate is more important. we are not going to settle where a shrinking number of people do well where a growing number barely get by. where we can restore an economy where everyone gets a fair shot, and every one does their fair share and everyone plays by the same set of rules. [ applause ] what is at stake aren't democratic values or republican values but american values. we have to reclaim them. let's remember how we got here. long before the recession, jobs and manufacturing began leaving our shores. technology made businesses more efficient but made some jobs obsolete. folks at the top saw incomes rise like never before. but most hard-working americans struggled with costs that were growing, paychecks that weren't. and personal debt that kept piling up. in 2008, the house of cards collapsed. we learned that mortgages had been sold to people who couldn't afford or understand them. banks made huge bets and bonuses with other people's money. regulators looked the other way. or didn't have the authority to stop the bad behavior. it was wrong. it was irresponsible. and it plunged our economy in a crisis that put millions out of work, saddled us with more debt and left innocent, hard-working americans holding the bag. in the six months before i took office, we lost nearly four million jobs. we lost another four million before our policies were in full effect. those are the facts. but so are these. in the last 22 months, businesses have created more than three million jobs. [ applause ] last year they created the most jobs since 2005. american manufacturers are hiring again, creating jobs for the first time since the late 1990s. together, we've agreed to cut the deficit by more than $2 trillion. we put in place new rules to hold wall street accountable so a crisis like this never happens again. [ applause ] the state of our union is getting stronger. and we've come too far to turn back now. as long as i'm president, i will work with anyone in this chamber to build on this momentum. but i intend to fight obstruction with action and i will oppose any effort to return to the very same policies that brought on this economic crisis in the first place. [ applause ] 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 layout a blueprint for an economy built to last. an economy built on american manufacturing. american energy. skills for american workers. and renewal of american values. this blueprint begins with american manufacturing. on the day i took office, our auto industry was on the verge of collapse. some even said we should let it die. with a million jobs at stake, i refused to let that happen. in exchange for help, we demanded response built. we got workers and auto workers to settle their differences. got the industry to retool and restructure. today, general motors is back on top as the world's number one automaker. [ applause ] chrysler has grown faster in the u.s. than my major company. ford is investing millions in plants and factories. the entire industry added 160,000 jobs. we bet on american workers. we bet on american ingenuity, tonight the american auto industry is back! [ applause ] what's happening in detroit can happen in other industries. it can happen in cleveland and pittsburgh and raleigh. we can't bring every job back that left our shore. but right now, it's getting more expensive to do business in places like china. meanwhile america is more productive. a few weeks ago, the ceo of masterlund said it makes business sense for him to bring jobs back home. [ applause ] today, for the first time in 15 years, masterlock's plant in milwaukee is running at full capacity. [ applause ] so, we have a huge opportunity at this moment to bring manufacturing back. but we have to seize it. we can start with the tax code. right now, companies get tax breaks for moving jobs and profits overseas. meanwhile, companies that choose to stay in america get hit with one of the highest tax rates in the world. it makes no sense. and everyone knows it. so let's change it. first, if you're a business that wants to outsource jobs, you shouldn't get a tax deduction for doing it. it makes no sense. and everyone knows it. so let's change it. first, if you're a business that wants to outsource jobs, you shouldn't get a tax deduction for doing it. [ applause ] that money should cover moving expenses for master lock that decided to bring jobs home. [ applause ] second, no american company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. [ applause ] from now on every multi-national company should have to pay a basic minimum tax and every penny should go toward lowering taxes for companies that choose to stay here and hire here in america. [ applause ] third, if you're an american manufacturer, you should get a bigger tax cut. if you're a high tech manufacturer, we should double the tax duck shun you get for making your profits here. if you want to relocate in a community you should get help financing a new plant, equipment or training for new workers. so my message -- [ applause ] -- my message is simple. it's time to stop rewarding businesses that ship jobs overseas and start rewarding companies that create jobs right here in america. send me these tax reforms and i will sign them right away! [ applause ] we're also making it easier for american businesses to sell products all over the world. two years ago i set a goal of doubling us exports over five years. with the bipartisan trade agreements we signed in law, we're on track to meet that goal ahead of schedule. [ applause ] soon there will be millions of new customers for american goods in panama, columbia and south korea. soon this will be new cars on the streets of seoul imported from detroit and toledo and chicago. [ applause ] i will go anywhere in the world to open new markets for american products. and i will not stand by when our competitors don't play by the rules. we've brought trade cases against china at nearly twice the rate as the last administration and it's made a difference. [ applause ] over 1000 americans are working to day because we stopped a surge in chinese tires. we need to do more. it's not right when another country lets our movies, music and software be pirated. it's not fair when foreign manufacturers have a leg up on our's because they are heavily subsidized. tonight i'm announcing the creation of a trade enforcement unit that will be charged with investigating unfair trading practices in countries like china. there will be more inspections -- [ applause ] -- there will be more inspections to prevent counterfeit or unsafe goods from crossing our borders. and this congress should make sure that no foreign company has an advantage over american manufacturing when it comes to accessing financing or new markets like russia. our workers are the most productive on earth and if the playing field is level, i promise you, america will always win. [ applause ] i also hear from many business leaders who want to hire in the united states, but can't find workers with the right skills. growing industries in science and technology have twice as many openings as we have workers who can do the job. think about that. openings at a time when millions of americans are looking for work. it's inexcusable. we know how to fix it. jackie is a single mom from north carolina, who was laid off from her job as a mechanic. then siemens opened a turbine factory in charlotte and formed a partnership with central piedmont community college. the company helped the college design courses in laser and robotics training, it paid jackie's tuition. then hired her to help operate their plant. i want every american looking for work to have the same opportunity as jackie did. join me in a national commitment to train two million americans with skills that will lead directly to a job. [ applause ] my administration lined up more companies that want to help. model partnerships between businesses like siemens and community colleges in places like charlotte, orlando, louisville are up and running. now you need to give more community colleges the resources they need to become community career centers. places that teach people skills that businesses are looking for right now. from data management, high tech manufacturing. i want to cut through the maze of confusing training programs, so that from now on people like jackie have one program, one website, and one place to go for all the information and help that they need. it's time to turn our unemployment system into a reemployment system that puts people to work. [ applause ] these reforms will help people get jobs that are open today. but to prepare for the jobs of tomorrow, our commitment to skills and education has to start earlier. for less than 1% of what our nation spends on education each year, we've convinced nearly every state in the country to raise their standards for teaching and learning. the first time that has happened in a generation. but challenges remain. and we know how to solve them. at a time when other countries are doubling down on education, tight budgets forced states to layoff thousands of teachers. we know a good teacher can increase the life time income of a classroom by over $250,000. a great teacher can offer an escape from poverty. to the child who dreams beyond his circumstance. every person in this chamber can point to a teacher who changed the trajectory of their lives. most teachers work tirelessly with modest pay. sometimes digging in their own pocket for school supplies. just to make a difference. teachers matter. so instead of bashing them, or defending the status quo, let's offer schools a deal. give them the resources to keep good teachers on the job, and reward the best ones. and in return -- grant schools flexibility. to teach with creativity and passion. to stop teaching to the test and to replace teachers who just aren't helping kids learn. [ applause ] that's a bargain worth making. [ applause ] we also know when students don't walk away from their education, more of them walk the stage to get their diploma. when students are not allowed to drop out, they do better. so tonight, i am proposing that every state, every state requires that all students stay in high school until they graduate or turn 18. [ applause ] when kids do graduate the most daunting challenge can be the cost of college. at a time when americans owe more in tuition debt than credit card debt. this congress needs to stop the interest rates on student loans from doubling in july. [ applause ] extend the tuition tax credit we started that saves millions of middle class families thousands of dollars. and give more young people the chance to earn their way through college by doubling the number of work study jobs in the next five years. [ applause ] of course, it's not enough for us to increase student aid. we can't just keep subsidizing skyrocketing tuition, we'll run out of money. states need to do their part by making higher education a higher priority in their budgets. colleges and universities have to do their part by working to keep costs down. recently i spoke with a group of college presidents who have done just that. some schools redesigned courses to help students finish more quickly. some used better technology. the point is, it's possible. so let me put colleges and universities on notice, if you can't stop tuition from going up, the funding you get from taxpayers will go down. higher education can't be a luxury, it is an economic imperative that every family in america should be able to afford. let's also remember that hundreds of thousands of talented, hard-working students in this country face another challenge. the fact that they are not yet american citizens. many were brought here as small children. are american through and through. they live every day with the threat of deportation. others came more recently, to study business and science and engineering. but as soon as they get their degree, we send them home to invent new products and create new jobs somewhere else. that doesn't make sense. i believe as strongly as ever that we should take on illegal immigration. that is why my administration has put more boots on the border than ever before. that is why there are fewer illegal crossings than when i took office. the opponents of action are out of excuses. we should be working on comprehensive immigration reform right now. [ applause ] 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, defend this country. send me a law that gives them the chance to earn their citizenship. i will sign it right away. [ applause ] 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. [ applause ] it means we should support everyone who is willing to work. and every risk taker and entrepreneur who aspires to become the next steve jobs. after all, innovation is what america has always been about. most new jobs are are created in start-ups and small businesses. so let's pass an agenda that helps them succeed. tear down regulations that prevent aspiring entrepreneurs from getting the financing to grow. expand tax relief to small businesses that are raising wages and creating good jobs. both parties agree on these ideas. so put them in a bill and get it on my desk this year. [ applause ] innovation demands basic research. today, the discoveries taking place in the federally financed labs and universities could lead to new treatments that kill cancer cells but leave healthy ones untouched. new light weight vests for cops and soldiers that can stop any bullet. don't gut these investments in our budget. don't let other countries win the race for the future. support the same kind of research and innovation that led to the computer chip and the internet to new american jobs and new american industries. and no where is the promise of innovation greater than in american-made energy. over the last three years we opened millions of new acres for oil and gas exploration. and tonight i'm directing my administration to open more than 75% of our potential offshore oil and gas resources. [ applause ] right now, right now american oil production is the highest that it's been in eight years. that's right. eight years. not only that, last year relied less on foreign oil than in any of the past 16 years. [ applause ] but, with only 2% of the world's oil reserves, oil isn't enough. this country needs an all-out all of the above strategy that develops every available source of american energy. [ applause ] a strategy that is cleaner, cheaper, and full of new jobs. we have a supply of natural gas that can last america nearly 100 years. [ applause ] and my administration will take every possible action to safely develop this energy. the experts believe this will support more than 600,000 jobs by the end of the decade. and i'm requiring all companies that drill for gas on public lands to disclose the chemicals they use. because america will develop the resource without putting the health and safety of our citizens at risk. the development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving we don't have to choose between our environment and our economy. and by the way, it was public research dollars over the course of 30 years that helped develop the technologies to extract all this natural gas, reminding us government support is critical in helping businesses get new energy ideas off the ground. [ applause ] now, what's true for natural gas is just as true for clean energy. in three years, our partnership with the private sector has already positioned america to be the world's leading manufacturer of high tech batteries. because of the federal investments, renewable energy use has nearly doubled and thousands of americans have jobs because of it. when brian ritterby was laid off from his job making furniture, he worried at 55, no one would give him a second chance. but he found work at a wind turbine manufacturer in michigan. before the recession the factory only made luxury yachts. today it's hiring workers like bryan who said i'm proud to be working in the industry of the future. our experience with shell gas, our experience with natural gas shows us the payoffs on the public investments don't always come right away. some technologies don't pan out. some companies fail. but i will not walk away from the promise of clean energy. [ applause ] i will not walk away from workers like bryan. [ applause ] i will not seed the wind or solar or battery industry to china or germany because we refuse to make the same commitment here. we subsidized oil companies for a century. that is long enough. it's time to end the taxpayer giveaways to an industry that rarely has been more profitable and double down on clean energy industry that never has been more promising. pass clean energy tax credits, create these jobs. [ applause ] we can also spur energy innovation with new incentives. the differences in this chamber may be too deep right now to pass a comprehensive plan to fight climate change. there is no reason why congress shouldn't at least set a clean energy standard that creates a market for innovation. so far, you haven't acted. well, tonight i will. i'm directing my administration to allow the development of clean energy on enough public land to power three million homes. and i'm proud to announce that the department of defense working with us, the world's largest consumer of energy, will make one of the largest commitments to clean energy in history with the navy purchasing enough capacity to power a quarter million homes a year. [ applause ] of course the easiest way to save money is to waste less energy. help manufacturers eliminate energy waste in their factories and give businesses incentives to upgrade their buildings. their energy bills will be $100 billion lower over the next decade. america will have less pollution, more manufacturing, more jobs for construction workers who need them. send me a bill that creates these jobs. [ applause ] building this new energy future should be just one part of a broader agenda to repair america's infrastructure. so much of america needs to be rebuilt. we've got crumbling roads and bridges. a power grid that wastes too much energy. an incomplete high speed broadband network that prevents a small business owner in rural america from selling products all over the world. during the great depression america built the hoover dam and the golden gate bridge. after world war ii we connected our states with a system of highways. democratic and republican administrations invested in great projects that benefited everybody, from the workers who built them, to the businesses that still use them today. in the next few weeks i will sign an executive order clearing away the red tape that slows down too many construction projects. but you need to fund these projects. take the money we're no longer spending at war, use half of it to pay down our debt and use the rest to do some nation building right here at home. [ applause ] there has never been a better time to build. especially since the construction industry was one of the hardest hit when the housing bubble burst. of course construction workers weren't the only ones who were hurt. so were millions of innocent americans who have seen their home values decline. while government can't fix the problem on its own, responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief. that's why i'm sending this congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates. no more red tape, no more run around from the banks. a small fee on the largest financial institutions will insure that it won't add to the def i fit and will give the banks a chance to repay a deficit of trust. [ applause ] let's never forget millions of americans who work hard and played by the rules every day deserve a government and a financial system that do the same. it's time to apply the same rules from top to bottom. no bail-outs, no hand-outs, and no cop-outs. an america built to last insists on responsibility from everybody. we've all paid the price for lenders who sold mortgages to people who couldn't afford them. and buyers who knew they couldn't afford them. that's why we need smart regulations to prevent irresponsible behavior. [ applause ] rules to prevent financial fraud, or toxic dumping or faulty medical devices. these don't destroy the free market. they make the free market work better. there is no question that some regulations are outdated, unnecessary or too costly. in fact, i have approved fewer regulations in the first three years of my presidency than my republican predecessor did in his. [ applause ] i ordered every federal agency to eliminate rules that don't make sense. we've already announced over 500 reforms and just a fraction of them will save business and citizens more than $10 billion over the neck five -- next five year. we got rid of one rule from 40 years ago that could have forced dairy farmers to spend $10,000 a year proving they could contain a spill because milk was somehow classified as an oil. with a rule like that i guess it was worth crying over spilled milk. [ laughter ] i'm confident a farmer can contain a milk spill without a federal agency looking over his shoulder. [ applause ] but i will not back down from making sure an oil company can contain the kind of oil spill we saw in the gulf two years ago. [ applause ] i will not back down from protecting our kids from mercury poisoning, or making sure that our food is safe and our water is clean. i will not go back to the days when health insurance companies had unchecked power to cancel your policy, deny your coverage, or charge women differently than men. [ applause ] and i will not go back to the days when wall street was allowed to play by its own set of rules. the new rules we passed restore what should be any financial system's core purpose, getting funding to entrepreneurs with the best ideas and getting loans to responsible families who want to buy a home or start a business or send their kids to college. so, if you are a big bank or financial institution, you're no longer allowed to make risky bets with your customers' deposits. you're required to write out a living will that details exactly how you'll pay the bills if you fail. because the rest of us are not bailing you out ever again. [ applause ] and if you're a mortgage lender or a payday lender or a credit card company, the days of signing people up for products they can't afford with confusing forms and deceptive practices, those days are over! today, american consumers finally have a watchdog in richard cordray, with one job, to look out for them. [ applause ] we'll also establish a financial crimes unit of highly trained investigators to crack down on large scale fraud and protect people's investments. some financial firms violate major anti-fraud laws because there's no real penalty for being a repeat offender. that's bad for consumers and it's bad for the vast majority of bankers and financial service professionals who do the right thing. so pass legislation that makes the penalties for fraud count. and tonight i'm asking my attorney general to create a special unit of federal prosecutors and leading state attorney general to expand our investigations into the abuse of lending and packaging and risky mortgages that led to the housing crisis. this new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many americans. now, a return to the american values of fair play and shared responsibility will help protect our people and our economy. but it should also guide us as we look to pay down our debt and invest in our future. right now our most immediate priority is stopping a tax hike on 160 million working americans while the recovery is still fragile. [ applause ] people can not afford losing $40 out of each paycheck this year. there are plenty of ways to get this done. so let's agree right here, right now, no side issues, no drama, pass the payroll tax cut without delay! let's get it done! [ applause ] when it comes to the deficit, we've already agreed to more than $2 trillion in cuts and savings. but we need to do more. and that means making choices. right now we're poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2% of americans. 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. right now warren buffett pays a lower tax rate than his secretary. do we want to keep these tax cuts for the wealthiest americans 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. the american people know what the right choice is. so do i. as i told the speaker this summer, i'm prepared to make more reforms that rein in the long-term costs of medicare and medicaid and strengthen social security as long as those programs remain a guarantee of security for seniors. but in return, we need to change our tax code so that people like me and an awful lot of members of congress pay our fair share of taxes. [ applause ] tax reform should follow the buffett rule. if you make more than $1 million a year, you should not pay less than 30% in taxes. and my republican friend tom coburn is right. washington should stop subsidizing millionaires. in fact, if you're earning $1 million a year, you shouldn't get special tax subsidies or deductions. on the other hand, if you make under $250,000 a year, like 98% of american families, your taxes shouldn't go up. you are the ones struggling with rising costs and staggering wages. you are the ones who need relief. now, you can call this class warfare all you want, but asking a billionaire to pay at least as much as his secretary in taxes, most americans would call that common sense. we don't begrudge financial success in this country. we admire it. when americans talk about folks like me paying my fair share of taxes, it's not because they envy the rich, it's because they understand that when i get a tax break i don't need and the country can't afford, it either adds to the deficit or somebody else has to make up the difference, like a senior on a fixed income or a student trying to get through school or a family trying to make ends meet. that's not right. americans know that's not right. they know that this generation's success is only possible because past generations felt a responsibility to each other, and to the future of their country. and they know our way of life will only endure if we feel that same sense of shared responsibility. that's how we'll reduce our deficit. that's an american built to last. [ applause ] now, i recognize the people watching tonight have differing views about taxes and debt and energy and health care. but no matter what party they belong to, i bet most americans are thinking the same thing right about now. nothing will get done in washington this year. or next year. or maybe even the year after that. because washington is broken. can you blame them for feeling a little cynical? the greatest blow to our confidence in our economy last year didn't come from events beyond our control. it came from a debate in washington over whether the united states would pay its bill