Obama in State of the Union: Tax wealthy, help middle class
WASHINGTON (WTVD) -- Refusing to bend to the new Republican Congress, President Barack Obama unveiled Tuesday night an ambitious State of the Union agenda steeped in Democratic priorities, including tax increases on the wealthy, education and child care help for the middle class and a torrent of veto threats for the GOP's own plans.
Click here to read the entire speech.
In a shift from tradition, Obama's address to a joint session of Congress was less a laundry list of new proposals and more an attempt to sell a story of a national economy emerging from the "shadow of crisis." He appealed for "better politics" in Washington and pledged to work with Republicans, but he showed few signs of curtailing or tweaking his own plans to meet GOP priorities.
Instead, the president vowed to use his veto pen to strike down the Republican leadership's efforts to dismantle his signature accomplishments, including his health care and financial reform laws.
"We can't put the security of families at risk by taking away their health insurance or unraveling the new rules on Wall Street or refighting past battles on immigration when we've got a system to fix," Obama said in his hour-long address. "And if a bill comes to my desk that tries to do any of these things, I will veto it."
The president sought out more common ground on foreign policy, pledging to work with Congress on a new authorization for military action against the Islamic State group in Iraq and Syria, as well as legislation to guard against cyberattacks. In a rare move away from his own party, Obama also renewed his call for fast-tracking free trade agreements with Asia and Europe, generating more applause from pro-trade Republicans than skeptical Democrats.
Obama's address marked the first time in his presidency that he stood before a Republican-controlled Congress. Yet the shift in the political landscape has also been accompanied by a burst of economic growth and hiring, as well as a slight increase in Obama's once-sagging approval ratings - leaving the White House to see little incentive in acquiescing to Republicans.
After ticking through signs of the rising economy, the president turned toward Republicans sitting in the chamber and said with a wink, "This is good news, people."
The centerpiece of Obama's economic proposals marked a shift away from the focus on austerity and deficit reduction that has dominated his fiscal fights with Republicans. In a direct challenge to GOP economic ideology, Obama called for increasing the capital gains rate on couples making more than $500,000 annually, to 28 percent.
The president's tax plan would also require estates to pay capital gains taxes on securities at the time they're inherited and slap a fee on the roughly 100 U.S. financial firms with assets of more than $50 billion.
Much of the $320 billion in new taxes and fees would be used for measures aimed at helping the middle class, including a $500 tax credit for some families with two spouses working, expansion of the child care tax credit and a $60 billion program to make community college free. He also has called for expanding paid leave for workers and moved on his own to lower a mortgage insurance premium rate that could attract new homebuyers.
"Will we accept an economy where only a few of us do spectacularly well?" Obama asked. "Or will we commit ourselves to an economy that generates rising incomes and chances for everyone who makes the effort?"
The president's proposals seemed more about giving his party a platform in the 2016 election than outlining a realistic legislative agenda. Even before the president's address, Republicans were balking at his proposals and painting a far less rosy picture of the economy.
"We see our neighbors agonize over stagnant wages and lost jobs. We see the hurt caused by canceled health care plans and higher monthly insurance bills," said Iowa Sen. Joni Ernst, who delivered the Republican response. "But when we demanded solutions, too often Washington responded with the same stale mindset that led to failed policies like Obamacare. It's a mindset that gave us political talking points, not serious solutions."
With an eye on a swirl of foreign policy challenges, Obama defended his decision to return to military action in Iraq and also authorize airstrikes in Syria. He said Congress could "show the world that we are united in this mission" by passing a new resolution formally authorizing the use of force against the Islamic State group.
As the U.S. eyes a March deadline for a framework agreement with Iran on its disputed nuclear program, the president vowed to veto any effort by Congress to pass new sanctions legislation. Such a step, he said, "will all but guarantee that diplomacy fails - alienating America from its allies and ensuring that Iran starts up its nuclear program again."
The president also heralded his unilateral move last month to normalize diplomatic relations with Cuba after a half-century of animosity, and he urged lawmakers to follow his lead by lifting the economic embargo on the communist island. Yet the guest boxes in the House chamber underscored the sensitive politics that hang over efforts to overhaul the long-standing U.S. policy toward Cuba.
Among the guests sitting with first lady Michelle Obama was Alan Gross, the American man who spent five years in a Cuban prison and was released as part of the deal to end the freeze between Washington and Havana. In a nod to the concerns of Cuban dissidents and pro-democracy advocates, House Speaker John Boehner's guest was Jorge Luis Garca Prez, who spent 17 years in a Cuban prison. Florida Republican Sen. Marco Rubio brought Rosa Maria Paya Acevedo, whose father was a well-known Cuban dissident who was killed in a car accident that his family believes was suspicious.
Obama appeared at ease throughout the address, adlibbing at times and responding to the audience reaction. As he neared the end of his speech, he declared, "I have no more campaigns to run." As Republicans erupted in laughter, Obama retorted, "I know, because I won both of them."
REACTION
Senator Thom Tillis (R-NC) issued the following statement in response to President Obama's State of the Union address to a joint session of Congress:
"President Obama is right to acknowledge that America's economy must improve and Washington needs to do more to help hardworking taxpayers, but unfortunately he doesn't understand that Washington is the problem. Partisan gridlock has made things harder, not easier for the American people and Washington has not produced results. There aren't enough good-paying jobs, and prices for groceries and healthcare keep going up while paychecks are going down or staying the same.
"Millions of hardworking families are still struggling to make ends meet. North Carolina small businesses and job creators have been buried with inefficient regulations and red-tape. We have also seen our enemies, radical Islamic terrorists, gain in strength and numbers, posing an ever increasing threat to our safety and security.
"The American people deserve a government that is efficient, effective, accountable and responsive to the challenges American families face. We must work to make our tax code fairer and simpler, to help small businesses expand and create jobs, to put America on a path to energy independence, and to reduce the costs of healthcare. At the same time, we must improve America's safety and security at home and abroad. Clearly, these are areas where we can work together for the good of the nation.
"It will require a genuine willingness to cooperate, to find common ground, and to produce results. I will work in the United States Senate to find common ground, to find common-sense solutions, and to end the partisan gridlock. Republican or Democrat, it doesn't matter whose idea it is, as long as it works for the American people.
"We should never settle for an economy that's limping along and a nation that's less safe and secure. Americans aspire to a standard of greatness, and so should Washington. I will work every single day to solve problems, to create opportunities, and to help hardworking taxpayers achieve their American Dream. I hope the President will end the politics as usual and cooperate with us to turn these bipartisan goals into solutions and results for the American people."
Congressman G. K. Butterfield released the following statement in response to President Barack Obama's State of the Union address:
"There's no denying that the country continues to make great gains. Over the past six years, President Obama and Congressional Democrats have together delivered the longest stretch of economic and job growth in this nation's history; made accessing health care affordable, easier, and transparent; and safeguarded the American people by enacting strong financial reforms. However, the President's proposals tonight for free community college, paid sick leave, tax hikes on the rich, tax cuts for the middle-class, and expanded broadband deployment will only accelerate our progress. It ensures that every American, not just the wealthy, has the tools to achieve their version of the American dream. The President's priorities address important issues impacting people across the country and reflect the concerns and will of all Americans.
"I applaud the President for his continued focus on growing paychecks and shrinking the wealth disparity gap while building a 21st century infrastructure that will ensure America's long term success. I look forward to working with my colleagues to move the President's bold agenda forward."
Congresswoman Renee Ellmers released the following statement this evening following President Obama's State of the Union address to Congress:
"Seven years into the president's time in office, and we are still witnessing empty promises and over-blown rhetoric. The overarching theme of tonight's speech - and the president's time in office- can be summed up as: let's spend more of your hard-earned taxpayer dollars creating expensive federally-run programs and supporting government-knows-best policies."?
"Mr. Obama had the opportunity tonight to point us in a new direction-one focused on promoting real economic recovery, slashing our nation's $18 trillion dollar debt, and creating job opportunities for the 8.7 million Americans who are still unemployed. Instead, our president reiterated his willingness to bypass Congress entirely - and work around the people's House- in order to enact more of his failed government policies on our depleted budget."
"Congress stands ready and willing to work with the president, but the truth is that our president has spent the last few weeks threatening to veto most of the pro-growth legislation that Congress has passed - including Keystone and legislation to restore the 40-hour work week. This leaves us, instead, with a president who cares to prioritize government intervention and costly regulation ahead of job creation and economic growth."
"The American people spoke very clearly in November- they are ready for us to work together and ready for the political gamesmanship to end. Simply put, the president's top-down approach to enacting policy isn't real leadership, and it certainly isn't what the American people deserve. I hope the president uses the final two years of his presidency to show us that he is capable of putting down his 'pen and phone' long enough to reach across the aisle."
"It's going to take more than President Obama's once-a-year speech in front of a joint session of Congress to convince me that he is willing to work with the people's House; however, I remain hopeful that he will. I am eager to work with my colleagues in the Senate and our president to get things done for the American people, and I hope our president shows us that he is willing to do the same."
U.S. Senator Richard Burr (R-NC) issued the following statement on President Obama's State of the Union address:
"The President began the year with an opportunity to work with Congress on policies that would help restore economic prosperity to our nation. Yet, before the State of the Union could even take place, he threatened to veto multiple bipartisan initiatives without ever seeing legislative text."
"It is clear that the President is once again proposing to raise taxes for new Washington programs -- doubling-down on the failed policy of more taxes, more debt, and more spending and expanding the size and scope of the federal government. The President has missed his opportunity to move forward with this Congress."
"I know Congress will continue to propose legislation that promotes economic growth, job creation, and a strong national defense."
"The last several weeks have proven that Al-Qaeda is not decimated. It is time for the President and his Administration to admit that and to seriously attack the threat that radical Islamic terrorists present to us and the rest of the world."
Congressman David Rouzer released the following statement after President Obama's State of the Union address:
"President Obama's speech was the same act we've seen for the last six years. Give everything away and make hardworking tax payers foot the bill. Americans deserve a government that is effective, efficient, and accountable. Not more of the same."
