[Congressional Record (Bound Edition), Volume 157 (2011), Part 1]
[House]
[Pages 639-644]
[From the U.S. Government Publishing Office, www.gpo.gov]




JOINT SESSION OF CONGRESS PURSUANT TO HOUSE CONCURRENT RESOLUTION 10 TO 
                  RECEIVE A MESSAGE FROM THE PRESIDENT

  The Speaker of the House presided.
  The Deputy Sergeant at Arms, Mrs. Kerri Hanley, announced the Vice 
President and Members of the U.S. Senate, who entered the Hall of the 
House of Representatives, the Vice President taking the chair at the 
right of the Speaker, and the Members of the Senate the seats reserved 
for them.
  The SPEAKER. The Chair appoints as members of the committee on the 
part of the House to escort the President of the United States into the 
Chamber:
  The gentleman from Virginia (Mr. Cantor);
  The gentleman from California (Mr. McCarthy);
  The gentleman from Texas (Mr. Hensarling);
  The gentleman from Texas (Mr. Sessions);
  The gentleman from Georgia (Mr. Price);
  The gentlewoman from Washington (Mrs. McMorris Rodgers);
  The gentleman from Texas (Mr. Carter);
  The gentlewoman from California (Ms. Pelosi);
  The gentleman from Maryland (Mr. Hoyer);
  The gentleman from South Carolina (Mr. Clyburn);
  The gentleman from Connecticut (Mr. Larson);
  The gentleman from California (Mr. Becerra);
  The gentleman from New York (Mr. Israel); and
  The gentlewoman from Alabama (Ms. Sewell).
  The VICE PRESIDENT. The President of the Senate, at the direction of 
that body, appoints the following Senators as members of the committee 
on the part of the Senate to escort the President of the United States 
into the House Chamber:
  The Senator from Nevada (Mr. Reid);
  The Senator from Illinois (Mr. Durbin);
  The Senator from New York (Mr. Schumer);
  The Senator from Washington (Mrs. Murray);
  The Senator from Michigan (Ms. Stabenow);
  The Senator from Alaska (Mr. Begich);
  The Senator from Vermont (Mr. Leahy);
  The Senator from Kentucky (Mr. McConnell);
  The Senator from Arizona (Mr. Kyl);
  The Senator from Tennessee (Mr. Alexander);
  The Senator from Wyoming (Mr. Barrasso);
  The Senator from South Dakota (Mr. Thune); and
  The Senator from Texas (Mr. Cornyn).
  The Deputy Sergeant at Arms announced the Dean of the Diplomatic 
Corps, His Excellency Roble Olhaye, Ambassador from the Republic of 
Djibouti.
  The Dean of the Diplomatic Corps entered the Hall of the House of 
Representatives and took the seat reserved for him.
  The Deputy Sergeant at Arms announced the Chief Justice of the United 
States and the Associate Justices of the Supreme Court.
  The Chief Justice of the United States and the Associate Justices of 
the Supreme Court entered the Hall of the House of Representatives and 
took the seats reserved for them in front of the Speaker's rostrum.
  The Deputy Sergeant at Arms announced the Cabinet of the President of 
the United States.
  The members of the Cabinet of the President of the United States 
entered the Hall of the House of Representatives and took the seats 
reserved for them in front of the Speaker's rostrum.
  At 9 o'clock and 5 minutes p.m., the Sergeant at Arms, the Honorable 
Wilson Livingood, announced the President of the United States.
  The President of the United States, escorted by the committee of 
Senators and Representatives, entered the Hall of the House of 
Representatives and stood at the Clerk's desk.
  (Applause, the Members rising.)
  The SPEAKER. Members of the Congress, I have the high privilege and 
the distinct honor of presenting to you the President of the United 
States.
  (Applause, the Members rising.)
  The PRESIDENT. Mr. Speaker, Mr. Vice President, Members of Congress, 
distinguished guests, and fellow Americans:
  Tonight, I want to begin by congratulating the men and women of the 
112th Congress as well as your new Speaker, John Boehner. And as we 
mark this occasion, we are also mindful of the empty chair in this 
Chamber,

[[Page 640]]

and we pray for the health of our colleague and our friend, Gabby 
Giffords.
  It's no secret that those of us here tonight have had our differences 
over the last 2 years. The debates have been contentious; we have 
fought fiercely for our beliefs--and that's a good thing. That's what a 
robust democracy demands. That's what helps set us apart as a nation. 
But there's a reason the tragedy in Tucson gave us pause:
  Amid all the noise and passions and rancor of our public debate, 
Tucson reminded us that, no matter who we are or where we come from, 
each of us is a part of something greater, something more consequential 
than parties or political preference. We are part of the American 
family. We believe that, in a country where every race and faith and 
point of view can be found, we are still bound together as one people, 
that we share common hopes and a common creed, that the dreams of a 
little girl in Tucson are not so different than those of our own 
children, and that they all deserve the chance to be fulfilled.
  That, too, is what sets us apart as a nation.
  Now, by itself, this simple recognition won't usher in a new era of 
cooperation. What comes of this moment is up to us. What comes of this 
moment will be determined, not by whether we can sit together tonight, 
but whether we can work together tomorrow.
  I believe we can and I believe we must.
  That's what the people who sent us here expect of us. With their 
votes, they have determined that governing will now be a shared 
responsibility between parties. New laws will only pass with support 
from Democrats and Republicans. We will move forward together or not at 
all--for the challenges we face are bigger than party and bigger than 
politics.
  At stake right now is not who wins the next election--after all, we 
just had an election. At stake is whether new jobs and industries take 
root in this country or somewhere else. It's whether the hard work and 
industry of our people is rewarded. It's whether we sustain the 
leadership that has made America not just a place on a map, but a light 
to the world.
  We are poised for progress. Two years after the worst recession most 
of us have ever known, the stock market has come roaring back. 
Corporate profits are up. The economy is growing again. But we have 
never measured progress by these yardsticks alone. We measure progress 
by the success of our people, by the jobs they can find, and the 
quality of life those jobs offer, by the prospects of a small business 
owner who dreams of turning a good idea into a thriving enterprise, by 
the opportunities for a better life that we pass on to our children.
  That's the project the American people want us to work on. Together.
  We did that in December. Thanks to the tax cuts we passed, Americans' 
paychecks are a little bigger today. Every business can write off the 
full cost of the new investments they make this year; and these steps, 
taken by Democrats and Republicans, will grow the economy and add to 
the more than 1 million private sector jobs created last year. But we 
have to do more. These steps we have taken over the last 2 years may 
have broken the back of this recession; but to win the future, we'll 
need to take on challenges that have been decades in the making.
  Many people watching tonight can probably remember a time when 
finding a good job meant showing up at a nearby factory or a business 
downtown. You didn't always need a degree, and your competition was 
pretty much limited to your neighbors. If you worked hard, chances are 
you'd have a job for life, with a decent paycheck, good benefits, and 
the occasional promotion. Maybe you'd even have the pride of seeing 
your kids work at the same company.
  That world has changed, and for many, the change has been painful.
  I've seen it in the shuttered windows of once booming factories and 
the vacant storefronts of once busy Main Streets. I've heard it in the 
frustrations of Americans who have seen their paychecks dwindle or 
their jobs disappear--proud men and women who feel like the rules have 
been changed in the middle of the game.
  They're right. The rules have changed.
  In a single generation, revolutions in technology have transformed 
the way we live, work, and do business. Steel mills that once needed 
1,000 workers can now do the same work with 100. Today, just about any 
company can set up shop, hire workers, and sell their products wherever 
there's an Internet connection. Meanwhile, nations like China and India 
realized that, with some changes of their own, they could compete in 
this new world, and so they started educating their children earlier 
and longer, with greater emphasis on math and science. They're 
investing in research and new technologies. Just recently, China became 
the home to the world's largest private solar research facility and the 
world's fastest computer.
  So, yes, the world has changed. The competition for jobs is real. But 
this shouldn't discourage us. It should challenge us.
  Remember, for all the hits we've taken these last few years, for all 
the naysayers predicting our decline, America still has the largest, 
most prosperous economy in the world. No workers are more productive 
than ours. No country has more successful companies or grants more 
patents to inventors and entrepreneurs. We are home to the world's best 
colleges and universities, where more students come to study than 
anyplace on Earth.
  What's more, we are the first nation to be founded for the sake of an 
idea--the idea that each of us deserves the chance to shape our own 
destiny. That's why centuries of pioneers and immigrants have risked 
everything to come here. It's why our students don't just memorize 
equations but answer questions like ``What do you think of that idea? 
What would you change about the world? What do you want to be when you 
grow up?''
  The future is ours to win, but to get there, we can't just stand 
still. As Robert Kennedy told us, ``The future is not a gift. It is an 
achievement.'' Sustaining the American dream has never been about 
standing pat. It has required each generation to sacrifice and struggle 
and meet the demands of a new age.
  Now it's our turn.
  We know what it takes to compete for the jobs and industries of our 
time. We need to out-innovate, out-educate, and out-build the rest of 
the world. We have to make America the best place on Earth to do 
business. We need to take responsibility for our deficit and reform our 
government. That's how our people will prosper. That's how we'll win 
the future--and tonight, I'd like to talk about how we get there.
  The first step in winning the future is encouraging American 
innovation. None of us can predict with certainty what the next big 
industry will be or where the new jobs will come from. Thirty years 
ago, we couldn't know that something called the Internet would lead to 
an economic revolution.
  What we can do--what America does better than anyone else--is spark 
the creativity and imagination of our people. We are the nation that 
put cars in driveways and computers in offices, the nation of Edison 
and the Wright brothers, of Google and Facebook. In America, innovation 
doesn't just change our lives. It is how we make our living.
  Our free enterprise system is what drives innovation; but because 
it's not always profitable for companies to invest in basic research, 
throughout our history, our government has provided cutting-edge 
scientists and inventors with the support that they need. That's what 
planted the seeds for the Internet. That's what helped make possible 
things like computer chips and GPS. Just think of all the good jobs, 
from manufacturing to retail, that have come from these breakthroughs.
  Half a century ago, when the Soviets beat us into space with the 
launch of a satellite called Sputnik, we had no idea how we would beat 
them to the Moon. The science wasn't even there yet. NASA didn't exist. 
But after investing in better research and education, we didn't just 
surpass the Soviets; we unleashed a wave of innovation that created new 
industries and millions of new jobs.

[[Page 641]]

  This is our generation's Sputnik moment.
  Two years ago, I said that we needed to reach a level of research and 
development that we haven't seen since the height of the Space Race; 
and in a few weeks, I will be sending a budget to Congress that helps 
us meet that goal. We'll invest in biomedical research, information 
technology, and especially clean energy technology--an investment that 
will strengthen our security, protect our planet, and create countless 
new jobs for our people.
  Already, we are seeing the promise of renewable energy. Robert and 
Gary Allen are brothers who run a small Michigan roofing company. After 
September 11th, they volunteered their best roofers to help repair the 
Pentagon. But half of their factory went unused, and the recession hit 
them hard. Today, with the help of a government loan, that empty space 
is being used to manufacture solar shingles that are being sold all 
across the country. In Robert's words, ``We reinvented ourselves.''
  That's what Americans have done for over 200 years: reinvented 
ourselves. And to spur on more success stories like the Allen Brothers, 
we've begun to reinvent our energy policy. We're not just handing out 
money. We're issuing a challenge. We're telling America's scientists 
and engineers that, if they assemble teams of the best minds in their 
fields and focus on the hardest problems in clean energy, we'll fund 
the Apollo Projects of our time.
  At the California Institute of Technology, they're developing a way 
to turn sunlight and water into fuel for our cars. At Oak Ridge 
National Laboratory, they're using supercomputers to get a lot more 
power out of our nuclear facilities. With more research and incentives, 
we can break our dependence on oil with biofuels and become the first 
country to have 1 million electric vehicles on the road by 2015.
  We need to get behind this innovation; and to help pay for it, I'm 
asking Congress to eliminate the billions in taxpayer dollars we 
currently give to oil companies. I don't know if you've noticed, but 
they're doing just fine on their own. So, instead of subsidizing 
yesterday's energy, let's invest in tomorrow's.
  Now, clean energy breakthroughs will only translate into clean energy 
jobs if businesses know there will be a market for what they're 
selling. So, tonight, I challenge you to join me in setting a new goal: 
By 2035, 80 percent of America's electricity will come from clean 
energy sources. Some folks want wind and solar. Others want nuclear, 
clean coal, and natural gas. To meet this goal, we will need them all, 
and I urge Democrats and Republicans to work together to make it 
happen.
  Maintaining our leadership in research and technology is crucial to 
America's success; but if we want to win the future, if we want 
innovation to produce jobs in America and not overseas, then we also 
have to win the race to educate our kids.
  Think about it. Over the next 10 years, nearly half of all new jobs 
will require education that goes beyond a high school education; and 
yet, as many as a quarter of our students aren't even finishing high 
school. The quality of our math and science education lags behind many 
other nations. America has fallen to ninth in the proportion of young 
people with a college degree. And so the question is whether all of 
us--as citizens and as parents--are willing to do what's necessary to 
give every child a chance to succeed.
  That responsibility begins not in our classrooms but in our homes and 
communities. It's family that first instills the love of learning in a 
child. Only parents can make sure the TV is turned off and homework 
gets done. We need to teach our kids that it's not just the winner of 
the Super Bowl who deserves to be celebrated but the winner of the 
science fair. We need to teach them that success is not a function of 
fame or PR but of hard work and discipline.
  Our schools share this responsibility. When a child walks into a 
classroom, it should be a place of high expectations and high 
performance. But too many schools don't meet this test. That's why, 
instead of just pouring money into a system that's not working, we 
launched a competition called Race to the Top. To all 50 States, we 
said, ``If you show us the most innovative plans to improve teacher 
quality and student achievement, we'll show you the money.''
  Race to the Top is the most meaningful reform of our public schools 
in a generation. For less than 1 percent of what we spend on education 
each year, it has led over 40 States to raise their standards for 
teaching and learning. These standards were developed, by the way, not 
by Washington, but by Republican and Democratic Governors throughout 
the country. Race to the Top should be the approach we follow this year 
as we replace No Child Left Behind with a law that is more flexible and 
focused on what's best for our kids.
  You see, we know what's possible for our children when reform isn't 
just a top-down mandate but the work of local teachers and principals, 
school boards and communities.
  Take a school like Bruce Randolph in Denver. Three years ago, it was 
rated one of the worst schools in Colorado, located on turf between two 
rival gangs; but last May, 97 percent of the seniors received their 
diplomas. Most will be the first in their families to go to college. 
And after the first year of the school's transformation, the principal 
who made it possible wiped away tears when a student said, ``Thank you, 
Mrs. Waters, for showing . . . that we are smart and we can make it.''
  That's what good schools can do, and we want good schools all across 
the country.
  Let's also remember that, after parents, the biggest impact on a 
child's success comes from the man or woman at the front of the 
classroom. In South Korea, teachers are known as ``nation builders.'' 
Here in America, it's time we treated the people who educate our 
children with the same level of respect. We want to reward good 
teachers and stop making excuses for bad ones; and over the next 10 
years, with so many Baby Boomers retiring from our classrooms, we want 
to prepare 100,000 new teachers in the fields of science, technology, 
engineering, and math.
  In fact, to every young person listening tonight who is contemplating 
their career choice: If you want to make a difference in the life of 
our Nation, if you want to make a difference in the life of a child, 
become a teacher. Your country needs you.
  Of course, the education race doesn't end with a high school diploma. 
To compete, higher education must be within the reach of every 
American. That's why we've ended the unwarranted taxpayer subsidies 
that went to banks, and used the savings to make college affordable for 
millions of students--and this year, I ask Congress to go further and 
make permanent our tuition tax credit, worth $10,000 for 4 years of 
college. It's the right thing to do.
  Because people need to be able to train for new jobs and careers in 
today's fast-changing economy, we are also revitalizing America's 
community colleges. Last month, I saw the promise of these schools at 
Forsyth Tech in North Carolina. Many of the students there used to work 
in the surrounding factories that have since left town.
  One mother of two, a woman named Kathy Proctor, had worked in the 
furniture industry since she was 18 years old, and she told me she's 
earning her degree in biotechnology now, at 55 years old, not just 
because the furniture jobs are gone, but because she wants to inspire 
her children to pursue their dreams, too. As Kathy said, ``I hope it 
tells them to never give up.''
  If we take these steps, if we raise expectations for every child and 
give them the best possible chance at an education from the day they 
are born until the last job they take, we will reach the goal that I 
set 2 years ago: By the end of the decade, America will once again have 
the highest proportion of college graduates in the world.
  One last point about education.
  Today, there are hundreds of thousands of students excelling in our 
schools who are not American citizens. Some are the children of 
undocumented workers, who had nothing to do with the actions of their 
parents. They

[[Page 642]]

grew up as Americans and pledge allegiance to our flag. Yet they live 
every day with the threat of deportation. Others come here from abroad 
to study in our colleges and universities, but as soon as they obtain 
advanced degrees, we send them back home to compete against us. It 
makes no sense.
  Now, I strongly believe that we should take on, once and for all, the 
issue of illegal immigration, and I am prepared to work with 
Republicans and Democrats to protect our borders, enforce our laws, and 
address the millions of undocumented workers who are now living in the 
shadows. I know that debate will be difficult. I know it will take 
time. But tonight, let's agree to make that effort. And let's stop 
expelling talented, responsible young people, who could be staffing our 
research labs or starting a new business, who could be further 
enriching this Nation.
  The third step in winning the future is rebuilding America. To 
attract new businesses to our shores, we need the fastest, most 
reliable ways to move people, goods, and information--from high-speed 
rail to high-speed Internet.
  Our infrastructure used to be the best, but our lead has slipped. 
South Korean homes now have greater Internet access than we do. 
Countries in Europe and Russia invest more in their roads and railways 
than we do. China is building faster trains and newer airports. 
Meanwhile, when our own engineers graded our Nation's infrastructure, 
they gave us a ``D.''
  We have to do better.
  America is the nation that built the transcontinental railroad, 
brought electricity to rural communities, constructed the interstate 
highway system. The jobs created by these projects didn't just come 
from laying down tracks or pavement. They came from businesses that 
opened near a town's new train station or the new off-ramp.
  So, over the last 2 years, we have begun rebuilding for the 21st 
century, a project that has meant thousands of good jobs for the hard-
hit construction industry, and tonight, I am proposing that we redouble 
those efforts. We will put more Americans to work repairing crumbling 
roads and bridges. We will make sure this is fully paid for, attract 
private investment, and pick projects based on what's best for the 
economy, not politicians.
  Within 25 years, our goal is to give 80 percent of Americans access 
to high-speed rail. This could allow you to go places in half the time 
it takes to travel by car. For some trips, it will be faster than 
flying--without the pat-down. As we speak, routes in California and the 
Midwest are already underway.
  Within the next 5 years, we will make it possible for businesses to 
deploy the next generation of high-speed wireless coverage to 98 
percent of all Americans. This isn't just about faster Internet or 
fewer dropped calls. It's about connecting every part of America to the 
digital age. It's about a rural community in Iowa or Alabama where 
farmers and small business owners will be able to sell their products 
all over the world. It's about a firefighter who can download the 
design of a burning building onto a handheld device, a student who can 
take classes with a digital textbook, or a patient who can have face-
to-face video chats with her doctor.
  All these investments--in innovation, education, and infrastructure--
will make America a better place to do business and create jobs; but to 
help our companies compete, we also have to knock down barriers that 
stand in the way of their success.
  For example, over the years, a parade of lobbyists has rigged the Tax 
Code to benefit particular companies and industries. Those with 
accountants or lawyers to work the system can end up paying no taxes at 
all, but all the rest are hit with one of the highest corporate tax 
rates in the world. It makes no sense, and it has to change.
  So, tonight, I'm asking Democrats and Republicans to simplify the 
system. Get rid of the loopholes. Level the playing field, and use the 
savings to lower the corporate tax rate for the first time in 25 
years--without adding to our deficit. It can be done.
  To help businesses sell more products abroad, we set a goal of 
doubling our exports by 2014, because the more we export, the more jobs 
we create here at home. Already, our exports are up. Recently, we 
signed agreements with India and China that will support more than 
250,000 jobs here in the United States; and last month, we finalized a 
trade agreement with South Korea that will support at least 70,000 
American jobs. This agreement has unprecedented support from business 
and labor, Democrats and Republicans--and I ask this Congress to pass 
it as soon as possible.
  Now, before I took office, I made it clear that we would enforce our 
trade agreements and that I would only sign deals that keep faith with 
American workers and promote American jobs. That's what we did with 
Korea, and that's what I intend to do as we pursue agreements with 
Panama and Colombia and continue our Asia Pacific and global trade 
talks.
  To reduce barriers to growth and investment, I've ordered a review of 
government regulations. When we find rules that put an unnecessary 
burden on businesses, we will fix them, but I will not hesitate to 
create or enforce commonsense safeguards to protect the American 
people. That's what we've done in this country for more than a century. 
It's why our food is safe to eat, our water is safe to drink, and our 
air is safe to breathe. It's why we have speed limits and child labor 
laws. It's why, last year, we put in place consumer protections against 
hidden fees and penalties by credit card companies and new rules to 
prevent another financial crisis, and it's why we passed reform that 
finally prevents the health insurance industry from exploiting 
patients.
  Now, I have heard rumors that a few of you still have concerns about 
our new health care law, so let me be the first to say that anything 
can be improved. If you have ideas about how to improve this law by 
making care better or more affordable, I am eager to work with you. We 
can start right now by correcting a flaw in the legislation that has 
placed an unnecessary bookkeeping burden on small businesses.
  What I'm not willing to do is to go back to the days when insurance 
companies could deny someone coverage because of a preexisting 
condition. I'm not willing to tell James Howard, a brain cancer patient 
from Texas, that his treatment might not be covered. I'm not willing to 
tell Jim Houser, a small business man from Oregon, that he has to go 
back to paying $5,000 more to cover his employees. As we speak, this 
law is making prescription drugs cheaper for seniors, and is giving 
uninsured students a chance to stay on their parents' coverage.
  So I say to this Chamber tonight, instead of re-fighting the battles 
of the last 2 years, let's fix what needs fixing, and let's move 
forward.
  Now, the final, critical step in winning the future is to make sure 
we aren't buried under a mountain of debt. We are living with a legacy 
of deficit spending that began almost a decade ago; and in the wake of 
the financial crisis, some of that was necessary to keep credit 
flowing, save jobs, and put money in people's pockets.
  But now that the worst of the recession is over, we have to confront 
the fact that our Government spends more than it takes in. That is not 
sustainable. Every day, families sacrifice to live within their means. 
They deserve a government that does the same.
  So, tonight, I am proposing that starting this year we freeze annual 
domestic spending for the next 5 years. Now, this would reduce the 
deficit by more than $400 billion over the next decade, and will bring 
discretionary spending to the lowest share of our economy since Dwight 
Eisenhower was President.
  This freeze will require painful cuts. Already, we have frozen the 
salaries of hardworking Federal employees for the next 2 years. I've 
proposed cuts to things I care deeply about, like community action 
programs. The Secretary of Defense has also agreed to cut tens of 
billions of dollars in spending that he and his generals believe our 
military can do without.
  I recognize that some in this Chamber have already proposed deeper 
cuts, and I'm willing to eliminate whatever

[[Page 643]]

we can honestly afford to do without, but let's make sure that we're 
not doing it on the backs of our most vulnerable citizens, and let's 
make sure that what we're cutting is really excess weight. Cutting the 
deficit by gutting our investments in innovation and education is like 
lightening an overloaded airplane by removing its engine. It may make 
you feel like you're flying high at first, but it won't take long 
before you feel the impact.
  Now, most of the cuts and savings I've proposed only address annual 
domestic spending, which represents a little more than 12 percent of 
our budget. To make further progress, we have to stop pretending that 
cutting this kind of spending alone will be enough. It won't.
  The bipartisan Fiscal Commission I created last year made this 
crystal clear. I don't agree with all their proposals, but they made 
important progress; and their conclusion is that the only way to tackle 
our deficit is to cut excessive spending wherever we find it--in 
domestic spending, defense spending, health care spending, and spending 
through tax breaks and loopholes.
  This means further reducing health care costs, including programs 
like Medicare and Medicaid, which are the single biggest contributor to 
our long-term deficit. The health insurance law we passed last year 
will slow these rising costs, which is part of the reason that 
nonpartisan economists have said that repealing the health care law 
would add a quarter of a trillion dollars to our deficit. Still, I'm 
willing to look at other ideas to bring down costs, including one that 
Republicans suggested last year: medical malpractice reform to rein in 
frivolous lawsuits.
  To put us on solid ground, we should also find a bipartisan solution 
to strengthen Social Security for future generations, and we must do it 
without putting at risk current retirees--the most vulnerable--or 
people with disabilities, without slashing benefits for future 
generations and without subjecting Americans' guaranteed retirement 
income to the whims of the stock market.
  And if we truly care about our deficit, we simply can't afford a 
permanent extension of the tax cuts for the wealthiest 2 percent of 
Americans. Before we take money away from our schools or scholarships 
away from our students, we should ask millionaires to give up their tax 
break. It's not a matter of punishing their success. It's about 
promoting America's success.
  In fact, the best thing we could do on taxes for all Americans is to 
simplify the individual Tax Code. This will be a tough job, but Members 
of both parties have expressed an interest in doing this, and I am 
prepared to join them.
  So now is the time to act. Now is the time for both sides and both 
Houses of Congress--Democrats and Republicans--to forge a principled 
compromise that gets the job done. If we make the hard choices now to 
rein in our deficits, we can make the investments we need to win the 
future.
  Let me take this one step further.
  We shouldn't just give our people a government that's more 
affordable. We should give them a government that's more competent and 
more efficient. We can't win the future with a government of the past. 
We live and do business in the information age, but the last major 
reorganization of the government happened in the age of black and white 
TV. There are 12 different agencies that deal with exports. There are 
at least five different agencies that deal with housing policy.
  Then there's my favorite example: The Interior Department is in 
charge of salmon while they're in freshwater, but the Commerce 
Department handles them when they're in saltwater. I hear it gets even 
more complicated once they're smoked.
  Now, we've made great strides over the last 2 years in using 
technology and getting rid of waste. Veterans can now download their 
electronic medical records with a click of the mouse. We're selling 
acres of Federal office space that hasn't been used in years, and we'll 
cut through redtape to get rid of more. But we need to think bigger.
  In the coming months, my administration will develop a proposal to 
merge, consolidate, and reorganize the Federal Government in a way that 
best serves the goal of a more competitive America. I will submit that 
proposal to Congress for a vote--and we will push to get it passed.
  In the coming year, we will also work to rebuild people's faith in 
the institution of government. Because you deserve to know exactly how 
and where your tax dollars are being spent, you'll be able to go to a 
Web site and get that information for the very first time in history. 
Because you deserve to know when your elected officials are meeting 
with lobbyists, I ask Congress to do what the White House has already 
done: put that information online. And because the American people 
deserve to know that special interests aren't larding up legislation 
with pet projects, both parties in Congress should know this: If a bill 
comes to my desk with earmarks inside, I will veto it. I will veto it.
  A 21st century government that's open and competent. A government 
that lives within its means. An economy that's driven by new skills and 
new ideas. Our success in this new and changing world will require 
reform, responsibility, and innovation. It will also require us to 
approach that world with a new level of engagement in our foreign 
affairs.
  Just as jobs and businesses can now race across borders, so can new 
threats and new challenges. No single wall separates East and West. No 
one rival superpower is aligned against us. And so we must defeat 
determined enemies wherever they are and build coalitions that cut 
across lines of region and race and religion, and America's moral 
example must always shine for all who yearn for freedom and justice and 
dignity. And because we've begun this work, tonight we can say that 
American leadership has been renewed, and America's standing has been 
restored.
  Look to Iraq, where nearly 100,000 of our brave men and women have 
left with their heads held high; American combat patrols have ended; 
violence is down; and a new government has been formed. This year, our 
civilians will forge a lasting partnership with the Iraqi people while 
we finish the job of bringing our troops out of Iraq. America's 
commitment has been kept. The Iraq war is coming to an end.
  Of course, as we speak, al Qaeda and their affiliates continue to 
plan attacks against us. Thanks to our intelligence and law enforcement 
professionals, we are disrupting plots and securing our cities and 
skies; and as extremists try to inspire acts of violence within our 
borders, we are responding with the strength of our communities, with 
respect for the rule of law, and with the conviction that American 
Muslims are a part of our American family.
  We have also taken the fight to al Qaeda and their allies abroad. In 
Afghanistan, our troops have taken Taliban strongholds and trained 
Afghan Security Forces. Our purpose is clear: by preventing the Taliban 
from reestablishing a stranglehold over the Afghan people, we will deny 
al Qaeda the safe-haven that served as a launching pad for 9/11.
  Thanks to our heroic troops and civilians, fewer Afghans are under 
the control of the insurgency.
  There will be tough fighting ahead, and the Afghan Government will 
need to deliver better governance, but we are strengthening the 
capacity of the Afghan people and building an enduring partnership with 
them. This year, we will work with nearly 50 countries to begin a 
transition to an Afghan lead, and this July, we will begin to bring our 
troops home.
  In Pakistan, al Qaeda's leadership is under more pressure than at any 
point since 2001. Their leaders and operatives are being removed from 
the battlefield. Their safe-havens are shrinking. And we have sent a 
message from the Afghan border to the Arabian Peninsula to all parts of 
the globe: We will not relent, we will not waver, and we will defeat 
you.
  American leadership can also be seen in the effort to secure the 
worst weapons of war. Because Republicans and Democrats approved the 
New START treaty, far fewer nuclear weapons and

[[Page 644]]

launchers will be deployed. Because we rallied the world, nuclear 
materials are being locked down on every continent so they never fall 
into the hands of terrorists.
  Because of a diplomatic effort to insist that Iran meet its 
obligations, the Iranian Government now faces tougher sanctions, 
tighter sanctions, than ever before; and on the Korean Peninsula, we 
stand with our ally South Korea and insist that North Korea keeps its 
commitment to abandon nuclear weapons.
  This is just a part of how we are shaping a world that favors peace 
and prosperity.
  With our European allies, we revitalized NATO and increased our 
cooperation on everything from counterterrorism to missile defense. We 
have reset our relationship with Russia, strengthened Asian alliances, 
and built new partnerships with nations like India. This March, I will 
travel to Brazil, Chile, and El Salvador to forge new alliances across 
the Americas.
  Around the globe, we are standing with those who take responsibility, 
helping farmers grow more food, supporting doctors who care for the 
sick, and combating the corruption that can rot a society and rob 
people of opportunity.
  Recent events have shown us that what sets us apart must not just be 
our power--it must also be the purpose behind it.
  In South Sudan, with our assistance, the people were finally able to 
vote for independence after years of war. Thousands lined up before 
dawn. People danced in the streets. One man who lost four of his 
brothers at war summed up the scene around him. ``This was a 
battlefield for most of my life,'' he said. ``Now we want to be free.''
  We saw that same desire to be free in Tunisia, where the will of the 
people proved more powerful than the writ of a dictator. And tonight, 
let us be clear: The United States of America stands with the people of 
Tunisia, and supports the democratic aspirations of all people.
  We must never forget that the things we've struggled for and fought 
for live in the hearts of people everywhere, and we must always 
remember that the Americans who have borne the greatest burden in this 
struggle are the men and women who serve our country.
  Tonight, let us speak with one voice in reaffirming that our Nation 
is united in support of our troops and their families. Let us serve 
them as well as they have served us--by giving them the equipment they 
need, by providing them with the care and benefits that they have 
earned, and by enlisting our veterans in the great task of building our 
own Nation.
  Our troops come from every corner of this country. They're black, 
white, Latino, Asian, Native American. They are Christian and Hindu, 
Jewish and Muslim--and yes, we know that some of them are gay. Starting 
this year, no American will be forbidden from serving the country they 
love because of who they love. And with that change, I call on all of 
our college campuses to open their doors to our military recruiters and 
the ROTC. It is time to leave behind the divisive battles of the past. 
It is time to move forward as one Nation.
  We should have no illusions about the work ahead of us. Reforming our 
schools, changing the way we use energy, reducing our deficit--none of 
this will be easy. All of it will take time, and it will be harder 
because we will argue about everything--the cost, the details, the 
letter of every law.
  Of course, some countries don't have this problem. If the central 
government wants a railroad, they build a railroad--no matter how many 
homes get bulldozed. If they don't want a bad story in the newspaper, 
it doesn't get written.
  And yet, as contentious and frustrating and messy as our democracy 
can sometimes be, I know there isn't a person here who would trade 
places with any other nation on Earth.
  We may have differences in policy, but we all believe in the rights 
enshrined in our Constitution. We may have different opinions, but we 
believe in the same promise that says this is a place where you can 
make it if you try. We may have different backgrounds, but we believe 
in the same dream that says this is a country where anything is 
possible--no matter who you are, no matter where you come from.
  That dream is why I can stand here before you tonight. That dream is 
why a working class kid from Scranton can sit behind me. That dream is 
why someone who began by sweeping the floors of his father's Cincinnati 
bar can preside as Speaker of the House in the greatest nation on 
Earth.
  That dream--that American dream--is what drove the Allen Brothers to 
reinvent their roofing company for a new era. It's what drove those 
students at Forsyth Tech to learn a new skill and work towards the 
future. And that dream is the story of a small business owner named 
Brandon Fisher.
  Brandon started a company in Berlin, Pennsylvania, that specializes 
in a new kind of drilling technology; and one day last summer, he saw 
the news that halfway across the world, 33 men were trapped in a 
Chilean mine, and no one knew how to save them. But Brandon thought his 
company could help, and so he designed a rescue that would come to be 
known as Plan B. His employees worked around the clock to manufacture 
the necessary drilling equipment, and Brandon left for Chile.
  Along with others, he began drilling a 2,000-foot hole into the 
ground; working 3 or 4 days at a time without any sleep. Thirty-seven 
days later, Plan B succeeded, and the miners were rescued. But because 
he didn't want all the attention, Brandon wasn't there when the miners 
emerged. He had already gone back home, back to work on his next 
project. Later, one of his employees said of the rescue, ``We proved 
that Center Rock is a little company, but we do big things.''
  We do big things.
  From the earliest days of our founding, America has been the story of 
ordinary people who dare to dream. That's how we win the future.
  We are a nation that says, ``I might not have a lot of money, but I 
have this great idea for a new company. I might not come from a family 
of college graduates, but I will be the first to get my degree. I might 
not know those people in trouble, but I think I can help them, and I 
need to try. I'm not sure how we'll reach that better place beyond the 
horizon, but I know we'll get there. I know we will.''
  We do big things.
  The idea of America endures. Our destiny remains our choice. And 
tonight, more than two centuries later, it is because of our people 
that our future is hopeful, our journey goes forward, and the state of 
our Union is strong.
  Thank you, God bless you, and may God bless the United States of 
America.
  (Applause, the Members rising.)
  At 10 o'clock and 16 minutes p.m., the President of the United 
States, accompanied by the committee of escort, retired from the Hall 
of the House of Representatives.
  The Deputy Sergeant at Arms escorted the invited guests from the 
Chamber in the following order:
  The members of the President's Cabinet; the Chief Justice of the 
United States and the Associate Justices of the Supreme Court; the Dean 
of the Diplomatic Corps.

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