[Congressional Record (Bound Edition), Volume 158 (2012), Part 1]
[House]
[Pages 284-290]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  2040
JOINT SESSION OF CONGRESS PURSUANT TO HOUSE CONCURRENT RESOLUTION 96 TO 
                  RECEIVE A MESSAGE FROM THE PRESIDENT

  The recess having expired, the House was called to order by the 
Speaker at 8 o'clock and 40 minutes p.m.
  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 joint session will come to order.
  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 Connecticut (Mr. Larson);
  The gentleman from California (Mr. Becerra);
  The gentleman from South Carolina (Mr. Clyburn);
  The gentleman from New York (Mr. Israel); and
  The gentlewoman from Ohio (Ms. Sutton).
  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 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);
  The Senator from Texas (Mr. Cornyn); and
  The Senator from Missouri (Mr. Blunt).
  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.

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  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 
Paul D. Irving, 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:
  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--and several thousand gave their lives.
  We gather tonight knowing that this generation of heroes has made the 
United States safer and more respected around the world. For the first 
time in 9 years, there are no Americans fighting in Iraq. For the first 
time in two decades, Osama bin Laden is not a threat to this country. 
Most of al Qaeda's top lieutenants have been defeated. The Taliban's 
momentum has been broken, and some troops in Afghanistan have begun to 
come home.
  These achievements are a testament to the courage, selflessness, and 
teamwork of America's Armed Forces. At a time when too many of our 
institutions have let us down, they exceed all expectations. They're 
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. Think 
about the America within our reach: a country that leads the world in 
educating its people; an America that attracts a new generation of 
high-tech manufacturing and high-paying jobs; a future where we're in 
control of our own energy, and our security and prosperity aren't so 
tied to unstable parts of the world; an economy built to last, where 
hard work pays off, and responsibility is rewarded.
  We can do this. I know we can because we've done it before. At the 
end of World War II, when another generation of heroes returned home 
from combat, they built the strongest economy and middle class the 
world has ever known. My grandfather, a veteran of Patton's Army, got 
the chance to go to college on the GI 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 understood 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 can either 
settle for a country where a shrinking number of people do really well, 
while a growing number of Americans barely get by. Or we can restore an 
economy where everyone gets a fair shot, everyone does their fair 
share, and everyone plays by the same set of rules. What's at stake are 
not Democratic values or Republican values, but American values. We 
have to reclaim them.
  Let's remember how we got here. Long before the recession, jobs and 
manufacturing began leaving our shores. Technology made businesses more 
efficient but also made some jobs obsolete. Folks at the top saw 
theirincomes rise like never before, but most hardworking 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 had 
made huge bets and bonuses with other people's money. Regulators had 
looked the other way, or didn't have the authority to stop the bad 
behavior.
  It was wrong. It was irresponsible. And it plunged our economy into a 
crisis that put millions out of work, saddled us with more debt, and 
left innocent, hardworking Americans holding the bag. In the 6 months 
before I took office, we lost nearly 4 million jobs. And we lost 
another 4 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 3 million jobs. 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. And we've put 
in place new rules to hold Wall Street accountable so a crisis like 
this never happens again.
  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.
  No, we will not go back to an economy weakened by outsourcing, bad 
debt, and phony financial profits. Tonight, I want to speak about how 
we move forward, and lay out a blueprint for an economy that's built to 
last--an economy built on American manufacturing, American energy, 
skills for American workers, and a renewal of American values.
  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 
responsibility. We got workers and automakers to settle their 
differences. We got the industry to retool and restructure. Today, 
General Motors is back on top as the world's number one automaker. 
Chrysler has grown faster in the U.S. than any major car company. Ford 
is investing billions in U.S. plants and factories. And together, the 
entire industry added nearly 160,000 jobs.
  We bet on American workers. We bet on American ingenuity. And 
tonight, the American auto industry is back.
  What's happening in Detroit can happen in other industries. It can 
happen in Cleveland, Pittsburgh and Raleigh. We can't bring every job 
back that's left our shores. 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 Master Lock told me that it now 
makes business sense for him to bring jobs back home. Today, for the 
first time in 15 years, Master Lock's unionized plant in Milwaukee is 
running at full capacity.
  So we have a huge opportunity, at this moment, to bring manufacturing 
back. But we have to seize it. Tonight, my message to business leaders 
is simple: Ask yourselves what you can do to bring jobs back to your 
country, and your country will do everything we can to help you 
succeed.
  We should start with our 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. That 
money should be used to cover moving expenses for companies like Master 
Lock that decide to bring jobs home.

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  Second, no American company should be able to avoid paying its fair 
share of taxes by moving jobs and profits overseas. From now on, every 
multinational company should have to pay a basic minimum tax, and every 
penny should go towards lowering taxes for companies that choose to 
stay here and hire here in America.
  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 
deduction you get for making your products here. And if you want to 
relocate in a community that was hit hard when a factory left town, you 
should get help financing a new plant, equipment, or training for new 
workers.
  So my message is simple. It is 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.
  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 U.S. 
exports over 5 years. With the bipartisan trade agreements we signed 
into law, we're on track to meet that goal--ahead of schedule. Soon, 
there will be millions of new customers for American goods in Panama, 
Colombia and South Korea. Soon, there will be new cars on the streets 
of Seoul imported from Detroit, Toledo and Chicago.
  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. Over a 
thousand Americans are working today because we've stopped a surge in 
Chinese tires. But 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 ours only because they're 
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 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.
  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. And we know how to fix it.
  Jackie Bray is a single mom from North Carolina who was laid off from 
her job as a mechanic. Then Siemens opened a gas 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 nationalcommitment to train 2 million 
Americans with skills that will lead directly to a job. My 
administration has already lined up more companies that want to help. 
Model partnerships between businesses like Siemens and community 
colleges in places like Charlotte, Orlando and 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 
to high-tech manufacturing.
  And I want to cut through the maze of confusing training programs so 
that from now on people like Jackie have one program, one Web site, and 
one place to go for all the information and help that they need. It is 
time to turn our unemployment system into a reemployment system that 
puts people to work.
  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 percent 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's 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 have 
forced States to lay off thousands of teachers. We know a good teacher 
can increase the lifetime 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 into 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. That's a bargain worth making.
  We also know that 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--require that all students stay in high school 
until they graduate or turn 18.
  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. 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 5 years.
  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 also need to do their part by making higher education a higher 
priority in their budgets, and colleges and universities have to do 
their part by working to keep costs down. Recently, I spoke with a 
group of college presidents who've done just that. Some schools 
redesign courses to help students finish more quickly. Some use 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, 
hardworking students in this country face another challenge--the fact 
that they aren't yet American citizens. Many were brought here as small 
children, are American through and through; yet 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's why my administration has put more boots on the 
border than ever before. That's 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. But if 
election-year politics keeps Congress from acting on a comprehensive

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plan, let's at least agree to stop expelling responsible young people 
who want to staff our labs, start new businesses, and defend this 
country. Send me a law that gives them a chance to earn their 
citizenship; I will sign it right away.
  You see, an economy built to last is one where we encourage the 
talent and ingenuity of every person in this country. That means women 
should earn equal pay for equal work. It means we should support 
everyone who's willing to work and every risk-taker and entrepreneur 
who aspires to become the next Steve Jobs. After all, innovation is 
what America has always been about.
  Most new jobs are created in startups 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.
  Innovation also demands basic research. Today, the discoveries taking 
place in our federally financed labs and universities could lead to new 
treatments that kill cancer cells but leave healthy ones untouched, new 
lightweight 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 nowhere is the promise of innovation greater than in American-
made energy. Over the last 3 years, we've opened millions of new acres 
for oil and gas exploration. And tonight, I'm directing my 
administration to open more than 75 percent of our potential offshore 
oil and gas resources. Right now, American oil production is the 
highest that it's been in 8 years--that's right, 8 years. Not only 
that, last year we relied less on foreign oil than in any of the past 
16 years. But with only 2 percent 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, a strategy 
that's cleaner, cheaper, and full of new jobs.
  We have a supply of natural gas that can last America nearly 100 
years, 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 this resource without putting the health 
and safety of our citizens at risk.
  The development of natural gas will create jobs andpower trucks and 
factories that are cleaner and cheaper, proving that 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 out of shale 
rock, reminding us that government support is critical in helping 
businesses get new energy ideas off the ground.
  Now, what's true for natural gas is just as true for clean energy. In 
3 years, our partnership with the private sector has already positioned 
America to be the world's leading manufacturer of high-tech batteries. 
Because of Federal investments, renewable energy use has nearly 
doubled, and thousands of Americans have jobs because of it.
  When Bryan Ritterby was laid off from his job making furniture, he 
said he worried that at 55 no one would give him a second chance; but 
he found work at Energetx, 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 shale gas, our experience with natural gas shows 
us that the payoffs on these 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. I will not walk away 
from workers like Bryan. I will not cede the wind or solar or battery 
industry to China or Germany because we refuse to make the same 
commitment here. We have subsidized oil companies for a century. That's 
long enough. It's time to end the taxpayer giveaways to an industry 
that rarely has been more profitable and double down on a clean-energy 
industry that never has been more promising. Pass clean-energy tax 
credits, and create these jobs.
  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, but there's 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 3 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 250,000 homes a year.
  Of course, the easiest way to save money is to waste less energy. So 
here's a proposal: 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, and 
America will have less pollution, more manufacturing, and more jobs for 
construction workers who need them. Send me a bill that creates these 
jobs.
  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 her 
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 of it to do 
some nation-building right here at home.
  There's 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. And 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.
  And 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 runaround from the banks. A small fee on the largest financial 
institutions will ensure that it won't add to the deficit and will give 
those banks that were rescued by taxpayers a chance to repay a deficit 
of trust.
  Let's never forget: Millions of Americans who work hard and play 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 
bailouts, no handouts, 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. 
Rules to

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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've approved fewer regulations in the first 3 
years of my Presidency than my Republican predecessor did in his. I've 
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 next 5 
years. We got rid of one rule from 40 years ago that could have forced 
some dairy farmers to spend $10,000 a year proving that 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 spilt milk.
  Now, I'm confident a farmer can contain a milk spill without a 
Federal agency looking over his shoulder. Absolutely. But I will not 
back down from making sure an oil company can contain the kind of oil 
spill we saw in the gulf 2 years ago. 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.
  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 youout 
ever again. 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.
  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 generals to expand 
our investigations into the abusive lending and packaging of 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. People 
cannot 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.
  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 percent 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 to rein in 
the long-term costs of Medicare and Medicaid and strengthen Social 
Security so 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. Tax reform should follow the Buffett rule. If you make more than 
$1 million a year, you should not pay less than 30 percent in taxes. 
And my Republican friend Tom Coburn is right: Washington should stop 
subsidizing millionaires. In fact, if you're earning a million dollars 
a year, you shouldn't get special tax subsidies or deductions. On the 
other hand, if you make under $250,000 a year, like 98 percent of 
American families, your taxes shouldn't go up. You're the ones 
struggling with rising costs and stagnant wages. You're 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 America 
built to last.
  Now, I recognize that people watching tonight have differing views 
about taxes and debt, 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 bills or not. 
Who benefited from that fiasco?
  I've talked tonight about the deficit of trust between Main Street 
and Wall Street, but the divide between this city and the rest of the 
country is at least as bad, and it seems to get worse every year. And 
some of this has to do with the corrosive influence of money and 
politics. So together, let's take some steps to fix that. Send me a 
bill that bans insider trading by Members of Congress. I will sign it 
tomorrow.
  Let's limit any elected official from owning stocks in industries 
they impact. Let's make sure people who bundle campaign contributions 
for Congress can't lobby Congress and vice versa, an idea that has 
bipartisan support, at least outside of Washington.
  Some of what's broken has to do with the way Congress does its 
business these days. A simple majority is no longer enough to get 
anything, even routine business, passed through the Senate. Neither 
party has been blameless in these tactics. Now both parties should put 
an end to it.

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  For starters, I ask the Senate to pass a simple rule that all 
judicial and public service nominations receive a simple up-or-down 
vote within 90 days. The executive branch also needs to change. Too 
often it's inefficient, outdated, and remote. That's why I've asked 
this Congress to grant me the authority to consolidate the Federal 
bureaucracy so that our government is leaner, quicker, and more 
responsive to the needs of the American people.
  Finally, none of this can happen unless we also lower the temperature 
in this town. We need to end the notion that the two parties must be 
locked in a perpetual campaign of mutual destruction, that politics is 
about clinging to rigid ideologies instead of building consensus around 
commonsense ideas.
  I'm a Democrat, but I believe what Republican Abraham Lincoln 
believed--that government should do for people only what they cannot do 
better by themselves and no more. That's why my education reform offers 
more competition and more control for schools and States. That's why 
we're getting rid of regulations that don't work. That's why our health 
care law relies on a reformed private market, not a government program.
  On the other hand, even my Republican friends who complain the most 
about government spending have supported federally financed roads and 
clean energy projects and Federal offices for the folks back home.
  The point is we should all want a smarter, more effective government. 
And while we may not be able to bridge our biggest philosophical 
differences this year, we can make real progress.
  With or without this Congress, I will keep taking actions that help 
the economy grow. But I can do a whole lot more with your help because 
when we act together, there's nothing the United States of America 
can't achieve.
  That's the lesson we've learned from our actions abroad over the last 
few years. Ending the Iraq war has allowed us to strike decisive blows 
against our enemies. From Pakistan to Yemen, the al Qaeda operatives 
who remain are scrambling, knowing that they can't escape the reach of 
the United States of America.
  From this position of strength we've begun to wind down the war in 
Afghanistan. Ten thousand of our troops have come home; 23,000 more 
will leave by the end of this summer. This transition to Afghan lead 
will continue, and we will build an enduring partnership with 
Afghanistan so that it is never again a source of attacks against 
America.
  As the tide of war recedes, a wave of change has washed across the 
Middle East and North Africa, from Tunis to Cairo, from Sana'a to 
Tripoli. A year ago, Qadhafi was one of the world's longest serving 
dictators, a murderer with American blood on his hands. Today, he is 
gone. And in Syria, I have no doubt that the Assad regime will soon 
discover that the forces of change cannot be reversed and that human 
dignity cannot be denied.
  How this incredible transformation will end remains uncertain. But we 
have a huge stake in the outcome. And while it's ultimately up to the 
people of the region to decide their fate, we will advocate for those 
values that have served our own country so well.
  We will stand against violence and intimidation. We will stand for 
the rights and dignity of all human beings, men and women, Christians, 
Muslims, and Jews. We will support policies that lead to strong and 
stable democracies and open markets because tyranny is no match for 
liberty. And we will safeguard America's own security against those who 
threaten our citizens, our friends, and our interests.
  Look at Iran. Through the power of our diplomacy, a world that was 
once divided about how to deal with Iran's nuclear program now stands 
as one. The regime is more isolated than ever before. Its leaders are 
faced with crippling sanctions. And as long as they shirk their 
responsibilities, this pressure will not relent.
  Let there be no doubt: America is determined to prevent Iran from 
getting a nuclear weapon, and I will take no options off the table to 
achieve that goal. But a peaceful resolution of this issue is still 
possible and far better. And if Iran changes course and meets its 
obligations, it can rejoin the Community of Nations.
  The renewal of American leadership can be felt across the globe. Our 
oldest alliances in Europe and Asia are stronger than ever. Our ties to 
the Americas are deeper. Our ironclad commitment, and I mean ironclad 
to Israel security has meant the closest military cooperation between 
our two countries in history.
  We've made it clear that America is a Pacific power. And a new 
beginning in Burma has lit a new hope.
  From the coalitions we've built to secure nuclear materials to the 
missions we've led against hunger and disease, to the blows we've dealt 
our enemies, to the enduring power of our moral example, America is 
back.
  Anyone who tells you otherwise, anyone who tells you that America is 
in decline or that our influence has waned doesn't know what they're 
talking about. That's not the message we get from leaders around the 
world who are eager to work with us. That's not how people feel from 
Tokyo to Berlin, from Cape Town to Rio, where opinions of America are 
higher than they've been in years. Yes, the world is changing. No, we 
can't control every event. But America remains the one indispensable 
Nation in world affairs; and as long as I'm President, I intend to keep 
it that way.
  That's why, working with our military leaders, I have proposed a new 
defense strategy that ensures we maintain the finest military in the 
world while saving nearly half a trillion dollars in our budget. To 
stay one step ahead of our adversaries, I have already sent this 
Congress legislation that will secure our country from the growing 
dangers of cyberthreats.
  Above all, our freedom endures because of the men and women in 
uniform who defend it. As they come home, we must serve them as well as 
they've served us. That includes giving them the care and the benefits 
they have earned, which is why we've increased annual VA spending every 
year I've been President. And it means enlisting our veterans in the 
work of rebuilding our Nation.
  With the bipartisan support of this Congress, we are providing new 
tax credits to companies that hire vets. Michelle and Jill Biden have 
worked with American businesses to secure a pledge of 135,000 jobs for 
veterans and their families. And tonight, I'm proposing a Veterans Job 
Corps that will help our communities hire veterans as cops and 
firefighters so that America is as strong as those who defend her.
  Which brings me back to where I began. Those of us who've been sent 
here to serve can learn a thing or two from the service of our troops. 
When you put on that uniform, it doesn't matter if you're black or 
white, Asian, Latino, Native American, conservative or liberal, rich, 
poor, gay, straight. When you're marching into battle, you look out for 
the person next to you, or the mission fails. When you're in the thick 
of the fight, you rise or fall as one unit, serving one Nation, leaving 
no one behind.
  And one of my proudest possessions is the flag that the SEAL team 
took with them on the mission to get bin Laden. On it are each of their 
names. Some may be Democrats, some may be Republicans; but that doesn't 
matter. Just like it didn't matter that day in the Situation Room when 
I sat next to Bob Gates, a man who was George Bush's Defense Secretary, 
and Hillary Clinton, a woman who ran against me for President.
  All that mattered that day was the mission. No one thought about 
politics. No one thought about themselves. One of the young men 
involved in the raid later told me that he didn't deserve credit for 
the mission. It only succeeded, he said, because every single member of 
that unit did their job--the pilot who landed the helicopter that spun 
out of control, the translator who kept others from entering the 
compound, the troops who separated the women and children from the 
fight, the SEALs who charged up the stairs.
  More than that, the mission only succeeded because every member of 
that unit trusted each other, because

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you can't charge up those stairs into darkness and danger unless you 
know that there's somebody behind you watching your back.
  So it is with America. Each time I look at that flag, I'm reminded 
that our destiny is stitched together like those 50 stars and those 13 
stripes. No one built this country on their own. This Nation is great 
because we built it together. This Nation is great because we worked as 
a team. This Nation is great because we geteach other's backs. And if 
we hold fast to that truth in this moment of trial, there is no 
challenge too great, no mission too hard. As long as we are joined in 
common purpose, as long as we maintain our common resolve, our journey 
moves forward, and our future is hopeful and the state of our Union 
will always be strong.
  Thank you, God bless you and 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.
  The SPEAKER. The Chair declares the joint session of the two Houses 
now dissolved.
  Accordingly, at 10 o'clock and 23 minutes p.m., the joint session of 
the two Houses was dissolved.
  The Members of the Senate retired to their Chamber.

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