prefer to run against? >> i think anyone other than romney is going to seem beatable. and he's freaking out because he's toxic. >> and this is problematic ♪ ♪ >> brett: good evening, i'm brett baier. we are moments away from the president's entrance into the house chamber where he'll deliver the third strait state of the union address. it's no surprise that the economy will take center stage. the address before a joint session of congress and millions of television viewers provides a national platform to effectively relaunch his reelection campaign

in an effort that has been well under way. that is trying to paint president obama as the one protecting the middle-class while republicans are standing in the way. following the speech, indiana governor mitch daniels will deliver the republican response from the indiana war memorial building in indianapolis where he will push back on what republicans are calling a class warfare argument saying america must always be, quote, a nation of have and soon to be haves. >> brit hume is joining us and associate editor of the hill and charles krauthammer. what does the president have to do tonight? >> i think he'll lay the groundwork for reelection campaign and despite a lot of people feel the country is wrong track, he will say it is doing pretty well. his own achievements that prevented the depression and suggest the economy is picking

up steam. i am struck by one thing. 31 years in the state of the union drae address, ronald reagan was president and democrats controlled congress. they were arguing about, guess what? the republicans the man in the white house he wanted lower taxes rates but the democrats resisting. they were resisting on? fairness. we'll hear again that tonight. some things don't change much. >> brett: looking at gabrielle giffords who was shot last january. he is has been recovering. she will offer his her official resignation. she had a standing ovation from everybody in the house chamber tonight. >> i think the president is going to take credit for 22 months of job growth. he is going to say he avoided a near depression and also going to talk about this make or break moment for the middle-class.

though in the fourth year of republican presidency this would be a platform for a campaign speech. it surely will be for president obama tonight. he will talk about economic fairness and he will talk about the expiration of the bush tax cuts for the wealthyest. he will make a centerpiece for the fall campaign. he extended them last year and if the middle-class was under such a threat, why want wasn't he talking about it then? why is he going tell us tonight that the middle-class is make or break moment? and not about innovating and our sputnik moment last year. we should more of the same, infrastructure and republicans are expecting a laundry list. >> brett: as we look at hillary clinton. we don't expect a lost the speech about foreign policy. charles, much about the claiming

economy and specific focus toward middle income workers? >> like all presidents giving a state of the union in election year, he will try to take some credit like bin laden and things that is stha he has achieved in foreign affairs. of course, it's about the economy. we know what the scene is going to be. obama has ruled it out in a speech he gave in kansas in which he said essentially that the theme of the campaign is going to be inequality in the country and severe attack on the republicans as the protectors of the rich, of the 1%, ones that don't pay their fair share. this will be an election in which he is going to have a hard time making a case he has done very well on the economy. he can't run on that. he has a hard time running on his legislator achievements because obamacare and stimulus are unpopular.

it will be a frontal attack on the republicans the ones that will introduce and increase inequality in the quality. he will stand for the middle-class. that will be the theme of the speech and the theme of the entire campaign all the way to november. >> brett: we should point out in the house khiay ber there are a number of members, from 180 plus who are sitting with lawmakers from the other side of the aisle in a tradition that started last year and year before. here we see paul irving a house sergeant of arms ready to announce the president. >> mr. speaker, the president of the united states. is. [ cheers and applause ] >> brett: to finish my thought. this started with some members sitting together to show bipartisan. it's continued go. are there a lot of them?

>> i sure looks. they are sitting with, it's called date night now. i think its good tradition. i hope it keeps up. >> brett: sometimes we can hear some things. let's listen in. >> good to see you. good to see you. [ applause ] [ applause ] >> good to see y'all. thank you so much. good see you. >> i was going to.... [ applause ] >> thank you. thank you.

is. [ applause ] [ applause ] [ applause ] >> brett: you heard the president don't get lip sticking me. you see sheila jackson lee. she was along the aisle, and also a popular lawmaker. let's check in with ed henley. ed, the white house aide this wasn't going to be a reelection speech. it wasn't going to be a political speech. the president leaves tomorrow

for a trip. >> yes, three days. he will be visiting five states that are all battlegrounds up for grabs. there is nothing new about presidents going out after the state of the union to promote their agenda. he is hitting five battleground states. tonight we mentioned that warren buffett's secretary will be up in the box and dozen ordinary people from all around the country, ten from battleground states. north carolina, virginia, ohio. he is entitled to do that. maybe there is little bit of a campaign here. >> brett: let's listen back in. >> good job tonight. good job tonight. [ applause ]

>> brett: president obama shaking hands with the joint chiefs of staff. before that, obviously meeting and greelgt greet weigh the supreme court justices. you'll remember last year's state of the union address posed a bit of a controversy in that jas justice was seeing mouth go the word, not true in one of the statements he played during the speech. it caused a bit of a tussle. these things happen. >> cameras are on and microphones. and he is giving gabrielle giffords an embrace and sentiments unquestionably shared

by everyone in the chamber. >> so powerful. obviously she is frightened her post. they'll be watching ahead and closest friend in the house chamber. >> brett: at we get to listen in to president obama, his third state of the union address. [ applause ]

members of congress, i have the high privilege and distinct honor to presenting you to the president of the united states. [ cheers and applause ] thank you. thank you. thank you so much. 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 gavp tonight knowing that this generation of has made the united states safer and more respected around the world. [ applause ] for the first time in nine years there are no americans fighting in iraq. [ applause ]

>> for the first time in two decades, osama bin laden is not a threat to this country. [ applause ] >> most their top lieutenants have been defeated. taliban's momentum has been broken and some troops from afghanistan have began to come home. these achievements are a testament to the courage, selflessness and teamwork of america's armed forces. at time when too many of our institutions have let us down, they exceed all expectations. they are not consumed with

personal ambitions. they are not obsessed over their differences. they focus on the mission at hand. they work together. imagine what we could accomplish if we follow their example. [ applause ] >> think when 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 they returned home from combat they built the strongest economy and middle-class the world has ever known. [ applause ] >> my grandfather a veteran got the chance to go to college on the g.i. bill. my grandmother who worked on a bomber assembly line was part of a work force that turned out the best products on earth. the stwof them shared the optimism of a nation that had triumphed over fascism. they understand they were part of something larger and they were contributing to a story of success that every american had a chance to share. the basic american promise if

you work 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. shrinking number of people are doing well and growing number of americans barely get by or recan restore an economy where everyone gets a fair shot and everyone does their fair share and everyone plays by the same set of rules. [ applause ]

what state is not democratic values or republican values but american values and we have to reclaim them. let's remember how we got here. long before the recession, jobs and manufacturing begin leaving our shores. technology made businesses more efficient but also made jobs obsolete. folks at the top saw their incomes rise like never before but most struggled with cost that were growing and 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 that couldn't afford or understand them. banks had made huge bonus west side 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 hard working americans holding the bag. in the six months before i took office we lost nearly 4 million jobs. we lost another 4 million before our policies were in full effect. those are the facts. but so are these. last 22 months, businesses have created more than three million jobs. [ applause ]

last year, they created the most jobs since 2005. american manufacturers are hiring again, creating jobs for the first time since the late 1990s. together. we have agreed to cut the deficit by more than $2 trillion and we put in place new rules to hold wall street accountable so a crisis like this never happens again. [ applause ] state of our union is getting stronger. 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. i will oppose any effort to return to the very same policies that brought on this economic crisis in the first place. [ applause ]

>> no, we will not go back to an economy weakened by us on sourcing, bad debt and phony financial profits. tonight i want to speak about how we move forward and layout a blueprint for an economy that is built to last. an economy built on american manufacturing, american energy, skills for american workers and renewal of american values. this blueprint begins with american manufacturing. on the day i took office our auto industry was on the verge of collapse. some even said we should let it die. with a million jobs at stake, i

refused to let that happen. in exchange for helped we demanded responsibility. we got workers and automakers to settle their differences and we got the industry to to retool and restructure. today general motors is back on top as the world's number one automaker. [ applause ] chrysler has grown faster in the u.s. than any other major car company. ford is investing billions in u.s. plants and factories. together the industry added nearly 160,000 jobs. we bet on american workers. we bet on american ingenuity and tonight the american auto industry is back. [ applause ]

>> what is happening in detroit can happen in other industries. it can happen in cleveland and pittsburgh and raleigh. we can't bring every job back that has left our shore. but right now it's getting more expensive to do business in places like china. meanwhile, america is more productive. a few weeks ago the ceo of master line it makes business sense for him to bring back jobs home. [ applause ] >> today, for the first time in 15 years, master lock union plant is running at full

capacity. [ applause ] >> so we have a huge opportunity at this moment to bring manufacturing back, but we have to seize it. tonight my message to business sleerdz simple. ask yourself what you can do to bring jobs back to your country and your country will do everything we can to help you succeed. [ applause ] >> we can 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. everyone knows it. so let's change it. first, if you are a business

that wants to outsource jobs, you shouldn't get a tax deduction for doing it. [ applause ] >> that money should be used to cover moving expenses for companies like master lock that guy is to bring jobs back home. [ applause ] >> second, no american company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. [ applause ] >> from now on, every multinational company will have to pay a basic minimum tax and every penny should go to lowering taxes for companies that choose to stay here and hire here in america. [ applause ]

third, ifer an american manufacturer, you should get a bigger tax cut, if you are high-tech manufacturer, we should double the taxes you get for making your products here. if you wanted to relocate in a community that was hit hard when a factory left town, you should get help financing a new plant, equipment and training for new workers. so my message is simple. it is time to stop rewarding businesses that shift jobs overseas and start rewarding companies that create jobs right here in america. send me the tax reform and i will sign them right away! [ applause ] >> we are also making it easier for businesses to sell products

all over the world. two years ago i set a goal of doubling u.s. exports over five years. with a bipartisan trade agreements we signed into law we are track to meet that goal ahead of schedule. [ applause ] >> assume there will be millions of new customers for new goods in panama, colombia and south korea. soon there will be cars in seoul em ported from toledo and chicago. i will go anywhere in the world to open new markets for american products. 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 as the last administration and it has made a difference.

[ applause ] >> over a thousand americans are working today because we stopped the surge in chinese tires but we need to do more. it's not right when another country let's movies and our software be pirated. it's not fair when foreign manufacturers have a leg up on ours because they are heavily subsidized. tonight i'm announcing the creation of a trade enforcement unit that will investigate unfair trading practices like china. there will be more inspections there will be more inspections to prevent counterfeit or unsafe goods from crossing our borders and this congress should make sure that no foreign country has an advantage over american manufacturing manufacturing. our workers are most productive on wertdz. if the playing field is level, i promise you, america will always

win. [ applause ] i also hear from many business leaders who wanted to hire in the united states, but can't find workers with the right skills. growing industries in science and technology has twice as many openings as workers to 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 break is a single mom from nkdz who was laid off from her job as a mechanic. been seaman's opened a factory in charlotte and formed a partnership with central

piedmont college. they designed courses in robotics training. it paid jackie's tuition and then hired her to help operate their plant. i want every american looking for work to have the same opportunity as jackie did. join me in a national commitment to train two million americans with skills that will lead directly to a job. [ applause ] my administration has lined up more companies that want to help. model partnerships between pisses like places like charlotte 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. i want to cut through the maze of confusing training programs, from now on people like jackie has one program, one website and one place to go for all the information and help they need. it is time to turn our unemployment system into a reemployment system to put people to work. [ applause ] >> these reforms will help people get jobs that are open today, but to prepare for the jobs of tomorrow, our commitment to skills and education has to start earlier. legs than 1% of our nation spends on education each year,

we have convinced nearly every state in the country to raise their standards for teaching and learning. the first time that has happened in a generation. the challenges remain and we know how to solve them. at a time when other countries are doubling down on education, tight budgets and 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 of dreams beyond his circumstances. 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 pockets 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. [ applause ] >> in return, grant school flexibility to teach with creativity and passion. to stop teaching the way they are and replace teachers that just aren't helping kids learn. that is a bargain worth making. [ applause ] >> we also know when students don't walk away from their education, more of them walk the stage to get their diploma. when students are not allowed to drop out, they do better.

so tonight i am proposing that every state, every state requires that all students stay in high school until they graduate or turn 18. [ applause ] when kids do graduate the most daunting challenging be the cost of college. at time when americans owe more in tuition than credit card debt this congress needs to stop the interest rates on student loans from doubling in july. [ applause ] >> extend the tuition tax credit that we started that saves

millions of middle-class families thousands of dollars and give more young people the chance to earn their way through college by doubling the number of work study jobs in the next five years. [ applause ] >> it's not enough for us to increase student aid. we can't just keep subsidizing skyrocket tuition. we'll run out of money. states 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 keeping costs down. i spoke to a group of college presidents who have done just that. some schools redesign courses to help students finish more quickly. some use better technology. the point is, it's possible. let me put colleges and universities on notice, if you can't stop tuition from going up the funding you get from

taxpayers will go down. higher education can't be a luxury. it is an economic imperative that every family in america should be able to afford. let's also remember that hundreds of thousands of talented hard working students in this country face another challenge. the fact they aren't yet american citizens. many were brought here as small children. americans through and through if they live every day with the threat of deportation. others came more recently to study business, 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 we should take on illegal immigration. that, my administration has put more boots on the border than

ever before. that is why there are fewer illegal crossings than when i took office. the opponents of action are out of excuses. we should be working on comprehensive immigration reform right now. [ applause ] >> election year politics keeps congress from acting on a comprehensive plain, let's agree to stop expelling responsible young people to start new businesses, to defend this country, send me a law that gives them the chance to earn their citizenship. i will sign it right away. [ applause ]

you see an economy built to last is one where we encourage ingenuity of every person in this country. women should earn equal pay for equal work. [ applause ] 6. >> it means we should support everyone who is willing to work and every risk taker and entrepreneur who aspires to become the next steve jobs. after all, innovation is what america has always been about. most new jobs are created in start-ups in small businesses, let's pass an agenda that helps them succeed. tear down regulations that prevent aspiring entrepreneurs

from getting the fij to grow, extend tax relief to small businesses that is creating jobs. both parties agree on these ideas. so put them in a bill and get it on my desk this year. [ applause ] >> innovation also demands basic research. today the discovery stoov is taking place in federally financed labs could lead to new treatments to kill cancer cells but leaves 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 scrobs and new american industries.

nowhere is the promise of innovation greater than in american made energy. over the last three years we've opened millions of new acres for oil and gas exploration. tonight i'm directing my flogs open more than 75% of our potential offshore oil and gas resources. [ applause ] >> right now. american oil production is the highest it's been in eight years. that is right. eight years. not only that last year we relied less on foreign oil than in any of the past 16 years. [ applause ]

>> with only 2% of the world's oil reserves. oil is not enough. this country needs an all out, above the strategy to develop every available source of american energy. [ applause ] >> a strategy that is cleaner, cheaper and full of new jobs. we have a supply of natural gas that can last america nearly one hundred years. [ applause ] >> my administration will take every possible action to safely develop this energy. experts believe this will support more than 600,000 jobs by the end of the decade. i'm required all companies that drill for gas on public lands to disclose the chemicals they use.

america will develop this resource without putting the health and safety of our citizens at risk. the development of natural gas will power trucks and factories that are cleaner and cheaper proving we don't have to choose between our environment and our economy. [ applause ] >> by the way, it was public research dollars over the course of 30 years that helped develop the technology to extract all this natural gas out of shale rock. reminding that government supported is critical in helping business to get new energy ideas off the ground. [ applause ] >> what is true for natural gas is just as true for clean energy. in three years, our partnership with the private sector has already positioned america to be the world's leading manufacturer of high-tech batteries.

because of federal investments, renewable energy has nearly doubled and thousands of americans have jobs because of it. when brian weatherby was laid off from his job making furniture, he worried that at 55 no one would give anymore a second chance. but he found work another energetics at wind turbine factory. before that they only made luxury yachts. today they are hiring workers like brian, who said i am proud to be working in the industry of the future. our experience with shale gas, our experience with natural gas, shows us the payoff on the public investments don't always come right away. some technologies don't pan out. some companies fail, but i will not walk away from the promise of clean energy.

[ applause ] >>ly not walk away from workers like brian. [ applause ] >> i will not wind, solar are a battery, i will not seed it to china or gearm because we refuse to make the commitment here. 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. have clean energy tax rates, create jobs. [ applause ] >> we can also spur energy innovation with new incentives.

the differences in this chamber may be too deep to pass a comprehensive plan for climate change but there is no reason why congress shouldn't at least set a clean energy standard that creates a market for innovation. so far you haven't acted. well well, tonight i will. i'm directing my flogs allow the development of clean energy on enough public land to power three million homes. i'm proud to announce the department of defense working with us, the world's largest consumer of energy will make one of the largest commitments of clean energy in history, with the navy to purchase enough to power a quarter million homes a year. [ applause ]

>> of course, the easiest way to save money is to waste less energy. so help eliminate energy waste in factories and give them incentives to upgrade their buildings. america will have less pollution more manufacturing, more jobs for construction workers who need it. send me a bill that creates these jobs. [ applause ] >> building this new energy future should be just one part in a broader agenda to remarry america's infrastructure. so much of america needs to be rebuilt. we have crumbling roads and bridges. a power grid that wastes too much energy, an incomplete high speed broadband network that

prevents the small business owner in rural america of selling products all over the world. during the great depression, america built the hoover dam and 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. in the next the few weekly sign an executive order clearing the way the red tape that slows down many construction projects. you need fund these projects. take the money we are no longer sperngd in war and pay down our debt and use the rest to do some nation building right here at home. [ applause ]

>> there has never been a better time to build especially since the construction industry was one of hardest hit when the housing bubble burst. of course, construction workers weren't the only ones who were hurt. so were millions of innocent americans who have seen their home values decline. while government can't fix the problem on its own, responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief. that is why i'm spending 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 round around from the banks. a small fee on the largest fee

financial institutions will help and will give those banks that were rescued by taxpayers to repay. [ applause ] >> 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 responsibility on everybody. we've all paid the price for lenders who sold to mortgages to people that couldn't afford them and buyers who knew they couldn't afford them. that is why we need smart regulations to prevent

irresponsible behavior. [ applause ] >> rules to prevent financial problems 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 three years of my presidency than my republican predecessor did in his. [ applause ] >> i have 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 ten billion over the next five years. we got rid of one rule from 40 years ago that could have forced

dairy form teors spend $10,000 a year proving they could contain a spill because milk was classified as an oil. with a rule like that, it was worth crying over spilled milk. [ laughter ] >> i'm confident a farmer can contain a milk spill without a federal agency looking over his shoulder. [ applause ] >> but i will not back down for making sure that an oil company can contain the kind of oil spill we saw in the gulf two years ago. [ applause ]

>>ly not back down from protecting our kids from mercury poisoning or making sure that our food is safe, 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. new rules we pass restore what should be any financial system's corpus, 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 set send their kids to college. so if you are a big bank or financial institution, you are no longer allowed to make risky bets with your consumers' deposits. you are required to write out a living will because the rest of our not bailing you out ever again. [ applause ] >> if you are a mortgage lender or pay day lender or a credit card company, the days of signing people for products they can't afford with confusing forms, those days are over. today american consumers finally has a watchdog in richard cordray with one job to look out for them. [ applause ]

>> we'll also establish a financial crimes unit, highly trained investigators to crack down on large scale fraud. some financial firms violate major laws because there is no penalty for being a repeat offender. that is bad for consumers and it's bad for the vast majority of bankers and financial professionals that do the right thing. the past legislation that make the penalties for fraud count. 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 abuse of lending and packaging of risky mortgages that led to the housing crisis. this new unit will hold accountable and speed assistance to homeowners and help turn the page that hurt so many americans.

return to the american values of fair play and shared responsibility will help protect our people and our economy. it should also guide us as we look to pay down our debt and invest in our future. right now our most immediate priority is stopping a tax hike on 160 million working americans while the recovery is still fragile. [ applause ] >> people can't afford losing $40 out of each paycheck this year. there are plenty of ways to get this done. let's agree right here, right now, no side issues, no drama, pass the payroll tax cut without delay. [ applause ]

let's get it done. [ applause ] >> when it comes to the deficit we've already agreed to more than two trillion dollars in cuts and savings. we need to do more. that means making choices. right now, we're poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2% of americans. right now because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households. right now, warren buffett pays a lower tax rate than his secretary. do we want to keep these tax cuts for the wealthiest americans or do we want to keep

our investment in everything else? like education, like medical research, a strong military and care for our veterans. because if we are serious about paying down our debt, we can't do both. the american people know what the right choice is. so do i. as i told the speaker this summer i'm prepared to make more reforms that rein the costs of medicare and medicaid and strengthen social security as long as those programs remain a guarantee for security for seniors but in return we need to change our tax code so people like me, a lot of members of congress pay our fair share of taxes. [ applause ]

>> tax reform should follow the buffet rule, if make more than a million dollars a year you should not pay less than 30% of taxes. my republican friend why subsidize millionaires. if you are 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% of american families, your taxes shouldn't go up. you are the ones that are struggling with rising costs. you are the ones who need relief. now, you, call this class warfare all you wanted, but asking a billionaire to pay as much as his secretary in taxes? most americans would call that

common sense. we don't we grudge financial success in this country. we admire it. when americans talk about folks like me paying my fair of share of taxes, it's not because they envy the rich. they understand that when i get a tax break, i don't need and the country can't afford, it 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 is not right. americans know that is not right. they know that this generation' success is only possible because past generations felt a responsibility to each other and to the future of their country. they know our way of life will only endure if we feel that same

sense of shared responsibility. that is how will reduce our deficit. that is an america built to last. [ applause ] >> now, i recognize people watching tonight have differing views about taxes and debt, energy, health care. 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 i blame them for feeling a little cynical? the greatest blow to our confidence the in