WASHINGTON—President Obama delivered the 2012 State of the Union address Tuesday night, laying out a blueprint to return America to economic prosperity while calling for national unity and a restoration of American values.
In a wide-ranging action plan, the President laid out tax reforms, regulation of the finance sector, financial relief for mortgage owners, and a reduction in red tape and bureaucracy.
“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.”
The President began by acknowledging the work of the armed forces, receiving a standing ovation from the U.S. Congress as he noted that for the first time in nine years, there were no Americans in Iraq, Osama Bin laden was no longer a threat, and the Taliban’s threat was broken.
These goals were achieved through working together, he said. He called on Americans to imagine an America “within our reach,” a country that leads in education, attracts “high-tech manufacturing and high-paying jobs,” and controls its own energy and security independently of “unstable parts of the world.”
In terms of foreign policy, Obama said, “American leadership has been renewed across the globe, alliances with Europe and Asia stronger than ever, the commitment to Israel iron-clad, ties to the Americas deeper, and the recognition that America is a Pacific power clear. America is back,” he said.
“An economy built to last, where hard work pays off, and responsibility is rewarded,” he said.
The president outlined his strategy to build the economy and defined four pillars to his vision: American manufacturing, American energy, skills for American workers, and American values.
American manufacturing could be revitalized with tax breaks for companies that manufacture at home, and greater tax deductions for those in high-level manufacturing, he said.
Multinational companies would no longer be tax-free, but have to pay a minimum tax. “Every penny should go toward lowering taxes for companies that choose to stay here and hire here,” he said.
The president said he would ensure “a level playing field in trade,” making it easier for Americans to do businesses overseas, while taking a strong stand against competitors, particularly China, “who don’t play by the rules.”
He announced the creation of a Trade Enforcement Unit “that will be charged with investigating unfair trade practices in countries like China.”
Education
Education and training programs would contribute to the manufacturing vision, he said, calling on states to ensure students stay in school until the age of 18, and on Congress to keep the interest rates on student loans from doubling in July.
“Higher education can’t be a luxury—it’s an economic imperative that every family in America should be able to afford,” he said.
Energy
Obama said American dependence on foreign suppliers decreased during his administration, with oil production now the highest in eight years.
“Tonight, I’m directing my administration to open more than 75 percent of our potential offshore oil and gas resources,” he said.
At the same time, he added, subsidies to the oil industry have gone on for too long. “It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean energy industry that’s never been more promising. Pass clean energy tax credits and create these jobs.”
Referring to the conflicted Congress of last year, Obama acknowledged that there were differing views on taxes and debt, energy and health care, but called on lawmakers to “lower the temperature” in Washington, and end the notion that “politics is about clinging to rigid ideologies instead of building consensus around common sense ideas.”
Finishing as he began, he again commended U.S. servicemen and women, saying their mission worked because they trusted each other and worked together.
“So it is with America,” he said adding, “As long as we’re joined in common purpose, as long as we maintain our common resolve, our journey moves forward, our future is hopeful, and the state of our Union will always be strong.”
GOP Response
Republicans meanwhile accused President Obama of being divisive in his State of the Union speech.
“We do not accept that ours will ever be a nation of haves and have-nots; we must always be a nation of haves and soon-to-haves,” Indiana Gov. Mitch Daniels said in the official GOP response to the speech.
“The challenges aren’t matters of ideology, or party preference; the problems are simply mathematical, and the answers are purely practical.”
