On January 24, President Barack Obama delivered his third State of the Union address to a joint session of the 112th Congress. The president focused primarily on domestic issues, including education, job creation, and tax reform. In laying out his blueprint for the nation, the president said, “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.”
President Obama outlined a proposal for job training and education. The president proposed a program that would partner businesses and community colleges in order to “train 2 million Americans with skills that will lead directly to a job.” Noting that his administration already has “lined up companies that want to help,” he urged Congress to provide more resources to community colleges that will “teach people skills that businesses are looking for right now.” The president added, “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.”
The president also highlighted several proposals for education, saying “[T]o prepare for the jobs of tomorrow, our commitment to skills and education has to start earlier.” He asked Congress to provide schools with resources that would allow them to retain good teachers and the flexibility “to teach with creativity and passion; to stop teaching to the test; and to replace teachers who just aren’t helping kids learn.” President Obama also proposed that every state require students to stay in high school until they graduate or turn 18. His proposals also included provisions to lower the interest rates on student loans and the cost of attending college.
Tax reform was another top priority of the president’s address. He urged Congress to pass the payroll tax cut, saying, “Right now, our most immediate priority is stopping a tax hike on 160 million working Americans while the recovery is still fragile.” He also proposed that tax reform follow “the Buffet Rule”: “If you make more than $1 million a year, you should not pay less than 30 percent in taxes…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…your taxes shouldn’t go up.”
The president also proposed new tax credits for companies that hire veterans, to eliminate tax credits for companies that outsource American jobs, establish minimum taxes for multinational companies, and provide larger tax cuts for American manufacturers. High-tech American manufacturers would see their tax deductions double under the president’s proposal. He said, “It’s time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America.”
The president closed his address by urging cooperation from both sides of the aisle: “This nation is great because we built it together…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.”
