Obama Delivers State of the Union Address

At the U.S. Capitol Tuesday evening, he began the address by congratulating the new Congress and speaker of the House of Representatives, Republican John Boehner. He also noted the absence of Representative Gabrielle Giffords, who was shot in the head in an attack earlier this month, and is recovering at a hospital in Texas.

He said there have been political differences in the two years since he took office. But he said the contentious fights are a "good thing," as that is what a robust democracy demands.

Mr. Obama called for political unity, saying everyone is part of the American family, bound together as one people, sharing common hopes and a common creed. He said the future will be determined by whether elected officials can work together.

He said either the country will move forward together - or not move forward at all. He said the challenges facing the country are bigger than a political party or politics.

President Obama says the United States is poised for progress, with the stock market and corporate profits up and the economy growing again. But he says the country has to do more to ensure its leadership and competitiveness in the future.

Mr. Obama said at stake right now is whether new jobs and industries take root in the U.S., or somewhere else.

President Obama said the country knows what it takes to compete for jobs and industries, and that it needs to rise above the rest of the world in innovation, education and building.

But he said the country needs to take responsibility for its deficit and reform the government, adding that is how the American people will prosper. He said the first step in "winning the future" is to encourage American innovation.

Mr. Obama said the free enterprise system of the United States is what drives innovation. He said many good jobs - from manufacturing to retail - have come from breakthroughs in innovation.

He noted how the Soviets beat the United States into space in 1957 with the launch of a satellite called Sputnik. But he said the United States invested in better research and education and beat the Soviets to the moon. He said those investments "unleashed a wave of innovation" that created new industries and millions of jobs. He said the current generation is at its "Sputnik" moment.

He also called for investments in research and development, including biomedical research, information technology and clean energy technology. He said with more research and incentives, the nation can break its dependence on oil with biofuels, and become the first country to have 1 million electric vehicles on the road by 2015.

He said he is asking Congress to eliminate billions in taxpayer dollars currently given to oil companies, adding that instead of subsidizing "yesterday’s energy" the country should "invest in tomorrow’s." He said breakthroughs in clean energy will create clean energy jobs.

He said revolutions in technology have "transformed the way we live, work and do business." Mr. Obama pointed to China and India as examples of nations that have invested in education, research and new technologies to improve their competitiveness in this new world. But he said this competition for jobs should not discourage Americans, but challenge them.

He said the U.S. still has the "largest, most prosperous economy in the world" and is home to the most successful companies and the best colleges and universities.

He said the future is Americans' to win, but that it will require work and sacrifice.

President Obama says the U.S. must work to lead the world in education in order to achieve success over other countries and "win the future."

Mr. Obama said the quality of U.S. math and science education currently lags behind many other nations, and said the U.S. has fallen to 9th place in the proportion of young people with a college degree.

He highlighted steps his government has taken to improve the U.S. education system, describing a competition his administration launched as "the most meaningful reform" of U.S. public schools in a generation. He said the Race to the Top program has led more than 40 states to raise their standards for teaching and learning.

On higher education, President Obama called on Congress to help make college affordable for more Americans by making permanent a current tuition tax credit worth $10,000 for four years of college.

He also addressed the issue of immigration related to the education system, saying there are hundreds of thousands of undocumented students excelling in American schools. He said "it makes no sense" that many of them are deported after they obtain advanced degrees in the U.S.

The president said he strongly believes the government should take on the issue of illegal immigration. He said he knows the debate will be difficult and take time, but he called on lawmakers to agree to make the effort and stop expelling talented young people who he said "can staff our research labs, start new businesses, and further enrich this nation."

Mr. Obama said another step in winning the future is rebuilding America's infrastructure, including roads, bridges, high-speed rail and high-speed Internet.

He said that to attract new businesses, the country needs the fastest, most reliable ways to move people, goods and information.

He said homes in South Korea have better Internet access than those in the United States. He said Russia and Europe invest more in roads and railways than the United States does.

Mr. Obama said that in the last two years, the United States has begun rebuilding for the 21st century, but he proposed a redoubling of those efforts.

He said the goal is that within 25 years, 80 percent of Americans will have access to high-speed rail. He said that within the next five years, investments will make it possible for businesses to deploy the next generation of high-speed wireless coverage to 98 percent of all Americans.

The president said investments in innovation, education and infrastructure will make America a better place to do business and create jobs - but that barriers still stand in the way of the success of companies. He called for simplification to the tax system and the elimination of tax loopholes. He said the savings can be used to lower the corporate tax rate for the first time in 25 years, without adding to the deficit.

He reiterated his goal of doubling U.S. exports by 2014, saying more exports mean more jobs in the United States. He called for Congress to pass the trade agreement recently finalized with South Korea. He said his administration also is pursuing agreements with Panama and Colombia, and is continuing the Asia-Pacific and global trade talks.

He said he will fix the rules that put an unnecessary burden on businesses, but he will not hesitate to create or enforce "commonsense safeguards" to protect the American people.

President Obama said the country cannot afford a permanent extension to the Bush-era tax cuts for the wealthiest 2 percent of Americans.

He said the best thing the government can do about taxes for all Americans is to simplify the individual tax code. He said now is the time for Congress to act. He said if the country makes the "hard choices now" to rein in deficits, it can make the investments it needs to win the future.

In addition to being more affordable, he said the government should also be more competent and efficient.

He said great strides have been made in the last two years in using technology and getting rid of government waste, but he said more needs to be done. He said that in the coming months, his administration will develop a proposal to merge, consolidate and reorganize the federal government.

The president said government spending will be put online for taxpayers to view, and he called on elected officials to put online when they are meeting with lobbyists. He also said he would veto any legislation with "earmarks" - funding requested by lawmakers for special (pet) projects.

President Obama says the U.S. must defeat determined enemies and remain a leader in the world for those who yearn for freedom, justice and dignity.

He said the U.S. has kept its commitment in Iraq, saying the war there is coming to an end and that the U.S. will finish the job of withdrawing its troops from the country. He said violence in Iraq has come down and a new government has been formed.

He said the U.S. is also continuing its fight against al-Qaida. He said the U.S. has sent a message that it will not "relent" or "waver" and that it will defeat the militant group. He said U.S. officials are disrupting al-Qaida's plots against the U.S. and working to deny it a safe haven in Afghanistan by preventing the Taliban from reestablishing control of the country.

He praised the efforts of U.S. troops and civilians in Afghanistan, saying fewer Afghans are under control of the Taliban insurgency as a result of their efforts.

He said there will be tough fighting ahead, but the U.S. is strengthening the capacity of the Afghan people and building an enduring partnership with them. He said the U.S. will work this year with nearly 50 countries to begin transitioning security responsibility to Afghan forces. And this July, he said the U.S. will begin to bring its troops home.

In Pakistan, he said al-Qaida’s leadership is under more pressure than at any point since 2001. He said the group is losing leaders and operatives and is seeing its safe-havens shrink.

President Obama discussed Iran and North Korea in his State of the Union speech, and applauded U.S. lawmakers for ratifying a New START Treaty with Russia, saying it will result in fewer nuclear weapons and launchers being deployed.

He said nuclear materials are being secured on every continent so that they never fall into the hands of terrorists.

On Iran, he said Tehran now faces tougher and tighter sanctions, as a result of a diplomatic effort to insist that Iran meet its obligations. He said the United States stands with its ally South Korea, and insists that North Korea keep its commitment to abandon nuclear weapons.

He said the United States revitalized NATO with its European allies, reset its relationship with Russia, strengthened its Asian alliances, and built new partnerships with nations like India.

Mr. Obama said he will travel to Brazil, Chile and El Salvador in March to "forge new alliances" across the Americas.

He said recent events have shown that what sets the United States apart must not just be its power, but also the purpose behind it.

He said the United States helped the people of South Sudan vote for independence after years of war. He also noted what he called that "same desire to be free" in Tunisia. He said the will of the people in Tunisia "proved more powerful than the writ of a dictator." He said the U.S. stands with the people of Tunisia, and supports the democratic aspirations of all people.

President Obama said it is time to leave behind the divisive battles of the past and move forward as one nation.

He said the repeal of legislation barring gays from serving openly in the military means that starting this year, no American will be forbidden from serving the country they love because of whom they love.

He said Americans should have no illusions about the work ahead, as none of it will be easy and all of it will take time.

But Mr. Obama said as "contentious and frustrating and messy" as U.S. democracy can be, he knows not one of the lawmakers present for his speech would trade places with any other nation.

He said lawmakers may have differences in policy, opinions and backgrounds but all believe in the American Dream and the rights enshrined in the U.S. Constitution.

President Obama said from the earliest days of its founding, America has been "the story of ordinary people who dare to dream," and that is how the U.S. will win the future. He said it is because of the American people that the state of the union is strong.