Obama's 2013 State of the Union

Fifty-one years ago, John F. Kennedy declared to this Chamber that “the Constitution makes us not rivals for power but partners for progress…It is my task,” he said, “to report the State of the Union – to improve it is the task of us all.”

After a decade of grinding war, our brave men and women in uniform are coming home.

After years of grueling recession, our businesses have created over six million new jobs.

Our housing market is healing, our stock market is rebounding, and consumers, patients, and homeowners enjoy stronger protections than ever before.

Together, we have cleared away the rubble of crisis, and can say with renewed confidence that the state of our union is stronger.

But we gather here knowing that there are millions of Americans whose hard work and dedication have not yet been rewarded.

It is our generation’s task, then, to reignite the true engine of America’s economic growth – a rising, thriving middle class.

They do expect us to forge reasonable compromise where we can.

Our work must begin by making some basic decisions about our budget – decisions that will have a huge impact on the strength of our recovery.

Over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion – mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans.

As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances.

As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances.

In 2011, Congress passed a law saying that if both parties couldn’t agree on a plan to reach our deficit goal, about a trillion dollars’ worth of budget cuts would automatically go into effect this year.

These sudden, harsh, arbitrary cuts would jeopardize our military readiness.

These sudden, harsh, arbitrary cuts would jeopardize our military readiness.

They’d devastate priorities like education, energy, and medical research.

That’s why Democrats, Republicans, business leaders, and economists have already said that these cuts, known here in Washington as “the sequester,” are a really bad idea.

Now, some in this Congress have proposed preventing only the defense cuts by making even bigger cuts to things like education and job training; Medicare and Social Security benefits.

Now, some in this Congress have proposed preventing only the defense cuts by making even bigger cuts to things like education and job training; Medicare and Social Security benefits.

Yes, the biggest driver of our long-term debt is the rising cost of health care for an aging population.

And those of us who care deeply about programs like Medicare must embrace the need for modest reforms – otherwise, our retirement programs will crowd out the investments we need for our children, and jeopardize the promise of a secure retirement for future generations.

But we can’t ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and most powerful.

We won’t grow the middle class simply by shifting the cost of health care or college onto families that are already struggling, or by forcing communities to lay off more teachers, cops, and firefighters.

Most Americans – Democrats, Republicans, and Independents – understand that we can’t just cut our way to prosperity.

They know that broad-based economic growth requires a balanced approach to deficit reduction, with spending cuts and revenue, and with everybody doing their fair share.

On Medicare, I’m prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan Simpson-Bowles commission.

On Medicare, I’m prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan Simpson-Bowles commission.

We’ll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors.

And I am open to additional reforms from both parties, so long as they don’t violate the guarantee of a secure retirement.

And I am open to additional reforms from both parties, so long as they don’t violate the guarantee of a secure retirement.

To hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested, and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well-off and well-connected.

After all, why would we choose to make deeper cuts to education and Medicare just to protect special interest tax breaks?

How does that promote growth?

Now is our best chance for bipartisan, comprehensive tax reform that encourages job creation and helps bring down the deficit.

The American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring; a tax code that ensures billionaires with high-powered accountants can’t pay a lower rate than their hard-working secretaries; a tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that create jobs right here in America.

The American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring; a tax code that ensures billionaires with high-powered accountants can’t pay a lower rate than their hard-working secretaries; a tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that create jobs right here in America.

The American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring; a tax code that ensures billionaires with high-powered accountants can’t pay a lower rate than their hard-working secretaries; a tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that create jobs right here in America.

I realize that tax reform and entitlement reform won’t be easy.

But the alternative will cost us jobs, hurt our economy, and visit hardship on millions of hardworking Americans.

So let’s set party interests aside, and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future.

The greatest nation on Earth cannot keep conducting its business by drifting from one manufactured crisis to the next.

Let’s agree, right here, right now, to keep the people’s government open, pay our bills on time, and always uphold the full faith and credit of the United States of America.

Now, most of us agree that a plan to reduce the deficit must be part of our agenda.

How do we equip our people with the skills needed to do those jobs?

And how do we make sure that hard work leads to a decent living?

Tonight, I’ll lay out additional proposals that are fully paid for and fully consistent with the budget framework both parties agreed to just 18 months ago.

There are things we can do, right now, to accelerate this trend.

Last year, we created our first manufacturing innovation institute in Youngstown, Ohio.

A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3D printing that has the potential to revolutionize the way we make almost everything.

And I ask this Congress to help create a network of fifteen of these hubs and guarantee that the next revolution in manufacturing is Made in America.

Every dollar we invested to map the human genome returned $140 to our economy.

After years of talking about it, we are finally poised to control our own energy future.

And over the last four years, our emissions of the dangerous carbon pollution that threatens our planet have actually fallen.

We can choose to believe that Superstorm Sandy, and the most severe drought in decades, and the worst wildfires some states have ever seen were all just a freak coincidence.

Or we can choose to believe in the overwhelming judgment of science – and act before it’s too late.

I will direct my Cabinet to come up with executive actions we can take, now and in the future, to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy.

So tonight, I propose we use some of our oil and gas revenues to fund an Energy Security Trust that will drive new research and technology to shift our cars and trucks off oil for good.

If a non-partisan coalition of CEOs and retired generals and admirals can get behind this idea, then so can we.

America’s energy sector is just one part of an aging infrastructure badly in need of repair.

America’s energy sector is just one part of an aging infrastructure badly in need of repair.

Ask any CEO where they’d rather locate and hire: a country with deteriorating roads and bridges, or one with high-speed rail and internet; high-tech schools and self-healing power grids.

Tonight, I propose a “Fix-It-First” program to put people to work as soon as possible on our most urgent repairs, like the nearly 70,000 structurally deficient bridges across the country.

And to make sure taxpayers don’t shoulder the whole burden, I’m also proposing a Partnership to Rebuild America that attracts private capital to upgrade what our businesses need most: modern ports to move our goods; modern pipelines to withstand a storm; modern schools worthy of our children.

Part of our rebuilding effort must also involve our housing sector.

These initiatives in manufacturing, energy, infrastructure, and housing will help entrepreneurs and small business owners expand and create new jobs.

But today, fewer than 3 in 10 four year-olds are enrolled in a high-quality preschool program.

Every dollar we invest in high-quality early education can save more than seven dollars later on – by boosting graduation rates, reducing teen pregnancy, even reducing violent crime.

Right now, countries like Germany focus on graduating their high school students with the equivalent of a technical degree from one of our community colleges, so that they’re ready for a job.

Four years ago, we started Race to the Top – a competition that convinced almost every state to develop smarter curricula and higher standards, for about 1 percent of what we spend on education each year.

But taxpayers cannot continue to subsidize the soaring cost of higher education.

And tomorrow, my Administration will release a new “College Scorecard” that parents and students can use to compare schools based on a simple criteria: where you can get the most bang for your educational buck.

Our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants.

And real reform means fixing the legal immigration system to cut waiting periods, reduce bureaucracy, and attract the highly-skilled entrepreneurs and engineers that will help create jobs and grow our economy.

As we speak, bipartisan groups in both chambers are working diligently to draft a bill, and I applaud their efforts.

We know our economy is stronger when our wives, mothers, and daughters can live their lives free from discrimination in the workplace, and free from the fear of domestic violence.

Tonight, let’s also recognize that there are communities in this country where no matter how hard you work, it’s virtually impossible to get ahead.

America is not a place where chance of birth or circumstance should decide our destiny.

Let’s put people back to work rebuilding vacant homes in run-down neighborhoods.

And we’ll work to strengthen families by removing the financial deterrents to marriage for low-income couples, and doing more to encourage fatherhood – because what makes you a man isn’t the ability to conceive a child; it’s having the courage to raise one.

Tonight, we stand united in saluting the troops and civilians who sacrifice every day to protect us.

Beyond 2014, America’s commitment to a unified and sovereign Afghanistan will endure, but the nature of our commitment will change.

Instead, we will need to help countries like Yemen, Libya, and Somalia provide for their own security, and help allies who take the fight to terrorists, as we have in Mali.

That is why my Administration has worked tirelessly to forge a durable legal and policy framework to guide our counterterrorism operations.

I recognize that in our democracy, no one should just take my word that we’re doing things the right way.

Likewise, the leaders of Iran must recognize that now is the time for a diplomatic solution, because a coalition stands united in demanding that they meet their obligations, and we will do what is necessary to prevent them from getting a nuclear weapon.

At the same time, we will engage Russia to seek further reductions in our nuclear arsenals, and continue leading the global effort to secure nuclear materials that could fall into the wrong hands – because our ability to influence others depends on our willingness to lead.

Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, and our air traffic control systems.

So the United States will join with our allies to eradicate such extreme poverty in the next two decades: by connecting more people to the global economy and empowering women; by giving our young and brightest minds new opportunities to serve and helping communities to feed, power, and educate themselves; by saving the world’s children from preventable deaths; and by realizing the promise of an AIDS-free generation.

The process will be messy, and we cannot presume to dictate the course of change in countries like Egypt; but we can – and will – insist on respect for the fundamental rights of all people.

And we will stand steadfast with Israel in pursuit of security and a lasting peace.

And we will stand steadfast with Israel in pursuit of security and a lasting peace.

All this work depends on the courage and sacrifice of those who serve in dangerous places at great personal risk – our diplomats, our intelligence officers, and the men and women of the United States Armed Forces.

All this work depends on the courage and sacrifice of those who serve in dangerous places at great personal risk – our diplomats, our intelligence officers, and the men and women of the United States Armed Forces.

We will keep faith with our veterans – investing in world-class care, including mental health care, for our wounded warriors; supporting our military families; and giving our veterans the benefits, education, and job opportunities they have earned.

When any Americans – no matter where they live or what their party – are denied that right simply because they can’t wait for five, six, seven hours just to cast their ballot, we are betraying our ideals.

Overwhelming majorities of Americans – Americans who believe in the 2nd Amendment – have come together around commonsense reform – like background checks that will make it harder for criminals to get their hands on a gun.

Police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets, because they are tired of being outgunned.

Just three weeks ago, she was here, in Washington, with her classmates, performing for her country at my inauguration.

Indeed, no laws, no initiatives, no administrative acts will perfectly solve all the challenges I’ve outlined tonight.

But we were never sent here to be perfect.