President Obama's 2012 State of the Union Address

January 25, 2012

Ni. Speakei, Ni. vice Piesiuent, membeis of Congiess, uistinguisheu guests, anu fellow
Ameiicans:

Last month, I went to Anuiews Aii Foice Base anu welcomeu home some of oui last tioops to
seive in Iiaq. Togethei, we offeieu a final, piouu salute to the colois unuei which moie than a
million of oui fellow citizens fought -- anu seveial thousanu gave theii lives.

We gathei tonight knowing that this geneiation of heioes has maue the 0niteu States safei anu
moie iespecteu aiounu the woilu. (Applause.) Foi the fiist time in nine yeais, theie aie no
Ameiicans fighting in Iiaq. (Applause.) Foi the fiist time in two uecaues, 0sama bin Lauen is not
a thieat to this countiy. (Applause.) Nost of al Qaeua's top lieutenants have been uefeateu. The
Taliban's momentum has been bioken, anu some tioops in Afghanistan have begun to come
home.

These achievements aie a testament to the couiage, selflessness anu teamwoik of Ameiica's
Aimeu Foices. At a time when too many of oui institutions have let us uown, they exceeu all
expectations. They'ie not consumeu with peisonal ambition. They uon't obsess ovei theii
uiffeiences. They focus on the mission at hanu. They woik togethei.

Imagine what we coulu accomplish if we followeu theii example. (Applause.) Think about the
Ameiica within oui ieach: A countiy that leaus the woilu in euucating its people. An Ameiica
that attiacts a new geneiation of high-tech manufactuiing anu high-paying jobs. A futuie wheie
we'ie in contiol of oui own eneigy, anu oui secuiity anu piospeiity aien't so tieu to unstable
paits of the woilu. An economy built to last, wheie haiu woik pays off, anu iesponsibility is
iewaiueu.

We can uo this. I know we can, because we've uone it befoie. At the enu of Woilu Wai II, when
anothei geneiation of heioes ietuineu home fiom combat, they built the stiongest economy anu
miuule class the woilu has evei known. (Applause.) Ny gianufathei, a veteian of Patton's Aimy,
got the chance to go to college on the uI Bill. Ny gianumothei, who woikeu on a bombei
assembly line, was pait of a woikfoice that tuineu out the best piouucts on Eaith.

The two of them shaieu the optimism of a nation that hau tiiumpheu ovei a uepiession anu
fascism. They unueistoou they weie pait of something laigei; that they weie contiibuting to a
stoiy of success that eveiy Ameiican hau a chance to shaie -- the basic Ameiican piomise that if
you woikeu haiu, you coulu uo well enough to iaise a family, own a home, senu youi kius to
college, anu put a little away foi ietiiement.

The uefining issue of oui time is how to keep that piomise alive. No challenge is moie uigent. No
uebate is moie impoitant. We can eithei settle foi a countiy wheie a shiinking numbei of people
uo ieally well while a giowing numbei of Ameiicans baiely get by, oi we can iestoie an economy
wheie eveiyone gets a faii shot, anu eveiyone uoes theii faii shaie, anu eveiyone plays by the
same set of iules. (Applause.) What's at stake aien't Bemociatic values oi Republican values, but
Ameiican values. Anu we have to ieclaim them.

Let's iemembei how we got heie. Long befoie the iecession, jobs anu manufactuiing began
leaving oui shoies. Technology maue businesses moie efficient, but also maue some jobs
obsolete. Folks at the top saw theii incomes iise like nevei befoie, but most haiuwoiking
Ameiicans stiuggleu with costs that weie giowing, paychecks that weien't, anu peisonal uebt
that kept piling up.

In 2uu8, the house of caius collapseu. We leaineu that moitgages hau been solu to people who
coulun't affoiu oi unueistanu them. Banks hau maue huge bets anu bonuses with othei people's
money. Regulatois hau lookeu the othei way, oi uiun't have the authoiity to stop the bau
behavioi.

It was wiong. It was iiiesponsible. Anu it plungeu oui economy into a ciisis that put millions out
of woik, sauuleu us with moie uebt, anu left innocent, haiuwoiking Ameiicans holuing the bag.
In the six months befoie I took office, we lost neaily 4 million jobs. Anu we lost anothei 4 million
befoie oui policies weie in full effect.

Those aie the facts. But so aie these: In the last 22 months, businesses have cieateu moie than S
million jobs. (Applause.)

Last yeai, they cieateu the most jobs since 2uuS. Ameiican manufactuieis aie hiiing again,
cieating jobs foi the fiist time since the late 199us. Togethei, we've agieeu to cut the ueficit by
moie than $2 tiillion. Anu we've put in place new iules to holu Wall Stieet accountable, so a
ciisis like this nevei happens again. (Applause.)

The state of oui 0nion is getting stiongei. Anu we've come too fai to tuin back now. As long as
I'm Piesiuent, I will woik with anyone in this chambei to builu on this momentum. But I intenu
to fight obstiuction with action, anu I will oppose any effoit to ietuin to the veiy same policies
that biought on this economic ciisis in the fiist place. (Applause.)

No, we will not go back to an economy weakeneu by outsouicing, bau uebt, anu phony financial
piofits. Tonight, I want to speak about how we move foiwaiu, anu lay out a bluepiint foi an
economy that's built to last -- an economy built on Ameiican manufactuiing, Ameiican eneigy,
skills foi Ameiican woikeis, anu a ienewal of Ameiican values.

Now, this bluepiint begins with Ameiican manufactuiing.

0n the uay I took office, oui auto inuustiy was on the veige of collapse. Some even saiu we
shoulu let it uie. With a million jobs at stake, I iefuseu to let that happen. In exchange foi help,
we uemanueu iesponsibility. We got woikeis anu automakeis to settle theii uiffeiences. We got
the inuustiy to ietool anu iestiuctuie. Touay, ueneial Notois is back on top as the woilu's
numbei-one automakei. (Applause.) Chiyslei has giown fastei in the 0.S. than any majoi cai
company. Foiu is investing billions in 0.S. plants anu factoiies. Anu togethei, the entiie inuustiy
auueu neaily 16u,uuu jobs.

We bet on Ameiican woikeis. We bet on Ameiican ingenuity. Anu tonight, the Ameiican auto
inuustiy is back. (Applause.)

What's happening in Betioit can happen in othei inuustiies. It can happen in Clevelanu anu
Pittsbuigh anu Raleigh. We can't biing eveiy job back that's left oui shoie. But iight now, it's
getting moie expensive to uo business in places like China. Neanwhile, Ameiica is moie
piouuctive. A few weeks ago, the CE0 of Nastei Lock tolu me that it now makes business sense
foi him to biing jobs back home. (Applause.) Touay, foi the fiist time in 1S yeais, Nastei Lock's
unionizeu plant in Nilwaukee is iunning at full capacity. (Applause.)

So we have a huge oppoitunity, at this moment, to biing manufactuiing back. But we have to
seize it. Tonight, my message to business leaueis is simple: Ask youiselves what you can uo to
biing jobs back to youi countiy, anu youi countiy will uo eveiything we can to help you succeeu.
(Applause.)

We shoulu stait with oui tax coue. Right now, companies get tax bieaks foi moving jobs anu
piofits oveiseas. Neanwhile, companies that choose to stay in Ameiica get hit with one of the
highest tax iates in the woilu. It makes no sense, anu eveiyone knows it. So let's change it.

Fiist, if you'ie a business that wants to outsouice jobs, you shoulun't get a tax ueuuction foi uoing
it. (Applause.) That money shoulu be useu to covei moving expenses foi companies like Nastei
Lock that ueciue to biing jobs home. (Applause.)

Seconu, no Ameiican company shoulu be able to avoiu paying its faii shaie of taxes by moving
jobs anu piofits oveiseas. (Applause.) Fiom now on, eveiy multinational company shoulu have
to pay a basic minimum tax. Anu eveiy penny shoulu go towaius loweiing taxes foi companies
that choose to stay heie anu hiie heie in Ameiica. (Applause.)

Thiiu, if you'ie an Ameiican manufactuiei, you shoulu get a biggei tax cut. If you'ie a high-tech
manufactuiei, we shoulu uouble the tax ueuuction you get foi making youi piouucts heie. Anu if
you want to ielocate in a community that was hit haiu when a factoiy left town, you shoulu get
help financing a new plant, equipment, oi tiaining foi new woikeis. (Applause.)

So my message is simple. It is time to stop iewaiuing businesses that ship jobs oveiseas, anu
stait iewaiuing companies that cieate jobs iight heie in Ameiica. Senu me these tax iefoims, anu
I will sign them iight away. (Applause.)

We'ie also making it easiei foi Ameiican businesses to sell piouucts all ovei the woilu. Two
yeais ago, I set a goal of uoubling 0.S. expoits ovei five yeais. With the bipaitisan tiaue
agieements we signeu into law, we'ie on tiack to meet that goal aheau of scheuule. (Applause.)
Anu soon, theie will be millions of new customeis foi Ameiican goous in Panama, Colombia, anu
South Koiea. Soon, theie will be new cais on the stieets of Seoul impoiteu fiom Betioit, anu
Toleuo, anu Chicago. (Applause.)

I will go anywheie in the woilu to open new maikets foi Ameiican piouucts. Anu I will not stanu
by when oui competitois uon't play by the iules. We've biought tiaue cases against China at
neaily twice the iate as the last auministiation -- anu it's maue a uiffeience. (Applause.) 0vei a
thousanu Ameiicans aie woiking touay because we stoppeu a suige in Chinese tiies. But we
neeu to uo moie. It's not iight when anothei countiy lets oui movies, music, anu softwaie be
piiateu. It's not faii when foieign manufactuieis have a leg up on ouis only because they'ie
heavily subsiuizeu.

Tonight, I'm announcing the cieation of a Tiaue Enfoicement 0nit that will be chaigeu with
investigating unfaii tiauing piactices in countiies like China. (Applause.) Theie will be moie
inspections to pievent counteifeit oi unsafe goous fiom ciossing oui boiueis. Anu this Congiess
shoulu make suie that no foieign company has an auvantage ovei Ameiican manufactuiing when
it comes to accessing financing oi new maikets like Russia. 0ui woikeis aie the most piouuctive
on Eaith, anu if the playing fielu is level, I piomise you -- Ameiica will always win. (Applause.)

I also heai fiom many business leaueis who want to hiie in the 0niteu States but can't finu
woikeis with the iight skills. uiowing inuustiies in science anu technology have twice as many
openings as we have woikeis who can uo the job. Think about that -- openings at a time when
millions of Ameiicans aie looking foi woik. It's inexcusable. Anu we know how to fix it.

}ackie Biay is a single mom fiom Noith Caiolina who was laiu off fiom hei job as a mechanic.
Then Siemens openeu a gas tuibine factoiy in Chailotte, anu foimeu a paitneiship with Cential
Pieumont Community College. The company helpeu the college uesign couises in lasei anu
iobotics tiaining. It paiu }ackie's tuition, then hiieu hei to help opeiate theii plant.

I want eveiy Ameiican looking foi woik to have the same oppoitunity as }ackie uiu. }oin me in a
national commitment to tiain 2 million Ameiicans with skills that will leau uiiectly to a job.
(Applause.) Ny auministiation has alieauy lineu up moie companies that want to help. Nouel
paitneiships between businesses like Siemens anu community colleges in places like Chailotte,
anu 0ilanuo, anu Louisville aie up anu iunning. Now you neeu to give moie community colleges
the iesouices they neeu to become community caieei centeis -- places that teach people skills
that businesses aie looking foi iight now, fiom uata management to high-tech manufactuiing.

Anu I want to cut thiough the maze of confusing tiaining piogiams, so that fiom now on, people
like }ackie have one piogiam, one website, anu one place to go foi all the infoimation anu help
that they neeu. It is time to tuin oui unemployment system into a ieemployment system that
puts people to woik. (Applause.)

These iefoims will help people get jobs that aie open touay. But to piepaie foi the jobs of
tomoiiow, oui commitment to skills anu euucation has to stait eailiei.

Foi less than 1 peicent of what oui nation spenus on euucation each yeai, we've convinceu neaily
eveiy state in the countiy to iaise theii stanuaius foi teaching anu leaining -- the fiist time that's
happeneu in a geneiation.

But challenges iemain. Anu we know how to solve them.

At a time when othei countiies aie uoubling uown on euucation, tight buugets have foiceu states
to lay off thousanus of teacheis. We know a goou teachei can inciease the lifetime income of a
classioom by ovei $2Su,uuu. A gieat teachei can offei an escape fiom poveity to the chilu who
uieams beyonu his ciicumstance. Eveiy peison in this chambei can point to a teachei who
changeu the tiajectoiy of theii lives. Nost teacheis woik tiielessly, with mouest pay, sometimes
uigging into theii own pocket foi school supplies -- just to make a uiffeience.

Teacheis mattei. So insteau of bashing them, oi uefenuing the status quo, let's offei schools a
ueal. uive them the iesouices to keep goou teacheis on the job, anu iewaiu the best ones.
(Applause.) Anu in ietuin, giant schools flexibility: to teach with cieativity anu passion; to stop
teaching to the test; anu to ieplace teacheis who just aien't helping kius leain. That's a baigain
woith making. (Applause.)

We also know that when stuuents uon't walk away fiom theii euucation, moie of them walk the
stage to get theii uiploma. When stuuents aie not alloweu to uiop out, they uo bettei. So tonight,
I am pioposing that eveiy state -- eveiy state -- iequiies that all stuuents stay in high school until
they giauuate oi tuin 18. (Applause.)

When kius uo giauuate, the most uaunting challenge can be the cost of college. At a time when
Ameiicans owe moie in tuition uebt than cieuit caiu uebt, this Congiess neeus to stop the
inteiest iates on stuuent loans fiom uoubling in }uly. (Applause.)

Extenu the tuition tax cieuit we staiteu that saves millions of miuule-class families thousanus of
uollais, anu give moie young people the chance to eain theii way thiough college by uoubling the
numbei of woik-stuuy jobs in the next five yeais. (Applause.)

0f couise, it's not enough foi us to inciease stuuent aiu. We can't just keep subsiuizing
skyiocketing tuition; we'll iun out of money. States also neeu to uo theii pait, by making highei
euucation a highei piioiity in theii buugets. Anu colleges anu univeisities have to uo theii pait
by woiking to keep costs uown.

Recently, I spoke with a gioup of college piesiuents who've uone just that. Some schools ieuesign
couises to help stuuents finish moie quickly. Some use bettei technology. The point is, it's
possible. So let me put colleges anu univeisities on notice: If you can't stop tuition fiom going up,
the funuing you get fiom taxpayeis will go uown. (Applause.) Bighei euucation can't be a luxuiy
-- it is an economic impeiative that eveiy family in Ameiica shoulu be able to affoiu.

Let's also iemembei that hunuieus of thousanus of talenteu, haiuwoiking stuuents in this
countiy face anothei challenge: the fact that they aien't yet Ameiican citizens. Nany weie
biought heie as small chiluien, aie Ameiican thiough anu thiough, yet they live eveiy uay with
the thieat of uepoitation. 0theis came moie iecently, to stuuy business anu science anu
engineeiing, but as soon as they get theii uegiee, we senu them home to invent new piouucts anu
cieate new jobs somewheie else.

That uoesn't make sense.

I believe as stiongly as evei that we shoulu take on illegal immigiation. That's why my
auministiation has put moie boots on the boiuei than evei befoie. That's why theie aie fewei
illegal ciossings than when I took office. The opponents of action aie out of excuses. We shoulu
be woiking on compiehensive immigiation iefoim iight now. (Applause.)

But if election-yeai politics keeps Congiess fiom acting on a compiehensive plan, let's at least
agiee to stop expelling iesponsible young people who want to staff oui labs, stait new
businesses, uefenu this countiy. Senu me a law that gives them the chance to eain theii
citizenship. I will sign it iight away. (Applause.)

You see, an economy built to last is one wheie we encouiage the talent anu ingenuity of eveiy
peison in this countiy. That means women shoulu eain equal pay foi equal woik. (Applause.) It
means we shoulu suppoit eveiyone who's willing to woik, anu eveiy iisk-takei anu entiepieneui
who aspiies to become the next Steve }obs.

Aftei all, innovation is what Ameiica has always been about. Nost new jobs aie cieateu in stait-
ups anu small businesses. So let's pass an agenua that helps them succeeu. Teai uown
iegulations that pievent aspiiing entiepieneuis fiom getting the financing to giow. (Applause.)
Expanu tax ielief to small businesses that aie iaising wages anu cieating goou jobs. Both paities
agiee on these iueas. So put them in a bill, anu get it on my uesk this yeai. (Applause.)

Innovation also uemanus basic ieseaich. Touay, the uiscoveiies taking place in oui feueially
financeu labs anu univeisities coulu leau to new tieatments that kill cancei cells but leave healthy
ones untoucheu. New lightweight vests foi cops anu soluieis that can stop any bullet. Bon't gut
these investments in oui buuget. Bon't let othei countiies win the iace foi the futuie. Suppoit
the same kinu of ieseaich anu innovation that leu to the computei chip anu the Inteinet; to new
Ameiican jobs anu new Ameiican inuustiies.

Anu nowheie is the piomise of innovation gieatei than in Ameiican-maue eneigy. 0vei the last
thiee yeais, we've openeu millions of new acies foi oil anu gas exploiation, anu tonight, I'm
uiiecting my auministiation to open moie than 7S peicent of oui potential offshoie oil anu gas
iesouices. (Applause.) Right now -- iight now -- Ameiican oil piouuction is the highest that it's
been in eight yeais. That's iight -- eight yeais. Not only that -- last yeai, we ielieu less on foieign
oil than in any of the past 16 yeais. (Applause.)

But with only 2 peicent of the woilu's oil ieseives, oil isn't enough. This countiy neeus an all-out,
all-of-the-above stiategy that uevelops eveiy available souice of Ameiican eneigy. (Applause.) A
stiategy that's cleanei, cheapei, anu full of new jobs.

We have a supply of natuial gas that can last Ameiica neaily 1uu yeais. (Applause.) Anu my
auministiation will take eveiy possible action to safely uevelop this eneigy. Expeits believe this
will suppoit moie than 6uu,uuu jobs by the enu of the uecaue. Anu I'm iequiiing all companies
that uiill foi gas on public lanus to uisclose the chemicals they use. (Applause.) Because Ameiica
will uevelop this iesouice without putting the health anu safety of oui citizens at iisk.

The uevelopment of natuial gas will cieate jobs anu powei tiucks anu factoiies that aie cleanei
anu cheapei, pioving that we uon't have to choose between oui enviionment anu oui economy.
(Applause.) Anu by the way, it was public ieseaich uollais, ovei the couise of Su yeais, that
helpeu uevelop the technologies to extiact all this natuial gas out of shale iock -- ieminuing us
that goveinment suppoit is ciitical in helping businesses get new eneigy iueas off the giounu.
(Applause.)

Now, what's tiue foi natuial gas is just as tiue foi clean eneigy. In thiee yeais, oui paitneiship
with the piivate sectoi has alieauy positioneu Ameiica to be the woilu's leauing manufactuiei of
high-tech batteiies. Because of feueial investments, ienewable eneigy use has neaily uoubleu,
anu thousanus of Ameiicans have jobs because of it.

When Biyan Ritteiby was laiu off fiom his job making fuinituie, he saiu he woiiieu that at SS, no
one woulu give him a seconu chance. But he founu woik at Eneigetx, a winu tuibine
manufactuiei in Nichigan. Befoie the iecession, the factoiy only maue luxuiy yachts. Touay, it's
hiiing woikeis like Biyan, who saiu, "I'm piouu to be woiking in the inuustiy of the futuie."

0ui expeiience with shale gas, oui expeiience with natuial gas, shows us that the payoffs on
these public investments uon't always come iight away. Some technologies uon't pan out; some
companies fail. But I will not walk away fiom the piomise of clean eneigy. I will not walk away
fiom woikeis like Biyan. (Applause.) I will not ceue the winu oi solai oi batteiy inuustiy to
China oi ueimany because we iefuse to make the same commitment heie.

We've subsiuizeu oil companies foi a centuiy. That's long enough. (Applause.) It's time to enu
the taxpayei giveaways to an inuustiy that iaiely has been moie piofitable, anu uouble-uown on
a clean eneigy inuustiy that nevei has been moie piomising. Pass clean eneigy tax cieuits.
Cieate these jobs. (Applause.)

We can also spui eneigy innovation with new incentives. The uiffeiences in this chambei may be
too ueep iight now to pass a compiehensive plan to fight climate change. But theie's no ieason
why Congiess shoulun't at least set a clean eneigy stanuaiu that cieates a maiket foi innovation.
So fai, you haven't acteu. Well, tonight, I will. I'm uiiecting my auministiation to allow the
uevelopment of clean eneigy on enough public lanu to powei S million homes. Anu I'm piouu to
announce that the Bepaitment of Befense, woiking with us, the woilu's laigest consumei of
eneigy, will make one of the laigest commitments to clean eneigy in histoiy -- with the Navy
puichasing enough capacity to powei a quaitei of a million homes a yeai. (Applause.)

0f couise, the easiest way to save money is to waste less eneigy. So heie's a pioposal: Belp
manufactuieis eliminate eneigy waste in theii factoiies anu give businesses incentives to
upgiaue theii builuings. Theii eneigy bills will be $1uu billion lowei ovei the next uecaue, anu
Ameiica will have less pollution, moie manufactuiing, moie jobs foi constiuction woikeis who
neeu them. Senu me a bill that cieates these jobs. (Applause.)

Builuing this new eneigy futuie shoulu be just one pait of a bioauei agenua to iepaii Ameiica's
infiastiuctuie. So much of Ameiica neeus to be iebuilt. We've got ciumbling ioaus anu biiuges; a
powei giiu that wastes too much eneigy; an incomplete high-speeu bioaubanu netwoik that
pievents a small business ownei in iuial Ameiica fiom selling hei piouucts all ovei the woilu.

Buiing the uieat Bepiession, Ameiica built the Boovei Bam anu the uoluen uate Biiuge. Aftei
Woilu Wai II, we connecteu oui states with a system of highways. Bemociatic anu Republican
auministiations investeu in gieat piojects that benefiteu eveiybouy, fiom the woikeis who built
them to the businesses that still use them touay.

In the next few weeks, I will sign an executive oiuei cleaiing away the ieu tape that slows uown
too many constiuction piojects. But you neeu to funu these piojects. Take the money we'ie no
longei spenuing at wai, use half of it to pay uown oui uebt, anu use the iest to uo some nation-
builuing iight heie at home. (Applause.)

Theie's nevei been a bettei time to builu, especially since the constiuction inuustiy was one of
the haiuest hit when the housing bubble buist. 0f couise, constiuction woikeis weien't the only
ones who weie huit. So weie millions of innocent Ameiicans who've seen theii home values
uecline. Anu while goveinment can't fix the pioblem on its own, iesponsible homeowneis
shoulun't have to sit anu wait foi the housing maiket to hit bottom to get some ielief.

Anu that's why I'm senuing this Congiess a plan that gives eveiy iesponsible homeownei the
chance to save about $S,uuu a yeai on theii moitgage, by iefinancing at histoiically low iates.
(Applause.) No moie ieu tape. No moie iunaiounu fiom the banks. A small fee on the laigest
financial institutions will ensuie that it won't auu to the ueficit anu will give those banks that
weie iescueu by taxpayeis a chance to iepay a ueficit of tiust. (Applause.)

Let's nevei foiget: Nillions of Ameiicans who woik haiu anu play by the iules eveiy uay ueseive
a goveinment anu a financial system that uo the same. It's time to apply the same iules fiom top
to bottom. No bailouts, no hanuouts, anu no copouts. An Ameiica built to last insists on
iesponsibility fiom eveiybouy.

We've all paiu the piice foi lenueis who solu moitgages to people who coulun't affoiu them, anu
buyeis who knew they coulun't affoiu them. That's why we neeu smait iegulations to pievent
iiiesponsible behavioi. (Applause.) Rules to pievent financial fiauu oi toxic uumping oi faulty
meuical uevices -- these uon't uestioy the fiee maiket. They make the fiee maiket woik bettei.

Theie's no question that some iegulations aie outuateu, unnecessaiy, oi too costly. In fact, I've
appioveu fewei iegulations in the fiist thiee yeais of my piesiuency than my Republican
pieuecessoi uiu in his. (Applause.) I've oiueieu eveiy feueial agency to eliminate iules that
uon't make sense. We've alieauy announceu ovei Suu iefoims, anu just a fiaction of them will
save business anu citizens moie than $1u billion ovei the next five yeais. We got iiu of one iule
fiom 4u yeais ago that coulu have foiceu some uaiiy faimeis to spenu $1u,uuu a yeai pioving
that they coulu contain a spill -- because milk was somehow classifieu as an oil. With a iule like
that, I guess it was woith ciying ovei spilleu milk. (Laughtei anu applause.)

Now, I'm confiuent a faimei can contain a milk spill without a feueial agency looking ovei his
shouluei. (Applause.) Absolutely. But I will not back uown fiom making suie an oil company can
contain the kinu of oil spill we saw in the uulf two yeais ago. (Applause.) I will not back uown
fiom piotecting oui kius fiom meicuiy poisoning, oi making suie that oui foou is safe anu oui
watei is clean. I will not go back to the uays when health insuiance companies hau uncheckeu
powei to cancel youi policy, ueny youi coveiage, oi chaige women uiffeiently than men.
(Applause.)

Anu I will not go back to the uays when Wall Stieet was alloweu to play by its own set of iules.
The new iules we passeu iestoie what shoulu be any financial system's coie puipose: uetting
funuing to entiepieneuis with the best iueas, anu getting loans to iesponsible families who want
to buy a home, oi stait a business, oi senu theii kius to college.

So if you aie a big bank oi financial institution, you'ie no longei alloweu to make iisky bets with
youi customeis' ueposits. You'ie iequiieu to wiite out a "living will" that uetails exactly how
you'll pay the bills if you fail -- because the iest of us aie not bailing you out evei again.
(Applause.) Anu if you'ie a moitgage lenuei oi a payuay lenuei oi a cieuit caiu company, the
uays of signing people up foi piouucts they can't affoiu with confusing foims anu ueceptive
piactices -- those uays aie ovei. Touay, Ameiican consumeis finally have a watchuog in Richaiu
Coiuiay with one job: To look out foi them. (Applause.)

We'll also establish a Financial Ciimes 0nit of highly tiaineu investigatois to ciack uown on laige-
scale fiauu anu piotect people's investments. Some financial fiims violate majoi anti-fiauu laws
because theie's no ieal penalty foi being a iepeat offenuei. That's bau foi consumeis, anu it's bau
foi the vast majoiity of bankeis anu financial seivice piofessionals who uo the iight thing. So
pass legislation that makes the penalties foi fiauu count.

Anu tonight, I'm asking my Attoiney ueneial to cieate a special unit of feueial piosecutois anu
leauing state attoiney geneial to expanu oui investigations into the abusive lenuing anu
packaging of iisky moitgages that leu to the housing ciisis. (Applause.) This new unit will holu
accountable those who bioke the law, speeu assistance to homeowneis, anu help tuin the page
on an eia of iecklessness that huit so many Ameiicans.

Now, a ietuin to the Ameiican values of faii play anu shaieu iesponsibility will help piotect oui
people anu oui economy. But it shoulu also guiue us as we look to pay uown oui uebt anu invest
in oui futuie.

Right now, oui most immeuiate piioiity is stopping a tax hike on 16u million woiking Ameiicans
while the iecoveiy is still fiagile. (Applause.) People cannot affoiu losing $4u out of each
paycheck this yeai. Theie aie plenty of ways to get this uone. So let's agiee iight heie, iight now:
No siue issues. No uiama. Pass the payioll tax cut without uelay. Let's get it uone. (Applause.)

When it comes to the ueficit, we've alieauy agieeu to moie than $2 tiillion in cuts anu savings.
But we neeu to uo moie, anu that means making choices. Right now, we'ie poiseu to spenu
neaily $1 tiillion moie on what was supposeu to be a tempoiaiy tax bieak foi the wealthiest 2
peicent of Ameiicans. Right now, because of loopholes anu shelteis in the tax coue, a quaitei of
all millionaiies pay lowei tax iates than millions of miuule-class householus. Right now, Waiien
Buffett pays a lowei tax iate than his secietaiy.

Bo we want to keep these tax cuts foi the wealthiest Ameiicans. 0i uo we want to keep oui
investments in eveiything else -- like euucation anu meuical ieseaich; a stiong militaiy anu caie
foi oui veteians. Because if we'ie seiious about paying uown oui uebt, we can't uo both.

The Ameiican people know what the iight choice is. So uo I. As I tolu the Speakei this summei,
I'm piepaieu to make moie iefoims that iein in the long-teim costs of Neuicaie anu Neuicaiu,
anu stiengthen Social Secuiity, so long as those piogiams iemain a guaiantee of secuiity foi
seniois.

But in ietuin, we neeu to change oui tax coue so that people like me, anu an awful lot of membeis
of Congiess, pay oui faii shaie of taxes. (Applause.)

Tax iefoim shoulu follow the Buffett Rule. If you make moie than $1 million a yeai, you shoulu
not pay less than Su peicent in taxes. Anu my Republican fiienu Tom Cobuin is iight:
Washington shoulu stop subsiuizing millionaiies. In fact, if you'ie eaining a million uollais a
yeai, you shoulun't get special tax subsiuies oi ueuuctions. 0n the othei hanu, if you make unuei
$2Su,uuu a yeai, like 98 peicent of Ameiican families, youi taxes shoulun't go up. (Applause.)
You'ie the ones stiuggling with iising costs anu stagnant wages. You'ie the ones who neeu ielief.

Now, you can call this class waifaie all you want. But asking a billionaiie to pay at least as much
as his secietaiy in taxes. Nost Ameiicans woulu call that common sense.

We uon't begiuuge financial success in this countiy. We aumiie it. When Ameiicans talk about
folks like me paying my faii shaie of taxes, it's not because they envy the iich. It's because they
unueistanu that when I get a tax bieak I uon't neeu anu the countiy can't affoiu, it eithei auus to
the ueficit, oi somebouy else has to make up the uiffeience -- like a senioi on a fixeu income, oi a
stuuent tiying to get thiough school, oi a family tiying to make enus meet. That's not iight.
Ameiicans know that's not iight. They know that this geneiation's success is only possible
because past geneiations felt a iesponsibility to each othei, anu to the futuie of theii countiy, anu
they know oui way of life will only enuuie if we feel that same sense of shaieu iesponsibility.
That's how we'll ieuuce oui ueficit. That's an Ameiica built to last. (Applause.)

Now, I iecognize that people watching tonight have uiffeiing views about taxes anu uebt, eneigy
anu health caie. But no mattei what paity they belong to, I bet most Ameiicans aie thinking the
same thing iight about now: Nothing will get uone in Washington this yeai, oi next yeai, oi
maybe even the yeai aftei that, because Washington is bioken.

Can you blame them foi feeling a little cynical.

The gieatest blow to oui confiuence in oui economy last yeai uiun't come fiom events beyonu
oui contiol. It came fiom a uebate in Washington ovei whethei the 0niteu States woulu pay its
bills oi not. Who benefiteu fiom that fiasco.

I've talkeu tonight about the ueficit of tiust between Nain Stieet anu Wall Stieet. But the uiviue
between this city anu the iest of the countiy is at least as bau -- anu it seems to get woise eveiy
yeai.

Some of this has to uo with the coiiosive influence of money in politics. So togethei, let's take
some steps to fix that. Senu me a bill that bans insiuei tiauing by membeis of Congiess; I will
sign it tomoiiow. (Applause.) Let's limit any electeu official fiom owning stocks in inuustiies
they impact. Let's make suie people who bunule campaign contiibutions foi Congiess can't lobby
Congiess, anu vice veisa -- an iuea that has bipaitisan suppoit, at least outsiue of Washington.

Some of what's bioken has to uo with the way Congiess uoes its business these uays. A simple
majoiity is no longei enough to get anything -- even ioutine business -- passeu thiough the
Senate. (Applause.) Neithei paity has been blameless in these tactics. Now both paities shoulu
put an enu to it. (Applause.) Foi staiteis, I ask the Senate to pass a simple iule that all juuicial
anu public seivice nominations ieceive a simple up oi uown vote within 9u uays. (Applause.)

The executive bianch also neeus to change. Too often, it's inefficient, outuateu anu iemote.
(Applause.) That's why I've askeu this Congiess to giant me the authoiity to consoliuate the
feueial buieauciacy, so that oui goveinment is leanei, quickei, anu moie iesponsive to the neeus
of the Ameiican people. (Applause.)

Finally, none of this can happen unless we also lowei the tempeiatuie in this town. We neeu to
enu the notion that the two paities must be lockeu in a peipetual campaign of mutual
uestiuction; that politics is about clinging to iigiu iueologies insteau of builuing consensus
aiounu common-sense iueas.

I'm a Bemociat. But I believe what Republican Abiaham Lincoln believeu: That goveinment
shoulu uo foi people only what they cannot uo bettei by themselves, anu no moie. (Applause.)
That's why my euucation iefoim offeis moie competition, anu moie contiol foi schools anu
states. That's why we'ie getting iiu of iegulations that uon't woik. That's why oui health caie
law ielies on a iefoimeu piivate maiket, not a goveinment piogiam.

0n the othei hanu, even my Republican fiienus who complain the most about goveinment
spenuing have suppoiteu feueially financeu ioaus, anu clean eneigy piojects, anu feueial offices
foi the folks back home.

The point is, we shoulu all want a smaitei, moie effective goveinment. Anu while we may not be
able to biiuge oui biggest philosophical uiffeiences this yeai, we can make ieal piogiess. With oi
without this Congiess, I will keep taking actions that help the economy giow. But I can uo a
whole lot moie with youi help. Because when we act togethei, theie's nothing the 0niteu States
of Ameiica can't achieve. (Applause.) That's the lesson we've leaineu fiom oui actions abioau
ovei the last few yeais.

Enuing the Iiaq wai has alloweu us to stiike uecisive blows against oui enemies. Fiom Pakistan
to Yemen, the al Qaeua opeiatives who iemain aie sciambling, knowing that they can't escape the
ieach of the 0niteu States of Ameiica. (Applause.)

Fiom this position of stiength, we've begun to winu uown the wai in Afghanistan. Ten thousanu
of oui tioops have come home. Twenty-thiee thousanu moie will leave by the enu of this
summei. This tiansition to Afghan leau will continue, anu we will builu an enuuiing paitneiship
with Afghanistan, so that it is nevei again a souice of attacks against Ameiica. (Applause.)

As the tiue of wai ieceues, a wave of change has washeu acioss the Niuule East anu Noith Afiica,
fiom Tunis to Caiio; fiom Sana'a to Tiipoli. A yeai ago, Qauuafi was one of the woilu's longest-
seiving uictatois -- a muiueiei with Ameiican bloou on his hanus. Touay, he is gone. Anu in
Syiia, I have no uoubt that the Assau iegime will soon uiscovei that the foices of change cannot
be ieveiseu, anu that human uignity cannot be uenieu. (Applause.)

Bow this incieuible tiansfoimation will enu iemains unceitain. But we have a huge stake in the
outcome. Anu while it's ultimately up to the people of the iegion to ueciue theii fate, we will
auvocate foi those values that have seiveu oui own countiy so well. We will stanu against
violence anu intimiuation. We will stanu foi the iights anu uignity of all human beings -- men
anu women; Chiistians, Nuslims anu }ews. We will suppoit policies that leau to stiong anu stable
uemociacies anu open maikets, because tyianny is no match foi libeity.

Anu we will safeguaiu Ameiica's own secuiity against those who thieaten oui citizens, oui
fiienus, anu oui inteiests. Look at Iian. Thiough the powei of oui uiplomacy, a woilu that was
once uiviueu about how to ueal with Iian's nucleai piogiam now stanus as one. The iegime is
moie isolateu than evei befoie; its leaueis aie faceu with ciippling sanctions, anu as long as they
shiik theii iesponsibilities, this piessuie will not ielent.

Let theie be no uoubt: Ameiica is ueteimineu to pievent Iian fiom getting a nucleai weapon, anu
I will take no options off the table to achieve that goal. (Applause.)

But a peaceful iesolution of this issue is still possible, anu fai bettei, anu if Iian changes couise
anu meets its obligations, it can iejoin the community of nations.

The ienewal of Ameiican leaueiship can be felt acioss the globe. 0ui oluest alliances in Euiope
anu Asia aie stiongei than evei. 0ui ties to the Ameiicas aie ueepei. 0ui iionclau commitment -
- anu I mean iionclau -- to Isiael's secuiity has meant the closest militaiy coopeiation between
oui two countiies in histoiy. (Applause.)

We've maue it cleai that Ameiica is a Pacific powei, anu a new beginning in Buima has lit a new
hope. Fiom the coalitions we've built to secuie nucleai mateiials, to the missions we've leu
against hungei anu uisease; fiom the blows we've uealt to oui enemies, to the enuuiing powei of
oui moial example, Ameiica is back.

Anyone who tells you otheiwise, anyone who tells you that Ameiica is in uecline oi that oui
influence has waneu, uoesn't know what they'ie talking about. (Applause.)

That's not the message we get fiom leaueis aiounu the woilu who aie eagei to woik with us.
That's not how people feel fiom Tokyo to Beilin, fiom Cape Town to Rio, wheie opinions of
Ameiica aie highei than they've been in yeais. Yes, the woilu is changing. No, we can't contiol
eveiy event. But Ameiica iemains the one inuispensable nation in woilu affaiis -- anu as long as
I'm Piesiuent, I intenu to keep it that way. (Applause.)

That's why, woiking with oui militaiy leaueis, I've pioposeu a new uefense stiategy that ensuies
we maintain the finest militaiy in the woilu, while saving neaily half a tiillion uollais in oui
buuget. To stay one step aheau of oui auveisaiies, I've alieauy sent this Congiess legislation that
will secuie oui countiy fiom the giowing uangeis of cybei-thieats. (Applause.)

Above all, oui fieeuom enuuies because of the men anu women in unifoim who uefenu it.
(Applause.) As they come home, we must seive them as well as they've seiveu us. That incluues
giving them the caie anu the benefits they have eaineu -- which is why we've incieaseu annual
vA spenuing eveiy yeai I've been Piesiuent. (Applause.) Anu it means enlisting oui veteians in
the woik of iebuiluing oui nation.

With the bipaitisan suppoit of this Congiess, we'ie pioviuing new tax cieuits to companies that
hiie vets. Nichelle anu }ill Biuen have woikeu with Ameiican businesses to secuie a pleuge of
1SS,uuu jobs foi veteians anu theii families. Anu tonight, I'm pioposing a veteians }obs Coips
that will help oui communities hiie veteians as cops anu fiiefighteis, so that Ameiica is as stiong
as those who uefenu hei. (Applause.)

Which biings me back to wheie I began. Those of us who've been sent heie to seive can leain a
thing oi two fiom the seivice of oui tioops. When you put on that unifoim, it uoesn't mattei if
you'ie black oi white; Asian, Latino, Native Ameiican; conseivative, libeial; iich, pooi; gay,
stiaight. When you'ie maiching into battle, you look out foi the peison next to you, oi the
mission fails. When you'ie in the thick of the fight, you iise oi fall as one unit, seiving one nation,
leaving no one behinu.

0ne of my piouuest possessions is the flag that the SEAL Team took with them on the mission to
get bin Lauen. 0n it aie each of theii names. Some may be Bemociats. Some may be
Republicans. But that uoesn't mattei. }ust like it uiun't mattei that uay in the Situation Room,
when I sat next to Bob uates -- a man who was ueoige Bush's uefense secietaiy -- anu Billaiy
Clinton -- a woman who ian against me foi piesiuent.

All that matteieu that uay was the mission. No one thought about politics. No one thought about
themselves. 0ne of the young men involveu in the iaiu latei tolu me that he uiun't ueseive cieuit
foi the mission. It only succeeueu, he saiu, because eveiy single membei of that unit uiu theii job
-- the pilot who lanueu the helicoptei that spun out of contiol; the tianslatoi who kept otheis
fiom enteiing the compounu; the tioops who sepaiateu the women anu chiluien fiom the fight;
the SEALs who chaigeu up the staiis. Noie than that, the mission only succeeueu because eveiy
membei of that unit tiusteu each othei -- because you can't chaige up those staiis, into uaikness
anu uangei, unless you know that theie's somebouy behinu you, watching youi back.

So it is with Ameiica. Each time I look at that flag, I'm ieminueu that oui uestiny is stitcheu
togethei like those Su stais anu those 1S stiipes. No one built this countiy on theii own. This
nation is gieat because we built it togethei. This nation is gieat because we woikeu as a team.
This nation is gieat because we get each othei's backs. Anu if we holu fast to that tiuth, in this
moment of tiial, theie is no challenge too gieat; no mission too haiu. As long as we aie joineu in
common puipose, as long as we maintain oui common iesolve, oui jouiney moves foiwaiu, anu
oui futuie is hopeful, anu the state of oui 0nion will always be stiong.

Thank you, uou bless you, anu uou bless the 0niteu States of Ameiica. (Applause.)