Remarks by the President and Vice President at Middle Class Task Force Meeting
THE VICE PRESIDENT: Hey, folks. A year ago when President Obama established the Middle Class Task Force and asked me to chair it -- and I might add, we were only in office I think two days, Melody, when he set up this Middle Class Task Force -- because as we campaigned around the country, he made it clear that we were going to be sure that as we grew this economy, the middle class was not left behind as they had been the previous 10 to 12 years. And as we move from recession to recovery, our focus is the middle class.
Today -- today, living a quality middle class life starts, as it always has, with a good-paying job. And by job, we're not talking about merely a paycheck; it's more than a paycheck. And we're talking about dignity, we're talking about security. We're talking about knowing your pension is safe, your health insurance is reliable, your elderly parents and your children are going to be cared for, your neighborhood is safe, there's decent schools, and that your kids are going to be able to grow up and if they desire and you desire, be able to attend college. It's the old-fashioned notion of American Dream. I mean, it sounds corny, but that's literally what it is.
And the President -- and you and I -- have long believed that you can't have a strong America without a growing middle class. It's that simple. It's that basic. And right now, the middle class is nowhere near as strong as it needs to be.
So next month, the Middle Class Task Force is going to deliver its final report -- not final, its year-end report to the President. And this afternoon, we're spotlighting some of the items in that report that the President is going to be including in the upcoming budget. And these include, first of all, an expansion of the child tax credit. Since 2000, child care costs have grown significantly faster than inflation and twice as fast -- twice as fast as the median income of families with children. And that's why we're asking Congress to nearly double the credit for middle class families with incomes up to $85,000 and increase the credit for nearly every family making under $115,000.
Secondly, the President is going to be proposing an increase in funding for child care and -- the so-called Child Care and Development Fund to serve an additional 235,000 children in America. This is going to help working parents who are struggling to lift their families into the middle class.
And, thirdly, elder care. I mean, we all -- we're a generation -- the so-called baby boom generation is becoming very knowledgeable about elder care and the need to help middle class families who are caring for aging parents and relatives. People like Jill and me are part of what's called that "sandwich" generation. And I make a very good salary, but just going through caring for my mother the last year and a half, and before that, my father, who, thank God, lived to ripe old ages -- it was -- it's not easy. And I -- we sit there -- when my brother and sister and I -- brothers and sister and I divided up the cost of the care, we were able to do that, no complaints, not a problem. But I thought to myself, my lord, what would it be like -- a couple with two kids making $85,000 a year, even $125,000 a year? How do they do it?
So today we're proposing more support for caregivers by providing counseling, training, help with transportation, and temporary respite care when they just need a break or they have to work -- which most all of them do.
This is going to allow nearly 200,000 people who are now balancing work and providing care to an elderly relative to be served, and 3 million hours of respite care are going to be provided.
The fourth thing is we're going to be strengthening the income-based repayment program for student loans -- fancy way of saying a lot of kids and families graduate with significant loan responsibility and literally -- literally are left with very few options. They've got to go out and get the highest-paying job they can, maybe in an area they had no intention of working in, just to pay back the loan.
Today the average debt of a graduating senior from college -- now, listen -- the average debt -- people of my generation -- the average debt is $23,000. That is literally $2,000 more than my first house cost. But in any standard, it's a lot of money -- average debt. Some are graduating with a great deal more debt than that.
So our proposal ensures that Federal Student Loan payments for overburdened borrowers are never more than 10 percent of their income -- a change like that makes a real difference for a kid just out of school. For someone who earns 30,000 bucks and owes $20,000 in loans, this would lower his or her monthly payment from $228 a month under the standard repayment plan to $115 a month. People who have to budget every day just to get by, they understand that's a big difference. That's a big difference.
And finally, we want to strengthen retirement security, which we talked about with the Secretary of Treasury, for American workers. Too many working people in this country don't have a good option to save their hard-earned money for retirement. And too many of those who do save are finding that at the end of the day they don't have enough saved to afford the basic retirement they deserve.
That's why we're proposing to give more workers better access to retirement plans at work, to match retirement savings for middle class Americans so they can save more, and to strengthen and update the 401(k) regulations so that they can save with greater confidence.
This means establishing an automatic individual retirement account. Today, 78 million Americans, working Americans --roughly half the workforce -- don't have employer-based retirement plans anymore. Our proposal lays the groundwork for an employer who do not currently offer retirement plans to enroll their employees in direct deposit IRAs. We found it's a simple proposition -- when you do that, people, if you're automatically enrolled, you can opt out. But they save a great deal more. And it just puts in place the requirement of the employer to provide that access out of their paycheck to go into an IRA. It's a simple proposition, but it's a big deal.
It also means simplifying and expanding the saver's credit, which helped working families save for retirement by providing a 50 percent match on the first $1,000 of retirement savings. So if you put a thousand bucks into a retirement account, your government is going to add even more -- another $500. It's an incentive, but long term it saves the government a lot more money than the 500 hundred bucks put in if in fact we find we have a generation that's able to care for themselves and not have to look to the government to provide some basic needs they need. This will not only help build up a nest egg for existing savers, but it's going to encourage workers who currently have no retirement accounts to start to save.
Taken together, these and other middle class proposals we believe will go a long way toward easing the strain on working families, allowing them to save more today to get further ahead tomorrow. Because if we give a working man and woman in this country -- and first of all, we make sure they've got good jobs -- if we give them an opportunity, they're the most productive workers in the world. We give them the tools, the flexibility, even just a chance to succeed, we're not only going to rebuild this economy, we're going to offer millions of Americans to build a future that they hope and still believe is available to them.
So I wanted to thank all you guys. You've been meeting with me on a regular basis. I've been a little bit of a pain in the neck. I know you have urgent, urgent, urgent things that were left on our plate -- placed on our plate when we took office. And one of the things you've done -- and I thank you for it -- when the President set up this task force is you have not taken your eye off the ball, you have serious people inside each of your agencies doing nothing every day but getting up, putting both feet on the floor, and saying, what are we going to do inside my shop that's going to ease the burden and increase the opportunity for people to get into the middle class and stay in.
So, Mr. President -- I think the President is here -- I'd like to invite him to come out because we owe the President a great deal for focusing this issue throughout the campaign and the first thing you did when you came to office. Mr. President, it's an honor working with you on this.
THE PRESIDENT: Thank you. Thank you, Joe. Hey, guys, everybody have a seat -- have a seat.
Well, I wanted to stop by to comment on all the great work that the Middle Class Task Force is doing. And you've just seen why Joe is the right person to do it. No one brings to the table the same combination of personal experience and substantive expertise. He's come a long way, and achieved incredible things along the ride, but he's never forgotten where he came from and his roots as a working-class kid from Scranton. He's devoted his life to making the American Dream a reality for everyone –- because he's lived it.
Now, we all know what that American Dream is. It's the idea that in America we can make of our lives what we will. It's the idea that if you work hard and live up to your responsibilities, you can get ahead -– and enjoy some of the basic guarantees in life: A good job that pays a good wage, health care that'll be there when you get sick, a secure retirement even if you're not rich, an education that will give our kids a better life than we had. They're very simple ideas. But they're the ideas that are at the heart of our middle class –- the middle class that made the 20th century the American Century.
Unfortunately, the middle class has been under assault for a long time. Too many Americans have known their own painful recessions long before any economist declared that there was a recession. We've just come through what was one of the most difficult decades the middle class has ever faced -–a decade in which median income fell and our economy lost about as many jobs as it gained.
For two years, Joe and I traveled this country and we heard stories that are all too familiar: stories of Americans barely able to stay afloat despite working harder and harder for less; premiums that were doubling, tuition fees that were rising almost as fast; savings being used up, retirements put off, dreams put on hold. That was all before the middle class got pounded by the full fury of the worst economic crisis since the Great Depression.
Their stories are why Joe and I ran for this office: to reverse those trends, to fight for the middle class, to make sure working families have a voice in the White House, and to do everything within our power to make sure they don't just survive the crisis, but again they can thrive.
And when we walked through these doors last year our first and most urgent task was to rescue our economy, to give immediate relief to those who were hurt by its downturn, but also to rebuild it on a new, stronger foundation for job creation. So we helped state and local governments keep cops and firefighters and teachers on the job, helping to plug their budgets. We invested in areas with the most potential for job growth both immediate and lasting –- in our infrastructure, in science and technology, in education, in clean energy. And these steps have saved or created about 2 million jobs so far.
But more than 7 million have been lost as a consequence of this recession –- an epidemic that demands our relentless and sustained response. Now, last month the House passed a new jobs bill. The Senate, as we speak, is hard at work developing its own job creation package. Creating good, sustainable jobs is the single most important thing we can do to rebuild the middle class -– and I won't rest until we're doing just that.
But we also need to reverse the overall erosion in middle class security so that when this economy does come back, working Americans are free to pursue their dreams again. There are a variety of immediate steps we can take to do just that -– steps we're poised to begin taking in the budget that I'll put forward next week.
Joe already spoke about some of these proposals in detail -– proposals that make it a bit easier for families to get by, for students to get ahead, and for workers to retire. To make balancing work and family more realistic, we'll make it easier to care for children and aging loved ones. To make college more affordable, we'll make it easier for students to pay back their loans, and forgive their debt earlier if they choose a career in public service. And to make retirement more secure, we're going to make it easier to save through the workplace.
Joe and I are going to keep on fighting for what matters to middle class families: An education that gives our kids a chance in life; new, clean energy economy that generates the good jobs of the future; meaningful financial reform that protect consumers; and health reform that prohibits the worst practices of the insurance industry and restores some stability and peace of mind for middle class families.
None of these steps alone will solve all the challenges facing the middle class. Joe understands that; so do I. So do all my members of the Cabinet and our economic team. But hopefully some of these steps will reestablish some of the security that's slipped away in recent years. Because in the end, that's how Joe and I measure progress -- not by how the markets are doing, but by how the American people are doing. It's about whether they see some progress in their own lives.
So we're going to keep fighting to rebuild our economy so that hard work is once again rewarded, wages and incomes are once again rising, and the middle class is once again growing. And above all, we're going to keep fighting to renew the American Dream and keep it alive -- not just in our time, but for all time.
So, again, to our team -- and that includes, by the way, the folks over here -- thank you for the great work that you've done. I'm excited about a lot of the proposals that you've come up with. And we expect that we're going to be able to get some of these critical initiatives passed soon so that folks can get some help right away.
It takes nearly a year for the President - whom most of you and I voted for -- to "actively" address issues loudly yelled, screamed, and hollered by constituents at the beginning of the Obama Administration on January 20th, 2009 and during the 2008 Presidential campaign trail. Today, January 30th 2010, three days after President Obama's first "State of the Union Address", the President introduces his tax incentive hiring proposal for the financial benefit of Small Businesses to hire a "few" people.
The climate on this January day in 2010 is still one of uncertainty in the job market with over ten percent unemployment nationally and businesses skeptical of hiring anyone, while large banks (Government-bailed-out large banks) are reluctant to lend to smaller banks and businesses. Individuals are unable to secure loans from small banks nor get jobs in the trickle down loan and credit crunch imposed by bailed-out big banks with their toxic assets accumulating and credit issues.
In the electronic, print, and internet media, Republicans are now having a field day on the under-estimated job lost issue (Republican can get away with the criticizisms now, though most of us know that siding with Big Business and stomping labor unions is what Republican have been known for for decades).
Today though, Independents are now siding in vast numbers with Republicans winning pertinent political offices recently adding a US Senator in Massachuetts, and two new Republican Governors in both New Jersey and Virginia due to the Independents vote.
With a "little guy" (Middle Class) platform -- that the President campaigned -- for over a year now, that same "little guy" continues to be ignored while Wall Street is awarded near a trillion dollars from the Government. The President 'failed to recognize' that these demands -- and his campaign promises -- were expected immediately and not a year or two or three years later after appeasing Wall Street, Big Business, and Big Military, which -- if you think about it -- is the basis for the Republican Party platform.
The previous Bush administration did not allow the "little guys" proposals to be heard on the floor of Congress, nor by design in the board rooms of Wall Street Corporations -- where they divided Bush's excessive top 1 percent executive tax cuts quarterly.
This is just a small start Mr. President -- I say small "START" due to the third bullet point on the above link #1, that states a "cap of 500-thousand dollars" incentive on the 33-Billion dollar (bullet point #5) stick and carrot. Just 33-billion for hiring American workers, but near a trillion dollars for Wall Street, a trillion for the military, and hundreds of billions to the failed Auto Industry. Yes folks, just 33 messily billion dollars for the Presidents' constituents. We hope a "fair", "balanced", and "comparable" trillion dollars will be awarded for business hiring incentives emerge for 2011.
As you can see people, a much greater cap is needed from Mr. President in the millions per business (trillion overall) for the effect to make a difference...before the 2012 re-election Presidential campaign.
Next time Mr. President please, we beg of you, to listen to the people that voted you into the Presidency. The many disenchanted and never served voters -- normally non-voters -- cast their ballot for you. Their hopes and opinions count worthy of a trillion dollars that you seperately served up to the Big Banks, Big Insurance, Big Auto, and Big Military. The mesily 33-billion dollar stick and carrot provided to Small Businesses is not enough.
We the people would not even mind if you added Big Corporations to the hiring tax incentives list, as they hire in greater numbers. Hiring is Hiring. In fact -- due to de-regulation practices of Reagon, Bush, Clinton, and Bush2 administrations, the Big Corporations have bought up most of their Small Business competitors with the legal elimination of fair business practices.
Mr. President, getting Americans back to work is the goal by any means.
Below is that voting voice of mine addressing Speaker of the House Nancy Pelosi a month and a few days after President Obama's historic Inauguration I attended with pride. At that time in early 2009, I wondered why did one of their near trillion dollar Recovery Bill leave out small businesses and also "removed" incentives for education.
Below is the question I asked Speaker of the House Nancy Pelosi (and Speaker Pelosi's answer) at the Maria Leavy Memorial Breakfast honoring Speaker of the House Nancy Pelosi at the US Capitol on March 3rd, 2009.http://www.marialeaveymemorial.com/node/22
photo of Kirk Tanter and Speaker of the House Nancy Pelosi at the Maria Leavey Memorial breakfast 3/3/2009
KIRK TANTER, SYNDICATION ONE: I’m getting tons of e-mails from small business associations who feel that they’ve been somehow left out of the recovery bill; in the form of taxes, as well as investment into small business. That’s one question. The other, is, in so far as education being taken out of the recovery bill, were you satisfied, not taken out totally but cut down, were you satisfied or dissatisfied that education was cut down out of the recovery package?
SPEAKER OF THE HOUSE NANCY PELOSI: Well, I’ll start with education. What happened on education was, school construction for us was a very important element of the recovery package. For reasons that I said before about education bringing more money to the treasury than any other initiative. School construction created jobs immediately, and contributed to a better learning environment for our children to get the other result. This was largely by the way rehabilitation money. It was money that could go in really fast and rehab schools and new construction, so this was fast money out there to do this. We had it as a line item. The Senate resisted that because they didn’t want to establish a line item for school construction. So, how we compromised was to take that same money and put it in the aid to the states, the state stabilization fund, with direction that the money would be used, could be used for school construction, and certain amounts of it would be almost automatically going to the district. Some of it more discretionary. But that was fine. I preferred our way of doing it, but we had a good outcome. We had a very positive outcome. And we are talking about a great deal of money. Kids are very smart. You, uh, uh, are close to being kids. You know you can’t go to kids and say education is very important, it’s about you reaching your own self-fulfillment, it’s about the role you play in your community about the strength of our nation, education is very important, and send them to a dump to go to school. They get a a mixed message. If it’s so important, why are they not making it important, you just want me to make it important, and while there’s some magnificent schools in our country, probably most are, a lot of the children that we are trying to reach don’t have access to those kinds of facilities, and that should never, never, be the case. And that’s why in the bill, instead of having a lot of the discretion go to governors, we had a lot of the education money flow directly to districts. That was one of the insistences of the House, were they just said, we cannot just let it be, that it goes there, it sits there, they make decisions. We want the money to go, and so a lot of the formula related to Title 1, where the children and economically disadvantaged areas, and uh, IDEA children with disabilities, which has been seriously underfunded. In terms of the small businesses, they’re affected by everything in the package, by the fact that, you know, tax cut is in the bill for 95 per cent of the American people, of the great middle class and those who aspire to it. You know, they are affected by many of the things we do on unemployment insurance and food-stamps and all the rest to get people purchasing power. We do have what the, House Banking, excuse me, House Small Business Committee wanted us to do in the bill. Clearly, it is not enough because you are getting these e-mails and we want to do more. Some of the things, that, that will take a little more time to explain and to pass and the rest, that, really don’t have to do with money so much as they do with policy. But there are debates going on. Do you subsidize the seven day loans, the loans, that go to small business. Do you, what else do you do? One of the things the small business wants us to do is, not tiny small business, but small business by, by some definition, is to lift, a Sarbanes Oxley from them. That is one of the biggest requests we get from small business, is that. That, why should they have to, we know who caused the problem. There should be that kind of oversight and, and, and, supervision. But why should small businesses be paying that price. Depends on how you define a small business, I mean we are talking about the corner grocery store, which we think benefits from injecting money into the local economy, to increase demand and therefore create jobs. But we are talking about the next layer up. We are looking at other tax treatment for investments in entrepreneurial ventures that could, could, free things up. And one of the things, that, that as, far as like the stock market is concerned, I know you don’t ask about that; I was just watching this morning, all the accounts of a historic nature, of going under seven thousand, is, one of the biggest messages I think we can send from the Congress, with our values in order and our priorities very clear, is the additional peace of fiscal soundness. I think that, that is very, very, very important for that to emanate from here, so that it isn’t characterized from the other side saying, their just spending, their just spending, their just spending, it doesn’t have a course of action. It does. It has a vision, it has an integrity to it, but it also has fiscal soundness tied to it and I think we have to get that message out more, more, clearly. Again, back to your small business. We reviewed many options in, in, that we could consider. We took what, where, we had consensus and some of that some of that springing from our house small business. So if they’ve suggested some things, I’d be, eager to, to, hear what they. We planted two poles when I became leader; one was veterans and one was small business. These were two areas where they were being under-served by the Federal Government, and, we made a big difference for veterans. We, had the veterans in here yesterday, the American Legions and the rest. They were so thrilled because of what we had done. We promised, we did what we promised, and now the President is even going to, going beyond that. For small business, we have them here all the time, and manifestation, whether it’s small business, small businesses run by women, minorities, whatever, entrepreneurs. So, so, just so you know, what we did. We eliminated all fees on SBA bank loans and established a new program that will make SBA interest loans to firms who are struggling with payment on existing debt. Based on five, from five, to ten per cent, well why don’t I, why don’t I just give you this because it’s a longer list. {Gives Fact Sheet Handout} But it’s, it’s a whole, American investment Act recovery and job creation by American businesses large and small. But that’s, that’s a very important priority for us, the small business.
The former wife of Nelson Mandela, Winnie Madikizela-Mandela is outraged that plans for a film about her turbulent life is moving forward – without her consultation or participation.
The biopic, “Winnie” is set to star Oscar-winner Jennifer Hudson and will be directed by South African film-maker Darrell J. Roodt, whose work includes “Cry, The Beloved Country” and “Sarafina.” Roodt’s film will focus on her turbulent life and marriage to global icon Mandela. Madikizela-Mandela has expressed frustration over being left out of the production process.
In a letter leaked Tuesday to South African media, Madikizela-Mandela’s lawyers told the filmmakers she was “extremely concerned” to hear about the film, saying “she has never been approached for consent or at all,” according to The Star newspaper.
“It is difficult to understand how a production bearing the name of an individual who has not been consulted at all could ever be appropriate or tell the full story of that individual’s life as media reports suggest this production is intended to,” said the letter from her attorney Bowman Gilfillan, according to the paper.
“This is certainly the case here, where our client has not responded to allegations and comment which have been made about her, precisely because she has sought to protect her sphere of personal privacy as best she can in extremely difficult and turbulent times,” it added.
The film had already stoked controversy in South Africa when Hudson was tapped to play the role, sparking outrage among local actors who complained that South African talent had again been overlooked by Hollywood.
The Presidents' Business Hiring Tax Incentives Outlined
The proposal is simple and straightforward:
• Employers will receive a $5,000 tax credit for every net new employee that they employ in 2010.
• Small Businesses will be reimbursed for the Social Security payroll taxes they pay on real increases in their payrolls. Specifically, firms that increase wages, expand hours or hire new workers would get a credit against the added payroll taxes that result. This bonus would be based on Social Security payrolls, so it would not apply to wage increases above the current taxable maximum of $106,800.
• The total benefit from these provisions will be capped at $500,000 per firm, to ensure that the majority of the benefit goes to small businesses.
• Firms will be able to claim the credit on a quarterly basis, which gets money out to businesses quickly and provides an early incentive to hire and increase payrolls. Non-profits will be eligible for the credit and start-ups will be eligible for half the credit.
• The proposal is estimated to cost $33 billion.
Examples of how the Small Business Jobs and Wages Tax Cut would work:
• Tax credits for new hires. A small business that hires ten new employees in 2010 will receive a $50,000 tax credit to help offset the costs of those new hires. However, if the same small business lays off ten employees in 2010 and hires five new employees, it would receive no credit.
• Tax credits for pay raises. A small business with 50 employees that, through increased hours or higher pay, provides all of its employees a $1,000 real wage increase in 2010 will receive a $3,100 tax credit, enough to cover the Social Security payroll taxes on those increases.
• No benefits for gaming. A small business that fires 10 workers and hires 10 workers to replace them would see no net increase in employment and thus would not receive a credit. A small business that lays off 10 employees making $50,000 each and hires 20 employees making $25,000 each will receive no credit. Likewise, a small investment firm that raises salaries for its top employees from $300,000 to $350,000 will not receive a credit.
The Congressional Budget Office recently identified this type of job creation tax cut as the most effective way to help accelerate job growth of all the policy options it evaluated. The general approach has received support from a wide range of economic analysts and experts, including Morgan Stanley, the Economic Policy Institute, the Small Business Majority, Paul Krugman, Mark Zandi, and Alan Blinder.
Details of the President’s Proposed Small Business Jobs and Wages Tax Credit
President Obama’s Small Business Jobs and Wages Tax Credit is designed to provide a cost-effective, immediate jump-start to job creation and wage growth. The credit will provide American businesses with a powerful short term incentive to not only create good jobs but to increase wages and hours for Americans with jobs who face ongoing economic uncertainty in the current environment.
• A $5,000 tax credit for each net new job created in 2010. Employers would receive a tax credit of up to $5,000 against their payroll taxes for every net new employee they hire in 2010. The credit is designed to help jumpstart job growth by giving employers an incentive to add jobs or accelerate the hiring they would have done later in the future. Start-ups would be eligible for half the credit, which provides an incentive for entrepreneurship while avoiding gaming. The credit would be administered off an employer’s unemployment insurance wage base (equal to 72% of the unemployment insurance wage base increase, or $5,000 credit for each additional worker who earns at least $7,000).
• An additional tax credit to reimburse payroll taxes on increases in inflation-adjusted payrolls. Businesses will receive a bonus 6.2 percent tax credit on aggregate wages in excess of inflation – reimbursing the employer for the Social Security payroll taxes they pay on those payroll increases. This provides firms with an incentive to increase wages or work hours for existing employees as well as hire new employees at a higher wage. This wage bonus would be calculated off the Social Security payroll tax base, so firms would not get credit for increasing wages for employees making more than the current taxable maximum of $106,800.
• A cap at $500,000 per business to incentivize small business hiring. All firms with net employment increases will be eligible for these credits. But to ensure that small businesses receive the bulk of the incentive to hire, the maximum credit will be limited to $500,000 per business.
• Anti-abuse provisions to ensure that employers do not game the system. Businesses that reduce employment or payrolls in 2010 would be ineligible for both the $5,000 credit and the wage bonus. The credit would also include anti-abuse provisions designed to deny or limit the credit to employers that seek to game the system by, for example, replacing full-time employees with part-time employees. This will include limiting the maximum jobs credit amount to 25% of the increase in a firm’s Social Security payroll wage base. In addition, rules would prevent businesses from renaming themselves or merging in order to claim the credit.
• Quarterly payment option to accelerate payments to firms. Employers would have the option of receiving the tax credit on a quarterly estimated basis. This helps get money in the hands of employers earlier in the year, could help increase awareness of the credit and provides an early incentive to hire.
Broadcast Legend Donnie Simpson says "this is not a retirement"
"This is not a retirement, I will be back," Donnie Simpson said on urban contemporary WPGC's airwaves this morning. Today was his last day at WPGC in the Washington DC Market. CBS Radio (owns WPGC) was negotiating an early contractual "out" with the longtime morning personality in order to cut costs and to attract more younger listeners to 95.5 WPGC.
Simpson's first tribute caller on his last day on WPGC was Robert Johnson, whom is the founder of Black Entertainment Television -- BET where Simpson made a national name in the 1980's and 90's. Simpson stated that: "This was my decision, I don't want to point a finger, the option to stay was there, and there's no animosity to management or anything like that. I leave happy and with integrity." And a big check.
Others who called in: Smokey Robinson, Stevie Wonder, Tavis Smiley, Bootsy Collins, Frankie Beverly, Wyclef Jean, John Legend, DL Hughley, and DC Police Chief Cathy Lanier.
In Baltimore, President outlines details of the Small Business Jobs and Wages Tax Cut will
WASHINGTON, DC – At the Chesapeake Machine Company in Baltimore, Maryland, President Obama announced details of the Small Business Jobs and Wages Tax Cut, one of his new proposals to create good jobs and bring relief to small businesses.
The Small Business Jobs and Wages Tax Cut will put more Americans back to work by giving businesses – particularly small business – a tax cut for new hiring. The new proposal will also provide tax incentives for businesses to expand wages for their employees.
President Obama said, “Today, I am proposing what I believe is the best way to promote hiring by small businesses: through a tax credit for companies that add workers and increase salaries this year. Now is the perfect time for this kind of incentive. The economy is growing, but job growth is lagging. This is only one part of our larger jobs package, but it will be a key element to spur hiring and give all small businesses that participate significant tax relief.”
Treasury Secretary Geithner said, “America's small businesses are critical engines of job growth. But to play that role, they need some help. They need better access to credit from banks and tax relief from the government. This announcement provides such relief, giving small businesses incentives to put Americans back to work and increase the salaries of those currently working."
Small Business Administrator Karen Mills said, “We know that if we give small businesses the tools they need, they will create the jobs America needs. This tax cut is one of those tools, and along with the other tax incentives and plans for increasing small business lending the President has called for, it will help small businesses across this country take that next step to expand and create new jobs in their local communities.”
Small business leaders and leading CEOs join The Congressional Budget Office and independent economists in highlighting how the Small Business Jobs and Wages Tax cut will help put more people back to work and provide real relief for America’s small businesses.
CLYBURN INDUCTED INTO THE INTERNATIONAL CIVIL RIGHTS WALK OF FAME
WASHINGTON, DC – House Majority Whip James E. Clyburn is being inducted today into the International Civil Rights Walk of Fame in Atlanta, GA. Below is Clyburn’s statement.
"I am honored and humbled to receive this recognition joining some with whom I marched and was jailed, others with whom I have served and interacted over the years, and many others who I never met. Many who have received this honor and tens of thousands of others - who remain nameless - made significant sacrifices to make it possible for me to serve and sit in the leadership of the United States Congress today. With the acceptance of this honor I pledge to continue the fight to give voice and representation to those who have traditionally been left out of the mainstream of our society."
“The International Civil Rights Walk of Fame was created in 2004 to give recognition to the foot soldiers of justice who sacrificed and struggled to make equality a reality for all. This extraordinary display has become one of the most visited tourist attractions in the city of Atlanta and has enriched the heritage of the civil rights movement. The shoes used to create the footsteps will also be on display during the unveiling program.”
Waters Assesses Recovery and Aid Distribution Operations; Meets with President Préval, USAID, UN, and NGO officials
Washington, DC – Congresswoman Maxine Waters (D-CA) has returned to the United States after wrapping up a three-day mission in and around Port-au-Prince, Haiti.
Concerned about the death and devastation caused by the earthquake and eager to evaluate the progress of recovery and aid distribution efforts, Congresswoman Waters made arrangements to travel to Haiti without requiring the State Department or military to divert resources to support her trip.
While there, she visited a number of the makeshift hospitals and refugee camps that have sprung up around the capital.
“Words cannot adequately describe the ongoing humanitarian disaster that is unfolding in Haiti,” said Congresswoman Waters. “The earthquake has left behind untold levels of death, despair, and outright destitution. Though I am encouraged by the thousands of military, government, and nongovernmental operations that are happening all over the country, there is a critical need for macro-level organization and coordination of the relief effort.”
During her time in Haiti, Congresswoman Waters met with Haitian President René Préval, officials from the United States Agency for International Development (USAID), the U.S. Embassy and the U.S. Department of Defense, representatives from the United Nations (UN) and the World Food Programme (WFP) and staff from numerous nongovernmental organizations (NGOs).
Congresswoman Waters observed that many organizations and individuals are attempting to respond to the crisis in Haiti. Many of these various organizations are convening in cluster meetings, an internationally recognized disaster response mechanism. But she concluded there is an overwhelming need for better communication among the various entities and a coordinated response, despite the valiant attempts of all the parties involved. One major obstacle hampering operations in the country is the extensive damage to infrastructure such as buildings, telecommunications, roadways, and the port, which the Congresswoman said has resulted in “a logistical nightmare.”
In addition to gathering information, Congresswoman Waters was able to secure direct assistance for people in need by picking up the phone and requesting help. For example, a call from the Congresswoman to USAID resulted in two tents and other medical supplies – provided by the Los Angeles County Fire Department, which deployed its urban search and rescue team to Haiti to assist with rescue and recovery efforts – for the health NGO Amer-Haiti and the National Organization for the Advancement of Haitians (NOAH) that are seeing up to 300 patients a day. Within hours of receiving the new equipment, their teams performed an operation to save a pregnant woman and her child.
“USAID and the L.A. County firefighters, who acted heroically and bravely for more than 10 days in Haiti, were able to come through again for those patients, and I was glad that I could make a difference for even a few people, but of course millions of people in Haiti need our help now” said Congresswoman Waters. “Although that mother and her baby are fine, the concern for them and for the thousands of other patients in and around Port-au-Prince is their ongoing care. We need to continue to deliver clean tents, medical supplies, and health personnel so that the hundreds of amputations and other major surgeries being conducted around the clock can be as safe and successful as possible.”
Basic survival remains an immediate concern for Haitians right now. Access to food, water, and medical supplies is sporadic, and shelter and open space continue to be in high demand. President Préval estimates that the country needs approximately 250,000 tents to adequately house Haitians in need. Congresswoman Waters said, “tents are absolutely essential because the impending rainy season will further spread disease and increase exposure to the elements if people are not adequately sheltered. Tents must be at the top of the short-term priority list.”
Additionally, experts on the ground continue to raise concerns about reaching victims in the outlying, mountainous areas of the capital. Some areas of Port-au-Prince have been inaccessible for deliveries of food, water and supplies.
“What has really resonated with me since returning home is the need for the international community to engage in robust and sustained recovery and rebuilding efforts for Haiti,” said Congresswoman Waters. “The outpouring of initial support from the international community has been so heartfelt and overwhelming, and I know that the Haitian people are extremely grateful. I am pleading with every individual, NGO, corporation, and government worldwide to continue to look into their hearts, into their schedules and into their wallets to find out how they can help.”
Congresswoman Waters vowed, “I plan to double my efforts to assist Haiti in Washington. In addition to introducing legislation to completely cancel Haiti’s debt from multilateral financial institutions and other international creditors, I will work closely with former President and UN Special Envoy to Haiti Bill Clinton, Secretary of State Hillary Clinton, and my colleagues in Congress to continue to pursue creative and substantive ways to assist the country during its immediate time of need and in the months and years ahead.”
I just finished delivering my first State of the Union, and I wanted to send you a quick note.
We face big and difficult challenges. Change on the scale we seek does not come easily. But I will never accept second place for the United States of America.
That is why I called for a robust jobs bill without delay. It's why I proposed a small businesses tax credit, new investments in infrastructure, and pushed for climate legislation to create a clean energy economy.
It's why we're taking on big banks, reforming Wall Street, revitalizing our education system, increasing transparency -- and finishing the job on health insurance reform.
It's why I need your help -- because I am determined to fight to defend the middle class, and special interest lobbyists will go all out to fight us.
Help me show that the American people are ready to join this fight for the middle class -- add your name to a letter to Congress today:
REMARKS BY THE PRESIDENT IN STATE OF THE UNION ADDRESS
U.S. Capitol
9:11 P.M. EST
THE PRESIDENT: Madam Speaker, Vice President Biden, members of Congress, distinguished guests, and fellow Americans:
Our Constitution declares that from time to time, the President shall give to Congress information about the state of our union. For 220 years, our leaders have fulfilled this duty. They've done so during periods of prosperity and tranquility. And they've done so in the midst of war and depression; at moments of great strife and great struggle.
It's tempting to look back on these moments and assume that our progress was inevitable -– that America was always destined to succeed. But when the Union was turned back at Bull Run, and the Allies first landed at Omaha Beach, victory was very much in doubt. When the market crashed on Black Tuesday, and civil rights marchers were beaten on Bloody Sunday, the future was anything but certain. These were the times that tested the courage of our convictions, and the strength of our union. And despite all our divisions and disagreements, our hesitations and our fears, America prevailed because we chose to move forward as one nation, as one people.
Again, we are tested. And again, we must answer history's call.
One year ago, I took office amid two wars, an economy rocked by a severe recession, a financial system on the verge of collapse, and a government deeply in debt. Experts from across the political spectrum warned that if we did not act, we might face a second depression. So we acted -– immediately and aggressively. And one year later, the worst of the storm has passed.
But the devastation remains. One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. And for those who'd already known poverty, life has become that much harder.
This recession has also compounded the burdens that America's families have been dealing with for decades –- the burden of working harder and longer for less; of being unable to save enough to retire or help kids with college.
So I know the anxieties that are out there right now. They're not new. These struggles are the reason I ran for President. These struggles are what I've witnessed for years in places like Elkhart, Indiana; Galesburg, Illinois. I hear about them in the letters that I read each night. The toughest to read are those written by children -– asking why they have to move from their home, asking when their mom or dad will be able to go back to work.
For these Americans and so many others, change has not come fast enough. Some are frustrated; some are angry. They don't understand why it seems like bad behavior on Wall Street is rewarded, but hard work on Main Street isn't; or why Washington has been unable or unwilling to solve any of our problems. They're tired of the partisanship and the shouting and the pettiness. They know we can't afford it. Not now.
So we face big and difficult challenges. And what the American people hope -– what they deserve -– is for all of us, Democrats and Republicans, to work through our differences; to overcome the numbing weight of our politics. For while the people who sent us here have different backgrounds, different stories, different beliefs, the anxieties they face are the same. The aspirations they hold are shared: a job that pays the bills; a chance to get ahead; most of all, the ability to give their children a better life.
You know what else they share? They share a stubborn resilience in the face of adversity. After one of the most difficult years in our history, they remain busy building cars and teaching kids, starting businesses and going back to school. They're coaching Little League and helping their neighbors. One woman wrote to me and said, "We are strained but hopeful, struggling but encouraged."
It's because of this spirit -– this great decency and great strength -– that I have never been more hopeful about America's future than I am tonight. (Applause.) Despite our hardships, our union is strong. We do not give up. We do not quit. We do not allow fear or division to break our spirit. In this new decade, it's time the American people get a government that matches their decency; that embodies their strength. (Applause.)
And tonight, tonight I'd like to talk about how together we can deliver on that promise.
It begins with our economy.
Our most urgent task upon taking office was to shore up the same banks that helped cause this crisis. It was not easy to do. And if there's one thing that has unified Democrats and Republicans, and everybody in between, it's that we all hated the bank bailout. I hated it -- (applause.) I hated it. You hated it. It was about as popular as a root canal. (Laughter.)
But when I ran for President, I promised I wouldn't just do what was popular -– I would do what was necessary. And if we had allowed the meltdown of the financial system, unemployment might be double what it is today. More businesses would certainly have closed. More homes would have surely been lost.
So I supported the last administration's efforts to create the financial rescue program. And when we took that program over, we made it more transparent and more accountable. And as a result, the markets are now stabilized, and we've recovered most of the money we spent on the banks. (Applause.) Most but not all.
To recover the rest, I've proposed a fee on the biggest banks. (Applause.) Now, I know Wall Street isn't keen on this idea. But if these firms can afford to hand out big bonuses again, they can afford a modest fee to pay back the taxpayers who rescued them in their time of need. (Applause.)
Now, as we stabilized the financial system, we also took steps to get our economy growing again, save as many jobs as possible, and help Americans who had become unemployed.
That's why we extended or increased unemployment benefits for more than 18 million Americans; made health insurance 65 percent cheaper for families who get their coverage through COBRA; and passed 25 different tax cuts.
Now, let me repeat: We cut taxes. We cut taxes for 95 percent of working families. (Applause.) We cut taxes for small businesses. We cut taxes for first-time homebuyers. We cut taxes for parents trying to care for their children. We cut taxes for 8 million Americans paying for college. (Applause.)
I thought I'd get some applause on that one. (Laughter and applause.)
As a result, millions of Americans had more to spend on gas and food and other necessities, all of which helped businesses keep more workers. And we haven't raised income taxes by a single dime on a single person. Not a single dime. (Applause.)
Because of the steps we took, there are about two million Americans working right now who would otherwise be unemployed. (Applause.) Two hundred thousand work in construction and clean energy; 300,000 are teachers and other education workers. Tens of thousands are cops, firefighters, correctional officers, first responders. (Applause.) And we're on track to add another one and a half million jobs to this total by the end of the year.
The plan that has made all of this possible, from the tax cuts to the jobs, is the Recovery Act. (Applause.) That's right -– the Recovery Act, also known as the stimulus bill. (Applause.) Economists on the left and the right say this bill has helped save jobs and avert disaster. But you don't have to take their word for it. Talk to the small business in Phoenix that will triple its workforce because of the Recovery Act. Talk to the window manufacturer in Philadelphia who said he used to be skeptical about the Recovery Act, until he had to add two more work shifts just because of the business it created. Talk to the single teacher raising two kids who was told by her principal in the last week of school that because of the Recovery Act, she wouldn't be laid off after all.
There are stories like this all across America. And after two years of recession, the economy is growing again. Retirement funds have started to gain back some of their value. Businesses are beginning to invest again, and slowly some are starting to hire again.
But I realize that for every success story, there are other stories, of men and women who wake up with the anguish of not knowing where their next paycheck will come from; who send out resumes week after week and hear nothing in response. That is why jobs must be our number-one focus in 2010, and that's why I'm calling for a new jobs bill tonight. (Applause.)
Now, the true engine of job creation in this country will always be America's businesses. (Applause.) But government can create the conditions necessary for businesses to expand and hire more workers.
We should start where most new jobs do –- in small businesses, companies that begin when -- (applause) -- companies that begin when an entrepreneur -- when an entrepreneur takes a chance on a dream, or a worker decides it's time she became her own boss. Through sheer grit and determination, these companies have weathered the recession and they're ready to grow. But when you talk to small businessowners in places like Allentown, Pennsylvania, or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they're mostly lending to bigger companies. Financing remains difficult for small businessowners across the country, even those that are making a profit.
So tonight, I'm proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. (Applause.) I'm also proposing a new small business tax credit – one that will go to over one million small businesses who hire new workers or raise wages. (Applause.) While we're at it, let's also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment. (Applause.)
Next, we can put Americans to work today building the infrastructure of tomorrow. (Applause.) From the first railroads to the Interstate Highway System, our nation has always been built to compete. There's no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products.
Tomorrow, I'll visit Tampa, Florida, where workers will soon break ground on a new high-speed railroad funded by the Recovery Act. (Applause.) There are projects like that all across this country that will create jobs and help move our nation's goods, services, and information. (Applause.)
We should put more Americans to work building clean energy facilities -- (applause) -- and give rebates to Americans who make their homes more energy-efficient, which supports clean energy jobs. (Applause.) And to encourage these and other businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America. (Applause.)
Now, the House has passed a jobs bill that includes some of these steps. (Applause.) As the first order of business this year, I urge the Senate to do the same, and I know they will. (Applause.) They will. (Applause.) People are out of work. They're hurting. They need our help. And I want a jobs bill on my desk without delay. (Applause.)
But the truth is, these steps won't make up for the seven million jobs that we've lost over the last two years. The only way to move to full employment is to lay a new foundation for long-term economic growth, and finally address the problems that America's families have confronted for years.
We can't afford another so-called economic "expansion" like the one from the last decade –- what some call the "lost decade" -– where jobs grew more slowly than during any prior expansion; where the income of the average American household declined while the cost of health care and tuition reached record highs; where prosperity was built on a housing bubble and financial speculation.
From the day I took office, I've been told that addressing our larger challenges is too ambitious; such an effort would be too contentious. I've been told that our political system is too gridlocked, and that we should just put things on hold for a while.
For those who make these claims, I have one simple question: How long should we wait? How long should America put its future on hold? (Applause.)
You see, Washington has been telling us to wait for decades, even as the problems have grown worse. Meanwhile, China is not waiting to revamp its economy. Germany is not waiting. India is not waiting. These nations -- they're not standing still. These nations aren't playing for second place. They're putting more emphasis on math and science. They're rebuilding their infrastructure. They're making serious investments in clean energy because they want those jobs. Well, I do not accept second place for the United States of America. (Applause.)
As hard as it may be, as uncomfortable and contentious as the debates may become, it's time to get serious about fixing the problems that are hampering our growth.
Now, one place to start is serious financial reform. Look, I am not interested in punishing banks. I'm interested in protecting our economy. A strong, healthy financial market makes it possible for businesses to access credit and create new jobs. It channels the savings of families into investments that raise incomes. But that can only happen if we guard against the same recklessness that nearly brought down our entire economy.
We need to make sure consumers and middle-class families have the information they need to make financial decisions. (Applause.) We can't allow financial institutions, including those that take your deposits, to take risks that threaten the whole economy.
Now, the House has already passed financial reform with many of these changes. (Applause.) And the lobbyists are trying to kill it. But we cannot let them win this fight. (Applause.) And if the bill that ends up on my desk does not meet the test of real reform, I will send it back until we get it right. We've got to get it right. (Applause.)
Next, we need to encourage American innovation. Last year, we made the largest investment in basic research funding in history -– (applause) -- an investment that could lead to the world's cheapest solar cells or treatment that kills cancer cells but leaves healthy ones untouched. And no area is more ripe for such innovation than energy. You can see the results of last year's investments in clean energy -– in the North Carolina company that will create 1,200 jobs nationwide helping to make advanced batteries; or in the California business that will put a thousand people to work making solar panels.
But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. (Applause.) It means making tough decisions about opening new offshore areas for oil and gas development. (Applause.) It means continued investment in advanced biofuels and clean coal technologies. (Applause.) And, yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America. (Applause.)
I am grateful to the House for passing such a bill last year. (Applause.) And this year I'm eager to help advance the bipartisan effort in the Senate. (Applause.)
I know there have been questions about whether we can afford such changes in a tough economy. I know that there are those who disagree with the overwhelming scientific evidence on climate change. But here's the thing -- even if you doubt the evidence, providing incentives for energy-efficiency and clean energy are the right thing to do for our future -– because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation. (Applause.)
Third, we need to export more of our goods. (Applause.) Because the more products we make and sell to other countries, the more jobs we support right here in America. (Applause.) So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. (Applause.) To help meet this goal, we're launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security. (Applause.)
We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. (Applause.) But realizing those benefits also means enforcing those agreements so our trading partners play by the rules. (Applause.) And that's why we'll continue to shape a Doha trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia. (Applause.)
Fourth, we need to invest in the skills and education of our people. (Applause.)
Now, this year, we've broken through the stalemate between left and right by launching a national competition to improve our schools. And the idea here is simple: Instead of rewarding failure, we only reward success. Instead of funding the status quo, we only invest in reform -- reform that raises student achievement; inspires students to excel in math and science; and turns around failing schools that steal the future of too many young Americans, from rural communities to the inner city. In the 21st century, the best anti-poverty program around is a world-class education. (Applause.) And in this country, the success of our children cannot depend more on where they live than on their potential.
When we renew the Elementary and Secondary Education Act, we will work with Congress to expand these reforms to all 50 states. Still, in this economy, a high school diploma no longer guarantees a good job. That's why I urge the Senate to follow the House and pass a bill that will revitalize our community colleges, which are a career pathway to the children of so many working families. (Applause.)
To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans. (Applause.) Instead, let's take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants. (Applause.) And let's tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years –- and forgiven after 10 years if they choose a career in public service, because in the United States of America, no one should go broke because they chose to go to college. (Applause.)
And by the way, it's time for colleges and universities to get serious about cutting their own costs -– (applause) -- because they, too, have a responsibility to help solve this problem.
Now, the price of college tuition is just one of the burdens facing the middle class. That's why last year I asked Vice President Biden to chair a task force on middle-class families. That's why we're nearly doubling the child care tax credit, and making it easier to save for retirement by giving access to every worker a retirement account and expanding the tax credit for those who start a nest egg. That's why we're working to lift the value of a family's single largest investment –- their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments.
This year, we will step up refinancing so that homeowners can move into more affordable mortgages. (Applause.) And it is precisely to relieve the burden on middle-class families that we still need health insurance reform. (Applause.) Yes, we do. (Applause.)
Now, let's clear a few things up. (Laughter.) I didn't choose to tackle this issue to get some legislative victory under my belt. And by now it should be fairly obvious that I didn't take on health care because it was good politics. (Laughter.) I took on health care because of the stories I've heard from Americans with preexisting conditions whose lives depend on getting coverage; patients who've been denied coverage; families –- even those with insurance -– who are just one illness away from financial ruin.
After nearly a century of trying -- Democratic administrations, Republican administrations -- we are closer than ever to bringing more security to the lives of so many Americans. The approach we've taken would protect every American from the worst practices of the insurance industry. It would give small businesses and uninsured Americans a chance to choose an affordable health care plan in a competitive market. It would require every insurance plan to cover preventive care.
And by the way, I want to acknowledge our First Lady, Michelle Obama, who this year is creating a national movement to tackle the epidemic of childhood obesity and make kids healthier. (Applause.) Thank you. She gets embarrassed. (Laughter.)
Our approach would preserve the right of Americans who have insurance to keep their doctor and their plan. It would reduce costs and premiums for millions of families and businesses. And according to the Congressional Budget Office -– the independent organization that both parties have cited as the official scorekeeper for Congress –- our approach would bring down the deficit by as much as $1 trillion over the next two decades. (Applause.)
Still, this is a complex issue, and the longer it was debated, the more skeptical people became. I take my share of the blame for not explaining it more clearly to the American people. And I know that with all the lobbying and horse-trading, the process left most Americans wondering, "What's in it for me?"
But I also know this problem is not going away. By the time I'm finished speaking tonight, more Americans will have lost their health insurance. Millions will lose it this year. Our deficit will grow. Premiums will go up. Patients will be denied the care they need. Small business owners will continue to drop coverage altogether. I will not walk away from these Americans, and neither should the people in this chamber. (Applause.)
So, as temperatures cool, I want everyone to take another look at the plan we've proposed. There's a reason why many doctors, nurses, and health care experts who know our system best consider this approach a vast improvement over the status quo. But if anyone from either party has a better approach that will bring down premiums, bring down the deficit, cover the uninsured, strengthen Medicare for seniors, and stop insurance company abuses, let me know. (Applause.) Let me know. Let me know. (Applause.) I'm eager to see it.
Here's what I ask Congress, though: Don't walk away from reform. Not now. Not when we are so close. Let us find a way to come together and finish the job for the American people. (Applause.) Let's get it done. Let's get it done. (Applause.)
Now, even as health care reform would reduce our deficit, it's not enough to dig us out of a massive fiscal hole in which we find ourselves. It's a challenge that makes all others that much harder to solve, and one that's been subject to a lot of political posturing. So let me start the discussion of government spending by setting the record straight.
At the beginning of the last decade, the year 2000, America had a budget surplus of over $200 billion. (Applause.) By the time I took office, we had a one-year deficit of over $1 trillion and projected deficits of $8 trillion over the next decade. Most of this was the result of not paying for two wars, two tax cuts, and an expensive prescription drug program. On top of that, the effects of the recession put a $3 trillion hole in our budget. All this was before I walked in the door. (Laughter and applause.)
Now -- just stating the facts. Now, if we had taken office in ordinary times, I would have liked nothing more than to start bringing down the deficit. But we took office amid a crisis. And our efforts to prevent a second depression have added another $1 trillion to our national debt. That, too, is a fact.
I'm absolutely convinced that was the right thing to do. But families across the country are tightening their belts and making tough decisions. The federal government should do the same. (Applause.) So tonight, I'm proposing specific steps to pay for the trillion dollars that it took to rescue the economy last year.
Starting in 2011, we are prepared to freeze government spending for three years. (Applause.) Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected. But all other discretionary government programs will. Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don't. And if I have to enforce this discipline by veto, I will. (Applause.)
We will continue to go through the budget, line by line, page by page, to eliminate programs that we can't afford and don't work. We've already identified $20 billion in savings for next year. To help working families, we'll extend our middle-class tax cuts. But at a time of record deficits, we will not continue tax cuts for oil companies, for investment fund managers, and for those making over $250,000 a year. We just can't afford it. (Applause.)
Now, even after paying for what we spent on my watch, we'll still face the massive deficit we had when I took office. More importantly, the cost of Medicare, Medicaid, and Social Security will continue to skyrocket. That's why I've called for a bipartisan fiscal commission, modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad. (Applause.) This can't be one of those Washington gimmicks that lets us pretend we solved a problem. The commission will have to provide a specific set of solutions by a certain deadline.
Now, yesterday, the Senate blocked a bill that would have created this commission. So I'll issue an executive order that will allow us to go forward, because I refuse to pass this problem on to another generation of Americans. (Applause.) And when the vote comes tomorrow, the Senate should restore the pay-as-you-go law that was a big reason for why we had record surpluses in the 1990s. (Applause.)
Now, I know that some in my own party will argue that we can't address the deficit or freeze government spending when so many are still hurting. And I agree -- which is why this freeze won't take effect until next year -- (laughter) -- when the economy is stronger. That's how budgeting works. (Laughter and applause.) But understand –- understand if we don't take meaningful steps to rein in our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our recovery -– all of which would have an even worse effect on our job growth and family incomes.
From some on the right, I expect we'll hear a different argument -– that if we just make fewer investments in our people, extend tax cuts including those for the wealthier Americans, eliminate more regulations, maintain the status quo on health care, our deficits will go away. The problem is that's what we did for eight years. (Applause.) That's what helped us into this crisis. It's what helped lead to these deficits. We can't do it again.
Rather than fight the same tired battles that have dominated Washington for decades, it's time to try something new. Let's invest in our people without leaving them a mountain of debt. Let's meet our responsibility to the citizens who sent us here. Let's try common sense. (Laughter.) A novel concept.
To do that, we have to recognize that we face more than a deficit of dollars right now. We face a deficit of trust -– deep and corrosive doubts about how Washington works that have been growing for years. To close that credibility gap we have to take action on both ends of Pennsylvania Avenue -- to end the outsized influence of lobbyists; to do our work openly; to give our people the government they deserve. (Applause.)
That's what I came to Washington to do. That's why -– for the first time in history –- my administration posts on our White House visitors online. That's why we've excluded lobbyists from policymaking jobs, or seats on federal boards and commissions.
But we can't stop there. It's time to require lobbyists to disclose each contact they make on behalf of a client with my administration or with Congress. It's time to put strict limits on the contributions that lobbyists give to candidates for federal office.
With all due deference to separation of powers, last week the Supreme Court reversed a century of law that I believe will open the floodgates for special interests –- including foreign corporations –- to spend without limit in our elections. (Applause.) I don't think American elections should be bankrolled by America's most powerful interests, or worse, by foreign entities. (Applause.) They should be decided by the American people. And I'd urge Democrats and Republicans to pass a bill that helps to correct some of these problems.
I'm also calling on Congress to continue down the path of earmark reform. Applause.) Democrats and Republicans. (Applause.) Democrats and Republicans. You've trimmed some of this spending, you've embraced some meaningful change. But restoring the public trust demands more. For example, some members of Congress post some earmark requests online. (Applause.) Tonight, I'm calling on Congress to publish all earmark requests on a single Web site before there's a vote, so that the American people can see how their money is being spent. (Applause.)
Of course, none of these reforms will even happen if we don't also reform how we work with one another. Now, I'm not naïve. I never thought that the mere fact of my election would usher in peace and harmony -- (laughter) -- and some post-partisan era. I knew that both parties have fed divisions that are deeply entrenched. And on some issues, there are simply philosophical differences that will always cause us to part ways. These disagreements, about the role of government in our lives, about our national priorities and our national security, they've been taking place for over 200 years. They're the very essence of our democracy.
But what frustrates the American people is a Washington where every day is Election Day. We can't wage a perpetual campaign where the only goal is to see who can get the most embarrassing headlines about the other side -– a belief that if you lose, I win. Neither party should delay or obstruct every single bill just because they can. The confirmation of -- (applause) -- I'm speaking to both parties now. The confirmation of well-qualified public servants shouldn't be held hostage to the pet projects or grudges of a few individual senators. (Applause.)
Washington may think that saying anything about the other side, no matter how false, no matter how malicious, is just part of the game. But it's precisely such politics that has stopped either party from helping the American people. Worse yet, it's sowing further division among our citizens, further distrust in our government.
So, no, I will not give up on trying to change the tone of our politics. I know it's an election year. And after last week, it's clear that campaign fever has come even earlier than usual. But we still need to govern.
To Democrats, I would remind you that we still have the largest majority in decades, and the people expect us to solve problems, not run for the hills. (Applause.) And if the Republican leadership is going to insist that 60 votes in the Senate are required to do any business at all in this town -- a supermajority -- then the responsibility to govern is now yours as well. (Applause.) Just saying no to everything may be good short-term politics, but it's not leadership. We were sent here to serve our citizens, not our ambitions. (Applause.) So let's show the American people that we can do it together. (Applause.)
This week, I'll be addressing a meeting of the House Republicans. I'd like to begin monthly meetings with both Democratic and Republican leadership. I know you can't wait. (Laughter.)
Throughout our history, no issue has united this country more than our security. Sadly, some of the unity we felt after 9/11 has dissipated. We can argue all we want about who's to blame for this, but I'm not interested in re-litigating the past. I know that all of us love this country. All of us are committed to its defense. So let's put aside the schoolyard taunts about who's tough. Let's reject the false choice between protecting our people and upholding our values. Let's leave behind the fear and division, and do what it takes to defend our nation and forge a more hopeful future -- for America and for the world. (Applause.)
That's the work we began last year. Since the day I took office, we've renewed our focus on the terrorists who threaten our nation. We've made substantial investments in our homeland security and disrupted plots that threatened to take American lives. We are filling unacceptable gaps revealed by the failed Christmas attack, with better airline security and swifter action on our intelligence. We've prohibited torture and strengthened partnerships from the Pacific to South Asia to the Arabian Peninsula. And in the last year, hundreds of al Qaeda's fighters and affiliates, including many senior leaders, have been captured or killed -- far more than in 2008.
And in Afghanistan, we're increasing our troops and training Afghan security forces so they can begin to take the lead in July of 2011, and our troops can begin to come home. (Applause.) We will reward good governance, work to reduce corruption, and support the rights of all Afghans -- men and women alike. (Applause.) We're joined by allies and partners who have increased their own commitments, and who will come together tomorrow in London to reaffirm our common purpose. There will be difficult days ahead. But I am absolutely confident we will succeed.
As we take the fight to al Qaeda, we are responsibly leaving Iraq to its people. As a candidate, I promised that I would end this war, and that is what I am doing as President. We will have all of our combat troops out of Iraq by the end of this August. (Applause.) We will support the Iraqi government -- we will support the Iraqi government as they hold elections, and we will continue to partner with the Iraqi people to promote regional peace and prosperity. But make no mistake: This war is ending, and all of our troops are coming home. (Applause.)
Tonight, all of our men and women in uniform -- in Iraq, in Afghanistan, and around the world –- they have to know that we -- that they have our respect, our gratitude, our full support. And just as they must have the resources they need in war, we all have a responsibility to support them when they come home. (Applause.) That's why we made the largest increase in investments for veterans in decades -- last year. (Applause.) That's why we're building a 21st century VA. And that's why Michelle has joined with Jill Biden to forge a national commitment to support military families. (Applause.)
Now, even as we prosecute two wars, we're also confronting perhaps the greatest danger to the American people -– the threat of nuclear weapons. I've embraced the vision of John F. Kennedy and Ronald Reagan through a strategy that reverses the spread of these weapons and seeks a world without them. To reduce our stockpiles and launchers, while ensuring our deterrent, the United States and Russia are completing negotiations on the farthest-reaching arms control treaty in nearly two decades. (Applause.) And at April's Nuclear Security Summit, we will bring 44 nations together here in Washington, D.C. behind a clear goal: securing all vulnerable nuclear materials around the world in four years, so that they never fall into the hands of terrorists. (Applause.)
Now, these diplomatic efforts have also strengthened our hand in dealing with those nations that insist on violating international agreements in pursuit of nuclear weapons. That's why North Korea now faces increased isolation, and stronger sanctions –- sanctions that are being vigorously enforced. That's why the international community is more united, and the Islamic Republic of Iran is more isolated. And as Iran's leaders continue to ignore their obligations, there should be no doubt: They, too, will face growing consequences. That is a promise. (Applause.)
That's the leadership that we are providing –- engagement that advances the common security and prosperity of all people. We're working through the G20 to sustain a lasting global recovery. We're working with Muslim communities around the world to promote science and education and innovation. We have gone from a bystander to a leader in the fight against climate change. We're helping developing countries to feed themselves, and continuing the fight against HIV/AIDS. And we are launching a new initiative that will give us the capacity to respond faster and more effectively to bioterrorism or an infectious disease -– a plan that will counter threats at home and strengthen public health abroad.
As we have for over 60 years, America takes these actions because our destiny is connected to those beyond our shores. But we also do it because it is right. That's why, as we meet here tonight, over 10,000 Americans are working with many nations to help the people of Haiti recover and rebuild. (Applause.) That's why we stand with the girl who yearns to go to school in Afghanistan; why we support the human rights of the women marching through the streets of Iran; why we advocate for the young man denied a job by corruption in Guinea. For America must always stand on the side of freedom and human dignity. (Applause.) Always. (Applause.)
Abroad, America's greatest source of strength has always been our ideals. The same is true at home. We find unity in our incredible diversity, drawing on the promise enshrined in our Constitution: the notion that we're all created equal; that no matter who you are or what you look like, if you abide by the law you should be protected by it; if you adhere to our common values you should be treated no different than anyone else.
We must continually renew this promise. My administration has a Civil Rights Division that is once again prosecuting civil rights violations and employment discrimination. (Applause.) We finally strengthened our laws to protect against crimes driven by hate. (Applause.) This year, I will work with Congress and our military to finally repeal the law that denies gay Americans the right to serve the country they love because of who they are. (Applause.) It's the right thing to do. (Applause.)
We're going to crack down on violations of equal pay laws -– so that women get equal pay for an equal day's work. (Applause.) And we should continue the work of fixing our broken immigration system -– to secure our borders and enforce our laws, and ensure that everyone who plays by the rules can contribute to our economy and enrich our nation. (Applause.)
In the end, it's our ideals, our values that built America -- values that allowed us to forge a nation made up of immigrants from every corner of the globe; values that drive our citizens still. Every day, Americans meet their responsibilities to their families and their employers. Time and again, they lend a hand to their neighbors and give back to their country. They take pride in their labor, and are generous in spirit. These aren't Republican values or Democratic values that they're living by; business values or labor values. They're American values.
Unfortunately, too many of our citizens have lost faith that our biggest institutions -– our corporations, our media, and, yes, our government –- still reflect these same values. Each of these institutions are full of honorable men and women doing important work that helps our country prosper. But each time a CEO rewards himself for failure, or a banker puts the rest of us at risk for his own selfish gain, people's doubts grow. Each time lobbyists game the system or politicians tear each other down instead of lifting this country up, we lose faith. The more that TV pundits reduce serious debates to silly arguments, big issues into sound bites, our citizens turn away.
No wonder there's so much cynicism out there. No wonder there's so much disappointment.
I campaigned on the promise of change –- change we can believe in, the slogan went. And right now, I know there are many Americans who aren't sure if they still believe we can change –- or that I can deliver it.
But remember this –- I never suggested that change would be easy, or that I could do it alone. Democracy in a nation of 300 million people can be noisy and messy and complicated. And when you try to do big things and make big changes, it stirs passions and controversy. That's just how it is.
Those of us in public office can respond to this reality by playing it safe and avoid telling hard truths and pointing fingers. We can do what's necessary to keep our poll numbers high, and get through the next election instead of doing what's best for the next generation.
But I also know this: If people had made that decision 50 years ago, or 100 years ago, or 200 years ago, we wouldn't be here tonight. The only reason we are here is because generations of Americans were unafraid to do what was hard; to do what was needed even when success was uncertain; to do what it took to keep the dream of this nation alive for their children and their grandchildren.
Our administration has had some political setbacks this year, and some of them were deserved. But I wake up every day knowing that they are nothing compared to the setbacks that families all across this country have faced this year. And what keeps me going -– what keeps me fighting -– is that despite all these setbacks, that spirit of determination and optimism, that fundamental decency that has always been at the core of the American people, that lives on.
It lives on in the struggling small business owner who wrote to me of his company, "None of us," he said, "…are willing to consider, even slightly, that we might fail."
It lives on in the woman who said that even though she and her neighbors have felt the pain of recession, "We are strong. We are resilient. We are American."
It lives on in the 8-year-old boy in Louisiana, who just sent me his allowance and asked if I would give it to the people of Haiti.
And it lives on in all the Americans who've dropped everything to go someplace they've never been and pull people they've never known from the rubble, prompting chants of "U.S.A.! U.S.A.! U.S.A!" when another life was saved.
The spirit that has sustained this nation for more than two centuries lives on in you, its people. We have finished a difficult year. We have come through a difficult decade. But a new year has come. A new decade stretches before us. We don't quit. I don't quit. (Applause.) Let's seize this moment -- to start anew, to carry the dream forward, and to strengthen our union once more. (Applause.)
Thank you. God bless you. And God bless the United States of America. (Applause.)
