bills or not. who benefitted from that fiasco? i talked tonight about the deficit of trust between main street and wall street, but the divide between this street and the rest of the country is just as bad. and it seems to get worse every year. some of this has to do with the corrosive influence of money in politics. so together let's take some steps to fix that. send me a bill that bans insider trading by members of congress. i'll sign it tomorrow. let's limit any elected official from owning stock in the pact. let's make sure people that bundle campaign contributions for congress can't lobby congress and vice versy.

an idea that has bipartisan sport, at least outside of washington. some of what's broken has to do with the way congress does its business these days. a simple majority is no longer enough to get anything, even routine business, passed through the senate. neither party has been blamed. now both parties should put an end to it. for starters, i ask them to pass a simple rule that all judicial and public nominations receive a simple umor down vote within 90 days. the executive branch also needs to change.

too often, it's inefficient, outdated, and remote. that's why i have asked this congress to grant me the authority to consolidate the federal bureaucracy so our government is leaner, quicker, and more responsive to the needs of the american people. finally, none of this can happen unless we also lower the temperature in this town. we need to end the notion that the two parties must be locked in a perpetual campaign of mutual destruction. that politics is about clinging to ridged ideologists instead of building consensus around common

sense ideas. i'm a democrat, but i believe what republican abraham lincoln believed. the government should do for people only what they can't do better by themselves and no more. [ applause ] that's why my education reform offered more competition and more control for schools and states. that's why we're getting rid of regulations that don't work. that's why our health care law relies on a reformed private market, not a government program. on the other hand, even my republican friends who complained most about government spending have supported federally finances roads and

clean energy projects and federal offsuits for folks back home. the point is we should all want a smarter, more effective government. and while we may not be able to bridge our biggest philosophical differences this year, we can make real progress. with or without this congress, i will keep taking actions that help the economy grow. i can do a whole lot more with your help. because when we act toort, there's nothing the united states of america can't achieve. that's the lesson we have learned from our actions abroad over the last few years. ending the iraq war has allowed us to strike decisive blows

against our enemies. from pakistan to yemen, the al qaeda operatives who remain are scrambling, knowing they can't escape the reach of the united states. from this position of strength, we have begun to wind down the war in afghanistan. 10,000 of our troops have come home. 23,000 more will leave by the end of this summer. this transition will continue, and we will build an enduring partnership with afghanistan so it is never again a source of attacks against america. the tide of war recedes, a wave of change has washed over the northeast, from asia to trip olli.

a year ago, gadhafi was one of the largest serving dockitaries, a murderer with blood on his hands. today, he's gone. i have no dowd that the asad regime will soon discover that the forces of change can not be reversed and human dignity cannot be denied. how this incredible transformation will end remains uncertain. but we have a huge stake in the outcome. and while it's ultimately up to the people of the region to decide their fate, we'll advocate for those values that have served our own country so well. we will stand against violence and intimidation. we'll stand for the rights and

dignity of all human beings, man and women, christians, muslims, and jews. we will support policies that lead to strong and stable democracies and open market because tyranny is no match for liberty. and we will safe guard america's own security against those who threaten our citizens, our friends, and our interests. look at iran. through the powerf our democracy, a world that was one divided about how to deal with iran's nuclear program now stands as one. the regime is more isolated than ever before. its leaders are faced with crippling sanctions and as long as they shirk their responsibilities, this pressure will not relent. let there be no doubt, america is determined to prevent iran from getting a nuclear weapon, and i will take no options off the table to achieve that goal.

but a peaceful resolution of this issue is still possible and far better. and if iran changes course and meets its obligations, it can rejoin the community of nations. the renewal of american leadership can be felt across the globe. our oldest alianing in europe and asia are stronger than ever. our ties to the americans are deeper. our iron clad commitment, and i meanire clad to israel security has meant the closest military operation between the two countries in history. we've made it clear that america

is a pacific power, with a new beginning in burma with new hope. from the coalitions we have built to secure nuclear materials to the missions we led against hunger and disease, and the blows we have dealt our enemies, to the enduring power of our moral example, america is back. anyone who tells you otherwise, anyone who tells you that america is in decline or that our influence has waned, doesn't know what they're talking about. that's not the message we get from leaders around the world who are eager to work with us. that's not how people feel from tokyo to berlin, from capetown

to rio, where opinions of america are higher than they have been in years. yes, the world is changing. no, we can't control every event. but america remains the one indispensable nation in world affairs, and as long as i'm president, i intend to keep it that way. that's why working with our military leaders, i proposed a new defense strategy that insures we maintain the finest military in the world while saving nearly half a trillion dollars in our budget. to stay one step ahead of our adversaries, i have sent the congress legislation that will protect our country from the growing threat of cyberthreats. above all, our freedom endures

because the men and women in uniform who depend it. [ applause ] >> when they come home, we must serve them as well as they have served us. that includes giving them the care and benefits they have earned, which is why we have increased annual v.a. spending every year i have been president.

and it means enlisting our veterans in the work of rebuilding our nation. with the bipartisan support of the congress, we're providing new tax credits to companies who hire vets. michelle and joe biden have worked with businesses to secure a pledge of 130,000 jobs for vets and their families, and tonight i'm proposing a veterans jobss kor who will hire them as cops and firefighters so america is as strong as those who defend it. which brings me back to where i began.

those of us who have been sent here to serve can learn a thing or two from the service of our troops. when you put on that uniform, it doesn't matter if you're black or white, asian, latino, native american, conservative, liberal. rich, poor, gay, straight. when you're marching into battle, you look out for the person next to you. or the mission fails. when you're in the thick of the fight, you rise or fall as one unit. serving one nation. leaving no one behind. one of my proudest possessions is the flag that the field team took with them on the mission to get bin laden. on it are each of their names.

some may be democrats, some may be republicans. but that doesn't matter. just like it didn't matter that day in the situation room when i sat next to bob gates, a man who was george bush's defense secretary, and hillary clinton, a woman who ran against me for president. all that mattered that day was the mission. no one thought about politics. no one thought about themselves. one of the young men involved in the raid later told me he didn't deserve credit for the mission. it only succeeded, he said, because every single member of the unit did their job. the pilot who landed the helicopter that spun out of control, the translator who kept others from entering the compound. the troops who separating the women and children from the

fight. the fields who charged up the stairs. more than that, the mission only succeeded because every member of the unit trusted each other, because you can't charge up the stairs in the darkness and danger unless you know that there's somebody behind you watching your back. so it is with america. each time i look at that flag, i'm reminded that our destiny is stitched together like those 50 stars and those 13 stripes. no one built this country on their own. this nation is great because we built it together. this nation is great because we worked as a team. this nation is great because we get each other's backs.

and if we hold fast to that truth in this moment of trial, there is no challenge too great, no mission too hard, as long as we are joined in common purpose, as long as we maintain our common resolve, our journey moves forward, and our future is open, and the state of our union will always be strong. thank you, god bless you, and god bless the united states of america. [ applause ] >> the president of the united states speaking to a joint session of congress, over an hour on a wide range of issues. mostly domestic issues, mostly issues involving jobs, jobs, and jobs. there's gabby giffords, the congresswoman from arizona injured a year ago, in a gun attack. the president going down and

receiver some members of his cabinet, members from the joint chiefs of staffs. and he'll be walking out of the chamber. i want to go around and get thoughts from our correspondents. gloria, what did you think? >> what the president gave us is a laundry list of things he wand to do that he believes government can actually help with in terms of energy, education, manufacturing, and most important, what he did was he laid down a marker about tax reform. and he said that if you make more than a million dollars a year, wolf, you should not pay less than 30% in taxes. that stands in stark contrast to the news we heard about mitt romney and his great wealth and his 14% tax rate. >> he didn't mention mitt romney by name, but that was a point there. john king, what did you think? >> no question that the american people are going to have a very,

very clear contrast this november on so many issues. the president defending his plan on raising taxes on the rich, h defended more government intervention, spending, health care law and the new flgz regulation, the dodd-frank bill passed after 2007-2008, said he will not go back repeatedly and won't go back on policy, and he said on foreign policy, america is back, and those who say otherwise don't know what they're talking about. look at any of the republican candidates running for president, and you'll hear the opposite. the american public got an idea of the clear contrast they'll have to decide in november. >> he was referring to the republican candidates when he said the interest has waned, they have no idea what they're talking wrubt. a pretty defiant president of the united states.

>> and you heard him try to inoculate himself against some of the attacks republicans will lodge against him in the course of his campaign about the collapse of the housing market, about over the keystone xl pipeline he didn't support, and over some sof the job loss said. he proposed a new housing program. he talked about the natural gas industry he plans to expand, and he emphasized that the actual oil industry has expanded under him, which is something you'll hear about when he's hitting the campaign trail, and he emphasized the auto industry and how he's helped bolster that a big, big, big message you'll hear him push in michigan. then the theme about congress and exercising the ethics theme. something he seemed to lecture congress about there, but it was a subtle way to distance himself from congress without taking them to task while he's standing in front of them tonight. >> dana bash is inside the

chamber as we see the president getting ready to lever. >> doing some gripping and grinning before he heads out. this morning, john boehner told a few of us that he and most republicans and the president and most democrats are from different planets. and you definitely saw that tonight. just even in the dynamic of this room, of this house chamber. the president making clear that his solutions for the most part is to invest public money, and every time he said that, you saw republicans basically sitting on their hands, stone cold, no applause at all. one thing i definitely want to point out there, was a very interesting dynamic talking about bipartisanship. that had to do with gabby gifford. she was sitting next to a republican congressman from her home state of arizona. every time she wanted to get up to demonstrate applause or to stand up with her fellow

democrats, he helped her up, so many, many times he was probably the only republican standing in the room because he was helping his fellow democrat stand up. ironically, if she had not been shot, he might have been running for senate against jeff blake. that was a moment to watch over and over again. >> very emotional moment for all of us watching. david gergen, you served for four presidents, what would you give the president for the sdraesz? >> it was a politically shrewd speech. it will mobilize democrats, win over some independents, he refrained the conversation. after the republican debates, he had a different take, a different agenda. far more government intervention to solve problems. far more spending. he moved away from talking about deficits that occupied our time

so much. republicans are going to have, as john king said, a huge contrast. on many occasions, if the speech had been 30% shorter, it would have been 30% more powerful. but bill clinton gave long state of the union addresses, they were very powerful. we'll have to see, i may be wrong. >> we're awaiting the republican response from mitch daniels, the governor from indiana. paul begala, you helped write several of the state of the union addresses. did this president need an editor to cut it down? >> i'm weird this way, i love it, and particularly this conclusion. that was worth staying for. that was really powerful. the whole tone was much more populous than this president has been, suggesting he relishes the idea of stepping up and being campaigner in chief. the thing that struck me, the beginning and the ending, is how authenticly and comfortably and confidently he inhabits the role

of commander in chief. when they salute him, they don't know what to do. no longer, he is very comfortable being the commander in chief, and he spoke about it. politically, a great speech, but i love seeing my commander in chief being that powerful. >> he's walking out of the chamber right now. ari fleischer, you worked for george w. bush, what did you think of that speech? >> there was hardly anything in the speech i liked. let me start with the thing i like and like a lot. that was, i salute the president, the courageous decision to authorize the decision to get bin laden. he deserves the credit for that and he got it tonight. the rest of it, the whole emphasize, the whole reason for being in government is to spend other people's money. is to take from those who have money and redwint it to others he thinks should have money instead.

this is everything he seeks to do in the presidency. the body language, the emotion, little to nothing there on reducing the debt. very little to nothing on social security or medicare. or as we're about to hear from mitch daniels, the red menace of death. really passing mentions, wasn't the emphasize of the speech tonight. you get the sense what he really wants to talk about, how to spend more people's money on this program, that program, that program because the federal government creates a lot of entitlement, and the spending programs know how to do it better than anyone else. >> let me get roand martin to weigh in. they appealed to the liberal base. we saw them standing up. >> but it also appealed to american people. we can talk ability the people in the room, but the president basically said, congress, get your butt to work.

paul is right. the close there was absolutely strong. any preacher would love to have that kind of close. it's a mission that matters. i'll tell you, ari, if you're out there, republican or democrat, and you're trying to keep your home, you like what the president had to say. if you're a republican or democrat and you want your kids in college and you want that tax credit, you have no problem with what the president had to say. i think, this is not a question of let's focus on the dent or whatever. this was a president saying i'm speaking to the american people, and congress, it's time to stop playing games and be about one nation, one accord. let's move together. >> candy crowley -- hang on, ari. >> candy, a lot of themes the president is going to be delivering in the course of the next many months leading up to november we heard today. >> we did. this was the blueprint. you will hear bits and pieces of it as he moves forward. as a matter of fact, as he

starts tomorrow, and he's got a couple three days of campaigning or talking to the american public, and you'll hear these things again, energy and education, moving forward for fairness. i thought that the speech itself, there certainly wurb some things intended, and jessica spoke to it, intended to draw the sting from republicans. i thought one of the more interesting lines in it was about, it's time to apply the same rules from top to bottom. no bail-outs, no hand-outs, and no cop-out said. sort of addressing the fairness issue that republicans keep bringing up and saying is really about envy. and i agree with paul and roland that it was interesting that he wrapped the entire economic speech at both ends, beginning with the iraq war is over and ending with, and by the way, osama bin laden is dead. the truth is this president gets higher marks for his handling of

foreign policy now than he does for his handling of the economy. it was an astute political move of him. >> ari fleischer, you wanted to make another point. >> roland's point about how the public will receive the speech, in 2008, the public loved barack obama's speeching. in 2009, they really liked them. in 2010, they liked them. in 2011, they didn't like them. now, in 2012, the people have heard so much of this before, if the economy is bad, dent is sky high, spending is out of control, and unemployment is out of control. it hasn't worked, in fact, it's aggravated what we have. >> i wasn't speaking about the speech, i was speaking about policy. i grew up in houston, an oil and gas city and state. if you're a parent watching right now, you heard the president talking about a policy when it comes to keeping your

kids in school, when it comes to keeping your house from being foreclosed. that's not a speech, it's policy. >> we're about to get the republican response. mitch daniels is the governor of indiana. he'll deliver the republican response. it's much more difficult to deliver an effective response because it's usually not before an audience. there won't be any applause. let's listen. >> greetings from the home of super bowl xlvi. the status of loyal opposition imposes on those out of power some serious responsibilities. to show respect for the presidency and its occupants, to express agreement where it exists. republicans tonight salute our president for instance for his aggressive pursuit of the murders of 9/11 and for bravely backing long overdue changing in public education.

i would add to that list admiration to the strong family commitment he and the first lady have displayed to a nation lacking. the president seemed to find a sunny side in the economic condition, but when he claimed the state of the union is anything but gray, he must know in his heart it's anything but true. he didn't cause the economic and fiscal crisis that exists tonight, but he elected on a promise to fix them, and he can't claim to have done anything but make them worse. 1 in 5 men of prime working age and nearly half of all persons under 30 did not go to work today. in three short years, an unprecedented explosion of spending with borrowed money has added trillions to an already unaffordable debt and the president has put us on a course

to make it radically worse in the years ahead. the federal government spends 1 of 4 dollars in the economy. no nation, no entity large or small, public or private, can thrive or survive intact with debts as suj as hours. the grand experiment in trickle down government has held back and not sped up the economy. he seems to believe we can build a middle class out of government jobs paid for with borrowed dollars. in fact, it works the other way. a government as big and bossy as this one is maintains on the backs of the middle class and those who hope to join it. those punished most by the wrong turns of the last three years are those unemployed or underemployed tonight, and also discouraged, they have abandoned the search for work all together. and no one has been more

tragically harmed than the young people of the country, the first generation to face a future less promising than their parents did. for republicans, the first concern is for those waiting to begin or resume the climb up the ice ladder. we don't believe our nation will ever be one of hads and have nots. in our economic stagnation, and indebtedness, we're only a short distance behind greece, spain, and other countries facing economic catastrophe, but ours is a fortunate land because the world uses our dollar for trade, we have a short grace period to deep with our danger, but time is running out if we're to avoid the fate of union and the once great countries in history that fell from the positions of leadership. 2012 is a year of true opportunity, maybe our last, to restore an america of help and upward mobility and greater

equality. the challenges aren't matters of ideology or party preference. they're mathematical and the answers are practical. an opposition that would earn it way to leadership must not offer criticism of failures anyone can see, but a positive plan to make life better, particularly for those aspiring to make life better for themselves. republicans accept this duty gratefully. reach back to a america of promise and go back to a america that can pay its bills and protect its vulnerable start in the same place. the only way up for those suffering and the only way out from the dead end of debt is a private economy that begins to grow and create jobs, real jobs, at a much faster rate than today. contrary to the president's constant disparagement to people in business, it's one of the

noblest of human disputs. the late steve jobs, what a fitting name he had, created more of them than all of the stimulus dollars the president borrowed and blew. out here in indiana whrx, when a business person asked what they can do, i said, make money, be successful. when you make a profit, you'll have more to hire someone else and donate to the causes we love. the agreement that stifles the home grown energy or cancels a perfect safe pipeline that would have employed tens of thousands, or jacks up utility bills is a pro poverty policy. it must be replaced by a passionate pro growth approach that breaks all ties and calls all close ones in favor of private sector jobs that restore opportunity for all and generate the public revenues to pay our

bills. that means a dramatically simpler tax system. a pause in the mindless piling on of expensive new regulations that devour ballers that otherwise could be used to hire somebody. it means maximizing on the new domestic energy technology that are the best break our economy has gotten in years. there's a second item on the national must-do list. we must unite to save the safety net. medicare and social security have served us well, and that must continue. but after a half and three quarters of a century respectively, it's not surprising they need some repairs. we can preserve them unchanged and untouched for those now in or near retirement, but we must fashion a new, affordable safety net so feech future americans are protected, too. decades ago, for instance, we could afford to send millionaires pension checks and pay welfare bills for the wealthiest among us.

now we can't, so the dollars we have should be devoted to those who need it most. the mortal enemies of social security and medicare are those who in contempt of the plain arrhyth mutic convince americans that we need to change nothing. the proud programs implode and take the american economy with them. it will mean that coming generations are denied the jobs made in their youth and the protection they deserve in their later years. it's so that everyone should contribute to the national recovery, including, of course, the most affluent among us. there are smart ways and dumb ways to do that. the dumb way is to raiseerates in a broken tax system, choking off growth without the revenues we need. the better source is to stop sending the wealthy benefits they don't need and providing

them with so many tax cuts that distort the economy and do little but stifle growth. they and they alone have passed bills to reduce borrowing and job creation only to be shot down time and time again by the president and his great extended allies. this year t falls to republicans to level with our fellow citizens about this reality. if we fail to act to grow the private sector and save the safety net, nothing else will matter much. but the tyke such action happen, we also must work in ways we republicans have not always practiced, to bring americans together. no feature of the obama presidency has been sadder than its constant efforts to divide us, by currying relationships with some by castigating others.

we americans are all in the same boat. if we drift, quarreling and paralyzed over a niagara of death, we will all suffer, regardless of income, race, gender, or other category. if we fail to shift to a pro-jobs, pro-growth economic policy, there will never be enough public revenue to pay for our safety net, national security, or whatever sized government we decide to have. as a loyal opposition, to put patriotism and success ahead of party or ediology, we say anyone who will join us in the cause of growth and solve nlsy is our ally and our friend. we will speak the language of unity. let us rebuild our finances and the safety net and reopen the door to the stairway upward. any other diagreements we have can wait.

the most troubling contention in our national life isn't about economics or policy at all. it's about us as a free people. in two alarming ways, that contention is that we americans just can't cut it anymore. in word, indeed, the president and his allies tell us we just cannot handle ourselves in this complex, perilous world without their benevolent protection. left to ourselves, we might pick the wrong health insurance, the wrong insurance, the wrong schools for our kids. if they don't stop us, we might pick the wrong light bulb. the view is we americans are no longer up to the job of self government. we can't use the safety net programs or the government we have. we'll follow for the con job that says we'll plow ahead psomeone will pick up the job.

we pit ourselves one against other, blaming our neighbor for the problems we have caused. 2012 must be the year ye prove the doubters wrong. the year we strike out bodily to say to a new generation that america is still the world's premier land of opportunity. republicans will speak for those who believe in the dignity and capacity of the individual citizens who believe the government is meant to serve the people rather than supersize them. who trust americans enough to tell them the plain truth and to lay before them a specific credible program of change big enough to meet the emergency we're facing. we'll face the prospects with confidence. there is nothing wrong with the state of the union that the

american people addressed as free-born mature citizens can't set right. republicans in 2012 welcome all of our countrymen to a program of renewal that we build the dream for all and make our city on the hill shine once again. thanks for listening. good night. >> so we have now heard two aspects of the state of the union. one from the president of the united states. one from mitch daniels, the republican senator from indiana. anderson? if you're just joining us on this, you have been watching the president's state of the union dress. we're joined shortly by jeff and also jim demint. president obama in his third annual message to congress laying out his economic agenda and his political road map from 2012, demanding action from congress, outlined steps he's taking that don't need congress. the state of the yunnian, he

said, is getting stronger. mitch daniels giving the republican response. we'll show you how a panel of undecided voters reacted to what they heard in live protesting. candy crowley, senior political analyst, david gergen, john king, political analyst, knloer yeah burger, paul begala, and ari fleischer. any surprises tonight? >> i think it was a solid speech. book ending it with two foreign policy achievements, the end of the war in iraq and the death of osama bin laden made it a very sort of solid speak and a reminder to voters, hey, by the

way, remember, here are the two things i did. as i mentioned before, here is a president who gets tire marks for his foreign policy than domestic. >> were a lot of the things he was suggesting, that states require that students stay in school until 18 -- >> a nice call, but no, much of this will not happen. this was far more designed to be an agenda for his second term too, take it into the debates in november. i think it was politically deft from his standpoint. he showed democrats that he's willing to fight. that he's got some fresh ideas. he was deft in the way he shifted the emphasize away from deficits, away from jobs, onto things like energy and skills and manufacturing. he's trying to shake it up and keep the focus on fairness.

i thought mitch daniels just got one of the best rebuttles i have heard. you can understand why so many leading conservatives really wanted mitch daniels in the race. a sensible voice, and principle conservative, and didn't engage in the hyperrhetoric we have been hearing in the debates. >> ari fleischer, do you agree with mitch daniels? >> i sure did. i'm neutral in the republican race, but i'm a mitch daniels and/or paul ryan guy. you would see tremendous more energy in the republican side and see the disciplined focus on what i think are the core issues of the country, fwhut economic issues, and you see it in a friendly and inclusive way as well. that's the point i was making about the fath that daniels emphasized, different than what president obama addressed tonight. one really sees staving off the

debt is the biggest challenge we face let's yield for a second and do the tax cuts on the wealthy. we have $25 trillion of debt in the same period of time. for obama, he seemed to think it's the solution. we're in so much debt, taxes doesn't go far enough, of course it's a spending problem. >> you have a great segm, keeping them honest. it's heart to hear mitch daniels talk about the deficit when he was on the board for president bush when their amount turned into the deficit. i also thought it was interesting when he talked about a pro-poverty plan if you will, from the president.

that was striking there, the first time you heard poverty come out tonight. what is going to be interesting going forward, what is the next step? >> i think the president should take his message to some of the core, some of the red states in the country, some of the poor states in the country and begin to say, look, show me how their plans have turn out for you. so me how they have made your life better and are you going to have health care under their plans, better education under their plans. i don't know if he wants to go there, but i think he should. >> paul begala there, wasn't much talk about reducing the deficit in the speech, which is something for a lot of republicans should be front and center. >> you're right, david gergen is right. much more eemphasis in the speech about jobs, health care, tax policy, interestingly enough. whatulse struck me is if you just looked at it parachuting in

from a foreign country, you wouldn't know this is a president who is stuck at 44% going into his re-election wf a painfully, almost 9% unemployment rate. more if you watched governor daniels you would know his party won a landslide election a year ago. governor daniels has his admirers. for me, his speech was so pessimistic, and this is hard to do. it was like a glass of warm milk with a fly in it. boring and depressing at the same time. i didn't quite go for it, but i want an optimist, and barack obama doesn't have that much to be optimistic about, but he made the most of it tonight. >> i don't think it was that bad, paul. what i think mitch daniels was trying to do was shift the agenda away from what barack obama was talking about and talk about the deficit issues. in addition to talking about obama's policy, pro-poverty, as

roland points out, he said it was extremism that stifles the development of home grown energy, and he's referring to keystone there. let me get back to the president. i think what he was trying to do, and he succeeded, was to thread the needle here. because he didn't want independent voter watching him saying, you know what, you don't like the rich, and what he's rying to to is tax the rich, or you're anti-wealth creation. what he went out of his way to say is we don't begrudge financial success in the country, we admire it,then he started to talk about having the wealthy pay their fair share. if you look at the polls, poem don't begrudge wealth. they just want taxes to be fair. and so he was speaking -- >> the argument over what is the

word fair mean in this case? stick around, everyone. a lot more to talk about. up next, a tea party republican takesoon tonight jim demint. we'll talk to him in a moment. we'll also show you the emotional high point of the night. gabby giffords' first state of the union since a gunman nearly took her life and her last as a congresswoman. ♪ ( whirring and crackling sounds ) man: assembly lines that fix themselves. the most innovative companies are doing things they never could before, by building on the cisco intelligent network.

as long as i'm president, i will work with anyone in this chamber to build on this momentum, but i intend to fight obstruction with action, and i will oppose any effort to return to the very same policies that

brought on this economic crisis in the first place. >> president obama laying down a marker on wall street regulation and other issues outlining the action the white house could take without congressional approval. we'll turn to dana bash inside the house, and gabby giffords' remarkable appearance a high point. >> no doubt, i have sat in many a speech from republican candidates, democrat, candidates, and you hear applause and you see it's forced because it's political. nothing forced about this. republicans and democrats happy to see gabby giffords and emotional about the fact she decides she was going to resign. tomorrow will be her last day so he is focus on her recovery from a gun shot wound in her head. i want to bring in jeff blake

who is a republican, and i wanted to tell you my observation watching you from up in the gallery. you were sitting next to her, you're a republican, she's a democrat. whether the democrats stood for the president's applause lines, you helped her stand up. you were oftentimes, most times the only republican standing up. tell me about that. >> the least i could do. it was an incredible experience to be there with her. particularly after last year, having an empty chair where she should have been. so it was just an overwhelming emotional experience for i think all of us. >> we could see her, we couldn't hear her. tell us what she said to you? >> we talked about the resignation tomorrow and the fact they will be able to pass one of the pieces of legislation she worked so hard on just before she retires. and also, she mentioned that she tried. she tried and tried to come back, and we all know that she gives 100%. and whatever is in store for

her, we know that she'll give 100%. >> she specifically said she tried to come back but she couldn't. >> she mentioned to a few people, i tried, i tried. it was just for all of us, we're very saddened to see her retire, but just grateful for the service she's given and the bipartisan atmosphere she brought to the chamber. the fact we all sat together last year and the tradition continued this year. i hope it continues on. >> i heard you saying you were getting tweets from your fellow republicans saying you supported that, you supported this? >> i think most people will understand, and i support my colleague and friend. >> thank you very much. and anderson, the irony, and i think you'll agree with this, is that gabby giffords, we now know, was considering running for the that, and you're running for the congress. you could have been opponents. >> we could have been. i would love nothing more than

for her to be able to run and participate fully in that way, and i'm just grateful that she's recovering and continues to. >> thank you very much. appreciate it. you see there, that really was one of the most remarkable moments of the day, no question about it. he mentioned the fact that last year at this time, pretty much everybody, republican and democrat, came with everybody from the other side of the aisle and sat with them to show their solidarity and to show that there's bipartisan feeling here. i have to say, unfortunately, some members decided not to do that this year because following that things devolved into partisanship last year. >> we're going to take a quick break. we'll talk to one of the president's staunchest critics, jim demint. we'll be right back. as producers to supply affordable, cleaner energy, while protecting our environment. across america, these technologies protect air -

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britta olsen is my patient. i spend long hours with her checking her heart rate, administering her medication, and just making her comfortable. one night britta told me about a tradition in denmark, "when a person dies," she said, "someone must open the window so the soul can depart." i smiled and squeezed her hand. "not tonight, britta. not tonight." [ female announcer ] to nurses everywhere, thank you, from johnson & johnson. welcome back to our continuing coverage. we're going to midnight in the post state of the union

coverage. with us now, one of president obama's sharpest critics. jim demint. thanks for being with us. first of all, the moment where gabby giffords entered the chamber, you were in the room. what was that like? >> it was really touching. for her to be there with jeff blake and the cheers, obviously, our hearts and prayers continue to go out to her. it was one of those wonderful moments there on the house floor. >> in terms of what the president had to say, was there anything there that you really agreed with? is there any room you see for compromise, for getting things done this year? >> oh, anderson, he said a lot of wonderful things. and it would be wonderful if it was true. so there were things there that i certainly agreed with, but when he talked about us being more energy secure one week from killing the keystone pipeline, talking about building manufacturing jobs in the

country when i talked to manufacturers and they know that obama care, dodd-frank, all of the regulations are killing manufacturing jobs, so it was hard to take him seriously. i think americans are going to have to ask themselves are they better off now than they were $4 trillio ago? this sounded like this first speech to the nation. he's trying to run from a record of broken promises and we're going to have to hold him accountable. >> you wrote an op ed in a paper. you said, quote, for the last three years, the values have only been punished. do you support him when he said that people who make more than $1 million shouldn't get a lower tax rate than other middle class americans. >> a lot of us for years have been trying to get president obama, first senator obama, to go with a low, simple flat rate

and take out the subsidies and loopholes. we're all for that. then he wants to come back and offer loopholes to his choice of manufacturers. he wants to pick winners and losers. we need a simple tax rate that allows our companies to agree. we agree with the concept, but that's not what the president has been doing. he wants to punish people who earn $1 million a year, people who earn $1 million a year average doing it one or two million a year. there aren't too many people like warren buffett, so to make a policy around him doesn't make sense. the things he has done has made it harder for people to sustain middle class jobs. and the biggest point of the speech for me, it was irresponsible for him not to recognize the dire circs our country is in because of the debt.