gives. it was a partisan attack on republicans and the americans who voted to put the republicans in charge of the house and in the senate. it's interesting listening to the commentary. wolf blitzer on "cnn" said that the member state in the union address where he heard a president issue so many veto threats to the opposite party in the united states congress. so andrea mitchell "msnbc" saying in terms of foreign policy the president's views are not close to reality as "cnn" wolf blitzer i don't member a state of union address where of heard a president issue summative veto threats to the opposite party united states congress especially at a time as "the new york times" points out gop gains in elections. the president simply is ignoring what has happened across this country in the november

elections. president obama seems to have missed the november elections entirely. republicans know we have an obligation to the american people to deliver effective efficient and accountable governing. we have an opportunity stated obligation to put americans first. last night president obama showed he wants to put washington first. republicans are not willing to help this president continue down the same wrong road that the american people have rejected. let's be honest this past election was a rejection election rejecting the policies of this president and this administration. we are charting a new course in a better direction and where are you making progress. senators -- the senate is working like it has worked in your favorite debating the keystone pipeline in the jobs

bill and allowing senators to offer amendments. we are going to pass this bill. we are going to send it to the president's desk and we are going to turn to more more jobs fills an important issue that the american people care about. we will work on reforming our health care system. in his speech last night president obama offered no solutions on the major issues facing this country. instead he offered the same old tired policies of higher taxes more washington spending more bureaucracy more instruction of bipartisan solutions coming out of the new congress. the president said congress should focus on areas where we agree. well that's exactly what the republicans have been doing. we are moving bipartisan bills bills that overwhelming majorities of americans support supported the president continues to threaten to veto them. things like the keystone xl pipeline bill that supports 42,000 american jobs.

that's not my answer. that's what the state department a presence on state department said it would support 42,000 american jobs. a poll last week 65% of americans said the president should sign that into law. we will pass bills to allow for more exports for american energy and to give the president the trade promotion authority he has asked for. we will pass commonsense reforms to america's health care system two and many of the outrageous expensive mandates for coverage that people don't want, don't need can't afford. we will pass bipartisan education reform to give all america's 50 million students a better chance to succeed. we will push for tax simplification to make taxes more fair and less complicated. that's what americans need to compete in the 21st century. we don't need higher taxes more debt to pay for spending and

more irs agents things the american people don't believe we need. republicans are going to is sent seven bills that would help expand our economy by growing the private sector not by growing the washington bureaucracy. we are going to pass bills that increase how much families earn and how much they get to keep not just how much washington gets to take and the president gets to spend. so the state of our union is strong and it is also in greater agreement that has been in years about the direction this country should take. president obama could've taken the opportunity last night to actually talk about this. he could have offered a positive plan to work with republicans and democrats in congress instead of the defiant tone that he placed upon the country.

he made threats to veto bipartisan legislation. he chose to double down on more obstruction more unaccountable washington broker seymour tax dollars. the american people have rejected this course. the american people want a better path not the same old tired speech for my president now in the final quarter of his time as president. the speech is over. now the president needs to decide what he's going to do. is he ready to get on board with bipartisan ideas or does he want to just send the next two years as a lame-duck? their democrats in this body who agree it's time for the senate to get back to work. they are ready to listen to ideas work with republicans to help america and help the american people thrive. this president should work with

all of us. that is what americans want. they want us to work together. they want us to change the direction the country has been heading for the first six years of president obama's time in office. this republican congress is listening to the american people people. the president continues to ignore them. thank you mr. president. i yield the floor. the presiding officer: the majoty >> the majority whip. >> mr. president like the rest of the country i've listened with close attention to the president state of the union last night and had a pretty good seat was down front.

i got to listen to the president very closely and of course i was interested because it presented a great opportunity for the president following a very eventual election of november the fourth to state his vision for the country and most particularly to talk about his plans for working with the new congress that was elected in november. it was a big election for a lot of reasons but one was that we got nine new republican members of the congress of the senate. i've been in the senate in the minority and i've been in the senate in the majority and i can tell you i like it a lot better in the majority. but the fact of the matter is notwithstanding a good election from my perspective on november the fourth one that sent a clear message i really was left to wonder what the president got that message and while i believe

this was a referendum on washington's dysfunction in dealing with so many of the issues that face hard-working american families what the president seemed to promise was more dysfunction. i for one in here to say we are not going to follow the president down this low road. we will try to find areas where we can work with the president and he did mention a few. things like trade, things like criminal justice reform. there are a few things the president seemed to indicate want partisan issues and we look forward to working with him on those. the biggest problem we have still which faces our country is the fact that notwithstanding one pretty good quarter of economic growth in our economy in recovery is still pretty fragile and they know about the

number of people in the percentage of americans in the workforce are at a 30-year low. some of that is because they have looked for work and they can't find work. americans are seeking full-time work and have to settle for part-time work. in part because the president's own policies things like an affordable care act obamacare which incentivizes employers to put people on part-time work in order to avoid some of the penalties. but notwithstanding my optimism after this important election we had a november and the potential we had working together the president and congress to try to address the challenges that faced face our country my optimism was quickly tempered. why only tempered optimism? i heard as a senator from wyoming my friend senator barrasso mentioned the president has issued seven veto threats

since the election. seven veto threats. this is for a president who in the first six years of his term of office as only vetoed one bill that the first thing he does after this election were should have been a wake-up call to him and others should have been a wake-up call to all of us he is issuing seven veto threats to bills that haven't been voted out of the senate that haven't even made it to his desk. to me that sends a very disturbing message that the president instead of just just being commander-in-chief he wants to be the obstructionist in chief. i don't know how else to interpret. then there's the president's disquieting tendency to take credit for things that other people have done and for his own failures to blame on somebody else.

it's really disturbing. since this new congress has convened it seems to me that it's been a tale of two branches of government. while the congress has shown a commitment to working together and in my private conversations with my colleagues on the other side of the aisle many of them are eager to work with us to try to find solutions to these challenges on a bipartisan basis. as one reason for majority leader senator mcconnell chose the keystone xl pipeline legislation because it enjoyed broad bipartisan support and we thought it was important to demonstrate right out of the starting gates that we listen to what the american people told us on november 4, that they want us to work together that they are tired of the dysfunction. it appears the president hasn't noticed or perhaps more

accurately it doesn't really care what the american people said on november the fourth. but if the president isn't going to listen to the american people and the voters who voted on a referendum on his policies and that's not my words, those were his, i wish that he would listen to what he himself said. he said time and time again elections have consequences. while i agree with that but this is the same president who 22 times said he did not have the authority to issue an executive action on immigration and then turned around and did it. 22 times he said he didn't have the authority. and then he did it. what i have learned here in washington is you can't just listen to what people say. you have to watch what they do

and we have a track record over the last six years of what this president has done not just what he has said. as i say the intransigence and the tone deafness was pretty shocking last night notwithstanding the president gave a good speech. what i think the president hasn't cracked the code on that anybody in elective office has to understand is there's a difference between running for office and actually governing once the election is over. this president seems to be in a perpetual campaign mode making promises that sound like campaign promises rather than recognizing the reality of divided government and looking for opportunities to work together to solve problems. so he's back on the campaign trail again. i think he's going to idaho and other places around the country

touting his new agenda. hundreds of billions of dollars in new taxes and of course somebody has to pay the bill but the president mainly talked about free stuff last night. free stuff is always pretty popular. i'm surprised he didn't offer americans free beer and pizza while he was at it. very popular, very popular but the american people are not. they understand somebody is going to have to pay the bill and the president ignored them entirely. he also ignored this. for the last six years as president has added $7 trillion to the national debt. $7 trillion. it's now over $18 trillion. i know it's impossible for the human mind to wrap itself around a figure that big. that is so big that it's

incomprehensible in many ways. but we didn't hear a thing about the president adding $7 trillion to the national debt. what he did take credit for and this is interesting because he takes credit for things he has nothing to do with and he blames other people for his own failures but here is where he was half right. he did say the deficit and the difference between the money we bring in on the money we spend has gone down a little bit. that's true but the fact remains we are still adding to the national debt with every dollar of deficit spending. but the president also did not say is the main reason why the annual deficit had gone down is because he he advocated for the largest tax increases in recent history perhaps in all of american history during the fiscal cliff debate. and then of course there was the sequester which was a cap on

discretionary spending that they the president railed against even though he was one of the people who thought this up during the so-called supercommittee to abrasions. i couldn't help but think that the president kept talking about raising taxes and increasing spending and not dealing with problems like the looming debt and he was turning is more into europe, a welfare state where everybody would look to the government to take care of them not a country that we were left by her parents and grandparents were we could exercise our individual freedom and seek opportunities to rise above what we had left by previous generations. to me that's the most important difference in what the president

said last night what he might've said because their children do deserve more opportunities. the truth is most of us who are people my age are going to be okay. the fact of the matter is the next generation my children and beyond have been bequeathed more debt and now the president wants to add onto that debt debt more taxes were spending their government. if there was one thing that was rejected in this last election it is what we have had for the last six years. what they have the last six years was a grand experiment in government and we have always had this debate about the size of the role of federal government that we have never had such an aggressive attempt to grow the size of the government in recent memory certainly since the new deal than under the last six years. with the american people i believe rejected was this experiment in big government. now there would be perhaps it

would be understandable if they want examples of what actually does work what does grow the economy what does put more money and hard-working taxpayers pockets and what does provide more jobs and opportunities. one reason why it seems somewhat obvious to me is because i see what is done in places like my home state taxes. and it's been done in other states. put trust in people and not a bigger government. somebody has got to pay for it. the formula is not all that unique. i know governor perry who just left office after 14 years when people talk about the texas miracle he said it's not a miracle. a miracle is supernatural event. with this is is the texas model a conscious effort to choose policies that actually work. they grow the economy and create

jobs. lower taxes less red tape of balanced budget. wouldn't that be nice? we haven't had a balanced budget in washington since 2009. it's really malpractice. other policies that would encourage businesses to invest and grow because that creates jobs and that creates white -- raising wages and a successful middle-class brick the fact is if it works in the states it can work here too. such things like reforming the tax code to provide tax relief in a way that incentivizes people to work harder and produce more that's pro-growth tax policies not regressive tax policies like the president has proposed which would make it harder and approving things like infrastructure projects. the president talk about infrastructure last night when he vetoed a thread for the

keystone xl pipeline. we are going to prove it and put it on his desk and then it's up to him. of course then putting americans back to work and repealing burdensome government overreach like obamacare. mr. president there's a difference between governing and campaigning. the president there's no doubt about it he's a world-class campaigner. he won two elections by running successful campaigns but he seems absolutely disinterested and attached and indeed an obstacle to governing which is the job in front of us. mr. president in closing i were to say the state of the union is always a work in progress. but it should always be improving and it's my sincere hope that the president will realize the hand he has been dealt which is one of divided government and campaigning

perpetually making promises for free stuff and higher taxes and bigger government that he would work with us to solve some of the very clear challenges that confront us primarily once i woke grow our economy and put americans back to work. mr. president i yield the floor. >> colleagues i almost hate to use my minutes because i'm so eager to hear what was said

during the minutes are energy chairman will follow me with. but i'm hoping that after many years of darkness and blockade this boat can be a first little beam of light through the wall that will allow us to at least start having an honest conversation about what carbon pollution is doing to our climate into our oceans. this is a matter of vital consequence to my home state the ocean state, my home, rhode island and too many of yours as well. i hope that there's a place where we can get together and have a strong positive vote that sends a signal that the senate at this time in our history is ready to deal with reality. thank you very much. >> mr. president i would yield our side to the senate from oklahoma. >> mr. president can i ask for

order in the senate. >> the senate will be in order. >> mr. president i would be added to a co-sponsor to the white house amendment. >> so ordered. >> mr. president climate is changing and climate has always changed and always will. there is archaeological evidence of that and historic evidence of that. it will always change. the hoax is that there are some people who are so arrogant to think that they are so powerful they can change climate. man doesn't change climate pass my colleagues to vote for the whitehouse inhofe amendment.

>> host: the house takes up an abortion restrictions bill this week and we are joined by lauren french of politico who is covering it this week. what is the significance about the house taking up an abortion bill this week? >> guest: well this is the march for life and event rally in d.c. that antiabortion advocates, and that's the anniversary of the roe v. wade decision so their significance for republicans to vote on the measure this week. republicans see this bill as a bill banning abortions after 20 weeks and a commonsense proposal. the bulk of americans can get behind it and they want the bill to go forward smoothly to put them on a very good path to talk about abortion on the national scale. >> host: as we begin our conversation you are just waiting out the republican

leadership is facing a revolt from gop women on the 20 week ban bill over the rape exemption and showing a picture of renee ellmers who is behind this revolt and what are they really concerned about? >> we are talking about 25 women had been meeting in the republican leadership in expressing their concern at the exemption included in the ban mandating that women report their rape to the police. it's too harsh to be included in the law. obviously not -- there some victims that don't formally report their rapes to police and they are worried that not including an exception for women who don't -- who don't refrigerate the dough could be harsh. >> host: you reported earlier that they had pulled their names off the sponsorship of the bill. did you get a response from gop leadership? >> they are considering changing the language. yesterday they told the chairman

nye that they were not going to be changing a language without facing a bill that could fail. they could lose 27 republicans before the bill does fail. they are reevaluating and wondering if they changed to the language. >> host: can they do that now that the house is gone forward? >> guest: they could go forward and change it. they would vote on a new rule and restart the process was possible if they do change language the vote doesn't occur tomorrow as planned. >> host: lease from the speaker's press office it sounds like they are going forward and calling for passage of the current legislation. house speaker boehner tweeting the house will vote to protect unborn babies after five months a policy supported by a majority of americans. also catherine clarke a new member i'm urging the house rejected an extreme antichoice bill set for a vote on row v. wade anniversary. take us back to the similar measure the house passed last week in terms of democratic support.

what about the senior? >> guest: this year is unlikely to see a vast amount of support. there were six democrats voted last year in favor of the measure from folks that have left congress so there aren't enough democrats that republicans can rely on to pass it over republican objection. >> you have reported the white house is issuing a veto threat on this legislation. what would happen in the senate? do the leaders plan to take up this? >> guest: mr. mcconnell hasn't given much indication on whether he feels it could pass the senate if it is scheduled and weather would be scheduled. the senate moving forward and it could be weeks or months before they go forward and they likely don't have the votes to override a presidential veto which could hamper expectations in the senate debate. >> host: follow lauren french is reporting on twitter and

lauren and friends at politico.com. thanks for the update. >> guest: thanks for having me on.

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proposal for a $50 million increase to schools. he is expected to talk about the aftermath of the ferguson missouri shooting. before becoming governor he served as the attorney general for six years. this is live coverage from jefferson city, missouri. john huff honor ryan mckenna, labor and industrial

relations. [applause] >> dr. keith shafer. mental health. sarah parker poly natural resources. dan isim acting director of public safety. neah ray, acting director of revenue. [applause] >> brian kimcade, social serves. dave nickels, transportation. also pleased to introduce missouri national guard general major general steve danner. [applause] >> we are also delighted and welcomed to have the first lady of missouri george ann nixon.

[applause] >> mr. sergeant and arms. >> mr. president, the governor of the state of missouri now approaches the chamber. >> mr. sergeant and arms open the doors to allow the government to enter and the escourt committee will escort the governor to the dias. [applause] plays -- [applause] --

[applause] [applause]

[inaudible discussions] >> ladies and gentlemen, governor jay nixon. [applause] >> thank you. [applause] >> good evening. thank you lieutenant governor speaker deal members of the general assembly judges of missouri supreme court state officials, members of my cabinet and honored guest. i thank god for the people of missouri for the privilege to

serve our state. it would not have been possible without the steadfast support of my family. here tonight is the first lady of the state my wonderful wife georgeanne. [applause] >> throughout my life i have been guided by principles. i was taught as a young boy in dakota boy scroti troop to do my duty to help the country, help other people at all times and leave things better than when you found them. following the principles i became an eagle scout, husband, father, state senator, attorney general and now governor. they remain touch stones for service for our great state. in nearly 30 years of public service, i have learned a lot

about the character of the people of missouri. we don't expect something for nothing. but give us an opportunity and we will roll up our sleeves and get to work. give us a challenge and we will rise to meet it. i have learned a lot about state government. when we aim high and work together there is much we can accomplish. let's show the people we serve we can rise above partnership and unite and move forward and leave missouri better than we found it. and that means working together. [applause] >> i am willing to do my part. rumor has it on some front i don't spend enough time up on the third floor.

i hear you. i am going to be coming around a lot little off more often. just be careful what you wish for. he joined general patton's third army during the battle of the barge and was awarded the bronz star. most remember with the battle of the bulge ended. he represents men and women who demonstrated the grit courage, and unshakable optism that made

the country what it is today. sergeant girling, would you stand? we thank you on behalf of all of the missourians and the men and women in uniform. [applause] [applause] >> thank you. our veterans deserve more than

gratitude from a our courage and sacrifice. they deserve to live with dig nity and pride. today with the era of vietnam vets getting older we need to make sure all of our vet rbis get the care they need. that is why i propose a model to improve the veterans home they they are up to the standards our veterans deserve. [applause] >> but you know we need to do more. nearly 2,000 vets are on the waiting list to get the care they earned. i am proposing the construction of a new veteran's home for these proud missourians. [applause] >> these men and women did their dude

dude duty to god and country and now we need to be there for them. let's let's work together and get that built. the spirit of optimism and the willingness to face any challenge makes us special as american and missourians in times of struggle and unrest like those we saw this last year. that spirit helped us find a path forward and the same spirit that has produced some of missouri's proudest moments over the last six years. we led the rebirth of the auto industry together right here in the heartland. [applause] >> together we helped communities recover and rebuild stronger in the aftermath of floods blizzard and the

deadliest tornado in joplin history. we are moving missouri together on a foundation of fiscal discipline and economic growth. fiscal discipline is a value here. we balance budgets, keep taxes low, and continue to downsize state government while improving services through innovation. we trimmed the state workforce by 4,000 positions, paid down debt and sold off property at a time when pension cost were dragging down other states we worked together to shore up the pension system saving taxpayers more than $600,000 over ten years. strict fiscal discipline helped protect our aaa credit rating giving us the opportunity to make essential long-overdue investments. we passed additional bonding capacity and that means this

year we can move forward to fund im improvements to college campus state parks and buildings, and veteran's homes. it means more jobs, better labs for students taking care of mer veterans. quite simply let's just get it done. we have made government smarter by embracing technology. from hunting permits to child care information missourians can access programs from their smart phone saving money, time and aggravation. i thank the committee for supporting technology to better serve our taxpayers. [applause] >> technology has improved our daily lives at the at the same time it has created serious security challenge.

growing anxiety about the safety of sensitive information from credit card fraud to identity theft to cyber terrorism there are real and founting threats to our personal information, financial and medical records, and even our power grid. hackers are constantly trying to crack firewalls. this we're we will ramp up the cyber security efforts by partnering with businesses, law enforcem, and universities to educate the public and make missouri a leader in cyber security. it will make our families and personal information safer create more jobs in the tech sector and strengthen our growing economy. it will. and you know our economy is growing. let's take a second to remember where we started. when i took office in january

2009, the state had lost more than 65000 jobs in the previous year. the unemployment rate was 8.6 percent and rising. today we got the news our unemployment rate dropped again to 5.4 percent. that is good news. [applause] >> home construction is up personal income is up and missouri employers created more job in 2014 than any year since 1997. okay? [applause] >> that is right. we just closed out the best year for job growth in 17 years. [applause] >> and you know we are just getting started. the largest economic development program in history is underway in kansas city. a 4.4 billion camp fors 1600 workers in high tech health care

thank toes the work we did in the special session one year ago, bowing is bringing commercial aircraft manufacture to missouri for the first time in history putting hundreds more to work in st. louis north county. [applause] >> and more enterprise missourians across the state are starting their own business than at any time in the last 20 years. [applause] >> and another way we are creating more jobs at home is selling more missouri products to brazil chin sonia, taiwan england, france, canada and others. some of you in the room joined me on trade missions and signed agreements send billions of goods. our exports hit $14 billion.

$14 billion made in missouri products going all over the world. that is huge! [applause] >> now a big part of that success is from our number one industry agriculture. 2014 was a phenomenal year for agriculture. from corn soybeans rise hog chicken and turkeys and 11 million more in cuba. for many in my generation trade with cuba was unthinkable. but never underestimate the power of american democracy to improve people's lives and open people's hearts and mind. once free markets flourish freedom will follow. i went to a coalition including 40 agriculture groups calling for expanded trade to cuba. in march i am going to havana

with our director of agriculture and leaders of the state to make sure missouri is first in the door. [applause] >> all we need is an open door and missouri's hard working innovators will do the rest. we are working to bring economic activity to small towns and rural communities by boosting our cattle industry. missouri is second in the nation in cattle were introduction thanks to research and the know how of our ranchers. nearly all of the animals leave missouri before being full grown and leaving the state. that means missouri is missing out on $1 billion every year. we need to keep the dollar and

the cattle right here into the show me state. [applause] >> earlier this month we brought together producers, scientist packers, corn growers and legislators to develop a plan to do that. we are proposing.2 million to research new way toes make our cattle industry more profitable. with the right strategy on beef we can strengthen our rural economy and the families and communities that depend on it. now, getting more missourian goods to global markets require the infrastructure to get their safely. we traditionally pay for roads and bridges through user fee like the gas tax. missouri residents believe it it only fair to pay for the roads

if you use them. but with more fuel efficient vehicles there is less gas and money for roads and bridges is drying up. missouri has the 7th largest highway system in the nation but we rank 46th in how much we invest to maintain it. we heard mo-dot lay out in stark terms what this means. on thousands of miles of state roads we will barely be able to patch pot holes. by 2017 we will not have enough revenue to match federal highway dollars. what to do we? one option is a toll road on i-70. one report shows it would make missouri safer and better. trucks and out of state vehicles that do the most damage to i-70

would have to pay their fair share. another option is missouri's gas tax. it hasn't gone in up 20 years and the fifth lowest in the nation. with gas prices as low as they are this is worth a close look. if we want to leave missouri roads better than we found them the only thing we cannot do is sit still. this is a major challenge and this is the time to get moving now. absolutely. now, creating opportunity for all missourians requires us to face painful truths and tackle difficult challenges. the events in ferguson following the death of michael brown sparked a national conversation

about race and equality education and economic opportunity, law enforcement and the courts. we have taken meaningful steps forward in ferguson. we provided loans to help small businesses recover, we will invest 2.5 million to invest florescene street. we are overseeing a summer program for thousands of low income families in st. louis and kansas city. last fall i created the ferguson commission which continues its vital work of listening, learning and evaluating solutions. i look forward to receiving their final report this september. but make no mistake. the legacy of ferguson will be determined by what we do next to

foster healing and hope. and the changes we make to strengthen all of our communities. [applause] >> many of the broader systemic issues will require sustained efforts by those in this room. we need to reform municipal courts so all citizens are treated fairly. [applause] >> we need to update the state statue governoring deadly force to consistent with supreme court and u.s. constitution precedent. [applause] >> we need to support policies that foster racial understanding and compassion. [applause] >> we need to create greater economic opportunity and encourage personal

responsibility. absolutely. [applause] >> we need to strengthen failing schools and provide access to afford health care. and we must recruit, train and certify law enforcement that reflects the community it serves. [applause] >> the men and women of law enforcement serve and protect in difficult situations. they put their lives on the line to protect our lives. we are proud of our law enforcement officers. [applause] [applause]

>> we send them into streets where there is too little violence and too little hope. too much fear and too little trust. but some folks feel they have to chose sides. them or us. teams or cops. black or white. but the truth is we are all in this together. okay? [applause] >> the truth is real and lasting change is potential possible when he stand together. we saw many examples of compassion and generosity in ferguson.

religious leaders, residents and business owners pitched in and teachers volunteered to provide hundreds of activities at the public library after school was canceled. troopers were driving through can field green and noticed a basketball hoop that looked pretty sad. bent over and no net even. so with their own money to troopers went to a local store and bought a net, and basketball and drove back and hung the net and tossed the ball at a the neighborhood kids. back on the same street the next day the troopers saw a pickup game was under way and they joined in. of course it was more than just friendly game of hoopsism it was an opportunity to ease tensions to begin fostering trust, and to bring about the kind of change that is needed in communities

all across america. [applause] and as we search for long-term strategy to promote opportunity we don't need to look further than education. education is the great equalizer. because when every child has a quality education, every child has the opportunity to succeed. [applause] >> an education is the best economic development tool we have. okay? [applause] that is why we have increased funding and raising our expectations with more rigorous classes, tougher test and stricter accountability and missouri' schools are rising to

the challenge. over the past six years math and reading have gone up and we are seeing solid progress in the most troubled school districts. tonight we are joined by the superintendent of silver springs district and a student with a 4.0, brenda parker. listen to the numbers -- [applause] >> there we go! [applause] >> isn't it nice to be in a room where everyone else got straight

a's? fellow travelers of you. more than 90% of the kids in her district come from poor families but her superintendent and her team are not letting anything hold them back. they have made big leaps are higher test scores and graduation rate. join me in thinking the leader dr. anderson for her dedication with these kids. [applause] >> i visit communities across the state and i get a sense of how strongly missourians support their local public schools and teachers. last year at the polls voters rejected a tax on public school

teachers with more than 76% of missourians voting against it. that initiative lost in every single county of the state. [applause] >> in stone county, wane and washington, green and iron county demonstrated how fiercely they stand behind public schools. missourians know we need to pay the teachers more not chip away at their funds. [applause] >> our community is strong. if we are honest about where our schools stand we still have work to do. because enough. our kids deserve the best. my budget will invest an

additional 11 million in pree -- pre-school -- so more children start kindergarten ready to learn. and once again i am proposing record-funding for k-2 with an additional $150 million for our local public schools. [applause] >> that means more technology in the classrooms, smaller class sizes, and more hands on learning and better pay for the folks doing the toughest job there is; teaching our kids. [applause] >> i also appreciate the good bipartisan discussions we have had about the school transfer law and i am confidant the legislature will get a clean fix to my desk this session.

we know the fastest growing, highest paying jobs in the global economy are in science, technology, engineering and math. right now less than 20% of our undergrads at our public universities are getting degrees in these disciplines. we have to expose kids at an early age to programs that bring science and math to life like project lead the way. i have been to project lead the way classes where kids were analyzing dna and designing software. we have more lead the way science programs now than any other state. [applause] >> but we are not using project lead the way at the elementary level. we need to ramp that up. start up to expand project lead

away to another 350 elementary schools all across the show me state. >> when it comes to higher education, we continue to be guided by our core principles. quality, affordability, and accountability. since 2009 missouri has led the nation in holding down tuition increases at our public universities. number one. [applause] >> i am proposing an additional $25 million for colleges and universities based on how well they meet strong performance standards. we are working to provide state of the art facilities that will prepare our students for high tech jobs replacing lab e equipment that is more than 30 years old and upgrading engineering buildings because we cannot prepare students for first century jobs with equipment that was obsolete in

the 20th century. long overdue renovations at missouri's college of engineering is going to add classroom and lab space to prepare more missourians. educating a workforce is something we can all get behind. i want to thank each of you for helping our educate our workforce. our national resources are key to the state. missouri is blessed with fresh water. mississippi and missouri rivers and clear running ozark streams. we take it for granted. if you go upstreams to the dakotas or the head waters of missouri it is an entirely different story. they are fighting over water.

they want to divert as much water from the missouri river as they can leaving our farmers and shippers high and dry. take kansas. their latest idea is a construction of a 360 mile aquaduct to siphon off more missouri river water. we cannot let that happen. [applause] >> as long as i am governor we will rely on the water for drinking, farming and industry. we need to protect the amount of water in missouri and the quality of the water we have in our state. all across the state, drinking and waste water systems are starting to fall apart. if you ever had a pipe burst in

your basement or a cracked main in your subdivision you know how costly and annoying that can be. that is why my budget includes $70 million, funds approved by the voter and legislature, to rebuild the aging water systems now and ensure we leave missouri waters better than how we found them. [applause] >> our rivers and streams are part of the priceless outdoor heritage missourians can enjoy. our 87 parks have been recognized as the finest in the nation with million of visitors. this year is our opportunity to update the cabins with special attention built by the

conservation court. the bridge of bennett springs is one of many special places we need to preserve for generations to come. absolutely. [applause] >> i have spoken about big challenges we must overcome to create opportunity and build a brighter future for our state. i would like to talk about another challenge but really a greater opportunity. strengthening and reforming medicaid. [applause] >> a lot has changed since last year. since i stood here last year, missouri taxpayers have sent $2 billion to washington. those dollars are being used in other states to reform and improve their medicaid system.

that is $2 billion missouri taxpayer dollars and this year there is another $2 billion at stake. if we keep standing still, that is $4 billion missouri has lost to other states. people are moving past the politics across the country. republican governors in arizona, iowa michigan, new jersey new mexico nevada north dakota and ohio have already stregthened medicare in their states. since last year even more republican governors have come forward with medicaid proposals. utah tennessee, indiana, and wyoming. even the republican governor of alabama indicated he may join them. many states are pursuing reform

and demanding personal responsibility and encourageing work and cracking down on fraud and they are using our tax dollars to do it. where our tax dollars have gone health care jabs followed. states that have improved medicare growth have had three times the growth. hospitals are often the largest employers in the community. but jobs in health care that comprise 1/6th of the economy are not growing like they should. in fact thousands of missouri health care jobs in the past year have been lost and hospitals and clinics have closed. if we tonight take action more follows. the ceo of a hospital explained

he would cut 60 missouri jobs but hire 62 worker in iowa. the ceo wrote and i quote: the reason we are hiring in arkansas and laying off in missouri is arkansas chose to expand medicaid and missouri did not. i fear missouri will never recover the ground it is loosing state-wide as a result of political posturing. folks, this is real. the time to move forward is now. [applause]

>> also, it is really important to remember that standing still on medicaid has a human cost. for 300,000 missourians who would get health care if we moved forward are your friends and neighbor and 13,000 are veteran, 50,000 are people struggling with mental illness or substance abuse, and tens of thousands more are working missourians who live below the poverty line because they are working and earn too much to get medicaid but couldn't afford to buy health insurance on their own. let's rise together and strengthen and reform medicaid this year. [applause]

>> when we work together we can make a real difference. look what we did to strengthen our mental health population? we have helped children with autism and rebuilding mental institutions and working hand and hand with local law enforcement and together they are helping thousands of missourians with mental illness getting the help they need. for the first time in 40 years there is no longer wait for income services for missourians with developmental disabilities.

that is what happens when we work together. [applause] >> those of us in state government understand its role in protecting the vulnerable and preserving the peace and fostering greater economic ability. and many missourians are cynical about state government's ability to help them better their on life. that is because they believe the system is rigged against them. favoring the wealthy and ignoring the hard working folks. folks who drive trucks wait tables, and stock shelves. folks trying to make ends meet. missourians don't expect something for nothing. but they do expect a fair shake and they deserve it. what good are we to the people who elected us if they cannot trust us to represent their best interest? that is exactly why we need ethics reform.

okay? [applause] >> i have talked about it every year i have been governor. we have the weakest ethics law in the nation. it isn't fair and we know it. every day we don't acting the public's confidence in us continues to erode. let's get a meaningful ethics reform bill to my desk this year. no more excuses. [applause] >> when we work together we can achieve great thing for the people of our state. last week i was at the detroit auto show where missouri's award

winning trucks and vans once again took center stage. today our automotive comeback might seem like it was inevitable. but in 2009 the competition overseas crippled our auto industry and plants were closing in hazelwood, north and south st. louis and there were rumors that kansas city's ford plant and 4,000 residents were going to be next. i wasn't going to let that happen. as long as cars were going to be made somewhere i was determined to make sure it was missourians that were building them. [applause]

>> the first order i signed was creating an automotive job task force and ramped up the efforts in workforce training. but to secure the next generation of automotive manufacture in the state we had to do more. that is why i called a special session to pass strategic, fiscally responsible legislation that would pull our auto industy back from the brink. when it passed i signed it right there with the hard working men and women of local 249. [applause]

it is no accident that soon more vehicles will be rolling off that line than any other ford plant in the world. [applause] >> it is no accident general motors plant continues to expand and build the award winning chevy colorado and gmc cannon. [applause] >> it is no accident the motor trend top trucks are built all here in the show me state. [applause]

>> ford gm and more than 60 su -- suppliers invested in missouri. it required two passages of edge legislation during the special session and one passed by just two votes. many said it would not get done. they were wrong. 4 members voted for both bills who are still serving in the legislature today including then speaker, ron richard. look at this though. look at the other four. president protim dempsey, house

speaker, and house minority. they were not easy votes for everyone at the time but it was the right thing to do. the rest of you want to get in leadership and ahead you have good examples. do the right thing. reach across the aisle. together we can do great thing for the state. [applause] >> the real credit for rebuilding the auto industry goes to the workers. memberoffs -- members of the uaw, please stand. [applause] >> today's high tech vehicles are not your parent's trucks and

vans. building them takes a level of skill that is amazing. you guys, you build the strongest, toughest vehicles in the world and you are making the show me state the national leader in automotive excellance and innovation. your work ethic is second to none and your work product is the best in the world. you make the show me state proud. thank you. [applause] >> think about it for a second. because of the work of the people sitting here just a few short years ago and the work we did together these men and women have the dignity of a good family supporting job and the paychecks cover more than the monthly bills. they pay for books and baseball

gloves computers and college tuition and put something in the collection plate on sunday. [applause] >> specifically shoutout to representative pierceson. it was made possible by the decision made in this building. >> thank you! thank you very much. [applause] >> this my friends, is what public service is all about. this is why we are here. the fact is our state works best when everyone has an opportunity to succeed. our college student in our state deserves an opportunity to earn

a degree that prepares them to compete in a global economy and enter the workforce without a mountain of debt. every parent in the state deserves an opportunity to get a job that pays enough to provide for their families and save a little. every farmer who wakes up before sun rise and goes to bad after sun set deserves a chance to sell his crops around the country and around the globe. and every missourian deserves a government worthy of their trust. [applause] that is what it is expected of us. we must demand it of ourselves and each other. i believe we are all here for the same reasons and that brings me back to the values instilled in me as a scout. to do our duty to guide our

country, and to help other people at all times and to leave things better than we found them. working together we will build a stronger missouri for everyone. and leave our great state a better place than we found it. our time is short, let's make the most of it. thank you and god bless. [applause] [applause]

>> will the escort committee please escort the governor from the chamber. [inaudible conversations]

[inaudible conversations] [applause] >> live coverage from jefferson city missouri with the state capital and the state of the state address with jay nixon. before becoming governor he was the state's attorney general for 16 years. earlier today treasurey secretary jack lew said the entire federal tax code needs to

be overhauled. his remarks are coming up and then a house panel looks at internet regulations for broadband providers and later a senate debate on the keystone xl pipeline and climate change. this on the hill from the keystone xl pipeline amendments that are being debated. the senate on wednesday voted that climate change is real and not a hoax as democrats use the keystone xl pipeline debate to force votes on the politically charged issue. senator whitehouse's amendment passed 98-1 with only senator whicker voting no. the climate science senator james inholfe voted in favor of the amendment but made it clear he doesn't believe americans are

to blame for the increase. marco rubio, and rand paul and ted cruz all voted on the proposal as well. next changes to the business tax code. this event from the brookings institution is an hour. gl good morning, good -- good morning, everybody, i am ted gire the vice president and director of economic studies here. i want to start with house keeping. at the end of the event if everybody would stay in their

seat has the secretary departs it would be appreciated. it is my honor to induce the 76th secretary and this is hosted by the fiscal policy group that was launched a year ago and led by the moderator of the discussion today. our mission is to provide the quality and public understanding of monetary policy. this event fits within that mission. fiscal policy is a key instrument of securing the nation's goal of building all prosperity for all-americans. the president discussed a lot yesterday but eluded to helping the tax reform to help the middle class.

lew has spent many years on his subject and he steered the nation through many debt limit negotiations. although, i am sure he would be happy to have the experiences in the past and not the future. and secretary lew was confirmed in february of 2013 after being the whitehouse chief of staff and the director of the business and management in the obama and clinton administration. and he is known for his loopy crazy signature according to my three sons. my son watched his first state of the union yesterday and we checked a five dollar bill and your signature is now legible. he is known well talking about household dynamics he is known with my wife as the guy who

keeps halling great colleagues over to the treasury. we are delighted here here to share his views on the state of the united states economy and the goals for the upcoming year. david wessel will lead the commentary and we will take questions from the crowd afterwards. thank you for being here mr. secretary, and the podium is yours. ...

first it is to attend college without amassing unaffordable debt for workers to find good jobs and high-tech manufacturing, for working families to care for sick child or an aging parent, for businesses and consumers to defend themselves against cyberattacks and for states and cities to rebuild or the structure and expand their broadband networks. last night's address the president also made it clear that when you can knock down barriers on things like paying for childcare saving for college and building a secure secure retirement at the middle class can get ahead even as we revamp our business tax system so businesses of all sizes can compete in today's global

economy making our nation and more attractive place for companies to locate grow and create the high-paying jobs to support families. prior to the state of the union the president outlined a key part of his vision to raise wages and incomes and strength in the standing of working families. it includes a new strategy to simplify our complex tax codes to make it fair by eliminating some of the biggest loopholes and that uses the savings to responsibly pay for for investments money to help middle-class families get ahead and grow the economy. today i wanted to spend some time discussing american business taxes and why we need to fix fix it to promote long-term growth and broad-based prosperity. let me say at the outset that our entire federal tax code needs to be overhauled. it's been almost 30 years since we last rewrote it and since then tax code has been heavily burdened by loopholes. i was proud to be involved in the negotiations on capitol hill that resulted in the last major

reforms to her taxes in 1986. while her views on individual tax reform may be far apart there's a broad set of business tax reforms in which we should be able to agree and i continue to believe that the best way to achieve reform today is to start with pro-growth business tax reform that protects and strengthens strengthen the middle class lowers rates simplifies the system levels the playing field and eliminates unfair and inefficient loopholes. when we make the switch to a smarter business tax system there will be one-time revenue during the transition and we can use some of that to create jobs rebuilding our roads repairing our tunnels and renovating our airports. the fact is there is a growing bipartisan consensus in washington on how to achieve business tax reform and we have unique opportunity now to get this done. before turning to business tax reform i want to talk a bit

about the strengthening economic recovery. over the past five years are private sector has created more than 11 million jobs. that's the longest streak a private sector job growth in our nations history. last year alone american businesses created nearly 3 million jobs. more private-sector jobs in any calendar year since 1997. in the month of december the private sector added 240,000 new jobs. the unemployment rate is now 5.6% the lowest rate in six and a half years. at the same time gdp posted strong gains in the second and third quarters last year and many private forecasters predicted economic growth to continue. just this week the international monetary fund revised its 2015 economic outlook and revise to the united states upwards while lowering its forecast for most other countries. our overall growth has been supported by increases in household wealth gradually improving housing market a growing manufacturing sector in the versioning model industry.

with the affordable care act in place millions of americans no longer have to worry that an unexpected illness will throw them into bankruptcy in people with conditions are guaranteed access to health insurance. thanks to wall street reform consumers have a watchdog in place while our financial system is stronger and more resilient and now responsible for putting in place financial reform that increases funding to do their important work. in conjunction with a presence all of the above energy strategy we are developing american-made energy and where now the world's leading producer of petroleum and natural gas. finally because of economic expansion and the tough choices we have made in recent years the federal government's financial condition is significantly improved and our budget deficit has been cut by two-thirds. as i travel to other countries advocating for american workers and businesses my counterparts often remarked at how much better the united states has recovered and they try to learn from the steps we have taken to

turnaround the u.s. economy. it's important to remember that this recovery is not an accident but rather the result of the determination of the american people the resilience of our businesses and policy choices made by president obama and prior demonstrations in congress and the federal reserve. despite this unmistakable progress there is more work to do to make sure that we sustain our economic growth and prosperity is more broadly shared. as part of africa presents putting forward business tax to fuel growth encourage businesses to create good high-paying jobs in america and expand opportunities for nations economic gains build a strong middle class. it's been almost three years since the president laid out his framework for sweeping business tax reform making sure the system works for everybody as a surgeon today as it was then and this year this is an area for members of both parties and the administration can work together to make progress for the mic in people. on paper we have one of the highest corporate income tax rates in the world but in

practice there's a wide disparity in effective corporate tax rates. some corporations pay little or no income tax at all while others pay the highest rate in the developed world. even worse our tax system allows american companies to ship profits overseas to avoid paying u.s. taxes and actually drives businesses to look for ways to move jobs and attacks, at least on paper out of the united states to countries with lower tax rates. over time our tax code has become increasingly loaded down with special-interest loopholes that the auctions and assorted tax subsidies. some were good ideas at the time but have now passed. others were giveaways from the beginning. the end result is a system rife with industry-specific breaks with the widely disparate effective tax rate providing incentives that do not reflect what our economy needs today. recent oil and gas producers are rewarded with a number of

special-interest tax breaks that unfairly reduce the taxes of oil companies far below what other industries like retail and manufactures pay on theirs. with all these loopholes the current tax system makes it too hard for businesses to launch grow and invest in the united states. it's too hard for businesses to create the middle-class jobs or country needs and it's too hard for u.s. businesses to compete with companies headquartered overseas. moreover our business tax system is far too complicated particularly for small businesses. one estimate suggests a small business on average devotes hundreds of hours plus spends thousands of dollars to comply with the tax code. we can and must reduce this burden. our business tax system actually skews business decisions in ways that make it harder for the economy to grow. too many investment decisions are shaped by tax considerations when they should be driven by what will best enhance productivity and growth. our tax code should favor the

best businesses that create the most economic value not those that are best at taking advantage of tax exemptions. the choice between debt accumulation reduction between investments in real estate or manufacturing should not be driven by tax plans. those decisions are driven by tax planning hurts growth and americans families. when i system or this has is by having the best lobbyists are the most creative accountants it shifts resources away from the core mission of growing the economy and creating jobs. for example the tax system has become so distorted that in some tax haven countries american faulty national corporations report foreign profits that are several times larger than the entire economic outlook of those nations. this is not reflect the reality of the economic situation and it erodes both our tax base and confidence in the fairness of our taxes. last year we saw how our broken tax system drives businesses to engage in highly unpopular

transactions to get out of paying taxes. we saw spike in a number of companies pursuing corporate inversions and we saw the public outrage. an inversion takes place on the u.s. company buys a foreign company declares it's no longer an american system. for many firms is a little more than a tax avoidance scheme because we now take u.s. citizenship allows them to lower their taxes. i've consistently said while inversions may be legal they are wrong but unfortunately we have a tax code that encourages these decisions and we need to fix the tax code so companies will either have the ability to -- to avoid taxes. to be clear mergers done for genuine business reasons make companies more efficient and productive and the global economy we are better off when businesses are free to invest in cross borders and benefit greatly from foreign companies choosing united states as a destination for investment. it's a very different case when mergers of foreign companies are

really -- the united states is still the best place for companies to do business. our rule of law are rented to -- innovative and entrepreneurial culture and skilled workforce are unparalleled. many companies want to take advantage of u.s. infrastructure education and rule of law but avoid paying their fair share of taxes which only shifts the tax burden to us. it damages for finances and it's not there because small businesses and middle-class families and the paying more in the tax code. that's why the administration active in september to help level the playing field and make sure everybody plays by the same rules. we made it harder for companies to complete an an inversion if they keep most of their business in the united states and eliminated certain techniques and bertie companies to avoid paying taxes. these measures and making a difference. they stripped away some of the economic convergence and since they were announced we have seen a decline in these transactions

and some deals were abandoned entirely. while her action was important and it helps it is not a complete solution. in the short-term response to one symptom of a dysfunctional tax system. the real answer is business tax reform that addresses the root cause of this problem. eliminates a loophole for goods and closes the door on other wasteful loopholes that make her tax system unfair uncompetitive and overly complicated. this can only be done through legislation. the president's plan is a carefully constructed plan and provides a basis for winning bipartisan support. to that end i look forward to continuing the conversations with senators hatch and wyden representatives ran in lebanon to make progress on reform. there's a great deal of overlap between the president's framework and republican proposals including the one advanced by the former chairman of the ways & means committee

former representative david -- and the present proposal would use temporary revenue created by tax reform to rebuild their nation's roads bridges and ports. we know from past experience that switching to a new tax system will generate one-time transition revenues. the president's plan would use a portion of the temporary revenues to pay for long-delayed investments to upgrade or our infrastructure helping to address the funding gap we face from transportation water and electricity needs. and it will create manufacturing and construction job base to help local economic activity right away. rebuilding america's core infrastructure will have a long-term benefit of making america more attractive place to do business and our economy is stronger and not just today but in the future. if we fail to meet our nation's infrastructure needs we are going to pay a heavy price. fewer jobs both now and in the future a reduction in quality of

life longer commute times water main breaks pollution and power outages and a rise in prices for goods and services that will damage small businesses and take a bite out of the salaries of middle-class workers. we need to be careful with how we use one-time revenues. we must not dwell on the budget raising one-time revenues to finance permanent spending on new items or to provide permanent tax cuts. instead we should use these one-time revenues to make responsible one-time investments in our nation's infrastructure. let me now turn to the specific components of the president's framework reform. the president's proposals for new business tax system is five pillars that represent bipartisan path forward. first we need to lower rates and close wasteful loopholes. this will make her business tax system competitive fundamentally fair and fiscally responsible.

the president's plan eliminates dozens of tax breaks and loopholes and without adding to our deficit reduces the top corporate tax rate from 35% to 28%. this rate is on line with their trading partners and it will help encourage investment in the united states. as we broaden the tax base we can also create more certainty and make the system simpler and more efficient. we believe there is bipartisan support to move forward on this. second we need to build on the resurgence of manufacturing in the united states. vibrant u.s. manufacturing sector is fundamental for capacity to remain innovative and competitive and it's an important source of good-paying jobs for american workers. that's why why the president's plan makes it even more attractive for manufacturers to build and expand here rather than overseas. lowers tax rates for domestic manufacturing to 25% and takes manufacturing incentives including the research and experiment tax credit to make some permanent.

the research and experimentation tax jumpstart research and technology propels innovation and sparks new jobs new industries and new breakthroughs in engineering and production. this is another area of broad bipartisan support. the third democrats and republicans alike want to fix or backward international tax rules and root out the parts of the system that encourage companies to shift income investment overseas. international tax system is off -- often looked at in terms of what is known as the territorial system in which a company located in a country paying taxes on income earned in the culture system like that of united states in which the company must pay taxes on worldwide income regardless of the country where it is earned. the president's proposal strikes a sensible balance and would move us towards a more -- what that means is we would create a minimum tax on foreign earnings and make it simpler for business

to bring an come back to the united states. it would also tighten the rules so companies cannot use accounting techniques to avoid paying taxes such as shifting profits to low tax companies. moreover the present strategy eliminates tax reductions and reward companies when they shut down companies in an ice age and provide tax breaks for companies that bring production back to the united states. when the changes are in place we can encourage investment in the united states that the hybrid structure that we propose has been adopted by some republican tax proposals and again should be an area where we can find bipartisan consent. ford will want to simplify and reduce taxes for small businesses greater nations mom-and-pop stores startups high-growth firms and entrepreneurs. the truth is small businesses are vital source of innovation jobs and growth. small businesses embody the american principle that if you work hard and act responsibly

you can succeed. these are businesses that we plan to provide community stability but they are also the ones that take the risks that lead to new technologies and industries. a few facts tell the whole story. small businesses employ half of our nation's workforce and generate almost half of the nations gdp. that's why we are making sure small businesses poorest and it's a central part of our economic strategy. since the president came into office we have extended tax benefits to small business supported lending to tens of thousands of small businesses and reformed or patent laws to get to the market sooner. while these steps have helped we need to do more to strengthen small businesses and give them the confidence to pursue long-term investments and higher for the future. the president's business tax reform plan does that by making tax filing easier for small firms and entrepreneurs and allowing many more to use the cash method of accounting which is the commonsense waste most

think about profitability. in addition the present plan would allow small businesses to annually spend up to $1 million in investments. these permit changes would free small business owners and entrepreneurs to direct more of their earnings toward expanding and hiring and less in complying with the complicated tax code. they giving small business owner certain date it will free them to plan ahead and innovate and invest. finally they want to fix her broken tax code and increase investment in a way that maintains current revenues. in other words reform should be revenue-neutral in the short and long run. we have come a long way in our federal budget deficit has been falling rapidly. independent forecasters project over the ten-year budget window under the present policies are deficits will remain in a stable level relative to gdp. we can only afford to cut tax rates substantially to eliminate loopholes and use the savings to avoid an explosion of debt.

any business tax breaks are made permanent including so-called extenders that are currently rasterized here year after year should be paid for with revenues that offset the expense. keep in mind loopholes credits and subsidies are forms of tax expenditures. they are spending that goes to that goes to the task of them because they represent tax revenue we all help foot the bill through these expenditures but of course they're tax expenditures that make sounds and need to be protected at the new markets tax credit expensing for small business in the research and experimentation tax credit. these incentives cost money and me to be paid for. we cannot apply a double standard that some of propose where we permanently extend business provisions without paying for them but permanently extending critical improvements

to the earned income tax credit the child tax credit for college credit that help working families at the same time. since congress reconvened a few weeks ago the house of representatives the way legislation will be calculated. directing scorekeepers to use what is known as dynamic scoring scoring. we think this is unwise given the uncertainty involved in dynamic scoring and the assumptions have to be made and the unequal treatment of tax cuts versus programs in investments funded through annual appropriations. while there may be different opinions on how to estimate the effects of legislation no matter what barometer you use in and nobody should want to blow a hole in our budget. we have to act responsibly and look at the cost of tax breaks and loopholes with a clear eye and make sure legislation can be the first test of being fiscally responsible. finally we wanted to hear voices to support broadening the base

of lower rates. two men especially those in the business community interest and tax reform say they are interested in cutting loopholes and subsidies until they realize a reduction or write off that they like has to be pared back and we also many will lose loopholes and tax breaks will fight hard for the status quo. it's important we also hear from everyone else who agree to a simpler tax code without loopholes and more competitive rates will help drive economic growth and job creation. the fact is achieving a more simple system that better harnesses the talents and skills of all americans is going to require change and sacrifice. the benefits of reform will be shared broadly or greater job growth and economic activity. let me close by saying the message from the american people over the last few weeks has been clear. they want their leaders in washington to find common ground to compromise and to get things done.

i believe that message has been received. the murray ryan agreement create a framework that shows we can work through the differences to find a path path forward and the appropriations committee implement this agreement for the spending bill that passed at the end of december. it was a sweeping piece of bipartisan legislation that contained many provisions and covered a lot of territory. ultimately no one got everything they wanted and it was hard for both sides but in and we reached an agreement that met obligations avoided an unnecessary -- funded key priorities and provided certainty to the government through the fiscal year. looking ahead we can build on this momentum and pass bipartisan business tax reform so our economy is one where innovation and ingenuity drives hard work and determination payoff and the opportunity to succeed is available to everyone. i'm confident as long as we keep our focus on doing what is right for our country and our nation we will get this done.

thank you very much. [applause] >> thank you mr. secretary and thank you for coming and thank all of you for coming. thank god for avoiding another washington half inch snow blizzard. i wanted to start. >> we don't know what the rest of the day has in store. >> but this is the highpoint of the day. you mentioned in discussing the goals for business tax reform that you wanted to see as we all do more long-term growth and a broad-based prosperity but the business tax reform that you are

proposing and bit dave camp talked about in part says let's do away with accelerated depreciation to pay for lower tax rates and i'm having a hard time understanding how that helps economic growth when economists tell us actually encouraging investment that is accelerating depreciation is the one thing that the tax code inmost due to produce growth. if you look at our tax code it has lots of incentive to do a lot of things not all of which are productive in helping the economy grow. i think an awful lot of intellectual energy and time and corporate planning goes into figuring out how to navigate through our extraordinarily complicated tax code and at that time were better spent looking at what would be most productive and most efficient while would increase the bottom line of the business and that was the driving consideration it would lead to more efficient decisions more effective business plans and that will lead to greater economic growth.

i don't think it's a good thing when our tax code drives investments in a way that is not what contributes the most to a thriving economy. that's not the way to produce jobs and our economy and we have made clear we want to encourage manufacturing. we want incentives for research and experimentation so it's not the case we think there should be no provisions that suggest what we think is important. we have made clear we think manufacturing innovation is very important but our current tax code is not leading to the kinds of decisions that ad up to the most efficient economy and the most productive economy and when companies move overseas and move their corporate headquarters overseas they are taking good jobs overseas. that's not a good thing so i think our plan in the approach we have taken will lead to a lot of individual decisions once when you add them together will make for more economic growth. >> how does this help reduce inequality and share prosperity

more broadly? >> to create more opportunities for good jobs is ultimately the way to get people more opportunity to get into the middle class and earn a living that supports the family. infrastructure need to talk about if we were to put a big new investment in infrastructure over the next several years those jobs are good middle-class jobs. they do work that is badly needed and when you talk to ceos in this country one of the three issues they always raise its infrastructure. if we are going to have a competitive economy in the next generation we need to have the roads bridges ports and tunnels to move commerce and creating good middle-class jobs now will help create good middle-class jobs in the future. >> he spoke about business tax reform by which i assume you mean corporate in the so-called pastor is for corporations and businesses. in the past the republicans have tried to do business tax reform

and combine it with individual taxes. you have argued that that's a nice idea but not politically going to work. you have any reason to believe the republican leadership congressman ryan and senator hatch are willing to do business tax reform only? >> i'm not sure i would agree it's a nice idea. i don't think lowering the rate is at way to grow the economy or create a better future for middle-class workers for the country at large. i think individual taxes we have differences that are very clear. i do believe on business tax reform and we have always said this is not corporate because we are provisions that are aimed at delivering real benefits to small businesses as well as corporations. there is the possibility of a bipartisan consensus -- consensus. i've had over the last few months quite a few conversations suggesting more openness to the conversation then there was before. i think a key element will be having it be clear how much we

all care about having a benefit that goes to small businesses as well as large corporations and in my remarks i try to give a few examples of things we think are of great value and we are open to discussion in that area. i don't think there's any advantage in pretending there aren't disagreements on the individual tax side and we had a national debate two years ago about the top rate. we are not looking at negotiation to go back to lower the top rate so the way to deliver benefits for small businesses is going to be through the tax codes that are directed at small businesses like the expensing provisions that i mentioned in a number of others. >> if i'm reading you right you say you see a political path towards doing business tax reform and cooperation with the republicans leaving the touchy issue of the top regional rate

is five. >> i think there's a growing consensus on the ideas that the president laid out that i discussed this morning. a growing consensus to an agreement on legislation. >> what are the odds we are going to get business tax reform? >> i'm an optimist so i will say it's only 50/50. most people to think about business tax reform we say you can't do it because you are taking on special interests that will always win. i don't believe that. in 1986 we proved when you get together in a bipartisan basis to do things for you are helping the whole country you can have a louder voice than the in default -- individual voices that want to protect the status quo. i'm optimistic we can reach an agreement here. i think there is goodwill on both sides to pursue the conversation. it doesn't help to pretend that this is going to be easy. it's always hard but it's not

worth being here during the jobs we do if you don't try to succeed in doing some of the hard things. >> you mentioned dynamic scoring the business of putting a price tag on bills and he suggested some of the problems with it. it requires a lot of assumptions and there are a lot of uncertainties. but is there a silver lining here? if congress were forced him think more about economic growth not only in spending bills, not only only tax bills the senate spending bill slick infrastructure like it -- will be moved closer to the gores at all smoke and mirrors? >> i've never said we should look at alternate analyses when thinking about what we do but there's a difference between what you use for the purpose of scoring and purposes of analysis. it's very dangerous to use scoring methods that may in the end exaggerate what your savings are an understate what your costs