worse damage has been done to millions of our fellow citizens and ordinary families across the nation who did nothing wrong and are paying a terrible price for this economic crisis. a staggering 8.4 million jobs have been lost and the unemployment rate remains near double digits. far too many committees across the country, the rate of employment is overt double- digit. nearly 7 million have lost their homes to foreclosure. millions have lost retirement funds and lost billions of small businesses. as our constituents have made clear to all of us, americans are frustrated, angry about what has happened and they want answers. how could this have happened? what are we going to do to make sure it does not happen again? we all have to reform the regulatory structure so that the crisis on wall street does not wipe out businesses across the

nation. we have to create an early warning system so that we can spot on saved financial institutions, product, or practices and stop them before they threaten the stability of the entire economy. we must protect american consumers and restore their faith in our markets in the financial system. such comprehensive reform is an enormously complex undertaking. i want to begin by thanking our colleagues, all of you around this table and those who have not yet arrived. . . f you gathered around this table, those who have not yet arrived. the hard work that's already been engaged in, to put us at this stage in the process. if all you do is to watch cable news, of course, you might get the idea that all we do in the united states senate is loud talking points at each other across the table. but the truth is, a challenge like financial reform requires a lot of real and hard, honest work. and whatever happens from this point forward, the members of this committee should be

recognized for the very hard work that they've engaged in over these many weeks and months. working in bipartisan teams, members of the committee have tackled some of the most difficult and important questions and produced a bill that will address some of these issues. the result is a bill that will update our regulatory system for the 21st century, financial sector, so we can keep pace with innovation and be ready for future crises as they happen. this bill has 11 titles to it, and rather than go through each one, let me briefly highlight the four critical pieces of our proposal in common sense language. this bill, number one, will end bailouts, ensuring that failing firms can be shut down without relying on taxpayer bailouts or threatening the stability of our whole economy. number two, the legislation will create an advanced warning system in the economy so that there's always someone responsible looking out for the next big problem as it emerges. number three, our legislation

will ensure that all financial practices are exposed to the sun light of transparency so that exotic instruments like hedge funds and derivatives don't lurk in the shadows and businesses can compete on a level playing field. four, our legislation will protect consumers from unsafe financial products, such as sub prime mortgages that led to the financial crisis in the first place. and most importantly it'll restore our financial security so that our economy can create jobs and offer middle class families a chance to build wealth in our country. today a full three years after we began to study the crisis and after a tremendous amount of work of discussion and study we have a bill in front of us. i know there is going to be a spirited debate and discussion in the days and weeks ahead but i expect all of the members of this committee and the full senate will understand very clearly that we are moving forward on this issue. the stakes are far too high and the american people have suffered too greatly for us to

fail in this effort. we will not fail in my view and we will adopt reforms of the financial system this year. with that, let me turn to my friend, dick shelby. >> thank you, mr. chairman. chairman dodd and i have known and worked with each other on various issues for over 30 years. for the last several months we've been working to achieve a broad, bipartisan agreement on how to reform our financial regulatory structure. although it's been a difficult endeavor in many respects, both the chairman and i have worked diligently to find middle ground. i expect we will continue to do so in the future. when we began this process, the chairman and i shared many of the same goals. we both wished to end too big to fail. we believe that our regulatory structure needed to be modernized and streamlined. we agreed that the scope of the federal reserve's authority should be closely examined and that consumer protections needed to be strengthened.

finally we agreed on the need to increase transparency, standardization, and competition. these broad areas of agreement were and i believe remain the foundation of bipartisan legislation. unfortunately such legislation continues to elude us today. however, that does not mean that an agreement is out of reach. the chairman's latest proposal contains a number of positive steps forward and could form the foundation for broad, bipartisan agreement. therefore i do not view today's markup as the end of the road but, rather, just another step in the process. as we move forward, there are several issues that i believe must be addressed in any final bill. first and foremost, we must end too big to fail. the chairman's first proposal expanded the problem of too big to fail by broadening the federal reserve's emergency lending authority and creating a resolution regime that could

bail out failing firms. although this bill takes some steps in the right direction, i believe it still falls short of ending bailouts and the associated ho d moral hazards. the approach to systemic oversight, however, is much improved i believe. through recommendations to agencies and congress the financial stability oversight council would work to strengthen our financial system and to improve financial regulation. the structure admission of the council are consistent with a lot of our views. however we choose to end too big to fail and mitigate systemic risks, none of our efforts will succeed unless we change market expectations regarding bailouts, requiring enhanced private sector due diligence, and provide regulators with realistic objectives and the tools to achieve them. the issue of consumer protection continues to be a high priority for both chairman dodd and for

me. the relationship between banks and consumers have attracted the most media attention and, perhaps, the most rhetoric. recently and well known commentator characterized the debate over consumer protection as a clash between those who favor either the banks or families. not only is that particular characterization absurd, it is also incredibly unconstructive. reforming our entire financial regulatory structure is difficult and a complex undertaking. it requires people of good faith to work cooperatively toward a common goal and not us versus them mentality. that said, i do not believe there is currently -- i do believe there is currently an imbalance in our regulatory structure between consumer protection and safety and soundness regulation. i do not wish, however, to correct this imbalance by creating a new one. therefore, i am advocating elevating consumer protection,

giving it parity with safety and soundness oversight. while i continue to believe that a safe and sound banking system is the best consumer protection, there are steps that need to be taken to strengthen the role of consumer protection within our regulatory structure. there are a number of different con constructs that can accomplish this goal. whatever organizational structure we ultimately settle upon i will continue to insist upon the meaningful integration of safety and soundness considerations in both rule writing and enforcement. i remain optimistic that this can be achieved. the derivative title does not yet in my opinion reflect the work of senators gregg and reid. the current language would subject derivatives transactions to reporting, clearing, and execution requirements. even companies that use derivatives to hedge legitimate business risks would be subject to these requirements unless they qualified for one of the narrow exemptions.

forcing clearing of essentially all derivatives ignores the risk of central clearing. instead of taxpayers' savings this could expose taxpayers to future bailouts of clearing houses. we need to carefully weigh the risk of mandating the clearing of products that are complex, illiquid and hard to price and also with companies using swaps to hedge legitimate business risks should be allowed to continue doing so without requiring them to jump through unnecessary hoops or having to set aside resources that could otherwise be used to create jobs and develop new products. one of the most important lessons from the aig bailout is that regulators need to have access to information about the full range of activities in the derivatives markets. we need to shed light on all classes of swaps including ones that the bill would allow to remain in the dark. in short, we need to establish a rational regulatory framework for derivatives that allows for both transparency and economic

growth. this bill also contains a number of provisions that are unrelated to the crisis, including a so-called corporate governance provisions that would impose costs on shareholders and empower special interests. there are several other sec related provisions that as presently drafted would not solve the problems that they attempt to address. the three key areas of credit rating agencies, securitization and sec funding, all of which would need to be addressed as we move down the road. mr. chairman, those of us who have worked on this legislation, i guess all of us for a year now or more, know how difficult and how complex this undertaking has been. nevertheless, we made significant progress and chairman dodd's dedication, patience, and persistance have been instrumental in bringing us this far. although i have raised a number of serious concerns, i remain today optimistic that we can over time reach an agreement

that will garner broad bipartisan support. i just don't believe we're quite there yet. chairman dodd has made it clear that he intends to move forward without republican support, which is his prerogative. it is not our intention to turn this markup into a long march offering hundreds of amendments that will inevitably be defeated. we don't think that would be constructive or productive to the end game. consequently, we will be opposing the bill at this time but i pledge to the chairman and others, my colleagues here, that i will continue to work with them as this bill approaches the floor consideration in hopes of reaching a broad consensus. i've said many times, if we place policy ahead of politics, we can and i believe will reach an agreement that will not only attract significant support in the senate but will also be good for the american taxpayer, our financial system, and our economy. >> senator shelby, thank you for those comments and i appreciate

your closing comments and your opening remarks and it is certainly our intention to proceed along those lines. and you pointed out and i think accurately so that the product you all have before you reflects an awful lot of that work as i mentioned in my brief comments in the beginning to try and get us closer together on this very complex and difficult area of legislation. so i look forward to that effort as well in the coming days. now, i know we've had many amendments filed but i gather that members have decided to withhold those not already folded into the managers' amendment until they've reached the floor or before-hand if they can work on them. and i've worked with everyone who has approached us over the weekend and asked to have their amendments incorporated into the managed amendment. i want to note that members who are not here though i think almost everyone is, that were going to reserve their amendments until later in the debate. obviously a lot more work needs to be done but, again, we're

moving along that line. let me first turn to the manager's amendment number 471 that was filed on friday with some new elements that we have been able to work out over the weekend, including technical conforming and other noncontroversial items from various members. it was circulated to all members and you all have it in front o you. so i would ask consent to modify the amendment as outlined in the managed amendment in front of you. hearing no objection to that, so modified. i would now move the adoption of the manager's amendment as modified. all those in favor, please say aye. >> aye. >> those opposed no. >> no. >> the ayes appear to have it and the ayes have it. i'd now like to if i could suggest the following by the way, richard, that i'm prepared to come back. i'm going to move we go to the final adoption of this bill unless others want to bring up amendments but i gather we're going to preserve that for later. i know members like to be heard on the bill, itself. i am prepared to come back after the votes we have and be here either tonight or tomorrow morning, however you'd like to

do it in a formal setting of the committee so members can be heard if you'd care to on the matter before us. i'll leave that up to you to inform our staff. i'll do it any way you'd like to do it to give you a chance to be heard if that's the case. if that's not the issue any further then i move the committee report the original bill, restoring america financial stability act of 2010 and would ask the staff be allowed to make technical changes and that the rule be >> i believe they have the vote on the bill itself. is that correct? i will ask for the roll call to proceed. >> mr. chairman? >> aye. >> mr. johnson? mr. schumer?

mr. menendez? >> aye. >> mr. brown? >> he votes by proxy. >> mr. chester? mr. warner? mr. murphy? -- merkley? mr. bennett? mr. shobi? -- shelby? mr. crapo? >> no. >> mr. vedder? mr. joe hand? mrs. hutchison?

>> no by proxy. >> the vote is 13 ayes. 10 opposed. the measure is passed. >> let me thank my colleagues. if any members would like to make opening comments. senator schumer? i would be happy to do that. in the morning if you would like, i would be happy to do it then. if anyone else would like to be heard, we have got a few minutes. any members want to be heard bowman -- to be heard? senator corker bowma? anyone else? heard tonight. >> anything else? if not, i thank all the members. the committee will stand

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>> secretary of state hillary clinton urged israel to make concessions in the peace process. her remarks are next. then we will hear from the israeli prime minister, and later, vice president joe biden on the economic stimulus package. tomorrow morning, we will get some historical perspective on the passage of the health care bill. george washington professor

edward berkowitz join us. and then a discussion on education with arnie duncan. then fill kristol with "the weekly standard." later, the president will sign the health care bill. this comes after the house passed the measure sunday night. we will have that live from the white house on c-span house2 and c-span.org at 11:00 a.m. eastern. >> mr. speaker, a message from the president of the united safe. >> mr. president, i am directed by the president of the united states. >> now secretary of state hillary clinton addresses members of the pro-israel lobbying group. the committee is holding

regional holding its policy conference this week in washington. -- the committee is holding its policy conference this week in washington. this is about 40 minutes. [applause] ♪ >> thank you. thank you for that warm welcome, and it is wonderful to be back at aipac with so many good friends. aipac with so many good friends. i saw a number of them backstage before coming out and i can assure you that i received a lot of advice.

i know i always do when i see my friends from aipac. and i want to thank lee rosenberg for that introduction and congratulations, rosie, you're going to be a terrific president. [applause] i also want to thank david victor and howard kohr and lonny kaplan nd j.b. pritzker and howard friedman and ester kurz and richard fishman and i better stop, but all at aipac's yours and staff for your leadership and hard work. and i'm very pleased that you will be hearing from a good friend of mine, congressman jim langevin, a great champion for israel. [applause] let's hear it for jim. [applause] and to all of you, all at aipac members, thank you once again for your example of citizen

activism, petitioning your governments, expressing your views, speaking up in the arena. this is what democracy is all about. [applause] and i am particularly pleased to see again that there's so many young people here. [cheers and applause] you recognize that your future and the future of our country are bound up with the future of israel. [applause] and your engagement today will help to make that future more secure. given the shared challenges we face, the relationship between the united states and israel has never been more important. the united states --

[applause] has long recognized that a strong and secure israel is vital to our own strategic interest. [applause] and we know that the forces that threaten israel also threatened the united states of america. [applause] [applause] and therefore, we firmly believe that when we strengthen israel's security, we strengthen america's security. [applause] so from its first day, the obama administration has worked to promote israel's security and

long-term success. and if you ever doubt the resolve of president obama to stay with the job, look at what we got done for the united states last night when it came to pass in quality affordable health care for everyone. [cheers and applause] and we know that as vice president biden said in israel recently, to make progress in this region, there must be no gap between the united states and israel on security. [applause] and let me assure you as i have assured you on previous occasions with large groups like this and small intimate setting, for president obama and for me

and for this entire administration, our commitment to israel's security and israel's future is rock solid unwavering, injuring and forever. [cheers and applause] and why is that? why is that? is it because aipac campus 7500 people into a room in the convention center? i don't think so. is it because some of the most active american and politics who care about our government also care about israel? that's not the explanation. our country and our peopleare

bound together by our shared values of freedom, equality, democracy, the right to live free from fear and our common aspiration for a future of peace, security and prosperity, where we can see our children and our children's children should we be so lucky end of the future mother of the bride and certainly hoping for that. [applause] to see those children, those generations,, page and peace for the opportunity fulfill their own god-given potential. americans under israel as a homeland for a people to long oppressed and a democracy that has had to defend itself at

every turn. adrian nurtured for generations and made real by men and women who refused to bow to the toughest about. and israel's story, we see our own. we see in fact the story of all peoples who struggle for freedom and the right to chart their own destinies. that's why it took president harry truman only about a minute to recognize the new nation of israel. not mac and ever since our two countries have stood in solidarity, so guaranteeing israel's security is more than a policy position for me. it is a personal commitment that will never waiver.

[applause] since my first visit to israel nearly 30 years ago, i have returned many times and made many friends. i've had the privilege of working with some of israel's great leaders and have benefited from their wise old. i have maybe even caused some of them consternation. i don't think over the years, i have shared your pride in seeing the economy thrived and the country flourish, but i have also seen the struggle and sorrow. i have met with the victims of terrorism in the hospital rooms.

i have held their hands. i have listened to the doctors describe how much trouble now was left in a leg or arm or head. i sat there and listen to these hard wrenching words the prime minister and his granddaughter spoke -- the prime minister's granddaughters spoke at his funeral. i went to a bombed out pizzeria in jerusalem. i have seen the looks on the faces of israeli families who knew a rocket could fall at any moment. on one of my visit in 2002, i met a young man. he was only 26, but he was already a senior medic, and he

oversaw a program to train foreign volunteers as first responders in israel. i attended the graduation ceremonies, and i saw the pride in his face as yet another group of young people set off to do good and save lives. set off to do good and save lives. i was also a reservist with the idea. in and a week after we met, he was killed by a sniper near a road block along with other soldiers and civilians. mda renamed the overseas volunteer program in his memory and it has continued to flourish. when i was there in 2005, i met with his family. his parents were committed to

continuing support mda and its mission and suicide. that's why i spent years urging the international red cross, introducing legislation, rounding up votes to send a message to geneva to admit mda as a full voting member. and finally, with your help in 2006, we succeeded in writing that wrong. [applause] [cheers and applause] as a senator from new york, i was proud to be a strong voice for israel and the congress and around the world. and i am proud that i can continue to be that strong voice as secretary of state. last fall, i stood next to prime minister netanyahu in jerusalem and praised his government's decision to place a moratorium on new residential construction

in the west bank. and then, i praised it again in cairo and in marrakesh and in many places far from jerusalem to make clear that this was a first step, but it was an important first step. and yet, i underscored the long-standing american policy that does not accept the legitimacy of continued settlement. as israel's friend, it is our responsibility to give credit when it is due in to tell the truth when it is needed. in 2008, i told this conference that barack obama would be a good friend to israel as president, that he would have a special appreciation of israel because of his own personal history, a grandfather who flout the nazis in patton's army. a great uncle who helped

liberate buchenwald. president obama and his family who have lived the diaspora experience. and as he told you himself, he understands that there is always a homeland at the center of our story. as a senator, he visited israel and met families whose houses were destroyed by rocket. and as president, he has supported israel and word and in deed. under president obama's leadership, we have reinvigorated defense consultations, bedeviled our efforts to ensure israel's qualitative military edge and provided nearly $3 billion in annual military assistance. in fact -- are [applause] as rosie told you, or maybe it was howard, that assistance increased in 2010 and we have requested another increase for

2011. [applause] and something else i want you to know, more than 1000 united states troops participated in juniper cobra ballistic missile defense exercises last fall, the largest such drill ever held. not [applause] president obama has made achieving peace and recognized secure borders for israel a top administration priority. the united states has also led the fight in international and effusions against anti-semitism and efforts to challenge israel's legitimacy. we did break the boycott of the turbine conference and we repeatedly voted against the deeply flawed goldstone reports.

[laughter] [applause] this administration will always stand up for israel's right to defend itself. [applause] and for israel, there is no greater strategic threat than the prospect of a nuclear armed iran. [applause] elements and iran's government has become a menace both to their own people and in the region. iran's president soulman anti-semitism denies the

holocaust, threatens to destroy israel, even denies that 9/11 was an attack. the iranian leadership funds and arms terrorists who had murdered americans, israelis and other innocent people alike. and it has waged a campaign of intimidation and persecution against the iranian people. last june, iranians marching silently were beaten with batons. political prisoners were rounded up and abused, absurd and false allegations and accusations were leveled against the united states, israel and the west. people everywhere were horrified at the video of a young woman shot dead in the street. the iranian leadership denies its people rise that are

universal to all human beings, including the right to speak freely, to assemble without fear, the right to the equal administration of justice, to express your views without facing retribution. in addition to threatening israel, a nuclear armed iran would embolden its terrorist clientele and would spark an arms race that could be stabilized the region. this is unacceptable. it is unacceptable to the united states. it is unacceptable to israel. it is unacceptable to the region and the international community. so let me be very clear. the united states is determined to prevent iran from acquiring nuclear weapons. [applause]

now, for most of the past decade, the united states, as you know, declined to engage with iran. and iran grew more, not less, dangerous. it built thousands of centrifuges and spurned the international community. but it faced few consequences. president obama has been trying a different course, designed to present iran's leaders with a clear choice. we've made extensive efforts to reengage with iran, both through direct indication and working with other partners multilaterally, to send an unmistakable message: upload your international obligations. and if you do, you will read the of normal relations.

if you do not, you will face increased isolation and painful consequences. we took this course with the understanding that the very effort of speaking engagement with strength and our hand if iran rejected our initiative. and over the last year, iran's leaders have been stripped of their usual excuses. the world has seen that it is iran, not the united states, responsible for the impasse. with its secret nuclear facility, increasing violations of its obligations under the nonproliferation regime and an unjustified expansion of its enrichment activities, more and more nations are finally expressing deep concerns about iran's intentions. and there was a growing international consensus on

taking steps to pressure iran's leaders to change course. europe is in agreement. russia, where he just returned from, has moved definitely in this direction. and although there is still work to be done, china has said it supports the dual track approach of applying pressure is engagement does not produce results. the stronger consensus has also led to increased cooperation on stopping arms shipments and financial transactions that a terrorist, threaten israel and destabilize the region. we are now working with our partners in the united nation on new security council sanctions that will show iran's leaders that there are real consequences for their intransigence, debt they are choices to live up to their international obligation.

our aim is not incremental sanctions, the sanctions that will bite. it is taking time to produce the sanctions, and we believe that time is a worthwhile investment for winning the broadest possible support or our efforts. though we will not compromise our commitment to preventing iran from acquiring these nuclear weapons. [applause] but, iran is not the only threat on the horizon. israel today is confronting some of the toughest challenges in her history. the conflict with the

palestinians and israel's arab neighbors is an obstacle to prosperity and opportunity for israelis, palestinians and people across the region. but it also threatens israel's long-term future as a secure and democratic jewish state. the status quo is unsustainable for all sides. it promises only more violent and unrealized aspirations. stan underscores means continuing a conflict that carries tragic human cost. israeli and palestinian children a leg deserves to grow up free from fear and to have that same opportunity to live up to their full god-given potential. there is another path. a path that leads toward

security and prosperity for israel, the palestinians, and all the people of the region. but it will require all parties, including israel, to make difficult but necessary choices. both sides must confront the reality that the status quo of the last decade has not produced long-term security or served their interests. nor has it served the interests of the united states. it is true that heightened security measures have reduced the number of suicide bombings and given some protection and safety to those who worry every day when their child goes there is, i sink, a belief among many that the status quo can be

maintained, but the dynamics of democracy, ideologies, and technology make this impossible. first, we cannot ignore the long term population trend that results from the israeli occupation. of the defense minister and others have observed, the mathematics of tomography -- democracy is hastening the hour in which israelis must choose between preserving their democracy and staying true to the dream of a jewish homeland. given this reality, a two-stage solution is only viable path for israel to remain both of democracy and a jewish state.

[applause] second, we cannot be blind to the political implications of continued conflict. there is today truly a struggle -- may be for the first time -- between those in the region who except peace and coexistence with israel and those who reject it and seek only continued violence. ect it and seek only to continue violent. the status quo strengthens the rejection of who claimed peace is impossible and it weakens those who would expect coexistence. that does not serve israel's interests are our own. those willing to negotiate me to

be a lot to show results for their effort. and those who preach violence must be proven wrong. all of our regional challenges, confronting the threat posed by a brand, combating violent extremism, promoting democracy and economic opportunity become harder if the rejection is grow in power and influence. conversely, a two state solution would allows israel's contribution to the world into our greater humanity to get the recognition they deserve. it would also allow the palestinian to have to govern, to realize their legitimate aspirations and it would undermine the appeal of extremism across the region. i was very privileged as first lady to travel the world on behalf of our country. i went from latin america to southeast asia. and during the 1990's, it was

rare that people in places far from the middle east ever mentioned the israeli-palestinian conflict. now when i started traveling a secretary of state and i went to places that were so far from the middle east, it was the first, second or third issue that countries raised. we cannot escape the impact of mass communication. we cannot control the images and the messages that are conveyed. we can only change the fact on the ground that refute the claims of the rejection if an extremist. and in doing so create the circumstances for a safe secure future for israel. and then finally, we must

recognize that the ever evolving technology of war is making it harder to guarantee israel's security. for six decades, israelis have guarded their borders diligently , but advances in rocket technology mean that israeli families are now at risk far from those borders, despite efforts at containment, rockets with better guidance system, longer range and more destructive power are spreading across the region. hezbollah has tens of thousands of rockets on israel's northern border. hamas has a substantial number in golf. and even if some of these are still crude, they all pose a serious danger as we saw again last week.

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they appear content to grow rich of the tunnel trade, while the people of gaza fall deeper into poverty and despair. that is also not a sustainable position for either israelis or palestinians. behind these terrorist organizations and their rockets, we see the destabilizing influence of iran. reaching a two-stage solution will not end all these threats. you and i know that, but failure to do so gives the extremists a pretext to spread violence, instability, and hatred.

these challenges cannot be ignored or wished away. only by choosing a new path can israel make the progress it deserves to insure that their children are able to see a future of peace, and only by having a partner willing to participate with them, will the palestinians be able to see the same future. there is, for many of us, a clear goal. two states for two people living side by side in peace and security was peace between

israel and syria and israel and lebanon o, a normal relationship between israel and all the states. all the arab states. [applause] a comprehensive peace. [applause] that is real, not a slogan that is rooted in genuine recognition of israel's right to exist in peace and security and that offers the best way to ensure israel's enduring survival and well-being. that is the goal that the obama administration is determined to help israel and the palestinians achieve. george mitchell has worked tirelessly with the parties to prepare the ground for the resumption of direct negotiations, beginning with the proximity talks, though the sides have accepted. these proximity talks are a hopeful first step and they should you serious and substantive.

but ultimately of course, it will take direct negotiations between the parties to work through all the issues and end the conflict. the united states stand ready to play an active and sustained role in these talks, and to support the parties as they work to resolve permanent status issues, including security, borders, refugees and jerusalem. the united states knows we cannot force a solution. we cannot ordain or command the outcome. the parties themselves must resolve their differences, but we believe-- [applause] we believe that through good faith negotiations, the parties can mutually agree to an outcome which ends the conflict and reconciles the palestinian goal of an independent and viable state based on the 67 lines with

agreed swaps and israel's goal of a jewish state with the care and recognized borders that reflect subsequent developments and meet israel's security requirements. [applause] the united states recognizes that jerusalem, jerusalem is a deeply, profoundly important issue. for israelis and palestinians, for jewish, muslims and christians. we believe that through good faith negotiations, the parties can mutually agree upon an outcome that realizes the aspirations of both parties for jerusalem and safeguards it status for people around the world. but for negotiations to be successful, they must be built on a foundation of mutual trust and confidence. that is why both israelis and

palestinians must refrain from unilateral statements and actions that undermine the process or prejudice the outcome of talks. when a hamas controlled municipality glorifies violence and renames ace where after a terrorist who murdered innocent israelis, it insults the families on both sides who have lost loved ones over the years in this conflict. [applause] and, when instigators deliberately mischaracterized the rededication of a synagogue in the jewish quarter of jerusalem's old city and call upon their brethren to defend nearby muslim holy sites from so-called attacks, it is purely and simply an active incitements. [applause]

these provocations are wrong and must be condemned for needlessly inflaming tensions and imperiling prospects for a comprehensive peace. it is our devotion to this outcome, two states for two peoples, secure and at peace, that led us to condemn the announcement of plans for new construction in east jerusalem. this was not about wounded pride nor is it a judgment on the final status of jerusalem, which is an issue to be settled at the negotiating table. this is about getting to the table, creating and protecting an atmosphere of trust around it and staying there until the job is finally done. [applause] new construction in east jerusalem or the west bank undermines that niche will trust and endangers the proximity talks that are the first step towards a full negotiations that those sides say they want and

need. and it exposes daylight between israel and the united states that others in the region hope to exploit. it undermines america's unique ability to play a role, an essential role in the peace process. our credibility in this process depends in part on our willingness to praise both sides when they are courageous and when we don't agree to say so and say so unequivocally. we objected to this announcement because we are committed to israel and its security, which we believe depends on a comprehensive peace, because we are determined to keep moving forward along the path that ensures israel's future as a secure and democratic jewish state living in peace with its palestinian and arab leaders. and, because we do not want to see the progress that has been made in any way endangered.

prime minister netanyahu and i spoke, i suggested a number of concrete steps israel could take to improve the atmosphere and rebuild confidence. the prime minister responded with specific actions israel is prepared to take toward this end, and we discussed a range of other mutual confidence-building measures. senator mitchell continued this discussion in israel over the weekend and is meeting with president abbas today. we are making progress. we are working hard. we are making it possible for these proximity talks to move ahead. i will be meeting with prime minister netanyahu later today and president obama will meet with him tomorrow. [applause] we will follow up on these discussions and seek a common understanding about the most productive way forward. neither our commitments nor our goal has changed. now the united states will encourage the parties to invent the prospects for peace.

we commend the government for the reforms they have undertaken to strengthen law and order and the progress they have made in improving the quality of life in the west bank, but we encourage them to redouble their efforts to put an end to incitement and violence, continued to ensure security and rule of law, and ingrain a culture of peace and tolerance among palestinians. [applause] we applaud israel's nabors for their support of the arab peace initiative and the proximity talks, but their rhetoric must now be backed up by action. they should make it easier to pursue an agreement. that is their responsibility, and we commend prime minister netanyahu, for acting too and road blocks, and we continue take those concrete steps that

will turn that vision into reality, build momentum toward a comprehensive peace by demonstrating respect for the legitimate aspirations of the palestinians, stopping settlement activity, and addressing the humanitarian crisis in gaza. addressing the humanitarian crisis in gaza. from the time . who accepted the u.n. proposal to divide the land into two nations, israel and palestine, leaders like begin and rabin and sharon and others have made difficult but clear eyed choices to pursue peace in the name of israel's future. it was rabin who said for israel, there is no path that is without paying. but the path of peace is preferable to the path of war. and last june at our élan

university prime minister netanyahu put his country on the path to peace. resident abbas has put the palestinians on that path as well. the challenge will be to keep moving forward, tuesday what will be a difficult course. piece does bring with it a future of promise and possibility. ultimately that is the vision that drives us in that has driven leaders of israel going back to the very beginning. a future free from the shackles of conflict, families no longer afraid of rockets in the night, israelis traveling and trading freely in the region, palestinians able to chart their own futures, former adversaries working together on issues of common concern like water common infrastructure and development that builds broadly shared prosperity. and a global strategic partnership between israel and the united states to tap the

talent and innovation of both of our societies, comes up with solutions to problems of the 21st century from addressing climate change and energy to hunger, poverty and disease. israel is already on the cutting edge. look at the spread of high-tech startups, the influx of venture capital, the number of nobel laureates. israel is already a force to be reckoned with. imagine what it's leadership could be on the world stage if the conflict would be behind it. we are already working as partners. there is so much more we could achieve together. we are entering a season of passover. this story of moses resonates for people of all faiths. and it teaches us many lessons, including that we must take risks, even a leap of faith to reach the promised land. when moses urged they choose to follow him out of egypt, many

objected. they said it was too dangerous, too hard, too risky. and later in the desert, some thought it would be better to return to egypt. it was too dangerous, too hard, too risky. in fact they formed a back to egypt committee to try to stir up support for that. and when they came to the very edge of the promised land, there were still some who refuse to enter because it was too dangerous, too hard and too risky. but, it israel's history is the story of brave men and women, who took risks. they did the hard thing. because they believed they knew it was right. we know that this dream was championed by hurts all and others that many said was impossible.

and then the pioneers, can you imagine the conversation, telling your mother and father i am going to go to the desert and people thinking, how could that ever happen? but it did. warriors, who were so gallant in battle, but then offered their adversaries a hand of peace because they thought it would make their beloved israel stronger. israel and the generations that have come have understood that the strongest among us is often the one who turns an enemy into a friend. israel has shed more than its share of bitter tears. but, for that dream to survive, for the state to flourish, this generation of israelis must also take up the tradition and do

what seems to dangerous, too hard and too risky. and of this, they can be absolutely sure, the united states and the american people will stand with you. we will share the risks and we will shoulder the burdens as we face the future together.

>> more from the american israel public public affairses committee. you'll hear from benjamin netanyahu. he spoke for 45 minutes. ♪

♪ ♪ >> we are so honored to have the prime minister of israel here with us tonight. [applause] but before i introduce him, i want to first recognize a few very special guests from israel who joined us. defense minister, edhud barak. [applause] [applause]

minister of national infrastructure. [applause] and the prime minister's wife, sarah netanyahu. [applause] now, while sarah and the prime minister obviously have accomplished a great deal in their lives, perhaps the honor most part of this evening is the one recently bestowed upon their son. he one israel's prestigious national bible competition. [applause] this was quite an accomplishment and quite a distinction, so

congratulations to him and to his proud parents. [applause] in his long and distinguished career, the israeli prime minister, benjamin netanyahu, has confronted the challenges facing the jewish state with courage, with passion and with moral clarity. as u.n. ambassador, foreign minister, opposition leader, and now in his second term as prime minister, he has been pursuing peace, security and economic growth for his country throughout nearly 30 years of public life. for decades he has warned the world about the threat of terrorism and radical islam. he has long recognized the danger of a nuclear-armed iran

not just to israel but to the entire world and he has been among the most prominent voices combating the international campaign that delegitimizes israel. today from the prime minister's office benjamin netanyahu is continuing to sound the alarm about all of these things. yet even as he traveled the world warning of the threats facing israel, he has refused to abandon his quest for peace, and he has never relented from his desire to improve both the israeli and palestinian economies. it is with these goals of peace and prosperity in mind that he has taken a number of bold steps in the past year. last summer he declared support for a demilitarized palestinian state alongside the jewish state of israel. [applause]

now i will quote him here. in my vision of peace in this small land of ours, to people live freely side by side in amity and mutual respect. a few months later, netanyahu took another bold and unprecedented step. he declared a ten month moratorium on all is really construction in the bank's. and while the palestinian authority still refuses to enter into direct talks with him, he has nevertheless taken steps to make daily life easier for palestinians by removing nearly 200 checkpoints and roadblocks in the past year. [applause] insisting on security while pursuing durable peace this has been his goal in the past and remains his guiding principle as

israel head of government today. mr. prime minister, on behalf of the 8,000 people in the room for tonight's aipac banquet i want to express my appreciation for the leadership you are demonstrating in the quest for peace and the we've consistently sounded the alarm about the threat of iran's nuclear program. we want you to know that we will do everything we can to ensure that the u.s. israel alliance remains on breakable forever. [applause] ladies and gentlemen, please welcome -- please join me in welcoming the prime minister of israel, the honorable benjamin netanyahu.

♪ ♪ ♪ ♪ ♪ [applause] thank you very much. i think it was woody allen who

said that he spent a lifetime trying to arrive late at a jewish evened and never made it. [laughter] i came on time. [laughter] with my wife, sarah, and it's a very good to be with all of you members of the obama administration, senators, members of congress, my colleagues, and the distinguished ambassadors who are here from many countries, howard kor, dan victor, all the members of aipac and the 1,300 students who came from around this country. my friends, as the world faces monumental challenges, i know

that america and israel will face them together. we stand together because we're inspired by the same ideals and inspired by the same dreams same dreams the dreams of achieving prosperity, security and peace for all. [applause] now this dream seemed an impossibility to most jews a century ago. you know this month my father celebrated his 100th birthday. [applause] that's not his only achievement, but when he was born, the czars

ruled russia. the british empire spans the globe and the ottoman empire ruled the middle east. during his lifetime, all three of these empires fell. others rose and fell. and the jewish destiny, the pendulum of jewish faith swung from the depths of despair to new hope and a new beginning, the rebirth of the jewish state. [applause] for the first time in 2,000 years, a sovereign jewish people could defend itself against attack, and before that, understand what transformation this was before that in our dispersion we were powerless,

absolutely powerless to defend ourselves against an unremitting a barrage of savagery from the bloodletting in the middle ages, to the expulsion of the jews from england and then from spain and then from portugal to the innocence slaughter of jews in the ukraine to russia, committing in the greatest horror of all, a holocaust. the founding of israel didn't stop the attack on the jews, but it merely -- well, it's more than merely. it gave the jews the power to defend against these attacks. i want to tell you about the day that i realized what this transformation was. it was the day i met him over 19

years ago he was in the same military unit and one dark night during the battle in 1969 he was killed in a burst of gunfire. at his funeral in the galilee i learned something. i discovered that he had been born shortly after his mother and father had been freed from the death camps of europe. if heim had been born two years earlier, this daring young israeli officer would have been tossed into the oven light 1.5 million other jewish children. heim's mother told me that though she was in great anguish she was proud.

at least, she told me -- and this is something i will never forget as long as i live -- at least, she said, my son fell wearing the uniform of a jewish soldier defending the jewish state. [applause] and time and again, israel's soldiers were forced to recall the attacks of much larger enemy is committed to our destruction. yet, when egypt and jordan realized that we could not be defeated in battle, they embraced the path of peace, and we value the peace treaties we've achieved with both countries.

yet there are those -- [applause] there are those who continue the assault against the jewish state. there are those who openly call for our destruction. they seek to achieve this goal from terrorism, missile attacks, and most recently, by developing atomic weapons. it is instructive that the gathering of the jews to israel doesn't deter them. in fact, it when it's their appetite. iran's rulers say israel is a one bomb country. that is hezbollah says if all the jews gathered in israel it will save us the trouble of going after them worldwide. my friends, these are unpleasant

facts, but they are the facts. the greatest threat to any living organism, to any nation is not to recognize danger in time, not to recognize the facts. 75 years ago, many leaders around the world put their heads in the sand. untold millions died in the war that followed. ultimately, to of history's greatest leaders helped turn the tide. franklin delauro roosevelt and winston churchill helped save the world. [applause] indeed, they deserve every applause. they helped save the world. but they were too late to save 6 million of my own people, the

jewish people. the future of the jewish state can never depend on the good will of even the greatest of man. [applause] israel must always reserve the right to defend itself. [applause] today an unprecedented threat to humanity looms large. a radical iranian regime -- [applause]

[applause] thank you. thank you. [cheers and applause] thank you. a radical iran and regime armed with nuclear weapons could bring the end to the era of nuclear peace that the world has enjoyed for the last 65 years. such a regime could provide nuclear weapons to terrorists. it might even be tempted to use them. in our world would never be the same. iran's praising bid to develop nuclear weapons is certainly first and foremost a threat to my country, to israel. but it's a threat to the entire

region. it's a threat to the entire world. israel, thus, expects the international community to act swiftly and to act decisively, to thwart this danger. but we always reserve the right of self-defense. [applause] and my friends, we have to defend ourselves also against lies and against the vilification. throughout history -- [applause] throughout our history the slander against the jewish people always preceded physical attacks against us. in fact, they were used to justify those attacks. the jews were called the

poisoners of mankind, the fermenters of instability, the source of all evil under the sun. unfortunately, as in the case of the physical attacks, these libel attacks against the jews did not stop with the creation of the state of israel. it's true that for a time overt anti-semitism was held in check by the shame and shock of the holocaust, but only for a time. in recent decades, the hatred of the jews has re-emerged with increasing force, but with an insidious twist. it is not merely directed at the jewish people. it's increasingly directed at the jewish state, and in its most pernicious form, it argues

that if only israel did not accessed many of the world's problems would go away. now, i want to be clear. this doesn't mean israel is above criticism. of course not. israel, like any democracy, has its imperfections. but we strive to correct them through open debate and through scrutiny. israel has independent courts and the rule of law, free press, and vigorous parliamentary debate. believe me, it's very vigorous. [laughter] you've just gone through a week of health care voting. in israel, every week is health care week. [laughter] it doesn't stop. [laughter] and i know in this city member of congress refer to each other as my distinguished colleague from wisconsin, the distinguished senator from

california. in israel, members don't speak of their distinguished colleagues from both shivah -- we say well, you don't want to know what we say. [laughter] because in israel, self criticism is a way of life. and we also accept that criticism is part and parcel of the conduct of international affairs. but israel should be judged by the same standards applied to other nations and to other democracies. [applause] sometimes i think there is -- sometimes i think there's a triple standard. one standard for the

dictatorships, a second standard for the democracies, and a third standard is a standard for israel. we should be judged by one standard and allegations made against the state of israel must be grounded in fact. [applause] one allegation that is not grounded in fact is the attempt to describe the jews as foreign colonialists in their own homeland. [applause] this is one of the great lies of modern times. in my office i have a rank loaned to me by israel's to part with antiquities. this ring was found right to next to the western wall, but it dates back 2800 years ago. 200 years after king david

declared jerusalem as our peoples capital. this ring is a seal of a jewish official, and his name the name is netanyahu. now that's my last name. my first name benjamin dates back 1,000 years earlier to benjamin the son of jacob. one of benjamin's brothers was named shimone which happens to be the name of my good friend simon perez, the president of israel. you see nearly 4,000 years ago, benjamin simon and his brothers roamed the land of judea. ladies and gentlemen, the connection between the jewish people and the land of israel

cannot be denied. [applause] the connection between the jewish people and your darussalam cannot be denied. [applause] the jewish people were killed in jerusalem 3,000 years ago, and the jewish people are building jerusalem today. [applause] jerusalem is not a settlement. it's our capital.

[applause] [cheers and applause] [cheers and applause] thank you. in jerusalem my government is maintained -- [cheers and applause] thank you. thank you. you're very kind. thank you.

[cheers and applause] in jerusalem my government has maintained the policies of every single israeli government since 1967 including those led by goldamiere. today nearly a quarter of a million jews, that almost half the city's jewish population, live in neighborhoods that are just beyond the 1949 armistice lines. [cheers and applause] all of these neighborhoods are within five minutes from the knesset's. they are an integral and inextricable part of modern jerusalem. everyone knows -- everyone, americans, europeans, israelis

certainly, palestinians, everyone knows that these neighborhoods will be part of israel in every peace settlement. [applause] and therefore, building in them it no way precludes the possibility of a two-stage solution. [applause] and i want to say one more thing about our policies in jerusalem. you know, nothing is rare in the middle east and tolerance for the belief of others. but it's only been under the israeli sovereignty in jerusalem that religious freedom for all faith has been guaranteed, and we shall continue to guarantee that religious freedom for everyone. [applause]

ladies and gentlemen, while we cherish our homeland, we also recognize the palestinians live there as well. we don't want to govern them, we don't want to rule them, we want them as our neighbors living securely in dignity and peace. [applause] yet, israel is unjustly accused of not wanting peace with the palestinians. nothing could be further from the truth. [applause] my government has consistently shown its commitment to peace in both word and deeds. from day one, i called on the palestinian authority to begin peace negotiations without

delay. and i make the same call today. president abbas, come and negotiate peace. [applause] you know, that is so elementary and so obvious. you'd think we don't have to say it because leaders who truly want peace should be able to sit face-to-face with each other and negotiate peace. you can't successfully in a negotiation for peace if you don't begin at. so i call on the palestinian leadership. come and negotiate peace. [applause] of course, the united states can help the parties resolve their problems, but it cannot solve the problems for the party's.

[applause] peace cannot be imposed from the outside. it can only come through direct negotiations in which we develop mutual trust. that mutual trust that is necessary to forge a common future. last year i spoke of a vision of peace in which a demilitarized palestinian state recognizes the jewish state just as the palestinians expect israel to recognize a palestinian state, we expect the palestinians to recognize the jewish state. [applause] my government is removed hundreds of roadblocks, barriers, france, checkpoints, and this is facilitated tremendous palestinian movement, and as a result we have helped

spur actually an incredible boom in given today's world economy, an incredible boom in the palestinian economy. you have coffee shops, restaurants, businesses, shopping malls, even multiplex studios. just go to ramallah and that is not come about out of sheer terror. we have made it possible. you cannot do this if you cannot move tracks, goods, people, customers. that's been our policy. and we added to that an unprecedented moratorium on new construction and to dan sumeria. this is what my government has done for peace. [applause] now i ask you what is the palestinian authority durham for peace? [applause] well, you can judge for

yourself. they have placed preconditions on peace talks, wage relentless international campaign to undermine israel's's legitimacy and promote the maturing this goldstone report that falsely accuses israel of war crimes. in fact, they are doing that right now at the u.n. -- at the grotesquely maimed u.n. human rights commission. [applause] and i want to use this opportunity to thank president obama and the concourse of the united states for their efforts to thwart this libel, and i ask for the continued effort this week to fight this lie. [applause]

regrettably, the palestinian authority has also continued the unabated in sight against israel and the state-controlled media and schools and other institutions that come directly under their control. and some others, too. a few days ago in a public square meter ramallah, the palestinians named this square after a terrorist who murdered 38 innocent israeli civilians, including 13 children, including an american citizen, the photographer, gale ruben.

they named a public square after this murderer, and the palestinian authority did nothing. ladies and gentlemen, peace requires reciprocity. it cannot be a one-way street in which israel makes all the concessions and the palestinian authority makes none. that's got to change. [applause] israel stands ready to make the compromises necessary for peace, but we expect the palestinians to compromise as well to do their part. [applause] but there's one thing i will never compromise on, and that one thing is israel's security.

[applause] let me express to you the difficulty of trying to explain israel's security predicament to the citizens of the united states, a country that is 500 times the size of israel. so, i thought how why did this to bring it home. and i asked you to imagine that territory of the united states was compressed down to the size of new jersey. now i'm not speaking at new jersey because our ambassador michael comes from the new jersey. it happens to come from the right size. so, now you squeeze the united states down to the size of new jersey.

next, put on the new jersey's northern border a terror proxy called hezbollah which fires 6,000 rockets into the small state. then imagine that this terror proxy amasses another 50,000 rockets to fire at you. now i'm not finished. you take new jersey's southern border and put another iranian terror proxy on it and call it hamas. and it, too, fires 6,000 rockets into your territory while smuggling even more lethal weapons into its territory. you'd think you'd feel real vulnerable? you think you would expect some understanding from the international community when you have to defend yourself? i think any fair minded person

would recognize that we face security problems and challenges unlike any other nation on earth. [applause] and therefore, therefore a peace agreement with the palestinians must have effective security arrangements on the ground, not just a piece of paper, on the ground. [applause] we must make sure what happened in lebanon and gaza doesn't happen again in the west bank. [applause] now let me explain what our main security problem with lebanon is. it's not israel's border with lebanon. it's lebanon's border with syria through which iran and israel smuggled thousands of rockets and missiles to it's gaza's border with egypt

under which there are about 1,000 tunnels dug to which hamas fires weapons to fire at us. my friends, experience has shown that only an israel presence on the ground can prevent or limit weapons smuggling. and this is why a peace agreement with the palestinians must include an israel presence in the eastern border of a future palestinian state. [applause] >> if peace with the palestinians proves its durability over time, we can review security arrangements. we are prepared to take risks for peace. but we will not be reckless

with the lives of our citizens and with the one and only jewish state. [applause] >> ladies and gentlemen, the people of israel want a future in which our children no longer experience the horrors of war. of israel want a future in which our children no longer experience the horrors of war matt. we want a future in which israel realizes its full and great potential as a global center of technology anchored in its fall use living in peace with all of its neighbors. i envision an israel that can dedicate even more of its scientific and creative energies to help solve some of the great problems of our time. for most of which is finding a clean and affordable substitute for gasoline.

[cheers and applause] and when we find that alternative we will stop transferring hundreds of billions of dollars to regime that would support tour worldwide. [applause] i am confident that in pursuing these goals the of the enduring friendship of the united states of america, the greatest nation on earth. [applause] the american people have always shown courage, their generosity, their decency. from one president to the next, from one congress to the next, america's commitment to israel's security has been unwavering. [applause]

in the last year, president obama and the u.s. congress have given meaning to that commitment by providing israel with military assistance, by enabling joint military exercise and working on joint missile defense , so too is israel been a staunch and steadfast ally of the united states. as vice president biden has said, america has no better friend in the community of nations and israel. all i say that, too. [applause] for decades, israel served as a bulwark against soviet expansionism. today it is helping america stem the tide of militant islam.

israel shares with america everything, and i mean everything. that we know about fighting a new kind of enemy. we share intelligence. we cooperate in so many countless ways which i'm not at liberty to divulge. this cooperation is important for us, for israel, but it is also helping save american lives. [applause] our soldiers and your soldiers fight against fanatic enemy is that los our common values. in the eyes of these fanatics, we are you and you are us. to them, the only difference is you are big and we are small.

you are the great satan and we are the small state in. now there's an important point here. this fanaticism hatred of western civilization predates the stubble shunned of modern islam by 1,000 years. militant islam does not hate the west because of israel. it hates israel because of the west because it sees israel as an outpost of freedom and democracy that prevents them from overrunning them the least. that is why when israel's stance against its enemies, it stands against america's enemies. [applause] president truman, the first leader to recognize israel had this to say. i have faith in israel and i believe it has a glorious future

not just as another sovereign nation but an embodiment of the greek ideals of our civilization my friends, we are gathered here today because we believe these common ideals of our great civilization and because these ideals i'm certain israel and america will always stand together. [applause] thank you. thank you. ♪ ♪

>> up next on c-span, vice president biden talks about the economic stimulus tax cuts. and then an immigration rally, retro sunday. >> tomorrow morning, treasury secretary tim geithner will testify about the health of the u.s. housing market. we'll also hear from the members of the morgan industry.

live coverage begins at 10:00 eastern on c-span 3. and later in the day also on c-span 3, the chairman of the federal communications commission will testify about the f.c.c.'s broadband internet ban. live coverage begins at 2:30 eastern. vice president biden share as task force aimed at addressing solutions to challenges facing middle-class families. later he talked about the work, new proposal for safeguarding retired workers' savings. this is about 20 minutes.

>> good morning. it's an honor to be here today with vice president biden who's taken the lead to make sure the american people receive the full benefit of the recovery act and secretary geithner who has worked with others to ensure that the american economy is strong and resilient. as you know it's tax filing season for if american people. and about 75% of the american people get refunds. so that means taxpayers are getting a lot of money from the i.r.s. these days this year they're getting a record amount. we're announcing today that the average tax refund is up 10% so far this year. as of last week, the average refund $3,036, which is $266 more than this last year.

for many taxpayers this will the biggest check that they will see all year. we've spent $175 million in refunds. what's telling about these numbers is that so far this year we've sent out $6 billion more in refunds than the same period a year ago even though we've actually received less return because of the bad weather that hit many parts of the country. a major factor in these larger refund numbers have been the recovery act from buying homes to helping people with their college expenses the recovery provision have increased tax payer refund to record levels. and this is going to continue in the weeks ahead because nearly half of the american taxpayers have not yet filed their tax returns. so for those who haven't filed

yet, we want to remind everyone about the many important credits and deductions that they may be eligible this year. let me give taxpayers a few tips for tax filing season. first, it is really important that people take their time. the recovery provisions can mean extra cash and hard working americans in their pockets. don't overlook the earned income tax credit and a common mistake we're seeing this year is people overlooking the work pay credit. so everyone should make sure to claim it. second, people should e-file. when they e-file it helps catch mistake and it ensures that the software or their prepare can help them find the credits they deserve. e-filing is up this year. and the fastest and best way to

get it is to e-file with direct deposit. this can help americans get access to their money more quickly. let me close my remarks with one message to american people who are feeling stressed out at this time of year. if you're having trouble paying your taxes, please get in touch with us. you have options. our assistance have gone the extra mile working with american taxpayers. we're even running special saturday open house this is year starting march 27 so taxpayers can resolve any problems they have. so with that, let me turn it over to secretary geithner. >> thanks doug, i want to start by saying thanks to doug shullman and his assistance to make it easier for the features

that are in the recovery act. americans are suffering a great deal from this recession but because the president acted so quickly, the economy is starting to expand again. as we continue to repair the damage caused by this recession, the economy will start creating jobs again. the recovery act and our actions to fix the financial system were decisive and starting to turn the economy around. i know many people think of the recovery act, they think about roads and bridges, they think about assistance to keep the teachers in the classrooms, they think about extended unemployment benefits, but the recovery act provided nearly $3 billion in tax incentives. they providing tax relief for 95% of working families making it easier to buy a new home, helping municiple governments to fund investment projects in

your business and helping people pay for college tuition. the most important thing we can do to improve the economic security of americans is to create more opportunity first good jobs and growing incomes. one of the most effective things that government can help do that happen is to promote a strong dynamic private sector. tax incentives can play a key role until this process. they work by encouraging the initiatives of individuals and businesses. and the's why the recovery act including small business expenses and bonus appreciation help companies afford new equipment, the make and work tax credit, help keep us at the forefront of technological innovation and energy that's why the president's budget proposal eliminates capital gains. and that's why last week the president signed into law new tax cutses to provide incentives to hire new workers

and to make new investments. now of the $300 billion, nearly half of that is still ahead of us. we want to make sure that americans take full advantage of these benefits. if you just bought your first home or you're thinking about it, you could be eligible for $8,000 in tax credits if you replace new windows or replace insulation you might be able to recover $1,500. you could be eligible $2,700 in college expenses for four years. the more you can claim, the more money is put back in the economy helping us grow out of this crisis. i have the pleasure of introducing the vice president, he chairs the working task force, the middle-class task force. he's been running the committee making sure it is doing what

it's supposed to. and this program, the most powerful program of tax cuts and investments in modern u.s. history is moving with speed, with transparency, with efficiency to help americans come out of this crisis. now the vice president of the united states. . . the difference between death and taxes is that that does not get

worse every time congress meets. well today, congress meeting of last year, it is helping in a big way. the difference this year is that because of the recovery act providing $300 billion in tax cuts, millions of middle- class americans will get hundreds of thousands of dollars of relief in tax credits. again, you all know that when people click on the news and that will hear tax credit, tax deductions, and it does not compute right away. a tax credit means that this guy sits there and they are going to bounce out a check and give you on monday. money is going to come back. you are not claiming something on your tax form that means that you pay less taxes. it means that you get something

back. i would like to note that through march 12, as the commissioner pointed out, the average tax refund was a record $3,036. that is up $266. in the neighborhoods i come from, the dread of filing your taxes, it is actually thought of -- even though it is their money, it is almost all of us found money. we're going to get a break here. people are hurting right now, and the average of over $3,000 coming at a time when we're just coming out of this recession and things are beginning to move, it will be welcome news for a lot of americans. hard-working folks, this extra cash in their money in tight times can make an astounding difference in terms of their

attitudes as well. for president obama and for me and the whole team here, this was part of the goal we set out when we first took office. it was not just to rebuild the economy which was self-evident in necessary, but asset -- but also to rebuild the middle class. the middle class to the shellacking, particularly 2000- 2007. at the end of the day we will recover that -- measure the recovery based on how many folks are in the middle class, and how many can stay in the middle class. it is a simple proposition -- we are looking at many of you coming from families like i do, it is all about the standard of living. it is all about whether or not you feel comfortable, safe,

secure in your home, in your neighborhood, in your ability to take care of your elderly mother, your child when you go to work, being able that you can get your kid to college. these are things that the middle class is all about. they are about families, neighborhoods, they are about having the ability to live a decent life. and so help with college tuition, by house or car -- this helps middle class families not only get five but it drives the sense of who they are in their standard of living. and that is why we're here first and foremost. that is also why the only days after being sworn in, i think if it was not the first, one of the first announcements the president of the united states made was establishing a middle- class task force and he asked me to chair it. he said this is the deal. you have a lot on your plate.

we're taking office in a moment of crisis but did not take your eye off the ball. i think i was a pain in the neck at the beginning saying, look, scrub your agencies. what can be done within your agencies that in fact can increase security for middle- class people? what is it? the commerce department is one thing, and housing is another, and the treasury department, so everybody went for and scrub the their agencies, what can we do to get middle-class taxpayers more security? and we dealt with fairly swiftly. in the meantime, we had to deal with the housing crisis, a financial crisis, and less than a month after moving into the white house, we pass the recovery act. i don't think anyone argues about this anymore, it was responsible for saving are creating over 2 million jobs,

and we have a terrific way to go in terms of the act working its way through. weeks -- people that crashed in the recession, lost their jobs, lost their home, we help them with their health care and we had tax credits for small businesses. 95% of working families got a tax break. so people here a lot about the major projects that the secretary said about the recovery act, new highways and high-speed rail lines and abundant renewable energy, all really important things. but there are many ways we use the recovery act to help americans with the tax code. half of americans in the filing taxes, so many have to sit down and file their taxes and the next couple of weeks. look, american business --

corporate america, they scour the code to make sure that they get what they are entitled to in the tax code. a lot of hard-working americans have enough trouble working sometimes two jobs just putting meat and potatoes on the table, making sure they can pay their rent or their mortgage, and they do not have experts going out there and repairing their taxes. this is not a criticism of those that do. everyone is entitled to what the law provides. this is what i want focus on in the next minute or so, focus on average middle-class taxpayers who are not business people -- they may be business people. they go out there and how can they get the most out of what is intended by congress and the administration for them to get? we want to make it easier for them to get a break.

they can file and still men, and we want to make sure that americans get every dollar they are entitled to two. i am proud to announce our online tax savings tool which makes it easy for middle-class americans to determine the recovery at benefits for which they qualified. just log-on to whitehouse.gov/ recovery. it is hard for me to see it here. it makes it easier to file your taxes. it is easy and simple to use and it will help families across the country hit by this economic downturn to know exactly what tax credits and what tax benefits they are entitled to, including but not exclusively for those parents if with a kid in college, they can get up to $2,500 in a check written by an uncle sam sent back to them.

that is a big deal. and by the way, for students on their own, they can do the same thing. they can file and get $2,500, so if you are struggling to figure out next semester's tuition, it is coming due now. i can tell you, this is about the time in the universe today start saying, next semester now. and that is a big deal. family struggling with their energy bills, and most middle- class families are. as pointed out by the secretary, they can get up to $1,500 and tax credits in buying certain appliances, putting in new windows that are high efficiency, putting in insulation. and not only did they get that credit, but in the long term they are reducing their energy bill. this is a win-win.

a $5,000 tax credit. you still will get $1,000 tax credit if in fact you do not have a job and you've got a couple of kids, if you get $1,000 tax credit. and for most of the first-time home buyers, and i am assuming they will fall within a range that they are not making $400,000, they are going to get an $8,000 tax credit. and what is the middle-class dream? they want to be able to buy a home some day, have their own home. these tax deductions also exist on state and local fees which can amount to hundreds of dollars for people purchasing vehicles. some states have a transfer tax that can be significant, so you can save hundreds of >> if you bought a new vehicle, a new high efficiency vehicle, whether or

not you can get this in terms of help when your tax forms. no tax liability on the first $2,400 of unemployment benefits. people have ever had to collect unemployment probably think they get an unemployment check and that is said. will they pay taxes on an unemployment check. the first $2,400, when you're out there in receiving unemployment benefits, that is not taxable. i kid everybody around here and say, we should speak english to people. most people do not know what "make work pay" means. but every individual that is getting a paycheck is going to get $400 back over the year and $800 if you are a couple. maybe your employer did not withhold it or maybe you are

self-employed. you are now able on your tax form, if you have not been getting it all along, which is about $70 a paycheck more, you can get that now and you're entitled to $400 as an individual and $800 as a couple. look, i would like to reemphasize. already refunds are route $260 per person compared to last year. this is money that not only helps people but stimulates the economy, money back into the economy, helping it grow, people at coffeeshops employed, making sure that the hair root -- the hair dresser does not go broke in the local town, making sure people have a little bit of money to go to a movie -- these are things that employ people. when this money gets back into the economy, people stay employed or increase employment.

the extra cash goes into the pocket of the consumers and have an incentive to go back and bite energy efficient windows, purchased a new hybrid at a local dealer, or finally by their first home that they had dreamed about. they are generating more economic activity when they do that which spurs more jobs, creating jobs in manufacturing, clean energy, construction, and this is an industry that we also spend a lot of time on in the recovery act. look, i see it all across the country. i have been to close to 77 days throughout this country. after all little more than a year, the recovery act is not only working, it is working toward something, toward creating jobs, toward building a dynamic 21st century economy that is one allow america to lead the way in the 21st century as in the 20th.

and by cutting taxes, millions of millie -- middle-class americans will be held, weathering the storm that they found themselves in and get back to their former financial footing. again, we have more information on which tax credits are available. visit the savings tool add whitehouse.gov/recovery. we want to make sure that working americans get their fair share of the tax relief that they are entitled to. this is a good thing. i am always happy to announce on the eve of the deadline approaching to file your taxes that there is some good news out there. so again, folks, those of you preparing your own returns, the one to our website, take a look and we will walk you through.

the commissioner indicated that if you have trouble paying your taxes, give us a call. we want to help. people need help right now. i apologize for the late start. we had something going on in the west wing. i was so late. so again, thank you all very much and we appreciate it. [captioning performed by national captioning institute] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2010] >> taking a look at the $787 billion economic stimulus plan signed a law last year, about $353 billion had been committed, while $202 billion has been paid

out so far. for more information, visit c- span.org/stimulus. a coalition of groups from around the country gathered in washington sunday for outlays to promote changes in current immigration policies. speakers at the end and included the archbishop of los angeles, leaders of national unions and immigration abbasid groups, and several members of congress, including illinois congressman. this rally was hosted by the group reform of immigration campaign. it begins with the naacp director.

it is an honor to present the congressman. >> gracias! thank you. gracias. gracias. >> usa! usa! usa! >> gracias, thank you, guys. my friends, he is a fighter and

a champion for immigrants. i thank you for your hard work. and i want to thank all of you. [cheers and applause] and i want to thank my wife, let's give her or around warm -- a warm round of applause. it looks like a few people decided to show up. [applause] now all we need is a few people in this building back there to listen to the immigrants and pass comprehensive immigration reform. i know how you get heard at the capitol, you raise your voice. if today we will raise our voices, then send we will raise

our voices in victory, because our day is coming! [applause] we stand here at the front door of american history. tens of thousands of immigrants are here, the place where they overlooked and dispossessed of always come. at one end of america's courtyard, bought all of use its american lincoln, the great emancipated. in 1963, with one signature he turned hope in a victory for millions of african-americans, ending cruelty by her courageous man with this weapon, the pan.

-- pen. abraham lincoln move this pen across the emancipation proclamation, he moved african- americans after the -- out of the desperate shadows of slavery and into the bright sunlight of freedom. a hundred years later, when america had spoken hits -- had broken its promise to african- americans, hundreds of thousands of people came to america's front yard just as we did today to term and true freedom. another great american, martin luther king, had a simple message. justice cannot wait to. on the small in 1963, dr. king said, the justice cannot wait. he was right and i say to you today -- justice cannot wait for immigrants, not because of the

fears of politicians. today we are flipping over a new page in the chapter. yesterday's page was fear and finger-pointing and waiting. we are turning a new page today, at justice. and you know what else the new chapter says? it says now. justice now. justice now. [speaking spanish] i like those words. we will repeat them again and again until we turn our hope and the victory and we are heard. just as dr. king said justice now, president lyndon johnson

made a reality for african- americans. how did he do it? he did with a pen. abraham lincoln had a pen. lyndon johnson had a pen. barack obama has a pen. and barack obama spent can turn our hope and a victory. -- and barack obama's pen can turn our hope into victory. we want him to use his pen and we want him to use it now. [applause] our friends, our families, our neighbors have waited too long. our enemies blame immigrants. costly immigrants. but i say that the blame game is over. for today we knock on the front

door of american history. the wait is over and the time is now. we are ready to turn our hope and the victory. let's pass comprehensive legislation reform. today i want to leave you with this message. we have been patient long enough. we've listened quietly and asked politely. we have turned us the other cheek so many times, our heads are spinning. here in this place where americans people travel to demand justice, what is it that we want? plain and simple. it is time to lead immigrants come out of the shadows into the light of day, and for america to embrace them and protect them once and for all. [applause]

the sun is shining on our future today. today i will tell you what i want. i want the light of justice to bring us close to every immigrant in our cities. what do i want? i want the sunlight of fairness to drive away that darkness and shadows that immigrants have been forced to live in. what do i want? i want to end the real fear of children becoming orphans because their parents may be deported and disappearing in the middle of the night. what do i want? [applause] i want to stop the pain. i want to stop the pain of women working the fields until their hands are calloused and bloodied. i want the women protected from people who threaten them. i want those to exploit immigrants -- immigrant women

charge for the crimes they commit. i want to take this across the nation, that for eight hours of hard work, they will get eight hours of fair pay. i want smugglers to not get away for treating people like cackle and infesting our communities with drugs. i want millions of people to come to a new america to build better lives, to build a better america for all of us, to reach their dreams of american citizenship. i will tell you what i want. i want congress to pass immigration reform, i want justice and i want it now or! . [applause] i see it, i see the light of justice on immigrants soldiers from mexico and the philippines, from haiti, who have risked

their lives so that we can all be free. i see the light of justice in eliminating the future of the children to pray every night that they will not lose their mother because they cross the border to give them a better life. and i see the light of justice shining on the capital behind this, where comprehensive largest -- immigration reform will be passed and barack obama will take his hand and sign that bill into law. can you see it with me? i see it and i feel it, and for immigrants it has been all longs cold season, but spring is in the air. that does not mean that we can stop fighting. we have to keep working and praying, because i want that line to shine in every immigrant, on the woman, on her hands and knees digging on the ends in salinas, california.

i want the sun to shine on that man washing dishes, thousands of dishes and now pass those said that he can -- until it can not feel his hands and more. the woman in the sweat shop with no union and no right to walk -- works for $2. i want the sun to shine on them. you know what? there is someone else i want to sign the shine on. i want the sun to shine on barack obama, our president and our leader. i want a light of justice, i want the light of justice to guide his actions and make him our ally and protector, and lead immigrants to a brighter and better future. and i wanted to guide his pen, so that he can sign a comprehensive immigration reform. [applause]

[speaking spanish] [applause] [speaking spanish] >> si, se puede! si, se puede! usa!

si, se puede! >> [speaking spanish] [applause] [speaking spanish] [applause] [speaking spanish] gracias! [applause]

>> [speaking spanish new br] >> usa! usa! usa! >> [speaking spanish] will come from the korean american service. >> thank you, congress. i came from los angeles and i am part of the great delegation of california. i'm proud to be standing here to represent the communities i work within los angeles and chicago. many of them could not be here

today, so for them, i'm here to tell president obama and congress, republicans and democrats, that our communities are hurting. korean-americans and asian american communities are hurting because of the the year of our immigration system. wheat too have children that fear for their children -- their parents will be taken away. we have children growing up without their parents because they are waiting for the family immigration back lot to be a man -- to be eliminated. but i believe that this is something that we created. it is our movement that has given us all of our voices, and together we are demanding immigration reform for families, and economic justice for all american families. our economy is working --

hurting workers of all backgrounds, and how we need to work together. thank you. [applause] >> beuenas noche! i am here representing 2 million people of color. we are going to have economic reform and immigration reform in america now. i am here today to reaffirm that this nation's african-american communities stand in solidarity with all of the people who are here and all of the people in

communities across the nation, standing strong -- sending a strong and unyielding message to the leaders of this country, that we are united, we will not be divided, and our fight for economic reform and immigration reform in this nation today. i want to affirm and let each of you know that the national urban league stands with you. we stand with you because we believe that whenever any person in this country has to live in second class citizenship or second-class status, it is a threat to justice, freedom, and equal treatment everywhere. so with much courage, much faith, and much unity, si, se puede! let us make it happen.

>> will come. -- welcome. [speaking spanish] >> sisters and brothers, instead of calling workers the survival of our economy by their names, we call them names. illegals. we entrust the most precious possessions that we have come allies of our little children. in recent decades while some politicians cynically

scapegoated immigrants feud institutions that defended and them, like the unions. and the catholic church. in the history of our time is written, one of the progress chapters will record how los angeles championed immigrants and stood against fear and prejudice. freedom riders organized right here, he worked with many, and made sure that the new cathedral was built by union workers. [unintelligible] but that day he provided support to the farm workers. when his own members criticized him, no one has ever

courageously and consistently supported immigration reform. promise civil disobedience if a lot would require the returns of undocumenteds. [unintelligible] please give all warm solidarity welcomed to his eminence, cardinal roger mahony. [applause] >> good afternoon, everyone. as we look around, this is the face of the immigration reform, this is the face of america. citizen, residence, immigrants, we are here today to call upon our lawmakers to fix a broken

and immoral immigration system. one that preys upon the minor abilities of immigrants and their families, we -- one that takes their labors without offering to protection of their -- and our laws driving people into the hands of smugglers and to their deaths in the desert. [speaking spanish]

[speaking spanish] today we want all our leaders in washington to hear the immigrant stories we experience every day. stories like that of mario and juan, brought to this country when they were just children. juan works the graveyard shift as a security guard. mario works and takes care of children who are u.s. citizens.

they speak english. they pay taxes. the volunteers in their communities. the work day and night to provide for their children. their lives are here in the united states. on behalf of the u.s. catholic bishops, i want you to know that the catholic church stands with me and is in this fight until the end. we will not stop advocating on behalf of our immigrant brothers and sisters, and we will continue to defend their rights to be full members of our communities and nation. [speaking spanish]

[applause] [speaking spanish] i leave the with the word so faul -- of raul, a university student brought to this country when he was only one year old. he wants to contribute all this talent and skills to his

country, the only home he has ever known. he asked me to get this message to all of you. view us as human beings and as brothers and sisters. we are here to work hard and contribute to our society. we do not want to harm anyone. we want to come together for better future. may god's blessings be upon all of you. adios! >> and now welcome to the stage , seiu member from virginia, and and eastern, president of the service employees international union and joined by members throughout the country. >> could afternoon everyone.

how was everyone doing this afternoon? [applause] i see all the beautiful faces out there. what a beautiful sight to see everyone today. i'm here today because i believe in immigration and i believe in comprehensive immigration reform and it needs to happen now. it has to happen now. i am also inspired because of the sea of beautiful people here today. i'm excited because i see each and every one of you here today. and so i wanted to say today, this day, sunday, march 21, 1965, martin luther king jr. led the march from selma to montgomery, alabama. this day, we the people who made

america great, we stand together this day, united under one flag, our voice is becoming one, redefining this nation -- no, not this nation, our nation. we are the nation stretching from the corners of the world. we came to you from the prairies to the oceans with visions of a better future. with our strength, we carry the statements of our ancestors, planted now for our next generation, and guiding our children and demanding the dream of their future. this day, hope will no longer be a sacrifice bunt with each surviving rat, we continued to grow.

with each obstacle we continue to unite as one. no longer will we the people be slaughtered and beaten. we command the strength of a mustard seed and the courage of our ancestors, demanding the mountains and the prairie as, we will be heard! [applause] we will be heard! and hope -- and hope, the hope of a better future, [unintelligible] comprehensive immigration reform will pass, because this day in history, it tells us that we belong. thank you. [applause]

>> i love this country. that is why we are here today. let me see those american flags! [applause] let me hear you say usa! usa! >> usa! usa! usa! >> usa! usa! my grandfather came to this country. he grew up and raised a family to lead a better life for his children. that is the american dream and that is why we're here. and it gives me great pleasure to introduce the leaders of our hispanic caucus of the united states, the people that are

going to lead health care reform and immigration reform, the great leaders of our congress, let's bring them up here now, thank you very much! >> brothers and sisters. i have a new estimate for how many people are here today. we have over 200,000 people here! [applause] this is the largest mobilization of any end -- of any issues is barack obama became president of the united states of america. we are here today because of change. we know that only if we leave well our elected officials follow. throughout our history change

has been won by people with the courage to take history into our own hands. the progress we have seen of the last few weeks is because we made them do it. [applause] of america is our country, and our country is better than this. it is time to call the question, whose stance with us, who stands against us, and who is hiding? this is not just a fight for legislation but of fight for the soul of america. and it is one that we can win and one that we will win. now what is my distinct honor to

introduce to the stage two here's -- to hear rose two -- two heroes. please give them a big round of applause. >> good afternoon, everyone. >> good afternoon, my brothers and sisters. i'm with the leadership conference of human civil rights. >> we have a great pleasure and honor today to introduce the members of congress who are here to bring you their support for what you are doing today. allow me to introduce our first member, the honorable representative nydia velazquez.

>> joining her are many other members of congress. the large the honorable charles barker. >> grace the balaton know from california. >> the honorable raul grijalva. >> the honorable she led jackson lee from texas. >> also from taxes.

>> the chair of the immigration subcommittee. >> from california. [applause] >> and from taxes. the bourse from the great state of new york, joe crowley. >> the honorable congressman from california. >> also from texas, charlie gonzales. >> the honorable congresswoman

from california. [unintelligible] >> these are the members that are going to take immigration reform forward. they are going to lead the way. si, se puede! si, se puede! >> si, se puede! si, se puede! si, se puede! >> the time for immigration reform is now. [applause] the members of the congressional hispanic caucus and the other members, such as the chair of

the judiciary subcommittee on immigration, we stand here to say to the republican leadership, to the democrats in the senate, and also in the house, and to the president barack obama, we want immigration reform now. [applause] every day and -- every day without reform is a day that 12 million hard-working immigrants must live in the shadow of fear , and every day without reform is a day that a family is torn apart. for every two adults taken in an

immigration raid, a child is left behind, a child is hopeless. that is wrong and is an american. -- and it is on american. -- unamerican. i want everyone to talk to every representative to let them know, do not forget that in the last elections, 10 million hispanic voters came out the vote. that was an important message. [applause] and tell them that you will not forget on which side of the

debate they stood. we will not forget. today is the story day -- is an historic day that we came together to pass health care -- health care reform. all the political pundits and the tea party people, they learned that this day -- they thought that this day would never come. but we're just hours a day from an incredible day for the american people. and we are going to work hard the same way that we have worked hard for health care reform, we're going to work hard to make sure that we bring justice and victory to the 12 million hard

working people in this country, in the shadows no more. [applause] [speaking spanish] >> si, se puede! si, se puede! si, se puede!

[applause] >> brothers and sisters, we're here -- do we have courage? do we have occurred here today? [unintelligible] do we want the president of the united states to show courage? [applause]

every great struggle, from the abolition of slavery to the right to vote for women, the rights of lesbian and gay people, to the new deal, to immigrant rights, it is taken struggle. and all of the struggles share a common chord. the question is, are we in this together? >> yes, we are! >> throughout our history some people have caused the divide, to exclude. but we have risen as a country for a different vision, one in which everyone belongs, in which we recognize that the suffering of our neighbor is ours, that are individual success rests on our care and love for one another. we are here with the message for

the peddlers of fear and hate. we stand here united, not divided. we are organized, not excluded. and we're certainly not silent. [applause] will learn the fundamental lesson that frederick douglass, but great abolitionist, once taught us. those who favor freedom but deprecate agitation -- si, se puede! >> si, se puede! si, se puede! si, se puede! >> i would like to briac