>> president's address was a recap of his second term agenda. calling for action on climate change and his health care plan. ecececececial report. thank you watching our special report, i'm bret baier in washington. breaking now, all in this

hour of the kelly miechl welcome, everyone. president back in the white house now and the g.o.p. has offered its response. in a speech noticeably did not mention obamacare until 40 minutes in. president got big cheers for remarks about vets and women and drew skepticism when discussing climate change and our unemployment picture. we begin with what some real americans outside of the beltway thought of the speech. joining us now, frank luntz. >> hi, frank. >> how are you, megyn. >> the higher you see lines noer favorable the reaction. going down that means our voters didn't like it. number one segment up is when barack obama talked about tax reform >> both democrats and republicans have argued our tax code is riddled with wasteful and complicated loophole that's

punish businesses investing here reward company that's keep profits abroad let's split that equation. let's work together to close los loopholes and those incentives to ship jobs oversxaez lower tax rates for businesses to create jobs right here at home. >> so tell me how many of awe agree with that statement? raise your hand remember this is a very partisan white house. and yet, republicans and democrats both agreed with that. how come? >> i think we're all really tired of seeing many jobs going overseas and not having opportunities for children when they get out of school. >> what about this speech? >> i thought he was eloquent. he didn't touch on the issues. he had five years to do something about it. >> obama voters?

>> i was >> i was, too. >> what was your reaction? . >> i wish he'd been more fired up. >> i agree. >> what do you mean? >> just didn't have his passion. eloquence was there. i wish he'd say this is what we're going to do. and give us a deadline. >> it wasn't strong enough? >> it wasn't. it was okay. >> yeah. i agree. one of the things i voted for obama. i was a republican. because he -- >> you realize you're in serious trouble. >> on national television. >> yes. he had fire and brim stone when he ran for president and which, he seemed tired. seemed beaten down. and just didn't have the passion that i like his -- we need to do something about tax wez have highest corporate tax rate in the world. >> do you feel he was tired? did he seem -- you agree with this? >> i'm a democrat. i voted for rom neechlt i think the speech

was eloquent as it is typically but short on substance only new thing was something he couldn't pronounce, some new ira pro vision. >> how many of you had a positive reaction to my-ira? i'll ask that one more time. who had a negative reaction? why? >> tell me why? >> well, i don't think he pronounced it right from the beginning it sounded like he stumbled over it. and then, it was what is it? we didn't know what it was. savings, you know? our own personal savings like a 401(k)? didn't make sense. sort of was put out there and we were supposed to understand what he meant but, i certainly didn't. >> dave? >> seemed like one of those programs that presidents just reveal for applause but there are no details and i'm left all

night scratching my head. what is this? >> kevin? >> i didn't understand it. it sounded like somebody from marketing agency came up with it and gave it to him right before the speech. he didn't seem to understand it. it left us in the dark. >> i sort of cringed about it. in the back of my mind was another obamacare? what is this going to be, now? >> i want to go back to the dials. another segment was negatively received. that was on health care. it took the president 40 minutes to get to it. when he did start speaking about health care you all, republicans and democrats, dialled it down. take a look. >> one last point on financial security. for decades, few things exposed hard working families to economic hardship more than a broken health care system n case you haven't heard we're in the process of fixing

that. now,... >> how many of you so far have a favorable impression of the president's health care plan? raise your hands. only one? but you voted for him. some of you. >> promise is great. execution, miserable. >> when he talks about it do you still dial it down? >> mike wril's point execution failed. horribly. >> he's saying republicans aren't offering alternatives. >> no execution. >> i think from now, it's probably not doing so well. i think the future. >> i want to know why democrats and i want to know why democrats dialled it down. >> we talk about execution. it was a failure but let's move on and talk about the policy. personal experience about this, the policy itself are horrible.

double premiums and higher deductible and you don't have your doctors. >> you're telling me it's the substance? >> not just execution. it's fact. we can't keep our doctor or make our own choices that have been moved. premiums have gone up. nothing is what we expected we're told we can keep our plan. that has been proved to be an outright lie. >> you lost your health care? >> yes. >> they sent you a letter saying you're no longer -- >> correct now i have to go through the government system. >> well, a lot of it is, what he said is not true. he said that you, there is no preexisting conditions anymore. if you're on medicaid, medicare, sorry there are preexisting conditions. you're asked if you have a preexisting condition. if you do, if you want the premium they

double what you're paying. >> the president is asking for patience. doesn't he deserve time to get it right? >> no. >> we're all just exhausted. >> we've known details two years now. it's poorly conceived we were lied to about what is in it. there has been plenty of time. >> how many of you say time is up on the president's health care plan? megyn, take a look at this. no matter what you say during state of the union it doesn't resonate with the american people, it's not going to work in this health care plan going to pull the president down over coming months back to you. >> great panel. now to a couple big names on capitol hill. senator ted cruz and congressman chris van holland we begin with the democrat. congressman van holland g to see you. >> thank you, megyn. >> the panel believes, quote, we were lied tochlt how none of

them were behind the president anymore on this law. a lot of democrats voted for him. your thoughts? >> well, i think you know as well as i do that at this point speeches aren't going to change outcome of policy what. will be the final verdict is whether in the months still to come, more americans will have affordable health care. and speeches aren't going to change thachl the only way to change peoples' minds is the test. at the end of march and beyond whether people have affordable health care. so, look. at this point in the political debate on health care in this country, it's hard to change minds through words. only the product at the end of the day, i think will let people decide n early days things like medicare were not popular. prescription drug bill was not popular. >> it does speak to policy but

doesn't speak to trust issue the belief by some in the panel and many in the country. if you like your plan, you can keep it, that is perhaps in part what led the president to say this goes under the subject of trust. listen. >> as president i'm committed to making washington work better. rebuilding trufrt of the people who sent us here. >> he wants to rebuild the trust. how does he do that? he's been bowing guilty on obamacare. >> well, megyn i think the president acknowledged mistakes made and the best way to gain support and trust on this bill is through what ends up being a good product. so they're working hard to try to deliver the best affordable care plan to the country. and people who were against it, many are now for it.

they can get a policy though they had preexisting conditions and there may have been other people who are no longer for it. i think -- >> the latest fox news poll shows 59% of the american public now opposes this law. 59%. is that a record high? >> well, again, i think the ultimate defendant will be how this works at the end of the day. they're all -- >> let me move on. >> there are many americans doing better. there are some who think they're doing worse. so let's just wait until this all filters through the system. >> okay. let me move on. let me ask you. one of the criticisms the speech is that it was light on new initiatives we heard some of the panel talk about this, they believed it was short on substance and wasn't too moved on my-ira proposal. we got people, millions of people

left the work force altogether with some claiming lower unemployment rate. people are hurting in america and didn't hear the big idea from our president tonight. your thoughts on that? >> well, i think one big idea was the one laid out early in the speech. popular on a bipartisan basis. with frank's focus group there. the idea of closing a lot of the special interest tax break that's do rewarted corporation that's move jobs overseas rather than sell products overseas to shut down those loopholes, lower some business tax rates, and you can use some of the income generated in that process to invest in our national infrastructure and jobs at home. that used to be a bipartisan idea the i'd yat federal government has a role in modernizing our roads or bridges or broad band. i hope we recapture that bipartisan spirit. >> let me ask you another question. before i get to

senator cruz the president talked about doing it by himself. talking about having his pen and phone. he's got his, i've got a pen and phone, too. but he's the president. he talked about bypassing you. i saw you applaud him there is a reason we put new office. and you're supposed to work together because you represent the people you're there standing up for us. why did you get up? and applaud him on that? >> well, no, megyn i will be the first person to defend congressional prerogatives. the president would like congress to work with him to pass a national minimum wage. he understands he can't do that by himself as president but he does understand as chief executive, when it comes to the federal government procuring goods and services he can allow federal government to lead by example and say if you want to do business with the federal government, at least pay

employees a wage that allows them to stay out of poverty if they've got a couple kids. that seems to be the decent thing to do. and as chief executive, i hope we will lead by example. >> thank you. >> in days running up to the speech the president vowed to go it alone if he did not get what he wanted. here is a call for a year of action. >> let's make this a year of action. that is what most person americans want for all of us to focus on their lives, their hopes. their aspirations. >> he went on. talking about what he believes is the role of government in making this year of action. joining me now is republican senator ted cruz. senator, good to see. your thoughts on the president planned year of action? >> well, it's interesting. there was very little action there that was actually responsive to what the american people are feeling and what they're experiencing. if you listen to

what he said tonight he didn't say a word that acknowledged that the obama economic policies resulted in the lowest labor force participation since 1978, millions of americans have lost his jobs because of the obama economic policies and sadly, tonight, he redoubled on people who are struggling most to achieve the american dream. >> sorry about that senator, we lost you for just a moment. i want to ask you about the president and how, a government's role in our lives. he said what people want, a year of action is what most americans want. for all of us to focus on their lives i had glenn beck said that is what americans do not want. they want government out of their lives. they don't want government focused on their hopes or their aspirations >> we've had a lot of government spying on our cell phones and e

mails. whether nsa or hhs or irs. ask you're right. a lot of americans would like the government to butt out. but importantly, would like the government to stop putting massive regulations, massive taxes killing small businesses and killing jobs. obamacare is the biggest job country. it was striking tonight throughout an hour plus long speech. the president didn't say a word to the over 5 million americans who had their health insurance cancelled because of obamacare he left them in the cold. if he thinks americans want action what they'd like is for the federal government to stop taking away their jobs and insurance, forcing them into part time work. and sadly providing no relief whatever on those items. >> thank you. >> always a pleasure >> fact checkers immediately flagged part of what the president did say about health care tonight. again, with numbers. the numbers at the

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we asked brit hume what stood out in the president's address he flagged this bit, here >> today after four years of economic growth, profits and stock prices have rarely been higher and those at the top have never done better but average wages barely budthed. and inequality is deeper, upward mobility stalled. the cold hard

fact is that even in the midst of recovery too many americans are working more than ever just to get by. too many still aren't working at all. >> brit hume is our fox news senior political analyst. brit, thoughts on that? >> he's talking about his presidency saying four years of recovery? this is his recovery this, is recovery he promised he's saying after four years it's gotten worse. i've never a heard do that in my life. get up in the middle of presidency and all these things going forward have gotten worse since he's been in office he didn't put it that way but that is what he was saying. >> you were deflated by this message? >> that is one of the excerpts that they distribute add head of time. i can remember wondering is he really going to say that? well, did he. >> he's going to put it into perspective for us but did go on

to talk about how you know economy is doing much better tonight. i've got the excerpt here but won't play the sound byte. manufacturing sector adding jobs more oil produced at home. i mean he sort of ticked through what he believes are his economic accomplishments. >> yes. but then went on to say the issue of income and equality when he, one week or so ago called principle challenge of our time and worsened under, he didn't say under me, but described a circumstance during his time in office in which the problem had gotten worse that leaked out. there are other things as well but that was quite striking. >> he's saying he's up against, "wall street journal" had a poll out, 68% of the people believe united states is stagnant or worse off since he took office.

>> it's we're in the fifth year of an economic recovery that began really remarkably soon after the president took office. actually before his stimulus program could take affect. he took office in january, 2009 and recession technically ended in june. >> what did you think of the tone and size of the speech? . >> i thought the speech was like some -- i've covered about, covering first year addresses, i think i've covered about 37 of these. they're long, too long in my view, tend to be dull because the president wades through one issue after another nods in this direction, that direction the president saw fit to talk about closing guantanamo bay. i mean he has been talking about that since we first heard of it. and still hasn't happened. the tone was, i thought not nearly

as partisan as we've been led to believe. i thought waits kind of mild in that regard it was dull, state of the union addresses are and there are no big, new initiatives in it which is, i think a making peace with reality on his part because there isn't a chance any new initiatives could get through unless he was willing to compromise with republicans on it. >> you'll be surprised that learn that there is someone very important who agrees with the key part of your analysis. and he goes by the name mr. loaf. >> i look forward to that, thank you. >> you and he are sympatico. >> and frank luntz and focus group are back with tonight's surprise, then, the president has a message for the world the dean yat is settled. climate

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back to our focus group in just a moment, but first, the

president is in trouble with fact checkers tonight. the number of people enrolled in his health care law thanks to obamacare. listen. >> already because of the affordable care act more than 3 million americans under age 26 gained coverage under their parents' plans. more than 9 million americans signed up for private health insurance or medicaid coverage. >> our fox news politics editor and host of "power play" we've been through this, chris. >> it's just not true. and the president knows it or ought to know it anyway. the claim that somehow the millions of people that administration takes credit for signing up for medicaid, welfare program of insurance for lower-income families is boeing were yous -- bogus. people sign

up for medicaid all the time. the person in the president in the state of the union is taking credit for everybody who signed up for medicaid after obamacare and that is just not right. >> yes. and attributing it to ata when there is no fact of proof. look at it. this is their warning ignore claims that 3.9 million signed up to medicaid because of obamacare and they gave the president three pinocchioos on this. and warned people not to use that number. it's the very number submersed in the 9 million number put out tonight. they continue to misstate facts on the newspapers, chris. >> to mislead people on this is remarkable. given the fact

everything else he talked about in the most important thing he's done of his presidency was buried 40 minutes into the speech talking about noncontroversial already-existing things then throws in not mentioning the millions of people who got cancelled, or disruptions ahead when mentioning the bogus number. >> earlier talked about plus. >> our focus group is back with reaction to the state of the union address. >> issued a challenge to congress we have republicans going in one direction and democrats into another. let's take a look. >> america does not stand still and neither will i. so whenever, whenever i can take steps without legislation to expand opportunities for more american families that is what i'm going

to do. >> we don't normally have divisions like that. everyone here is a republican hated it. where did you stand? >> i was in support for president barack obama. it was an extreme statement. i feel if he doesn't approach this with aggression we may never see change. >> but that means ignoring congress. >> correct. >> you're prepared to go that far? >> he's counting on america's low opinion of congress he thinks he can do it in the round but i'm not comfortable with him resting his political agenda on a gamble. >> does this mean the president and, i'll ask you does it mean the president should have that much power? >> no. it's an laalarming thingo

hear in a constitutional democracy. which is what he's been accused of lately to direct federal agencies to enforce laws he likes. >> is this what you teach your kids? >> this is a slippery slope. there has been infighting in congress. it's hard to explain to my children why they won't cooperate when they're told and taught had you to work with each other. so for obama to go ahead and again take that risk he's got to be transparent but he's got a good reason. it's got to be something cooperative. >> show of hands how many of you support the president if he's prepared to take action. i hope the president is listening. megyn? this is a big deal when you try to take that much power and say congress doesn't matter, the american people aren't going to support you.

>> frank, thank you. panel, thank you. joining me now is joe trippi, and karl rove who was a senior advisor and assistant to the president. both are fox news distributors. let me start with you as a democrat, joe. panel's reaction largely negative here tonight. joe. >> i think people may have that reaction but as karl will tell you many presidents including george bush andinton ran up similar numbers of executive orders. obama isn't even on pace to match bush or clinton. he may exceed it but he hasn't gone further than any other president i'm ware of in modern times. >> karl? >> well not just number. it's nature of the numbers. are they based in the president's desire

to do something? the president has no statutory authority to exempt a class of individuals from being subject to immigration law. yet, he did it. other thing is that the president has taken actions that are clearly not statutory. that is to say not lawful. where is the statutory authority for department of health and human services to delay the employer mandate for a year? where was authority to grant these waivers to labor unions of selected companies for coverage of the plans? i disagree. i think he's taken the power of the president far beyond those exercised by his predecessors. >> the point brit hume is making that the president talking about his own economy. >> yes. well, look. i think the president has been making the

case that economy is improving but not enough. not good enough we need to do better. and i think that -- >> where is the big policy initiative that would do that? our panel was not too impressed with my-ira. >> there is disagreement about where to go here he wants to extend unemployment benefits and he wants to, went through some education initiatives. i'm not saying there are big items there but it's a fact we've got divided government. he's not going to get anything big through this congress. and that is enough problems on both sides. the republicans are split. but i think the one -- look. tax reform part of the speech that frank luntz's group saw, a -- >> you like that had? >> karl and i know what those meters mean, up above 70, into

77, 80 with democrats and republicans that, is something. >> one of the sound bytes making a lot of hey on twitter tonight is about climate change. let me play it. >> shift to a cleaner energy economy won't happen overnight. it and will require some tough choices along the way. but the debate is settled. climate change is a fact. >> your thoughts, karl? >> depends on what it means is it a fact? have temperatures risen modesty? yes. to a dangerous level? no. do theorys of climate change borne out in reality? no. and the president again this is one example. the president is, couldn't get when democrats had 60 members of the united states senate and 240 some-odd numbers of the house they could not pass the president's climate

change agenda now, four years later the president going to attempt to do by executive order what he was unable to achieve when his party had massive majorities in house and senate. >> also talking about going at it on guns. and we'll see what he does on that. >> great to see you both. >> couldn't even bring it up. >> up next, former presidential speech writer here with an unbelievable take on the state of the union. why he says a lot of this sounded familiar to one he heard back in 2007. remember who was president then? and, the one issue becks wanted to hear about and did not. tonight. wow, this hotel is amazing.

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this time of war draws to a close a new generation of heros returns to civilian life. we'll keep slashing that backlog so our vet transreceive benefits earned and our wounded warriors receive health care including mental health care, that they need. >> military veterans listening closely as president obama addressed their needs for earned benefits. among those, an iraq war veteran who says the country needs more than speeches now. paul, good to see >> good to see you. >> what did you want to hear, but didn't? >> number one thing we wanted to hear is that the president stands with us and imposing retirement cuts. it just went through the budget in a back

room deal. going to cut the retirement benefits for folk business 20% meaning about $80,000 like wanted to hear congress repeal those cuts he doesn't. i think that silence is very disappointing and outrageous. >> just to be clear. that is not a president obama issue. that is republican and democrat issue up for those that struck this deal and voted for it. right? >> no. no. i think it's an issue for everybody. for everybody. he's the commander in chief he's got to show leadership. when our vets are getting shafted he needs to stand up and voice some opposition to something like that. >> what did you think of rand paul? he called out army rangers and talked about he said his recovery -- nothing in life has been easy and talked about how

america never has come easy but need to work together. >> cory is an example for everybody. he's got more honor than most folks in congress and should inspire all of america. great to hear the story told and great for americans to understand veterans like cory represent a new generation of leader perhaps a next generation. maybe they can help solve congress but that is the leadership we need in washington and nationwide. >> calling attention to backlog of military benefits has been an outrageous oversight in this country in washington for far too long. >> yes. >> 400,000 people are still stuck in the backlog. they've dropped by 30% but that means they've cull puled a car out of a ditch about 30%. our members want to see the number at 0. until it gets to 0 we're not going to be satisfied. congress and the president shouldn't be, either. >> thank you. >> up next more reaction tt

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what state of the union program would be complete without analysis from, of course, meat loaf. >> what did you think of the state of the union? you know... >> you found it riveting. i think a lot of our viewers can relate. >> what? is it over? is it over? >> you and brit hume shared the same political analysis we'll have more of the interview tonight at 9:00 p.m

. and if you missed focus groups we've posted them on our facebook page. and follow me on twitter, let me know what you think. thanks for watching. i'm megyn hhhhhhhhhhhhhhhhhhhhhhhhh the union address. [ applause ] welcome back to fox news coverage of president obama's state of the union address. it is the fifth time for this president and the second state of the union of his second term. the president is expected to push congress on issues like immigration reform and unemploynt benefits extension and a minimum wage hike. it is the smaller bite-sized agenda items that he says he can do with executive action. the white house seems to be preparing reporters for and to hear in recent days as we await the president's arrival wn the road onamber. pennsylvania avenue with chief white house correspondent, ed