tching fox news state of the union coverage. i'm brett baier here, unafraid. "the kelly file" is next. >> breaking tonight, new reaction after the president gives a state of the union address that at times sounded like a campaign stump speech than a message to unify the country. tweaking his republican rivals on the economy and seeming to suggest we have all but won the war on terrorism. good evening, welcome to "the kelly file" everyone. a suspect 11:00 p.m eastern edition. president obama appeared with a speech that challenged and at times, came close to taunting. touting the economy a success and calming for a dramatic expansion in government programs, listen. >> we need affordable high-quality child care more than ever. it's not a nice to have. it's a must have. >> send me a bill gives every

worker the opportunity to earn seven days of paid sick leave. that is the right thing to do. and everyone in this congress who still refuses to raise minimum wage i say this. if you believe you can work full time and support a family on less than $16,000 a year, try it. >> then, the war on terrorism. there is plenty of condemnation of our foreign policy, condemning the quote, bluster and rash decisions of years past, today, no mention of al qaeda. or islamic extremism. no mention. and despite a day of reports the country of yemen which he said is an example of his own successful policy appears now tonight to be falling to terrorists the president seemed to suggest we now have the upper hand in the terror war. >> we are 15 years into this new century. 15 years of a dawn with terror touching our shores.

and unfolded with a new generation fighting two long, costly wars that saw a vicious recession spread across the nation and world. it has been and still is, a hard time for many. but tonight, we turn the page. >> tonight for the first time since september 11th, our combat mission in afghanistan is over. six years ago nearly 180,000 american troops served today few fewer than 15,000 remain the shadow of crisis has passed. >> we've got a stellar line up tonight. with senator ted cruz congressman chris van holland, senator rand paul brit hume and karl rove.

first our focus group watched the state of the union and today we're joined by the group and pollster, frank luntz. >> i love it. we get to start with the american people. describe what you saw tonight. >> same old same old obama. >> same speech. >> it's antics >> a challenge for republicans to do better. >> contradiction. >> groundhog day with the same old lies and broken promises. >> i want to show of hands how many of you voted for barack obama but were still disappointed in the speech? we've got five of you. why are you disappointed? . >> he didn't cover any of the domestic issues that are affecting our country. i think he was filling with a lot of clapping and stories just, you know talking a lot but not talking about anything. >> he did open up the speech, i want to go to a clip. at the very beginning he talks about the state of america.

this is not sit that well. let's take a look. >> america for all that we have endured endured, for the grit required to come back, for all of the tasks that lie ahead, know this. the shadow of crisis has passed. and the state of the union is strong. >> the state of the union is strong almost none of you agreed with that. >> it's a poll that suggested that 60% of americans are living paycheck to paycheck. that would contradict what the president is saying. at the top of the hour, megyn kelly pointed out yemen is in

the process of falling. >> we know unemployment is down, the economy is getting stronger. why don't you believe the state of the union is strong? . >> i look at what's happening to my savings and what's happening over all. and it's hard for people to make a living and to go to the grocery store and buy things. and there is very little we seem to do to fix this. >> quick question. how many of you believe washington in general and president obama understands you? understands your concern. raise your hand. >> not one of you? >> not one of you believe he understands you? second that i want to play, it deals with terrorism. in this case, split between republicans and democrats you're not sure that you're winning the war on terrorism. let's take a look. >> we stand united with people around the world targeted by

terrorists from a school in pakistan to streets of paris. we'll continue to hunt down terrorists and dismantle networks. as we have done relentlessly to take outerorists who pose a direct threat to us and our allies. >> republicans and democrats darted up. what is strong for you? >> the fact he's talking about terrorism whenever it goes his actions don't match his rhetoric. >> he's not being very clear who the enemy is. terrorists, yes but islamic terrorists and we need to use that language. >> you're -- some of you are nodding. should he use the language

extremist islamings? >> i'm not necessarily as hung up on sem manhattanics as others i think it's important to maintain a safe country. but i do like our president has gone about acting on diplomacy. >> who believes he should specify these are extremist islamics? that is a pretty overwhelming response. half of you voted for barack obama. >> what do you make the of the fact that the president tried to tap into his historic speech in 2004 how we shouldn't be demonizing each other? we heard some pundits say he's done plenty of that.

>> i think he's worried because he doesn't have a legacy to stand on. >> the president talked about -- how many times did he say the word veto? and reaching across the aisle? which is it? veto? why can't we reach across the aisle? we talk about working together. not taking stances but working together. >> i'm sorry. i think our president has been immensely measured and calm president more so than most politicians out there. you can't say he hasn't fulfilled a vast majority of campaign pledges he's done oit over and over, again. >> i think it's motivation came from current events. to have these issues that are being racially polarized and motivated i think he's drawing upon what's happening now and using that.

>> should the american -- the public watching this. i want a show of hands. over two years how many of you are optimistic this white house will get something done? this is pretty bad you can't get a single person to say they're optimistic it's going to be a tough, brutal two years >> we're going to come back to the panel in just a moment. our next guest made headlines with responses to government as usual in washington. joining me now with his first reaction to president obama's state of the union address, senator ted cruz. good to see you tonight. >> it's great to join you. i thought the speech was disappointed. the president had an opportunity to be gracious to recognize that just two months ago the american people voted overwhelmingly rejecting the

path we're on. he could have said i hear you. and we will work together. we'll get back to where we should have been. we should have been focusing on jobs and growth and opportunity the president didn't do that. he didn't listen to voters hurting now. he just doubled down on the same failed policies of the last six years and it's not working. it's disappointing to see the president refusing to acknowledge the overwhelming sentiment of the american people that we want a different path, we want robust growth and want people to achieve the american dream. >> he says it's working. he calls it middle class economics and says it's working. some of the stats offered by the president and in some of the news reports unemployment is down. gas down. stock markets are up. economy grew 5%.

it's fastest rate in more than a decade how can you hit him on the economy? >> because the facts are we're facing now a divided america when it comes to the economy. it's true that the top 1% are doing great under barack obama. today the top 1% earn a higher share of the national income than any year since 1928. sad reality is that with big government, under the obama administration, the rich and powerful in the obama administration have gotten fat and happy. but working men and women across the country, we have the lowest labor force participation since 1978 the reason the unemployment rate keeps falling is that millions keep dropping out of the work force. and over a decade now, median wages have stagnated and benefits those with connections

to washington with influence and hard working men and women are finding it harder to make ends meet we need to fight for working men and women, not those with power in washington. >> the president came out tonight and threatened four vetoes on several matters from roll back to immigration to iran sanctions to key stone pipe line. do you think his offer to work with republicans outside of the issues is in earnest? >> look. the only area i saw genuine interest in working with republicans is perhaps on freed trade he's got a problem with his own party. a lot of democratic members of the house didn't applaud then. on everything else, he had common sense legislation the senate getting ready to pass the key stone pipeline. we'll pass it with a bipartisan

super majority the president said he'll veto it though an overwhelming number of americans want those jobs. iran sanctions is another example there are threats. the greatest to our national security is iran acquiring a nuclear weapon capability. yet, the president is dug in on a negotiation strategy making it more likely that iran acquires nukes. >> last question. do you think the president was setting the stage for the next democratic presidential candidate? . >> i think he was trying to. i think he hopes the next candidate engages in the next policy. it reminds me of the classic skit with christopher walkin. there is a band playing and his solution is more cow bell, more cow bell. for president obama it's more

taxes more government >> the focus group is familiar with this skit. go ahead, finish your point, sir. >> it's the same failed policy that's don't work. i think congress needs to lead if the president is not going to lead it's incumbent on us to lead and listen to the american people, work to bring back economic growth and jobs >> senator ted cruz great to see you. >> as mentioned, the president talked about unity the idea washington has to set a better example by working across party lines. listen. >> we can't slow down businesses or put our economy at risk with government shut downs orifice cal showdown or unravelling the new battles when we've got to fix a

broken system. and if a bill comes to my desk that tries to do these things i will veto it. they'll have earned my veto. >> congressman chris van holland is a ranking democrat with me now. great of you to be here tonight. thank you. >> great being with you. >> is that extending the hand of possible bipartisanship to threaten vetoes before bills make their way to his desk? >> he was talking about the fact republicans, on capitol hill some of them are threatening to defund the department of homeland security unless they can use that bill as a vehicle for turning back reforms with immigration. >> his executive action? >> okay. but the issue here is especially aftermath of what happened in paris, should they really be talking about defunding the department of homeland security intended to try to stop those attacks here in the united

states? unless they get their way on immigration reform? yes let's have immigration reform. we would love to see our republican colleagues bring up immigration bill to the congress they haven't done it despite saying they're going to do it. >> how about key stone? something that has major support in congress? >> there still remains a couple steps the president has said go through the regular process. we don't want to short circuit it. >> short circuit it? it's been years. >> megyn we have an oil spill liability law that says if there is a spill taxpayers should not be on the hook. why will republicans apply that law to canadian oil if there is a spill shouldn't the company pay for it? >> get the lawyers involved what about the economy? do you agree the president cites

statistics that shows unemployment is down. but the dial is way down low saying the state of the union is strong. they did not agree. just looking at polls show that 74% say that personal finances have stayed the same or gotten worse in the past six years. people don't seem to be feeling it. >> well two, things. we know in many areas the economy things are better. unemployment is down. economy is growing. but as senator cruz indicated is that president indicated. we have a chronic problem with wage stagnation. it goes back decades. it's very interesting to hear senator cruz talk about how folks in the top 1% have done really well. they have been. what the president is proposing to provide targeted middle class tax cuts and help pay for them by closing some of the divisions

in the tax code put there by lobbyists. >> which he's done he's hiked taxes on the rich. >> megyn. he wants to points out we have a tax code that is skewed in favor of those who make money off of money and against people that work for hard work. >> the rich get rich. until we become the rich then, we love them. >> this is about having a tax code that rewards hard work. >> i got it. >> people in the middle are being squeezed. >> it's great to see you, congressman chris van holland. >> thank you. >> you heard senator cruz, you heard congressman chris van holland. just ahead, reaction from senator rand paul. plus, up next brit hume is here, on the president's remarks about not demonizing each other. and our panel has thoughts on the republican response. stay tuned.

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old patterns. imagine if we did something different. better politics where we april wreel to basic decency instead of basic fierce. better politics is debate without demonizing each other. >> that is the president using part of his state of the union address to tell the g.o.p. -controlled congress it needs to do a better job of working across party lines. joining us now, pastel brit is back. just the, just doing a quick research. republicans, republicans have suspicions about social security. about whether government should make sure kids in poverty are getting enough to eat. now he wants to tell them he doesn't want to demonize the party and appeal to peoples'

worst fears. >> this is the pitch people like to hear. it's harks back to the speech made in boston when there is no -- we're not red or blue america, we're one america. people loved that speech. it launched his national political career the problem is one you've just cited the president had not been a healer the country is divided. as it has ever been. and he is has no real relationship with republicans in the congress. he has a kind of a distant and not unfriendly relationship with john boehner. as far as we know no relationship with other senior republicans. when there is negotiating it's done by vice president biden who has many relationships up there. he can be as partisan as they come. this is something the president is bad at. he just made a speech, outlining a series of proposals which were

anything, anything but new and different in the way that he just is surely saying. they're a set of offers they know republicans can't accept and won't. so these were nice comments but out of pace with the speech and out of page with the kind of president he's been. >> what jumped out at you listening to his remarks? . >> i was thinking about it here tonight. i think has a television correspondent, i covered 38 state of the union addresses. >> wow. >> maybe more than that. because the first year speech is often not called that. but be that as it may, 38 is about right. there is a sameness about all of them. laundry list of proposals. ever since ronald reagan there have been guests in the gallery. it's speech fit into the pattern. very few of them have been

memorable. i doubt this will be remembered very long. that kid that got his neck tie will have his tie long after most people have forgotten about this night. >> to hear him up there you know? spike the ball in the end zone, done we've turned the page. war on terrorism? check. economy, check. >> if he just parachuted here from elsewhere and weren't aware of what happened and listened to the speech you would never imagined this is a president whose party and policies which he declares on the ballot, all of them have been repudiated at the polls. this is an unreconstructed barack obama, left liberal pushing same politics he's pushed in many cases, one might argue most cases now for his entire presidency. these proposals aren't going

anywhere. i think he knew that. he's going to be what he is. he's not going to be able to make deals successfully. that is where this is going. >> george wills pointed out there are 80 more republicans in that room listening to him than when he gave his first address. >> and fewer democrats than sometime back in the 20s. >> because he pointed out he won twice. i'm still here. >> yes. mr. let's not be partisan was quick to note that. wasn't sne >> -- he? >> senator rand paul next. and kirsten powers

breaking tonight, president obama issuing efforts to expand paid sick leave increase wages and make community college, quote, free. i spoke to rand paul, a republican and member of the senate foreign relations, homeland security and health committees.

>> good to see you. >> thanks >> your thoughts about the three things we need to be giving the american people and his pitch on middle class economics as he termed it. >> i heard a lot about free stuff but not much how he's going to pay for it. one way is through debt he's bragging that he's reducing the deficit as a greater than any other person any other president before him. the interesting thing is that he's going to add more debt to our country than all previous 43 presidents combined so you wonder about the guy's sincerity. this is a guy that can only spin he'd won the election of those who didn't vote. that is what i heard. >> he spoke to the economic progress we've made in the progress. and ticked off statistics 5.6% unemployment, deficit being cut. and how the economy has grown in the third quarter of the

year, and so on. >> you know i don't think he should get to have it both ways he's proud of accomplishments but still blames incoming and quality lagging wages. wage problems and inflation. not keeping up with inflation. so he's going to blame on someone else and take credit for economic successes you noi? black unemployment is still twice white unemployment. there are a great deal of people that dropped out of the economy. i think there are not that many successes for him to claim. >> what did you think of the parties to work together? promising four vetoes of everything from iran to key stone pipeline, to rolling back his actions on immigration to obamacare changes and so on? >> well here is the thing he wants to complain. he gets petulant when he says

i'm not a divider. i called him several months ago to lower the tax rate. he mentioned this in his speech. but to lower the tax rate more money comes home, and to put that money in the highway fund. we lower tax rate, get more revenue and can build more highways with it. i have called him on it i get no response or a get maybe. he voted for this in 2005. so the real question is is he going to work with us? when we put forward, look, the pipeline is bipartisan. so i think it is on one side. >> he doesn't want to lower the tax rate. i mean, he's hiked tax rates on so called rich by 5% and more if you look across the board at taxes he's added on a bipartisan basis he wants to hike them more he calls resistance sort of a advocacy for the quote, super rich. did you hear class warfare bill being sounded? >> yes.

what i think he mistakes is that there is a productive sector and a nonproductive sector. government. sure we have to have government but should minimize government because it's not very productive. think of the post office. so a government that can't run the post office should be kept small. and productive jobs would be kept greater. >> before i let you go, very to ask you about politics you've been hitting potential presidential-interesting states like new hampshire. the question is do you think mitt romney has a shot? why not? because current polls show him atop the g.o.p. field and you at number six. >> i think in a word for republicans to win in a big turn out, we do small in between elections in order to win in a big election, a presidential election, you've got to attract new people to the party. more african american voters

more young people. more independents. objective evidence is that in 2012 it didn't work so well. i like governor romney but it wasn't something there to attract new people. i don't understand what will be different this time. so i think everybody has their time and place. and sometimes, we might do better with something new. someone fresh with new ideas. >> senator great to see you. thank you. >> thank you. >> the president is talking terror. and despite concerns just today americans might have to evacuate from yemen as there is a rebel threatened dangerous coup, president obama seemed to suggest the war on war on terrorism is largely behind us saying the shadow of the crisis is passed.

really? mark. ? really? >> it's interesting. turn the page is a good theme for the first state of the union address. sixth state of the union address, not so much. he's been trying to turn the page on terrorism six years and it isn't cooperating this, is you know he praised our troops as if it was the -- day and we won the war. isis is massacring children and beheading americans they just carried out a terrorist attack in paris. al qaeda in yemen. last state of the union address he held up yemen as a great success story. and al qaeda is using that as a base to carry out attacks on france. so it's delusional.

>> he's talking about our combat mission in afghanistan is over. that doesn't mean the war on terrorism is over. >> yeah. i didn't hear him say the war on terror was over. i heard him say we were continuing to hunt down terrorists. he says we turn the page the shadow of the crisis has passed. >> he said he's continuing his opportunity down terrorists as well. so if war onneror was over? >> what is the shadow of the terrorist attacks? feels like we're in the middle of a crisis? >> really? the middle of the crisis to me was september 11th. i don't think we're in the same place as we were in september 11th. >> really? did you hear leon panetta? >> but he was the secretary of defense. >> so you feel, megyn you're as

fearful as you were after september 11th? >> all i'm saying is the shadow of the crisis is over? >> i think that we have been for a long time, since september 11th, fundamentally safe. that doesn't mean there isn't a crisis. >> george bush was in the white house most of those years the question is are we safer today? >> obama has been in the white house sometime now. >> right. and that is a serious wave of a conversation. >> is he talking to the intelligence community they'll tell thu is the most-dangerous period we've had since the pre-september 11th period. terrorists are ascended across the world in yemen, the government is about to be toppled they've established a new kalifa

in iraq. we have withdrawn from afghanistan and in the state of the union address hooes he's gloating about withdrawing our troops from iraq which is the policy that created the rise of isis. so we're -- invading iraq created isis, actually. >> no. it didn't. >> what are you even talking about? >> let her make her point, please. >> wait a minute. >> isis rose out of the invasion of iraq. it was -- they did not exist there, before. that isn't up for debate the fact you just dismissed that? there was no isis before we made it in iraq. >> the fact is that al qaeda in iraq was defeated during the surge by george w. bush, barack obama inherited an iraq that was

defeated the iraqi people rose up with us to defeat al kwaed yachl he created a vacuum allowing them to come in let them rise in syria and created this mess we're facing now. now, he's not doing what needs to be done to defeat them. . >> i don't think we've resolved anything but it was fun to talk to both of you. >> absolutely not. >> thank you. >> karl rove spent all night fact checking this speech on twitter. you can find some of that, plus karl is just ahead. plus our focus group on one of the most-pressing issues facing the new g.o.p. congress >> the question, what should republicans do in response?

test test. test test test test. breaking tonight new reaction to president obama's sixth state of the union address the president blasting

republicans and vowing to block bipartisan ideas so we went to our focus group and pollster frank luntz asked what the g.o.p. should do now. >> we've heard about what they think about barack obama's speech the question is what should republicans do in response? they have to talk about bringing hope back to this country. >> they need to legislate. that is what they're reelected to do. >> they have to legislate. >> key stone pipeline. >> stick to values that seems to me have been negated. >> they have to beat barack obama at his game he has yet to fulfill any of

that. >> 112. >> 112. >> not 109. but 112. >> and he repeats >> he's stone walled because republicans won't budth on >> passed about 300 bills harry reid had on his desk. president should put them on obama's desk. >> so what should they do? >> i want them to be >> they need to work together f they don't we're not going to get anywhere. >> just reaching -- >> we need to get back. >> i want to see the details. .

>> i want to vote. >> who says republicans should stand up to obama? this is why we've got a split. >> i can't get out of this segment. back to you. >> set your dvr. tomorrow night we have more on terror and you've got to see it. up next karl rove. a fox new political contributor and former deputy chief of staff seem many veiled rev yenss to your former boss tonight. first your impressions on remarks tonight. >> it says the crisis is gone. i thought it's connected from

the economic realities. he made it sound like everybody is hunky dory. it took us longer to get back to the number of people working in america that were working when the crisis began. than at any time in history. and we have, you know a huge number more. 2 million more people working part time can't find it the president sounded like this is great. and seemed disconnected from his record. here is a guy hyper partisan. questions motives of his opposition saying they're un-american at one point. yet, tonight sounded like an old

barack obama and and and had a disconnect from his route. >> up next we're going to hold karl over. and we're going to ask

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we make rash decisions instead of using our heads the first response to a challenge is to send in our military. >> we're holding a principle that bigger nations can't bully the small by reassuring our nato allies. >> that is how america leads with resolve. >> karl rove your thoughts on that? >> well, the suggestion is that he's talking about, he does have a tendency to blame his predecessors but let's unpack these rash decisions? to remove the taliban from

power? to remove saddam hussien? he picked two secretaries of state. obama did both voted to support taking out saddam hussien it is correct. our first action should not be sending in the military. it wasn't president bush's. his first reaction to the case of afghanistan is to say to the taliban give up al qaeda and osama bin laden. which they refused to do. and for moving too slowly. he moved to get a international consensus for saddam hussien to live up to his agreements made in the aftermath of the first gulf war. so i've never heard the word persistent steady resolve to president obama but i have heard it applied to president bush. >> thanks for watching the conversation continues now on line. go to facebook.com/the kelly

file. follow me on twitter. tell me what you think. thanks for watching. this is the kelly file. we'll see you tomorrow night

welcome back to fox news coverage of president obama's state of the union address. it is the sixth time for this president. we're expecting emphasis on domestic policy as the president tries to build a legacy as a man of the middle class. but many of his ideas will be dead on arrival in the new republican controlled congress. as we wait for the president's arrival, there you see senator elizabeth warren, and joe mansion from west virginia engaged. obviously elizabeth warren saying she is not going to run for president. many of the lawmakers will be holding pencils tonight in respect, and admiration for the