and in the box will be warren buffett's secretary. >> brett: let's welcome the new viruses as the cabinet is ushered in. ♪ ♪ >> brett: good evening, i'm brett baier. we are moments away from the president's entrance into the house chamber where he'll deliver the third strait state of the union address. it's no surprise that the economy will take center stage. the address before a joint session of congress and millions of television viewers provides a national platform to effectively relaunch his reelection campaign in an effort that has been well under way. that is trying to paint president obama as the one protecting the middle-class while republicans are standing in the way. following the speech, indiana governor mitch daniels will

deliver the republican response from the indiana war memorial building in indianapolis where he will push back on what republicans are calling a class warfare argument saying america must always be, quote, a nation of have and soon to be haves. >> brit hume is joining us and associate editor of the hill and charles krauthammer. what does the president have to do tonight? >> i think he'll lay the groundwork for reelection campaign and despite a lot of people feel the country is wrong track, he will say it is doing pretty well. his own achievements that prevented the depression and suggest the economy is picking up steam. i am struck by one thing. 31 years in the state of the union drae address, ronald reagan was president and democrats controlled congress. they were arguing about, guess

what? the republicans the man in the white house he wanted lower taxes rates but the democrats resisting. they were resisting on? fairness. we'll hear again that tonight. some things don't change much. >> brett: looking at gabrielle giffords who was shot last january. he is has been recovering. she will offer his her official resignation. she had a standing ovation from everybody in the house chamber tonight. >> i think the president is going to take credit for 22 months of job growth. he is going to say he avoided a near depression and also going to talk about this make or break moment for the middle-class. though in the fourth year of republican presidency this would be a platform for a campaign speech. it surely will be for president obama tonight. he will talk about economic fairness and he will talk about

the expiration of the bush tax cuts for the wealthyest. he will make a centerpiece for the fall campaign. he extended them last year and if the middle-class was under such a threat, why want wasn't he talking about it then? why is he going tell us tonight that the middle-class is make or break moment? and not about innovating and our sputnik moment last year. we should more of the same, infrastructure and republicans are expecting a laundry list. >> brett: as we look at hillary clinton. we don't expect a lost the speech about foreign policy. charles, much about the claiming economy and specific focus toward middle income workers? >> like all presidents giving a state of the union in election year, he will try to take some

credit like bin laden and things that is stha he has achieved in foreign affairs. of course, it's about the economy. we know what the scene is going to be. obama has ruled it out in a speech he gave in kansas in which he said essentially that the theme of the campaign is going to be inequality in the country and severe attack on the republicans as the protectors of the rich, of the 1%, ones that don't pay their fair share. this will be an election in which he is going to have a hard time making a case he has done very well on the economy. he can't run on that. he has a hard time running on his legislator achievements because obamacare and stimulus are unpopular. it will be a frontal attack on the republicans the ones that will introduce and increase inequality in the quality. he will stand for the middle-class. that will be the theme of the speech and the theme of the

entire campaign all the way to november. >> brett: we should point out in the house khiay ber there are a number of members, from 180 plus who are sitting with lawmakers from the other side of the aisle in a tradition that started last year and year before. here we see paul irving a house sergeant of arms ready to announce the president. >> mr. speaker, the president of the united states. is. [ cheers and applause ] >> brett: to finish my thought. this started with some members sitting together to show bipartisan. it's continued go. are there a lot of them? >> i sure looks. they are sitting with, it's called date night now. i think its good tradition. i hope it keeps up. >> brett: sometimes we can hear

some things. let's listen in. >> good to see you. good to see you. [ applause ] [ applause ] >> good to see y'all. thank you so much. good see you. >> i was going to.... [ applause ] >> thank you. thank you.

is. [ applause ] [ applause ] [ applause ] >> brett: you heard the president don't get lip sticking me. you see sheila jackson lee. she was along the aisle, and also a popular lawmaker. let's check in with ed henley. ed, the white house aide this wasn't going to be a reelection speech. it wasn't going to be a political speech. the president leaves tomorrow for a trip. >> yes, three days. he will be visiting five states that are all battlegrounds up for grabs. there is nothing new about

presidents going out after the state of the union to promote their agenda. he is hitting five battleground states. tonight we mentioned that warren buffett's secretary will be up in the box and dozen ordinary people from all around the country, ten from battleground states. north carolina, virginia, ohio. he is entitled to do that. maybe there is little bit of a campaign here. >> brett: let's listen back in. >> good job tonight. good job tonight. [ applause ]

>> brett: president obama shaking hands with the joint chiefs of staff. before that, obviously meeting and greelgt greet weigh the supreme court justices. you'll remember last year's state of the union address posed a bit of a controversy in that jas justice was seeing mouth go the word, not true in one of the statements he played during the speech. it caused a bit of a tussle. these things happen. >> cameras are on and microphones. and he is giving gabrielle giffords an embrace and sentiments unquestionably shared by everyone in the chamber. >> so powerful. obviously she is frightened her post.

they'll be watching ahead and closest friend in the house chamber. >> brett: at we get to listen in to president obama, his third state of the union address. [ applause ] members of congress, i have the high privilege and distinct

honor to presenting you to the president of the united states. [ cheers and applause ] thank you. thank you. thank you so much. mr. speaker, mr. vice president, members of congress, distinguished guests and fellow americans. last month i went to andrews air force base and welcomed home some of our last troops to serve in iraq. together we offered a final proud salute to the colors under which more than a million of our

fellow citizens fought and several thousand gave their lives. we gavp tonight knowing that this generation of has made the united states safer and more respected around the world. [ applause ] for the first time in nine years there are no americans fighting in iraq. [ applause ] >> for the first time in two decades, osama bin laden is not a threat to this country. [ applause ]

>> most their top lieutenants have been defeated. taliban's momentum has been broken and some troops from afghanistan have began to come home. these achievements are a testament to the courage, selflessness and teamwork of america's armed forces. at time when too many of our institutions have let us down, they exceed all expectations. they are not consumed with personal ambitions. they are not obsessed over their differences. they focus on the mission at hand. they work together.

imagine what we could accomplish if we follow their example. [ applause ] >> think when the america within our reach, a country that leads the world in educating its people. an america that attracts a new generation of high-tech manufacturing and high paying jobs, a future where we're in control of our own energy and our security and prosperity aren't so tied to unstable parts of the world. an economy built to last where hard work pays off and responsibility is rewarded. we can do this. i know we can because we've done it before. at the end of world war ii when they returned home from combat they built the strongest economy

and middle-class the world has ever known. [ applause ] >> my grandfather a veteran got the chance to go to college on the g.i. bill. my grandmother who worked on a bomber assembly line was part of a work force that turned out the best products on earth. the stwof them shared the optimism of a nation that had triumphed over fascism. they understand they were part of something larger and they were contributing to a story of success that every american had a chance to share. the basic american promise if you work hard, you could do well enough to raise a family, own a home, send your kids to college and put a little away for retirement.

the defining issue of our time is how to keep that promise alive. no challenge is more urgent. no debate is more important. shrinking number of people are doing well and growing number of americans barely get by or recan restore an economy where everyone gets a fair shot and everyone does their fair share and everyone plays by the same set of rules. [ applause ] what state is not democratic values or republican values but american values and we have to reclaim them. let's remember how we got here.

long before the recession, jobs and manufacturing begin leaving our shores. technology made businesses more efficient but also made jobs obsolete. folks at the top saw their incomes rise like never before but most struggled with cost that were growing and paychecks that weren't and personal debt that kept piling up. in 2008 the house of cards collapsed. we learned that mortgages had been sold to people that couldn't afford or understand them. banks had made huge bonus west side other people's money. regulators had looked the other way or didn't have the authority to stop the bad behavior. it was wrong. it was irresponsible and it plunged our economy into a crisis that put millions out of

work, saddled us with more debt and left innocent hard working americans holding the bag. in the six months before i took office we lost nearly 4 million jobs. we lost another 4 million before our policies were in full effect. those are the facts. but so are these. last 22 months, businesses have created more than three million jobs. [ applause ] last year, they created the most jobs since 2005. american manufacturers are hiring again, creating jobs for the first time since the late

1990s. together. we have agreed to cut the deficit by more than $2 trillion and we put in place new rules to hold wall street accountable so a crisis like this never happens again. [ applause ] state of our union is getting stronger. we've come too far to turn back now. as long as i'm president i will work with anyone in this chamber to build on this momentum, but i intend to fight obstruction with action. i will oppose any effort to return to the very same policies that brought on this economic crisis in the first place. [ applause ]

>> no, we will not go back to an economy weakened by us on sourcing, bad debt and phony financial profits. tonight i want to speak about how we move forward and layout a blueprint for an economy that is built to last. an economy built on american manufacturing, american energy, skills for american workers and renewal of american values. this blueprint begins with american manufacturing. on the day i took office our auto industry was on the verge of collapse. some even said we should let it die. with a million jobs at stake, i refused to let that happen. in exchange for helped we demanded responsibility. we got workers and automakers to settle their differences and we got the industry to to retool

and restructure. today general motors is back on top as the world's number one automaker. [ applause ] chrysler has grown faster in the u.s. than any other major car company. ford is investing billions in u.s. plants and factories. together the industry added nearly 160,000 jobs. we bet on american workers. we bet on american ingenuity and tonight the american auto industry is back. [ applause ]

>> what is happening in detroit can happen in other industries. it can happen in cleveland and pittsburgh and raleigh. we can't bring every job back that has left our shore. but right now it's getting more expensive to do business in places like china. meanwhile, america is more productive. a few weeks ago the ceo of master line it makes business sense for him to bring back jobs home. [ applause ] >> today, for the first time in 15 years, master lock union plant is running at full capacity. [ applause ] >> so we have a huge opportunity at this moment to bring manufacturing back, but we have

to seize it. tonight my message to business sleerdz simple. ask yourself what you can do to bring jobs back to your country and your country will do everything we can to help you succeed. [ applause ] >> we can start with our tax code. right now, companies get tax breaks for moving jobs and profits overseas. meanwhile, companies that choose to stay in america get hit with one of the highest tax rates in the world. it makes no sense. everyone knows it. so let's change it. first, if you are a business that wants to outsource jobs, you shouldn't get a tax deduction for doing it. [ applause ]

>> that money should be used to cover moving expenses for companies like master lock that guy is to bring jobs back home. [ applause ] >> second, no american company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. [ applause ] >> from now on, every multinational company will have to pay a basic minimum tax and every penny should go to lowering taxes for companies that choose to stay here and hire here in america. [ applause ] third, ifer an american manufacturer, you should get a bigger tax cut, if you are high-tech manufacturer, we should double the taxes you get

for making your products here. if you wanted to relocate in a community that was hit hard when a factory left town, you should get help financing a new plant, equipment and training for new workers. so my message is simple. it is time to stop rewarding businesses that shift jobs overseas and start rewarding companies that create jobs right here in america. send me the tax reform and i will sign them right away! [ applause ] >> we are also making it easier for businesses to sell products all over the world. two years ago i set a goal of doubling u.s. exports over five years. with a bipartisan trade agreements we signed into law we are track to meet that goal

ahead of schedule. [ applause ] >> assume there will be millions of new customers for new goods in panama, colombia and south korea. soon there will be cars in seoul em ported from toledo and chicago. i will go anywhere in the world to open new markets for american products. i will not stand by when our competitors don't play by the rules. we've brought trade cases against china at nearly twice the rate as as the last administration and it has made a difference. [ applause ] >> over a thousand americans are working today because we stopped the surge in chinese tires but we need to do more. it's not right when another

country let's movies and our software be pirated. it's not fair when foreign manufacturers have a leg up on ours because they are heavily subsidized. tonight i'm announcing the creation of a trade enforcement unit that will investigate unfair trading practices like china. there will be more inspections there will be more inspections to prevent counterfeit or unsafe goods from crossing our borders and this congress should make sure that no foreign country has an advantage over american manufacturing manufacturing. our workers are most productive on wertdz. if the playing field is level, i promise you, america will always win. [ applause ]

i also hear from many business leaders who wanted to hire in the united states, but can't find workers with the right skills. growing industries in science and technology has twice as many openings as workers to do the job. think about that. openings at a time when millions of americans are looking for work. it's inexcusable and we know how to fix it. jackie break is a single mom from nkdz who was laid off from her job as a mechanic. been seaman's opened a factory in charlotte and formed a partnership with central piedmont college. they designed courses in robotics training. it paid jackie's tuition and then hired her to help operate their plant. i want every american looking

for work to have the same opportunity as jackie did. join me in a national commitment to train two million americans with skills that will lead directly to a job. [ applause ] my administration has lined up more companies that want to help. model partnerships between pisses like places like charlotte and louisville are up and running. now you need to give more community colleges the resources they need to become community career centers, places that teach people skills that businesses are looking for right now. from data management to high-tech manufacturing. i want to cut through the maze of confusing training programs,

from now on people like jackie has one program, one website and one place to go for all the information and help they need. it is time to turn our unemployment system into a reemployment system to put people to work. [ applause ] >> these reforms will help people get jobs that are open today, but to prepare for the jobs of tomorrow, our commitment to skills and education has to start earlier. legs than 1% of our nation spends on education each year, we have convinced nearly every state in the country to raise their standards for teaching and learning. the first time that has happened in a generation. the challenges remain and we

know how to solve them. at a time when other countries are doubling down on education, tight budgets and have forced states to lay off thousands of teachers. we know a good teacher can increase the lifetime income of a classroom by over $250,000. a great teacher can offer an escape from poverty to the child of dreams beyond his circumstances. every person in this chamber can point to a teacher who changed the trajectory of their lives. most teachers work tirelessly with modest pay, sometimes digging into their own pockets for school supplies just to make a difference. teachers matter. so instead of bashing them or defending the status quo, let's offer schools a deal. give them the resources to keep good teachers on the job and reward the best ones.

[ applause ] >> in return, grant school flexibility to teach with creativity and passion. to stop teaching the way they are and replace teachers that just aren't helping kids learn. that is a bargain worth making. [ applause ] >> we also know when students don't walk away from their education, more of them walk the stage to get their diploma. when students are not allowed to drop out, they do better. so tonight i am proposing that every state, every state requires that all students stay in high school until they graduate or turn 18.

[ applause ] when kids do graduate the most daunting challenging be the cost of college. at time when americans owe more in tuition than credit card debt this congress needs to stop the interest rates on student loans from doubling in july. [ applause ] >> extend the tuition tax credit that we started that saves millions of middle-class families thousands of dollars and give more young people the chance to earn their way through college by doubling the number of work study jobs in the next five years. [ applause ]

>> it's not enough for us to increase student aid. we can't just keep subsidizing skyrocket tuition. we'll run out of money. states need to do their part by making higher education a higher priority in their budgets and colleges and universities have to do their part by keeping costs down. i spoke to a group of college presidents who have done just that. some schools redesign courses to help students finish more quickly. some use better technology. the point is, it's possible. let me put colleges and universities on notice, if you can't stop tuition from going up the funding you get from taxpayers will go down. higher education can't be a luxury. it is an economic imperative that every family in america should be able to afford.

let's also remember that hundreds of thousands of talented hard working students in this country face another challenge. the fact they aren't yet american citizens. many were brought here as small children. americans through and through if they live every day with the threat of deportation. others came more recently to study business, science and engineering but as soon as they get their degree, we send them home to invent new products and create new jobs somewhere else. that doesn't make sense. i believe as strongly as ever we should take on illegal immigration. that, my administration has put more boots on the border than ever before. that is why there are fewer illegal crossings than when i took office. the opponents of action are out of excuses. we should be working on comprehensive immigration reform

right now. [ applause ] >> election year politics keeps congress from acting on a comprehensive plain, let's agree to stop expelling responsible young people to start new businesses, to defend this country, send me a law that gives them the chance to earn their citizenship. i will sign it right away. [ applause ] you see an economy built to last is one where we encourage ingenuity of every person in this country.

women should earn equal pay for equal work. [ applause ] 6. >> it means we should support everyone who is willing to work and every risk taker and entrepreneur who aspires to become the next steve jobs. after all, innovation is what america has always been about. most new jobs are created in start-ups in small businesses, let's pass an agenda that helps them succeed. tear down regulations that prevent aspiring entrepreneurs from getting the fij to grow, extend tax relief to small businesses that is creating jobs. both parties agree on these ideas. so put them in a bill and get it

on my desk this year. [ applause ] >> innovation also demands basic research. today the discovery stoov is taking place in federally financed labs could lead to new treatments to kill cancer cells but leaves healthy ones untouched. new lightweight vests for cops and soldiers that can stop any bullet. don't gut these investments in our budget. don't let other countries win the race for the future. support the same kind of research and innovation that led to the computer chip and the internet to new american scrobs and new american industries. nowhere is the promise of innovation greater than in american made energy. over the last three years we've

opened millions of new acres for oil and gas exploration. tonight i'm directing my flogs open more than 75% of our potential offshore oil and gas resources. [ applause ] >> right now. american oil production is the highest it's been in eight years. that is right. eight years. not only that last year we relied less on foreign oil than in any of the past 16 years. [ applause ] >> with only 2% of the world's oil reserves. oil is not enough. this country needs an all out, above the strategy to develop

every available source of american energy. [ applause ] >> a strategy that is cleaner, cheaper and full of new jobs. we have a supply of natural gas that can last america nearly one hundred years. [ applause ] >> my administration will take every possible action to safely develop this energy. experts believe this will support more than 600,000 jobs by the end of the decade. i'm required all companies that drill for gas on public lands to disclose the chemicals they use. america will develop this resource without putting the health and safety of our citizens at risk. the development of natural gas will power trucks and factories that are cleaner and cheaper

proving we don't have to choose between our environment and our economy. [ applause ] >> by the way, it was public research dollars over the course of 30 years that helped develop the technology to extract all this natural gas out of shale rock. reminding that government supported is critical in helping business to get new energy ideas off the ground. [ applause ] >> what is true for natural gas is just as true for clean energy. in three years, our partnership with the private sector has already positioned america to be the world's leading manufacturer of high-tech batteries. because of federal investments, renewable energy has nearly doubled and thousands of americans have jobs because of it. when brian weatherby was laid

off from his job making furniture, he worried that at 55 no one would give anymore a second chance. but he found work another energetics at wind turbine factory. before that they only made luxury yachts. today they are hiring workers like brian, who said i am proud to be working in the industry of the future. our experience with shale gas, our experience with natural gas, shows us the payoff on the public investments don't always come right away. some technologies don't pan out. some companies fail, but i will not walk away from the promise of clean energy. [ applause ] >>ly not walk away from workers like brian. [ applause ]

>> i will not wind, solar are a battery, i will not seed it to china or gearm because we refuse to make the commitment here. it's time to end the taxpayer giveaways to an industry that rarely has been more profitable and double down on a clean energy industry that never has been more promising. have clean energy tax rates, create jobs. [ applause ] >> we can also spur energy innovation with new incentives. the differences in this chamber may be too deep to pass a comprehensive plan for climate change but there is no reason why congress shouldn't at least set a clean energy standard that creates a market for innovation.

so far you haven't acted. well well, tonight i will. i'm directing my flogs allow the development of clean energy on enough public land to power three million homes. i'm proud to announce the department of defense working with us, the world's largest consumer of energy will make one of the largest commitments of clean energy in history, with the navy to purchase enough to power a quarter million homes a year. [ applause ] >> of course, the easiest way to save money is to waste less energy. so help eliminate energy waste

in factories and give them incentives to upgrade their buildings. america will have less pollution more manufacturing, more jobs for construction workers who need it. send me a bill that creates these jobs. [ applause ] >> building this new energy future should be just one part in a broader agenda to remarry america's infrastructure. so much of america needs to be rebuilt. we have crumbling roads and bridges. a power grid that wastes too much energy, an incomplete high speed broadband network that prevents the small business owner in rural america of selling products all over the world. during the great depression, america built the hoover dam and

golden gate bridge. after world war ii, we connected our states with a system of highways. democratic and republican administrations invested in great projects that benefited everybody. in the next the few weekly sign an executive order clearing the way the red tape that slows down many construction projects. you need fund these projects. take the money we are no longer sperngd in war and pay down our debt and use the rest to do some nation building right here at home. [ applause ] >> there has never been a better time to build especially since

the construction industry was one of hardest hit when the housing bubble burst. of course, construction workers weren't the only ones who were hurt. so were millions of innocent americans who have seen their home values decline. while government can't fix the problem on its own, responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief. that is why i'm spending this congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates. no more red tape, no more round around from the banks. a small fee on the largest fee financial institutions will help and will give those banks that were rescued by taxpayers to

repay. [ applause ] >> let's never forget, millions of americans who work hard and play by the rules every day deserve a government and a financial system that do the same. it's time to apply the same rules from top to bottom, no bailouts, no handouts and no cop outs, an america built to last insists responsibility on everybody. we've all paid the price for lenders who sold to mortgages to people that couldn't afford them and buyers who knew they couldn't afford them. that is why we need smart regulations to prevent irresponsible behavior. [ applause ] >> rules to prevent financial problems or toxic dumping or

faulty medical devices, these don't destroy the free market. they make the free market work better. there is no question that some regulations are outdated, unnecessary or too costly. in fact i've approved fewer regulations in the first three years of my presidency than my republican predecessor did in his. [ applause ] >> i have ordered every federal agency to eliminate rules that don't make sense. we've already announced over 500 reforms and just a fraction of them will save business and citizens more than ten billion over the next five years. we got rid of one rule from 40 years ago that could have forced dairy form teors spend $10,000 a year proving they could contain a spill because milk was classified as an oil. with a rule like that, it was

worth crying over spilled milk. [ laughter ] >> i'm confident a farmer can contain a milk spill without a federal agency looking over his shoulder. [ applause ] >> but i will not back down for making sure that an oil company can contain the kind of oil spill we saw in the gulf two years ago. [ applause ] >>ly not back down from protecting our kids from mercury poisoning or making sure that our food is safe, our water is

clean. i will not go back to the days when health insurance companies had unchecked power to cancel your policy, deny your coverage or charge women differently than men. >> and i will not go back to the days when wall street was allowed to play by its own set of rules. new rules we pass restore what should be any financial system's corpus, getting funding to entrepreneurs with the best ideas and getting loans to responsible families who want to buy a home or start a business or set send their kids to college. so if you are a big bank or financial institution, you are no longer allowed to make risky bets with your consumers'

deposits. you are required to write out a living will because the rest of our not bailing you out ever again. [ applause ] >> if you are a mortgage lender or pay day lender or a credit card company, the days of signing people for products they can't afford with confusing forms, those days are over. today american consumers finally has a watchdog in richard cordray with one job to look out for them. [ applause ] >> we'll also establish a financial crimes unit, highly trained investigators to crack down on large scale fraud.

some financial firms violate major laws because there is no penalty for being a repeat offender. that is bad for consumers and it's bad for the vast majority of bankers and financial professionals that do the right thing. the past legislation that make the penalties for fraud count. tonight i'm asking my attorney general to create a special unit of federal prosecutors and leading state attorney generals to expand our investigations into the abuse of lending and packaging of risky mortgages that led to the housing crisis. this new unit will hold accountable and speed assistance to homeowners and help turn the page that hurt so many americans. return to the american values of fair play and shared responsibility will help protect our people and our economy. it should also guide us as we

look to pay down our debt and invest in our future. right now our most immediate priority is stopping a tax hike on 160 million working americans while the recovery is still fragile. [ applause ] >> people can't afford losing $40 out of each paycheck this year. there are plenty of ways to get this done. let's agree right here, right now, no side issues, no drama, pass the payroll tax cut without delay. [ applause ] let's get it done. [ applause ] >> when it comes to the deficit

we've already agreed to more than two trillion dollars in cuts and savings. we need to do more. that means making choices. right now, we're poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2% of americans. right now because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households. right now, warren buffett pays a lower tax rate than his secretary. do we want to keep these tax cuts for the wealthiest americans or do we want to keep our investment in everything else? like education, like medical research, a strong military and care for our veterans. because if we are serious about paying down our debt, we can't

do both. the american people know what the right choice is. so do i. as i told the speaker this summer i'm prepared to make more reforms that rein the costs of medicare and medicaid and strengthen social security as long as those programs remain a guarantee for security for seniors but in return we need to change our tax code so people like me, a lot of members of congress pay our fair share of taxes. [ applause ] >> tax reform should follow the buffet rule, if make more than a million dollars a year you should not pay less than 30% of

taxes. my republican friend why subsidize millionaires. if you are earning a million dollars a year you shouldn't get special tax subsidies or deductions. on the other hand, if you make under $250,000 a year like 98% of american families, your taxes shouldn't go up. you are the ones that are struggling with rising costs. you are the ones who need relief. now, you, call this class warfare all you wanted, but asking a billionaire to pay as much as his secretary in taxes? most americans would call that common sense. we don't we grudge financial success in this country. we admire it. when americans talk about folks

like me paying my fair of share of taxes, it's not because they envy the rich. they understand that when i get a tax break, i don't need and the country can't afford, it adds to the deficit or somebody else has to make up the difference, like a senior on a fixed income, or a student trying to get through school or a family trying to make ends meet. that is not right. americans know that is not right. they know that this generation' success is only possible because past generations felt a responsibility to each other and to the future of their country. they know our way of life will only endure if we feel that same sense of shared responsibility. that is how will reduce our deficit. that is an america built to

last. [ applause ] >> now, i recognize people watching tonight have differing views about taxes and debt, energy, health care. no matter what party they belong to, i bet most americans are thinking the same thing right about now, nothing will get done in washington this year or next year or maybe even the year after that because washington is broken. can i blame them for feeling a little cynical? the greatest blow to our confidence the in our economy last year didn't come from events beyond our control. it came from a debate in washington over whether the united states would pay its bills or not.

who benefited from that fiasco? i talked tonight about the deficit of trust between main street and wall street but the divide between this city and rest of the country is just as bad. it seems to get worse every year. some of this has to do with corrosive influence of money and politics. so together let's take steps to fix that. send me a bill that bans insider trading by members of congress. i will sign it tomorrow. [ applause ] let's limit any official from owning stocks in industries they impact. let's make sure that people that bundle campaign contributions for congress can't lobby congress and vice versa. an idea that has bipartisan

support, at least outside of washington. some of what is broken is the way congress does business these days. a simple majority is no longer enough to get anything, even routine business passed through the senate neither party has been blameless in these tactics. now, both parties should put an end to it. [ applause ] for starters, i ask them to pass a simple rule, that all judicial and public service nominations receive a simple up or down vote within 90 days. [ applause ]

>> the executive branch also needs to change. too often it's inefficient, outdated and remote. [ applause ] >> that is why i asked the congress to granted me the authority to consolidate the federal bureaucracy so it's more responsive to the needs of the american people. [ applause ] >> finally none of this can happen unless we also lower the temperature in this town. we need to end the notion that the two parties must be locked in a perpetual campaign of mutual destruction, the politics is about clinging to rigid ideologies instead of building comn consensus. i'm a did democrat but i believe what republican abraham lincoln

believed. the government should do for people only they can't do better by themselves and no more. [ applause ] >> that is why my educational reform offers more control for schools and states. that is. >> we're getting rid of regulations that don't work. that is why our healthcare law will be on private market, into the government program. and, even my republican friends that complain about government spending have supporter federally financed roads and federal offices for the back home. the point is we should all want a smarter, more effective

government. while we may not be able to bridge our biggest philosophical differences this year, we can make real progress. with our without this congress, i will keep taking actions that help the economy grow. i can do a whole lot more with your help. because when we act together, there is nothing the united states of america can't achieve. [ applause ] >> that is the listen we have learned from actions add provide over the last few years. ending the iraq war has allowed us to strike decisive blows against our enemies. the al-qaeda operatives that

remain are scrambling knowing they can't escape the reach of the united states of america. [ applause ] >> from this position of strength we've begun to wind down the war in afghanistan. 10,000 of our troops have come home, 23,000 more will leave by the end of this summer. this transition to afghan lead will continue and we will build and enduring partnership with afghanistan so it's never again a source of attacks against america. [ applause ] >> as the tide of war recedes, a wave of change across middle east and africa. sudan to tripoli, a year ago khadafy was one of the longest

serving dictators with american blood on his hands. to had he is gone. i have no doubt that the assad regime will soon discover the forces of changing not be reversed and human dignity cannot be denied. [ applause ] >> how this incredible transformation will end remains uncertain, but we have a huge stake in the outcome. while it's ultimately up to the people of the region to decide their fate, we will advocate for those values that have identified our own country so well. we will stand together for violence and intimidation. we will stand for the rights and dignity of all human beings,

christians, muslims and jews. we mr. support to policies that will lead to strong and stable markets because tyranny is no match for liberty. we will is safeguard america's own security that threaten our citizens, our friends and our interests. look at iran. through the power of our diplomacy a world that was once divided with how to deal with nuclear program now stands as one. the regime is more isolated than ever before. the leaders are faced with crippling sanctions, as long as they shirk their responsibilities this pressure will not relent. let there be no doubt. america is determined to prevent to keep iran from getting a nuclear weapon and i will take no options off the table to achieve that goal. [ applause ]

>> but a peaceful resolution of this issue is still possible ad and far better. if iran changes course and meets its obligations it can rejoin the community of nations. the renewal of american leadership can be felt across the globe. our oldest alliances in europe and asia are stronger than ever are ties to the americas are deeper. our ironclad commitment, ironclad to israel's security has meant the closest cooperation between our two countries in history. [ applause ] we've made it clear that america

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

america are higher than years. yes, the world is changing. no, we can't control every event, but america remains the one indispensable nation in world affairs. as long as i'm president i intend to keep it that way. [ applause ] >> that is why working with our military leaders, i proposed a new defense strategy that ensures that we maintain the finest military in the world, while saving nearly half a trillion dollars in our budget. to stay one stead ahead of our adversaries. i sent this congress that will secure our country from the growing dangers of cyberspace. [ applause ] >> above all, freedom endures because the men and women in

uniform who defend it. [ applause ] as they come home, we must serve them as well as they have served us. that includes giving them the care and benefits they have earned which is why we've increased annual d.a. spending every year since i've been president, v.a. spending.

>> and it means in enlisting the veterans in the work of rebuilding our nation. with the bipartisan support of this congress, we provide new tax credits for companies that hire vets. michelle and joe biden has worked with american businesses to secure a pledge of 135,000 jobs for veterans and their families. tonight i'm proposing a veterans job corps that will help our communities hire veterans as firefighters and cops so america is as strong. [ applause ] >> which brings me back to where i begin. those of us who have been sent here to serve can learn a thing or two from the service of our

troops. when you put on that uniform, it doesn't matter if you are black or white, asian or latino or native american, conservative, liberal, rich, poor, gay, straight. when you are marching into battle you look out for the person next to you or the mission fails. when you are in the thick of the fight, you rise or fall as one unit serving one nation leaving no one behind. now, one of my proud evident possessions the flag the field team took with them on niogh get bin laden. on it are each of their names. some may be democrats. some may be republicans, but

that doesn't matter. just like it didn't matter in the situation room. i sat next to bob gates, a man who was george bush's defense secretary and h club clinic, a woman who ran against me for president. all that matter that day was the mission. no one thought about politics. no one thought about themselves. one of the young men involved in the raid later told me he didn't deserve credit for the mission. it only succeeded he said because every single member of that unit did their job. the pilot who landed the helicopter who spun out of control, the translator who kept others from entering the compound. the troops who separated the women and children from the fight, the feerld seals who charged up the stairs.

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

as long as we are joined in common purpose, as long as we maintain our common resolve our journey moves forward and our future is hopeful and the state of our union will always be strong. thank you, god bless you. god bless the united states of america! >> brett: president obama's last speech lasted 56 minutes. he said the state of the union is getting stronger. he insisted the american dream is under attack and the administration wants to restore the economy where everyone gets a fair shot and everyone plays by the same rules. he really went weaved throughout the speech. he proposed anybody that makes million dollar a year should pay a minimum tax rate of 30%. he reiterated a call for comprehensive immigration reform. as he has done in previous addresses, he pledged to cut red

tape but in an expansive proposal he introduced a program for homeowners to refinance at lower interest rates. covering both loans issued by fannie mae and freddie mac and private bank lenders. under this plan, any homeowner current on his or her mortgage could take advantage of lending rates 4% or below. congressional support may be tough. he proposed using half of the savings from wide wind down the wars for infrastructure and fixing roads and building high speed rail projects, on a move that had many budget watchers raising eyebrows. let's see if we can hear the president as he exits. >> thank you so much. good to see you, brother. family good? thank you. thank you.

thank you. appreciate it. thoong you. >> good job. >> how are you doing? which way am i going. good to see you. thank you so much. looking forward to working on it. >> brett: you heard hillary clinton, that was the best

speech, well done, president. he called for plans for the safe extraction of natural gas from shale dpots deposits. directing the department of defense, talked to leon panetta. he is directing to make the largest renewable energy purchase in history for some 3 million homes by the end of 2012. he did not mention the word keystone excel oil pipeline. his administration rejected to the dismay of republicans and some democrats and union leaders. . >> i'm going tell them to get it done. >> outstanding.

>> brett: that was senator scott brown. he was saying that harry reid is going to move the bill that the president mentioned to his desk very soon. that is the bill about insider trading in congress preventing that. he did call for building consensus and cited abraham lincoln. the question is, whether this speech shows any signs of change in what republicans often call a big government administration? he insisted america is back and said anyone who says that america is in decline doesn't know what they are talking about. ending with the story of killing of osama bin laden and the military success. listen as the president leaves the hall and i'll bring in the panel. >> okay. hope we get a chance to work

together. thank you so much. >> thank you, mr. president. thank you. we got to keep it going. >> brett: let's reintroduce our panel. brit hume, amy stodard and charles krauthammer. charms? >> i was struck by two aspects of the speech. first it was less partisan than i would have expected. the speech in kansas city last

april. he tried to be bipartisan. there were a couple of illusions to republican obstruction. but i think he struck the right tone for the state of the union address and didn't open up to attacks. other thing i thought was interesting in how the narrowness of the vision he presented compared to what it was four years ago. when he was candidate of hope and change. he was a man that would heal the earth and prevent the oceans from rising. he was a man after his inauguration where he wanted to change american education, energy and health care. here he is in a speech that was instance of a tweak in tax code here, a program here. a new department or committee here that had a lot of aspect of the late clinton administration.

the one area where he spoke forcibly fli and dramatically was on raising the taxes on the rich. that was sort of the only aspect of the speech but in other respects, it's a repeat of the decade of debate over the bush tax cuts. other than that, it's hard to say what exactly does he want for the country in the next year and next term. that i think he hasn't answered. alley do that when he starts his swing around the states tomorrow. >> i thought that he made sort of traditional calls for unity and very moving one at the end. he took credit where we expected him to on events in libya, iraq and right hand and the killing

of khadafy. he had good news about manufacturing and oil production is up and auto industry is back but i noticed the feisty tone how he is not going to back down. he tried to defend solyndra, which received a government loan guarantee and now controversy for him. he tried to push the theemgs of clean energy again and again, not surprising that charles' point he is displaying small ball. he passed sweeping healthcare reform and sweeping package that are not popular. he is not going to discuss them and he is not going to discuss that and the economy and how much trouble remaining very dangerously high unemployment. he is trying to change the subject so these small initiatives are going to continue even though he knows that a new financial crimes unit

and other things are not likely to come to pass. you don't think thatongress is likely going to be on board with. >> i've covered about 35 of these things i thought there were murderous assignment for any president. for one thing they are too long and for certain political reasons, they need to be because there is multiple bases must have their places touched. i think the president is always in a position where he is trying to portray his achievements as greater than people may think they are and down play the things that haven't gone well. he made a reasonable case he spoke with his poise and polish and that enthusiasm, where he comes to a whisper and pushes his voice that some people find effective. all in all he did a workman type job and it was fine but laundry

list of programs. they are always too long. in the end i'm not speaking about this president's decision but state of the union address fend to be boring. >> brett: let's check in with mike emanuel who is on capitol hill. a preview of governor mitch daniels. your thoughts. >> an interesting choice in mitch daniels, second term in indiana he has done a good job in terms of making it more friendly in terms of job creation, taken it from deficit to surpluses and mitch daniels is not part of that issue. he is not part of that drama. striking, we were at breakfast with house speaker john boehner. he insisted the personal relationship with president obama is good the professional veap strikingly bad at this

point. speaker boehner says he has not spoken to the president in over a month. he has given up governing as of last labor day and only priority is extending the payroll tax cut boehner describes it as trying to work out with a deal that never negotiated before. pretty striking donate from the speaker of the house. what may get accomplished between the capitol hill between now and the next election. >> brett: mike, where lawmakers come afterwards to spin what they sau thought about the state of the union address. we'll head back as necessary as we get some of that reaction. governor mitch daniels, a governor of indiana and turned that economy around once thought to be really a star, a hope for the republican party and the presidential race. he is now said he is not going

to run even though there are still people within the republican party saying he should still throw thinks into the ring. he will be answering specifically the charges of class war if a fare. republican response delivered by mitch daniels. he'll speak from the auditorium change from the war memorial building in indianapolis. obviously a red state. here is a governor daniels. >> greetings from the home of superbowl 46. status of opposition imposes those out of power some responsibilities. to show a presidency to ex treasury agreement where it exists. republicans tonight salute our president for instance his aggressive pursuit of the murderers of 9/11 and bravely backing changes in public education. i would add to that list to

admiration to the strong family commitment that he and the first lady have displayed. on this evening, presidents seek to find a sunny side of our national condition. when president obama claims that the state of the union is anything but grave he must know in his heart this is not true. he did not cause the economic and fiscal crisis that continue in america tonight. but he was elected on a promise to fix them and he cannot claim that the last three years have made anything but worse. the percentage of americans with a job is the lowest in decades. one in five men have prime working age and nearly half of all persons under 30 did not go to work today. in three short years and unprecedented explosion of spending with borrowed money has added trillions to an already unaffordable national debt. yet the president hats put us on a course to make it radically worse in the years ahead. the federal government now

spends one of every four dollars of the entire economy. it borrows one of three dollars it spends. no nation, no entity large or small can thrive for surviving that with debts as huge as ours. the president's grand experiment in trickle down government has held back rather than sped economic recovery. he seems to sincerely believe he can build a middle-class out of government jobs paid for with borrowed dollars. in fact, it works the other way. a government is big big as this one is maintained on the backs of middle-class. those that were punished by the three years are those unemployed or underemployed and they have abandoned the search for work altogether. and young people have been tragically alarmed by this

economy. as republicans our first concern is for those waiting tonight to begin or resume the climb up like ladder we do not accept that our nation will be a nation of haves and have nots. we must be a nation of haves and soon to be haves. >> we're a short distance behind greece and spain now facing economic catastrophe. but ours is a fortunate land. because the world uses our dollars for trade we have a short grace period to deal with our dangers. the time is running out so to avoid the state of europe and once great nations of history that fell from the position of world leadership. for 2012 is year of true opportunity, maybe our last to restore an america of hope and upward mobility and greater equality. the challenges aren't matters of etiology or party preference.

the problems are mathematical and the answers are purely practical. an open six that would earn it's a way back to leadership is not just criticism of failures but a positive and credible plan to make life better, particularly nor those as preirg to make a better life themselves. republicans accept this duty gratefully. to reach back to an america of promise and to america that can pay its bills, start in the same place. the only way up for those suffering tonight and the only way out of the dead-end of debt is a private economy that begins to grow and create jobs, real jobs at a much faster rate than today. contrary to the president's constant disparagement of people in business, this is one of noblest human pursuits. late steve jobs created more of

them than all the stimulus dollars that the president borrowed. out here in indiana, when a business asking asks me, what can i do, first assay make money. be successful. if you make a profit you can hire someone else. the extremism that stifles the development of home-grown energy or cancels a perfectly safe pipeline that would employ tens of thousands or jacked up utility bills for no improvement for world temperature must be replaced by a pro-growth approach. calls all close ones in favor of private sector jobs that restore opportunity for all and gin rate the public revenues to pay our bills. that means a dramatically simpler tax systems of fewer

loopholes and lower rates. a pause in the expensive regulations that devour dollars that otherwise could be used to hire somebody. it means maximize miez can on the new domestic energy technology that is the best break our economy has gotten in years. there is a second item on our national must do list. we must unite to maintain the safety net. medicaid and had social security has served us well but after half of three-quarters of a century, it's not surprising they need some repairs. we can preserve them untouched for those now in or near retirement but we must fashion a new affordable safety net so future americans are protected, too. decades ago we could afford to send millionaires pension checks and pay medical bills for the wealth think yest among us. now, we can't. so the dollars we have should be

devoted to those that need the most. mortal enemies of social security and medicare are those are in contempt of the plain arithmetic continues to miss lead americans that we need to change nothing. these proud programs and take the american economy with them. it will mean that coming generations are denied jobts they need in their youth and protection they deserve in their later years. it's absolutely so that everyone should contribute to our national recovery including, of course, the most affluent among us. there are smart ways and dumb ways to do this. the dumb way is to raise rates in a grossly complicated tax system choking off growth without bringing the revenues we we need. better course is to stop sending the wealthy benefits they do not need and stop providing them so many tax references that distort our economy and do nothing for

our economy to foster growth. notices fair and not true for the president to attack republicans in congress as obstacles on these questions. they may alone passed bills reform entitlements and encourage job creation only to be shot down time and time again by president and extended allies. this year, it falls to republicans to level with our fellow citizens about this reality. if we fail to act to grow the private sector and save the safety net nothing else will matter much. to make such action happen, we also muts must work in the ways that republicans have not always practiced to bring americans together. no feature of the obama presidency constant efforts to divide us to curry some and castigate go others. we americans are all in the same

boat. if we drift, qearlg and paralyzed over a niagra of debt we will all suffer regardless of income, laugh, gender or other categories. if we fail to shift to a pro jobs, pro-growth economic policy they'll never be enough public revenue to pay for our safety net, national security or whatever size government we decide to have. as a loyal opposition who puts patriotism and national success ahead of party or ideology or any self-interest anyone who joins us in the cause of growth is our ally and our friend. we will speak the language of kent. let us rebuild our finances and the safety at this net and reopen the door to the stairway upwards. any disagreements we have can wait. you know, the most troubling contention in our national life these days isn't about economics

but policy. it's about us as a free people. in two alarming ways that contention we americans just can't cut it anymore. in word president says we can't handle ourselves in this perilous world without their protection. left to ourselves we may pick the wrong health insurance, wrong mortgage, wrong school for the kid and we may pick the wrong light bulb. a second view, some republicans also seem to hold is that we americans are no longer up to the job of self-government. we can't do the simple math that proves the unaffordability of safety at this net programs for all the government we have. will fall for the con jobs we can you plow ahead and someone else will pick up tabs. we'll allow ourselves to be

pitted one against the other. blaming our neighbor for worldwide trends that our own government has caused. 2012 must be the year that we move that wrong. the year we strike out boldly not nearly to avert national bankruptcy, but to the fate say to a new generation that america is still the premiere land of opportunity. republicans will speak to those that believe in the dignity and capacity of the individual citizen, who believe that government is met to serve the people rather than supervise them. who trust americans enough to tell them the plain droorth truth and to lay them before a specific credible program of change big enough to meet the emergency we are facing. we'll advance our positive suggestions with confidence because we know that americans are still born to liberty. there is nothing wrong with the state of our union of the american people address this free born, mature citizens

cannot set right. republicans in 2012 welcome our our countrymen to program of renewal that rebuild the green for all and makes our city on hill shine once again. thanks for listening. good night. >> brett: that was mitch daniels with the republican response. speaking directly to a camera in a small room without an audience. that is always a challenge the grand stage of the president's address. governor daniels who was budget director said in three short years of the obama administration there has been unprecedented explosion of spending with borrowed money adding trillions to an quote, unaffordable national debt. it's not true for president to attack republicans as obstacles because they have passed bills to encourage job creation. only to quote, be shot down time and again by the president and

his democratic senate allies. he also said the obama presidency has been they divide americans ending with a call to rebuild american dreams and making ronald reagan's city on the hill shine between did. brit, your thoughts. >> it was interesting to me in the course of his state of the union address with this whole question of national debt and entitlement programs confronting us and people worried, the president spoke about what he would be prepared to do for about a two sentence paragraph. governor daniels spoke about those issues at length. it is strike that go a republican with a tiny speech to make would spend so much time on that issue than the president did tonight. >> brett: charles for those about the 2012 race. >> i can hear sighs all over the

country with republicans. that was the best speeches i heard as a response to the state of the union. i think it was best presentations of a conservative idea against the larger government of obama. he connected jobs and debt. he also in a couple lines he took on the argument about stair share. he said the democratic ideas to raise the taxes on the rich which hurts the american economy. we would do the same thing but do it by reducing the loopholes and reforming entitlements and he carried the message. >> brett: what about you. >> i thought it was quite impressive. issue of debt and balancing the budget in the state of indiana and very popular there in both parties. i think that he was, it was very

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at the beginning of the time frame. >> brett: charles. >> this is an example of the shrinking of the presidency. he achieved a historic change with obamacare and i think his main thing for the secretary term the prevent the repeal but no new initiative. i think, how the republicans and daniels had presented a case against it. that it would be nice one of presidential candidates were to make himself. >> brett: and mitch daniels gets in or doesn't? >> i'm afraid not but i think he would resist. >> brett: don't tell bill kristol. >> thanks for watching coverage the state of the union address. please join me weekdays, 6:00 p.m. eastern for a special report. we'll have all the news from the

2012 campaign trail which is also by the way a hot story. i'll send it over to greta van susteren for on the record. >> greta: tonight president obama's state of the union speech. >> settle for a country where a shrinking number of premium do really well while a growing number of americans barely get by. we can restore an economy where everyone gets a fair shot and everyone does their fair share and everyone plays by the same set of rules. [ applause ] >> greta: president obama draws a battle line with republicans and gop fires back. here is mitch daniels. >> when president obama claims that the state of our union is anything but grave he must know had his heart this is not true. he did not cause the economic

and fiscal crisis that continue in america tonight but he was elected on a promise to fix them and he cannot claim that the last three years have made anything but worse zbloolgs. >> greta: both sides and kevin mccarthy and peter welch and michele bachmann in her first interview since leaving the presidential race. first, is peter welch. >> good evening. >> greta: co-chair of the president's commission on debt and deficits, alan simpson was very critical of the president's speech for failure to take on debt and deficits. where is the guts on our companion network. are you satisfied or is it not worthy of the state of the union? >> they are worthy of the state of the union and i think the president signaled a willingness to restart talks. i think the president two fundamental points, he challenged congress to being

dysfunctional institution it's been. that really is something that can be pointing a finger of republicans and democrats. whatever the problems that we have to face, we're not going to make the progress unless we do it together. secondly, i think he identified what america knows is big challenge and that reviving an economy that works in the middle-class. >> greta: do you think anyone sitting at home 8.5% national unemployment listening to the state of the union would be feel inspired and hopeful? >> i think when you are unemployed especially for a long time, it's hard to inspired or hopeful about anything. it's tough when there has been such gridlock in d.c. when we are fighting and can't get anything done. whether you are liberal or or conservative, democrat or republican. one of the things the president imposed on us is not to use the excuse that it's an election year as the rationalization not

to get things done. >> greta: congressman, congress first virtually dysfunctional for decades. we had a president who said he was a uniter and break through the grid long. now another president that he has some sort of magic to get through the gridlock. are we really looking or is there a leader that could get congress to actually really work together to lead? >> think those in congress to have look in the mirror. we have an independent responsibility. there is a role of big money is a factor. professional campaign is a factor, but each of us have a rough and tumble campaign but once we get here we have a responsibility to try to cooperate to get things done, not just to have a professional campaign machine going or pe pet you'll campaign machine going. >> greta: gabrielle giffords was there tomorrow. i suppose it's very important to for all members because she is

going to retire tomorrow? >> she is inspiring to all of us. it's kind of a unifying figure. gabby was that type of person found time and for republicans and democrats. she is an inspiration. >> greta: congressman, thank you sir. >> greta: michele bachmann wanted to take president obama's job but she still wants him out of the white house. tonight, she is talking. she is here to tell you what she thought about tonight's address. congresswoman bachmann, i can only guess you weren't wholly satisfied. is there anything that you can drill in on the president's speech that was ininspiring and hopeful for the american people? >> i think was inspiring to hear all of the praise that was given to our brave men and women in uniform.

that occurred at the top of the speech and bottom of the speech. all of us recognize that osama bin laden's capture happened because of the bravery of seal team 6. we will never be able to fully repay their debt for them. >> greta: do you get a sense that the president was lecturing members of congress or get a sense he was reaching out, let's work together on very serious problems? >> some of his language appeared like he was reaching out, but there was no reaching out there. >> was no new ground that was forged tonight. what we saw was the same old. you could say we saw a fan dance. because he didn't want to talk about what people are upset about. upset about obamacare and not being able to access credit, houses remain under water. you didn't hear a lot about job creation. what he defend was the solyndras

of the world and intends to have more. he was proud of the fact the federal government will be producer of green energy and consumer of green energy. that is essentially socialism, but we saw more of the same. his agenda and that is what he intends to do going forward. >> greta: i'm trying to think in listening to the speech tonight and other presidents, what do we really expect of a president tonight? we're not going to get a change but we're not going to get anything done tonight. what do you see as a legally purpose of the state of the union? >> for the president it was very clear. this is their campaign kickoff. campaign kickoff was the speech in kansas this is a follow on to that. he is laying down issues, amnesty for illegal aliens, passing more benefits for

illegal aliens. that was part of the speech. mother government money for private businesses but also more government programs these intends to create. there wasn't a lot of new ground. what is sad, greta, people want to see the economy change. republicans i think would love to work with the president to make sure we can grow the economy, but what did the president do. there is no call to reduce the corporate income tax, job creators. the president wants a minimum tax for corporations. everyone hates the alternative minimum tax. >> greta: first interview since you have suspended your campaign. i appreciate that you are here to talk about the state of the union. do you intend to endorse anyone? >> i don't have any intention right now. i keep in contact with the candidates on a regular basis. we know each other and i spoke

with rick santorum today. i spoke with mitt romney. i spoke with newt gingrich and i enjoy speaking with them on a regular basis. i continue to do so. i will be standing with our eventual nominee and calling our party to come together in unity. you haven't heard the end of my voice on the campaign trail. all be standing and working on behalf of our nominee. >> greta: what do you make of what people are calling blood on the floor between gingrich and governor romney. the fact that they have had the encounters in the debate. what do you think about it? >> the florida con at the is will be decisive one. this will be state number four out of 50 so from a long way to go. this in all likelihood, this could be very long process. people have whiplash going between the candidates and watching the numbers go up and down.

this could go on for a long time on the other hand it may be over after florida, who on knows. that is why we're paying attention to what is happening. >> greta: state bad thing or good thing for party, that is such aggressive battle between the candidates? >> the focus does need to be on barack obama. there will be no stone unturned by president obama's reelection campaign. they will sniff out everything for our candidate so we might as well get it out now. we need to focus on how our positive message of turning the country around, we got one. we didn't hear one from tonight. no job creation stories from this president. that is what our nominees will have to tell the american people. >> greta: congresswoman, thank you. good to be with you. >> greta: kevin mccarthy. good evening. >> thanks for having me. >> i notice when the president entered that you were part of the leadership that was coming

in. did you have a chance to speak to him before he entered the chamber? >> escort committee and we have a little time the majority leader entered the room, conversation about the time away. we talked a lot about family. then we three to have a discussion about ways we can move this country forward without a political speech being shot at you you. >> greta: did you get a political speech being shot at you? >> yeah, we did. it was a class warfare speech almost. the president talks about energy independence with all the above and cancelled the keystone pipeline, 20,000 jobs sending oil to even instead of america zbloorlg if you expect him to address specifically keystone in this speech? >> i'd hope to because how are we going to move forward in the process when we talk about jobs?

you cannot change so you are put it in last place. america has to be competing worldwide and we can't do that without an energy policy that lets us be independent. >> greta: did you see any signs of reaching out to you to work towards solutions where you could both give a little? >> i will tell you, each time we go back to that room, never once has he taken the opportunity to work on legislation. its bipartisan group. you'll find democratic senators and we talk to them. here we were when we had a payroll debate where we want to do it for a year, so did he and he decides it's too much for the democrats. this country is hungry for leadership. that is not talking us to the next place, that is about letting america compete worldwide. >> greta: did you see any opening where there could be a discussion between you and the president? >> we have discussions but you

try to go in depth. we're sitting here having an open discussion. he starts out first talking about the break, how is the family and then we three to go into the process. how can we work together? how can we move legislation right now? think of it, it's the state of the union but the anniversary of thousand days where the senate has not produced a budget. how can you move forward if you don't have a plan. why can't the president, from one standpoint he can argue, but why can't he stand up, the senate, you could have written thing as to 58 times but you can't produce a budget? >> greta: congressman, thank you. >> thank you for being with us. we'll see you all again tomorrow night at our regular time, 10:00 p.m. eastern. you can go to gretawire.com where you can talk about the state of the union address, talk about things that were you were