hello, i'm joy reid and welcome to "the reid report." president obama is hitting the road to sell his plan to help the middle class to the american public. over the next two days the president will visit cities in two red states. boise, idaho today and lawrence kansas tomorrow. he'll continue to talk about how a stronger middle class will lead to a stronger country. >> helping hard-working families make ends meet. giving them the tools they need for good-paying jobs in this new economy. maintaining the conditions of growth and competitiveness. this is where america needs to go. i believe it is where the american people want to go. >> nbc's kristen welker joins me live from the white house.

an interesting choice of the first two destinations given how much the state of the union fired up the president's blue-state base. >> reporter: that is right. and he's headed directly into two red states as you point out. making the case he is not backing down despite the fact that republicans just won control of congress. his first stop boise, idaho, where he will speak at idaho state university. he'll tour an engineering lab there and we'll hear him make the case that it is important to train the american worker for the high-tech jobs and that is a key part of fuelling the economy. and then he heads to kansas to talk about education. and then by the way, he will hold a series of interviews with you tube stars to broaden the message he is trying to get out. and i'm told by white house officials that the president is going to continue to crisscross the country to get out his case and to argue for this middle class economy that we heard him talk about last night.

and to point out, he took a victory lap on the economy last night, joy. so here are some things president obama propoeszs as a bold tax plan. $320 billion tax increases on wealthy americans and $235 billion in tax breaks by closing loopholes on the wealthy and increasing capital gains taxes. he would like the cuts to go toward, $500 for second income earners, earned income tax credits, a child tax credit and two free years of community college. you are absolutely right to point out that progressives loved this speech. they love this agenda. they were cheering. his state of the union address last night was cheered. the reality is the republicans say this tax proposal is a nonstarter and no way any of this will pass. of all of the things president obama talked about last night, one of the areas that you might see common ground are on the trade deals that he called for.

what we really saw the president doing, joy, was laying out the groundwork for a second two years in office. this is a less aggie and he's laying -- legacy and he's laying the ground fork for 2016, for who takes the mantle for the next party in the general election. >> kristin welker at the white house. thank you very much. and let's go to capitol hill where his proposals are facing stiff opposition. this morning john boehner and senate majority leader mitch mcconnell accused the president of playing politics. >> we would love to do tax reform. but you heard the president last night call for raising taxes again. now if he raises taxes it will make us difficult to come to some agreement on how to reform our broken tax laws. >> not a lot of serious lawmakers can do with talking points designed specifically not to pass. members in both parties would welcome serious ideas about how

to save and strengthen medicare and how to protect social security for future generations and to balance the budget. >> kelly o'donnell is following the action on capitol hill where apparently the gop is rebranding itself as the party of medicare and social security. an interesting development there. talk about the opening arguments from the white house versus what is happening in congress on that budget. >> reporter: well opening arguments is a good way to talk about it because the president laid out his wish list and progresses in congress heard a lot of things they like and republicans that use phrases like dead on arrival and the rhetoric you heard there are setting the goalpost on the conservative side. so maybe there is room for more practical negotiation to go forward. it is true that republicans do want to do tax reform and true that the white house picked some tax ideas that have been advocated by republicans. however, part of what the rub is in all of this is that by raising taxes and making that a

part of the package, that is hard for conservatives. that is standard. what you would expect republicans to want to do is to look at things like closing loopholes and trying to lower rates over all. whether that is the corporate tax rate or individual a lot of details they could work on. so the idea of wanting to work together on tax reform and trade, that is a place where the republicans and the president could find common ground but the details matter and the opening negotiating positions are the farthest apart and the most hardened. the real test is can they come together after everybody has made their bullet and talking points and get to some real work. we've seen it once or twice, for example paul ryan and patty murray were able to hammer out a budget deal that included some tax increases on the most wealthy. and republicans are looking at way to how to reform entitlements and that is hard for democrats to take on because

it could lead to things like raising the age for those things to kick in. a lot of things beyond the table. but the day after, democrats in the hallways very pleased. republicans say he wasn't talking to me. joy. >> nbc's kelly o'donnell on capitol hill. thank you. also mentioned in the state of the union speech was president obama's re-set with cuba which continues today, as the highest level diplomat since the carter administration visits cuba for talks. we report from havana. >> reporter: good afternoon. it is a historic day in cuba. the highest level from the u.s. state department is here to talk with the castro government of highest level official in some 35 years, assistant sect of state roberta jacobson will discuss reopening the u.s. embassy. today the talks will center on immigration. those have been planned for a while. but tomorrow the talks shift to restoring the diplomatic ties.

the cuban government will ask the government to lift a long-standing embargo and remove cuba from the u.s. list as state sponsors of terror. the americans plan to ask the castro government to give greater concessions when it comes to human rights. that is a huge sticking point for the opponents of the castros, including many top republicans. and as you know joy, the republicans do control both houses of congress so it appears unlikely that the embargo might be lifted any time soon. but here on the streets of havana the word we keep hearing is hope. many people are hopeful that the thaw in u.s.-cuban relations might mean positive things for this island. back to you. >> gabriel guiterrez in cuba. thank you. and later on we'll ask peter welch of vermont who has just returned from cuba about

restoring full diplomatic ties with cuba. and the housing mortgage could be turned back. the supreme court is listening to the housing act. signed by lyndon johnson a week after the assassination of martin luther king. he moved into a apartment on the northern west side in what king said colonized negroes in a slum environment. the question now is whether the law bars actions that have a discriminatory effect or only those with a discriminatory intent. zack joins me live. explain the case from texas that got us here. >> reporter: it is a case that has to do with housing vouchers that the housing authority in dallas was giving out. and it was putting only in

low-income minority neighborhoods and a community group there said no this violates the fair housing act, you have to put them in more affluent white neighbors and texas said no the fair housing act only bars intentional discrimination and we're not intentionally discriminating, this is just the way we're choosing to do it to comply with other federal man dates and this isn't covered under the fair housing mandates. and if they rule that there was intentional discrimination, that narrows the scope of the law to where it is not nearly as effective as a tool to stop housing discrimination. >> and this evolved around something called des parent impact. there is a piece in the wall street journal that explains it to proponents. it said a ruling that quashes despair at impact could create an opening for the courts to

revisit despair at conditions. and the thought being that groups outside of low-income housing could be impacted if the supreme court sides with texas. >> reporter: that is right. and the questioning from chief justice roberts was especially skeptical about this impact not just in this case but the entire principal of despair at impact. and what was striking is justice scalia was more skeptical of texas's argument that fha didn't cover despairat impact. the law was narrowed on how to use despairat impact and what would be the purpose of narrowing if the congress doesn't intend for some types to be covered and that was encouraging civil rights groups said to them.

>> we'll be watching. thank you, zack roth. and coming up the president said the state of the union is wrong but the speech lifting up the middle class said some were left out. we have an all-star panel to see what the president did say and didn't say. so plus the good the tan and the legacy. your reaction to the president's swagger-filled speech. ♪ the bold nissan rogue, with intuitive all-wheel drive. because winter needs a hero. now save up to $1,000 when you finance the 2015 nissan rogue. ♪ i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc.

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today in we the twee-people, we're documenting the rebranding of president obama as the mic dropping president. "the new york times" put it more traditionally. during the state of the union address the president set an ambition agenda but delivered it with swagger, taking twitter by storm. the full text of his address was first released to the public

instead of the press on the web. and you responded with a total of 2.6 million tweets about the speech to the s.o.t. you hash tagged. and in response to joni ernst you are sharing the lighter moments on the hash tag and more. you love first lady's suit worn in the hit series got wife. in this joke tweet from the white house, the president's tan suit made a comeback. and speaking of tan, speaker john boehner displayed a shade of bruneown so silky smooth you gave him his own clear. and members of congress wielding pencils in solidarity of the je suis charlie. and you commented about helping

the middle class and making community college free. rand paul said mr. president you can't waive a magic wand and deck clair -- declare something free. somebody has to pay for it. and steve king said obama perverts prosecutorial conduct. when i grew up in iowa we called people people not deportables. control your eagerness to pull people apart. and luke russert was told last night, people should shake it off and have a sense of humor but the president had the best comeback of them all. >> i have no more campaigns to run. [ applause ] >> i know because i won both of them.

[ applause ] >> that is still trending today and you are celebrating with this because after outlining his political agenda with audacity with that line he dropped the mic and walked away. and you can walk away or join the conversation on reiders hash tag. and now this. police stations across the country are employing technologies to see inside homes and it is raising questions about whether the practice is even legal.

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on all the possibilities of today. and stay ready for everything that is still to come. an update on a story we first brought you last week. police in north miami beach, florida, have seen a backlash for using images of young black men as targets for shooting practice. following the public outcry which included protests and demands for the police chief to step down the city council voted to permanently ban the practice and ordered review of policies. they said they used an array of photos including white and hispanic men. but the council decided it was time for the practice to end. and more on the u.s. holding highest level talks with cuba in 35 years.

u.s. diplomates will discuss a wide range of topics including reopening the u.s. embassy and ending the embargo and an array of human rights issues. thank you for being here congressman. let's talk about the trip you took and this delegation that went to havana. tell us about what happened and what was the response from cuban officials to these new overtures from the u.s.? >> well two things. one, the response from the cuban people was amazingly positive. we were out on the street quite a bit run into people and we had our cuban-american lapel pins and we had people excited that there would be engagement. we met with some dissidents before we met with cuban officials and there was push-back from the cuban officials that the fact that

senator layhe who was a big advocate for relations was willing to meet with dissidents which the government does have. so you have a government that does not encourage participation. and the real question for us, because we want a democratic cuba, is whether the embargo and nonengagement works, which it doesn't, or is there a new dynamic in place that will be beneficial to the cuban people of engagement of travel. and that is clearly the sense we got from the cuban people that we visited with on the street. >> the theory of the administration's case, the chicken or egg question that you just answered. is it the increased engagement can come first and then work on trying to ease relations. what chances down see after we had a year of engagement with cuba and the congress in which you serve actually taking legislative action to either end or ease the embargo. >> it is hard for me to be

optimistic about congress doing something that sensible and practical. and i can tell you this farmers in vermont, they are excited about the possibility of getting engaged. when you talk to cubans and the goal to have access to the internet, that is something really powerful. i'll give you an anecdote. i visited the daughter of a colleague of mine from vermont. and she's an exchange student. she's been down -- she's 20 years old. she had hardly any information about the massacre in paris. that is how closed that society is. so in fact us pushing forward with things like opening up the internet so that cubans can get access to their own information, that is a powerful dynamic that will be unleashed. so my hope is that on a practical level, my republican colleagues who i think are locked into an ideological view will see their goal of a more potentially democratic cuba will be served by engagement.

>> and despite a majority of those polls happy with this do you respond to the american liberty argument that this restricts americans from where they can travel. they can travel to communist china and other countries but not permitted to make a trip to this country next door? >> exactly. and you've got folks that want to go. our airlines want to be down there. tourists want to go down there. educational trips. people want to go. so we're hearing from our constituents, when and how can i go to cuba. and we're hearing from businesses. we met with telecom folks and the senator and i met with the agricultural ministry and they have a lot of dairy in michigan and we have a lot of dairy in vermont. so everyday people in michigan all around want to go for tourism and for business. so they are going to be talking to their colleagues. and there is not an answer so sustaining an embargo and

nonengaging policy when for 50 years it hasn't worked. so it is time. >> we'll watch those developments on capitol hill. thank you very much congressman peter welch. >> thank you. and now three things to know on this wednesday. disturbing video showing moments when a man went on a stabbing rampage in tel aviv. the assailant stabbed 11 people on and near a bus before being shot and captured by police. five people were seriously injured. officials are calling it a lone wolf terrorist attack. back in the u.s. a recent outbreak of the measles traced back to disney parks, includes five theme park employees. two had been vaccinated and dozens of cases have been confirmed in five states and in mexico and including an oregon man diagnosed yesterday who had recently been to disneyland.

students in huntington beach in california have been told to stay home. and a according to nfl, 11 out of the 12 footballs taken in the game against the colts were under inflated by 2 pounds per square inch. that could make it easier for the ball to be thrown and catch. the nfl has declined to comment. they say the team is cooperating with the investigation. if they find new england deliberately deflated the balls they could face a hefty fine or lose a draft pick next year. introducing the citi® double cash card. it lets you earn cash back when you buy and again as you pay. that's cash back twice. it's cash back with a side of cash back. the citi double cash card. the only card that lets you earn cash back twice on every purchase with 1% when you buy and 1% as you pay . with two ways to earn, it makes a lot of other cards seem one-sided.

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a phrase the president repeated five times. listen. >> so the verdict is clear, middle class economics works, that is what middle class economics is. the idea that this country does best when everyone gets their fair shot. so what does middle class economics require in our time. first, middle class economics means helping working families feel more secure in a world of constant change. >> that is why the third part of middle class economics is all about building the most competitive economy anywhere. a place where businesses want to locate and hire. >> jon kay park is a business writer for the washington pope francis i. angela rise a political strategist and hogan gidley is a republican strategist. thank you for being on the panel today. let's talk about this phrase middle class economics. i'll start with you, angie. the president repeated it over and over again and it was a

theme to chide the congress to do what he wants to do on minimum wage. what did you think of that phraseology phraseology? >> there was no question this was a way to succeed in america with an agenda. and the one thing that stood out for me and there was criticism in several write-ups this morning that he didn't talk about the failure of the november elections. i think he did. i think this was for the democrats that ran for the senate and chose to run away from a successful economic agenda from the president. it was so clear. this wasn't about pushing back on republicans to pick up and run with something that has worked for six or seven years now but also to the democrats to say don't run away from something that was working y'all. >> jonathan was laughing over here. >> i am free of these blue dog democrats, so in your face. >> i'm free of all of these democrats. i don't have to run again. he had a message for democrats but clearly the message was to

republicans. he was cognizant of the fact that he was in a republican-dominated chamber both in the house and the senate. so he said you know what i have two years least. here are all of these middle class items that american people clearly support and want but you guys control the chamber. these will become law if you do something. now everyone is talking about the fact these things are dead on arrival with this congress. so now the pressure is on congress. so now what do you do? what is your response? what is your answer. that to me will be the great story to follow for the next six months or a year. >> and hogan, that is the idea. he was daring the republicans not to take him up on some of the proposals. i want to play you one bite where the president zeroed in on the idea of raising the minimum wage and get your response on the other side. >> and everyone in this congress who still refuses to raise the minimum wage i say this if you can truly work full time and support a family on less than $15,000 a year try it.

[ applause ] >> if not, vote to give millions of the hardest-working americans a raise. >> that is going to be an ad that will run in red states. how do the republicans resist that kind of an appeal. >> it is a great point. i show the applause following showed how excited the crowd was about the point he was making. but republicans would simply say this. the minimum wage is not set up to raise a family it is set up to get your foot in the door. and at the federal level, it doesn't work in all states because $10 in california doesn't go nearly as far as $10 does in south carolina. so the state levels have raised this in republican controlled governorships and they will continue it. most will say it is a good idea in principle if you want to do it at the local level but not

the federal level. >> and angie, a majority of the people on minimum wage are people raising families. >> yes. and the president didn't just address minimum wage. he talked about all of the other kinds of relief he wants to provide to hard working americans. he used the story of rebekah trying to raise their family and paying for childcare. that is what he is offering tax reform relief to hard-working americans. those kind of things will help people trying to survive on a minimum wage. but it would be nice for corporate america to meet him half-way and special nice for the republican majority as jonathan brought up to meet him half-way. >> and jonathan there was this other piece about community college and trying to make it as ubiquitous as free high school as a step up for a lot of people who can't afford college but want to get there.

>> i'm glad you brought that up. because the point i was making in hi first point was not meant to make a partisan point, but it has been done in tennessee with a republican governor. this is a republican idea. and what the president did with this speech is he talked about tried and true left wing progressive, liberal ideas but he talked about just good ideas that came from the right, republicans, conservatives that are good for the american people. >> right. >> and that is the thing that i think will be a challenge for the republican leaders in congress. >> and i want to talk to hogan very quickly, because on the republican side there were five different responses. there were a lot of responses and all very different and distinctive and everybody had different places which i think the republican party is in that place right now. but you did have rand paul trying to talk about things he has been doing. >> that and i want to talk briefly with the whole panel

about some of the things you thought the president should have touched on that he didn't. is there something he should have pushed harder on. >> he missed the boat when he didn't mention al qaeda at all. he did call for some help and decision-making from congress as it relates to going into another war but didn't mention the threat which was al qaeda. i think mandatory minimums was a miss for the president. that is something a lot of presidential candidates are talking about. and he didn't talk about that or the criminal justice system much and that was a big swing and a miss. but one thing jonathan said he made a great point, it is a republican idea in tennessee, but it is in tennessee. it is a local not a federal issue and that is where we differ -- we want the same end goal but get there in different ways. >> and i want to get jonathan on because he has to leave us. i have things to talk about. black lives matter. he did mention ferguson and

policing e. didn't mention poverty but people would argue that minimum wage and free college would hit that but he didn't mention gun control. did that stand out to you? >> in the post we showed a graph that he showed one minute on race. so my hope is that the administration view the state of the union not as a bouillabaisse of policy and things like that but a situation where here is the main stuff and as the days and weeks go by we'll talk more about these things. the president is going to selma in march. a plenty of time and great opportunity to talk about all of the things you mentioned. >> so jonathan is heading us and heading over to the cycle. hogan and angela stay with me. we're going to talk about foreign policy on the other side of the break. and the president lays out his vision for taking on terror and iran, and talking about cuba and placing the burden on republicans to make it happen.

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as france charged four men in the paris attacks and yemen contending with al qaeda, the zbop offered nothing but condemnation for president's remarks last night about terrorism and the shadow of crisis having passed. >> there is a serious threat that exists in the world. and the the president last night kind of papered over it. >> in a speech riddled with unrealistic wishful thinking. president obama told the nation last night that the shadow of crisis has passed. that news came as quite a surprise to anyone who has been paying attention to what has been happening around the world. >> and joining us now from paris is contributor steve clemens and angela rye and hogan gidley. and i want to start with the question on whether you believe

the presidential marks regarding international terrorism was under played? >> i think that this will surprise a lot of folks and i mean it as a compliment but i think last night president barack obama found his richard nixon. he was a realist and put a lot of things on the table. the possible strategic link with iran and moving with cuba and engaged with the allies with isis but not so overdeployed we take us down into another ground war like nixon getting out of vietnam, the president ending combat in iraq and afghanistan. and those criticizing him are sometimes thinking that being enmeshed in the ground and american power trapped and impotent is more leverage to the world and showing you can still shape the international system in positive ways so i was very impressed with the president last night and i think his critics are wrong.

>> i want to stay with you for a moment, steve, because i had my list with the domestic policy pieces about the three things not mentioned last night and that myself and others weren't mentioned. nigeria with boko haram and al qaeda was not mentioned specifically. but staying with the issue of palestinians for a moment what do you make of the prime minister netanyahu comes to speak with congress after we haven't had much talk about the ongoing plight of the palestinians. >> i think it is more of the same from john boehner and netanyahu. he campaigned against president obama before. he's given some outrageous speeches to joint sessions of the congress in the past. and there is not a lot of love lost between the white house and netanyahu on the these subjects. i guess i could say i was surprised. when you imagine the three areas

that president obama could move the needle on when he came in the sort of nixon goes to china moments, the israel-palestine conflict and israel and iran. and in the first four years of the nation he was on palestine and israel all of the time. but he didn't want to have the other elements of progress drawn down because it will take time with israel and palestine. i think it is going to take time and i know the president does but he didn't want to make that his center point of his speech last night. and i want to bring that up hogan, but do you think there is an argument in the republican party that gets bogged down into military and conflicts has been unproductive to say the least? >> well he mentioned childcare seven times and isis twice. i think most americans, if you say the polling, put national security as one of the top issues because they are concerned. they see what is going on across

the world and the president himself albeit didn't want to talk about it much did want a declaration of war from congress. i think from the bush years, don't just give me an open-ended check of where we'll be and how long we'll be there. nobody wants to start a ground war that is never-ending and goes on for a decade but we do need to stop the terrorists where they are and not let them get over here. and we are seeing the outbreaks across the nation. we saw one today with the guy with the knife going around stabbing people. and it is an issue. and for him to gloss over it is the problem. i know he realizes there is terrorism. but when you have that dais and pulpit to spook about it and to just paper over it and focus on other things that was a mistake. >> and paper over a couple of things. angela do you think there

should be more on foreign policy and terrorism. i seem to recall he got plight but not robust applause when he talked about wanting support of congress to goring -- for going after isis/isil. >> i think that was an olive branch moment. maybe he didn't focus his energy on national security issues or terrorism but part of that again is it was an economic speech. he did other things that ensure there were folks invited to the speech sitting with the first lady to continue to focus on those things. and the other thing he's done is he's rolling out the initiatives and he called them spoilers early in the week and he'll continue to do that. but what does not help joy, is for speaker boehner to jab him in the eye today as a rebuke to say, i know you said you would veto additional sanctions on iran, i'm going to have netanyahu come to talk about that. and i think that is a poke in

the eye. >> look but obama isn't the only one that gets to slap people around. if boehner wants to push back. >> he didn't slap anyone around. i think the one line you are talking about, hogan, if you are honest, don't clap when the president said he is done campaigning. that is the shade, honey. >> go on. we've gone back to the domestic shade and we are run out of time. so we'll reassemble the super-friends another time. thank you, all three of us. >> thanks god bless. and next we'll read between the lines on the keystone pipeline and why those fighting against it may soon get support from an unlikely group of americans. huh, fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that. well, did you know you that former pro football player ickey woods will celebrate almost anything? unh-uh. number 44... whoooo! forty-four, that's me! get some cold cuts... get some cold cuts...

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besides the i won them both moment of shade, one of the other memorable lines from last night's state of the union was

this one -- >> 21st century businesses need 21st century infrastructure. modern ports and stronger bridges, faster trains and the fastest internet. democrats and republicans used to agree on this. so let's set our sights higher than a single oil pipeline. >> which drew this elated response from maxine waters of california and from environmentalists too. the republican-controlled congress has declared the keystone pipeline a priority. this was senator joni ernst at her state of the union response last night. >> president obama has being delaying this bipartisan infrastructure project for years. even though many members of his party, unions and a strong majority of americans support it. the president's own state department has said keystone's construction could support thousands of jobs and pump

billions into our economy and do it with minimum environmental impact. >> however, an aggressive move by the canadian oil company behind keystone xl could place an unexpected group of americans on the president's side. red state landoners. on tuesday trans-canada sited eminent domain to grain access to the last stretches of land needed for the pipeline which faces a veto from the president. the move started an immediate response from nebraska the environmental group fighting the pipeline. but their statement highlighted something other than the potential environmental impact. today nebraska families are facing an inconceivable moment when land in their hands for generations is being taken away from them by a foreign oil company, the state read. land owners are prepared to battle trans-canada in court to stop them from using em-- eminent

domain. and that was between trans-canada and land openers marks an interesting twist. our wall street poll shows americans ambivalent which would carry oil from canada to refineries in the gulf of mexico. but support has been falling, from a high of 66% in a march 2013 poll pretty much tracking the falling gas prices to the 40% mark today. and perhaps it is because of those low gas prices that keystone isn't a pop priority for most americans. meanwhile, the image of a foreign oil company taking american's land by force might destruct the home-spun image that americans have painted about keystone putting president obama on the side of populism. land owns have lost one round against canada in the nebraska

supreme court because they couldn't prove their land would be taken or damages and now they have filed new lawsuits proving they have standing after all. trans-canada said it has secured 80% of the deals along the proposed route. but by using eminent domain to seize the property of the hold-outs, it might look less than a jobs and energy market well around 30 jobs, and more like an international land grab. stay tuned. that wraps things up for the "the reid report." i'll see you tomorrow and join us at "the reid report" at msnbc.com. hey, cyclists. i see jonathan made it to his chair. >> thanks for getting him back to us. >> we have domestic with fineman and global talking about the president's call for the war

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world. it has been and still is a hard time for many. but tonight we turn the page. >> at this moment with the growing economy, shrinking deficits bustling industry booming energy production we have risen from recession freer to write our own future than any other nation on earth. >> america, for all we have endured, for all of the grit and hard work required to come back for all of the tasks that lie ahead, know this -- the shadow crisis has passed and the state of the union is strong. [ applause ] the state of the union is strong. that was the president's sixth state of the union address but republicans say that is far from the the truth. >> in a