Buffet’s Rule or principle: Risk sharing across American households?

Keywords or Terms: Oracle of Omaha; Shared Sacrifice; Inequality in Taxation; Class Wars; Fairness and Unfairness; Middle Class; Millionaires; American Politics and Campaign 

 If you read the January 2010 issue of Review of Economics Dynamics article: “Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States, 1967-2006” by Fabrizio, Heathcote and Violante), you will understand why the case is being made by Warren Buffet and President Obama for shared sacrifice in the nation's effort to dig herself out of the huge budget hole. We have had inequality in taxation and accumulation of wealth for years in this nation. And, like Republicans want us to believe, there is nothing wrong in being entrepreneurial and reaping  the fruits of one's labor. This notion is fundamental to a free-market economy; or, characteristic of an enterprising economy that can help create jobs. Mind you, there is nothing wrong in accumulating wealth from wages and investments. However, where the difficulty arises, is when wealth is being taxed at differential ratio, or the percentage of one's income paid seems lopsided for disproportional number of Americans, which in turn makes it seem as if there is no equality in shared sacrifice among all income groups; especially, when there is an urgency to dig the country out of an economic doldrums.


Enters the Oracle of Omaha, Warren Buffet, and his acclaimed contribution to the debate over how we may now get the economy moving.  Mr. Buffet surmise that the rich have to pony out more of their wealth largesse. The mega-rich billionaire wants to be taxed just as well as his secretary and wonders aloud in New York Times, why he pays taxes at a lower rate than his secretary. The chagrin of this unfairness led him to call for more taxation of the rich, including him; a position many Republicans have problems with. To put it in his word, the government should stop hugging the rich. The Republicans probably have problems with Buffet’s position, because to a large extent, about half a million of Americans who fall in the category of the mega-rich, with the assumption of a million-dollar income threshold, are mostly Republicans. In fact, over half of congressional representatives or senators fall in this category. It is not surprising therefore, when the Republicans liken this call to class warfare in their charade over the Sunday’s television talk shows circuits; to which President Obama, simply refers to as a Math problem; or raptly [my emphasis]: a misunderstanding of the ratio of taxation spread!


The persistence of income inequality in America has been a problem since 1979. Income increased for all groups on the economic ladder after the second world war. However, in the decades since 1979, while the income of the poorest Americans declined, the richest had an expansion in income threshold never before seen in the history of this democracy. During the booming Clinton era, the stock market was jumping and the rich were carting billions home. The Bush era tax cut, wiped out probably all the savings to the economy of that era and exploded the federal budget deficits. The gaps between the rich and poor, as well as between the rich and the middle class, have continued to expand since the second Bush's Presidency. While unemployment reached and surpassed ten percent in between the last Bush Administration and Obama's, rich Americans have had their wealth expanded vociferously from worthy stocks and bonds' investment performance.


Some economists claim that Obama was dealt a bad hand when he took up the office of the Presidency; that the economy was not only in a free fall as he ascended the office; but, that the precipitated unemployment problem preceded his Administration; and, made all the remedy in terms of economic stimulus, unnoticeable. As many Americans attempted to find jobs, an equal number were being thrown out of work nearly every quarter of Obama's administration. Further, the housing problem has not made matters better, more homes were being lost to foreclosures as many Americans lost their jobs and the American economy tanked. In addition, the parameters of measurement of wealth was skewed against the middle class and the poor, as many in these groups fell into the category of Americans whose homes were under water or in foreclosures. With a stubborn unemployment problem, government tax revenue fell and much of the economic remedies prescribed by Obama's Administration, seemed belated or ineffectual. Worse more, the issue of income inequality began to enter into political lexicon once again; and, many Americans in the middle class and poor groups saw themselves at the receiving end of a slumping economy. 

Inequality in human rights in America led to the equal rights amendment of 1972; the question today, is it time for amendments to the constitution to empower congress to enforce legislative provisions that ensure that the taxation codes are not too lopsided against a class, to an extent that the class feels cheated or annihilated when it comes to sacrificing for the nation in times of economic recessions. Empirical analysis of data on income inequality indicate the inequality across American households; and the inequality in risk borne when taxation is chosen as a measure of forbearance to the nation’s financial woes. For purpose of recalibrating the economy, could the secret lie in the taxation code as is now lauded, or are there other issues that we must be looking at to overcome the close to a grinding economy which has led to scarcity of jobs for a huge population of Americans? The rich in America are not finding President Obama's proposal to tax them at close to fifty percent of their wealth, very funny or welcoming. The middle class and poor income groups see this call as necessary or probably, too late, considering how long it has taken and the pain they have suffered during these trying times. 

The politics of the current call for the rich to pay  more in taxes probably emanated by the call from the left for a more proactive attitude from this White house to stand up against the Republicans, to shift away from conciliatory negotiations on issues of budget and more.  President Obama has been inundated by complaints from the left, that there is need to change tone in leadership. Many Democrats had called for bold and confrontational stance, challenging the Republicans to stand back and see that they are being obstructionists in negotiations regarding common ground on the deficits issues. The President has done just that in the last two days and he has even gone as far as drawing a line on the ground, indicating that he will veto any bill that does not carry the shared sacrifice doctrine with respect to raising revenue along social welfare budget cuts. There are those who perceive this new face of the Presidency as one that is long overdue; however, many Republicans perceive this new stance as apolitical rather than result-oriented.  Who is right in this assessment is better left for time to tell.

The Super Committee on Budget negotiations are probably listening; however, the Republican members of the committee are already saying there is no deal, if the proposal is to raise taxes against the super rich. These are delicate times and the fundamental underlying success of a call from a Presidency are hardly assessed by its pronouncement, but by his ability to effectively ensure that his pronouncement(s) come to pass rather than his adversaries'. The current speech from the President may not have broken the resolve of the majority of the House members, but Capitol Hill has very little options now, as they cannot just dismiss the current call from the President. The rhetoric of class warfare coming from Republicans probably will not make much of a difference, however, Democrats want their leader to return and stand on the basic principle  of their party; shoulder high above everyone. Those are the state of things now!

                                                           

9/11: A Decade of Memorial to the fallen heroes!

Keywords or Terms: Tenth-year Anniversary of 9/11; Terrorists; Heroes; World Trade Center, New York; Pentagon, Virginia; Shanksville, Pennsylvania; Clarion call and word or resilience; Human and families Sacrifice; World Trade Center Memorial Park; and Heroes. 

Never again must a disaster as magnanimous as what took place a decade ago at the World Trade Center in New York, Pentagon, Washington DC and the hallowed fields at Shanksville, Pennsylvania, occur in the life of this Democracy. Never again must any annihilation and destruction from any foreign person(s), nation or ilk, come to this soil with us feeling so helpless, hapless and in disarray the way we were a decade ago. The nightmare of seeing two huge buildings collapse, part of the Pentagon destroyed and more than forty souls destroyed in an unfortunate crash in Pennsylvania are not the only reasons why a gruesome thing like this must never again happen; the constitution of our democracy and the lives and souls of the innocent lost on that day, are definitely unswayable reasons and justifications, why America must never again find herself on the defensive, within and without our shores, with our overwhelming military might. 

The tragedy of September 11, 2011 had both human and capital costs; and, the stories of the lives of many souls that were lost on that day will forever be etched in our nation’s psyche. There were deaths, miseries, sorrows, exasperation and cries of many people doing their daily routine things in those buildings when the first and second planes stuck. There were first responders who gave it all while attempting to save the lives of others; there were stories of husbands that made a last goodbye phone calls and those that never had a chance; there were brothers and sisters lost at the Pentagon and others in the fields of Shanksville, Pennsylvania, there are parents and family who are still grief stricken and who are still today demanding answers to the question why. There are those bereaved families of the victims of that day who have forgiven but refused to forget, because they are so much of a human being than those who flew those planes into those towers. There was Todd Beamer and his plane mates who said they will never go down without giving a fight; and now, there are children who were born to those who lost their lives on that day, who want answers to what could have been  Yes, we have had so many lamentations about what actually happened that day and who masterminded it; however, the mystery surrounding how a crew of sadist came through the borders of this great country to kill her children right in front  of their mothers, must never be forgotten; Never! Never!! Never!!! 

Two thousand seven hundred and fifty souls or so fell on this day a decade ago and we will forever commemorate their memory, both in spirit and physic. The collective memory of three hundred and forty three fire fighters, sixty police officers and first time responders who were lost ten years ago would never leave us. As a result of what happened a decade ago at the World Trade Center, Shanksville, Pennsylvania and the Pentagon, many people have redefined their lives and what it means to be a living and breathing soul; a few, have even changed their religion; and some have chosen to become unrepentant atheist because they could never believe that a God who loved them so much, would allow deaths to crepe into their household unannounced and so dastardly destroy the beauty of human decency. 

It’s unfortunate that people use a metric rule to measure their faith in a creator, says the reverend father; but listen to the lamentations of those who have been at the receiving end of the events of that unfaithful day: 1) had my husband, wife, uncle, brother and or sister waited a little longer or called in sick to work, death would not have visited our home; 2) had my husband or wife or dad or mom missed that flight American Airline 93? 3) If only we could have just captured what was to happen on September 11, 2011 on September 10^th, 2011; and, 4) why were my family members exempted from this disaster? We cannot give suiting enough responses to these questions; but, what we can say is: we share in your grief and would have loved to answer your mired of what ifs’ questions. May the Good Lord give you Succoth, consolation and eternal peace that surpass all human understanding, Amen!!! 

Whichever or whatever way you look at the events that led to the demise of the close to three thousand innocent souls a decade ago today, this was an unfortunate event that no one wouldn’t have stopped, if they had a privy knowledge that it was going to happen, except that individual was part of the planners or their surrogates involved in crashing the planes into the World Trade Center, Pentagon or the Philadelphia fields. We ought, all of us, who lived through the experience or consumed those indelible pictures of the  unfortunate disaster(s), must ensure that the memory of all who died on September 11, 2011 are never forgotten; we all owe them that at least. The explosions or deaths could have scared our memory, but the memory must never be allowed to stamp us out of living life to the fullest. We must keep it in our minds that the treachery of a villain must never defeat our spirit of rebuilding ourselves, community and state, for a brighter future. 

If you are family members of the victims, think about the fund times you had with them before September 11, 2011. Imagine how wonderful those times were, how you never wanted them to end, and how your loved ones reminded you that all good and bad things come to an end; and invariable or eventually, work out for the best. Consider the first time you heard that there was an enormous plane crashed into the tall towers and when to you, it looked more like a dream or theater, and that another plane crashed into the pentagon and another in a field at Shanksville, Philadelphia, took your breath away. Imagine how you felt overwhelmed and struggled with the grief of knowing your loved ones wouldn’t be coming home. Now, be that extraordinary person that overcame the horrors that men less worth your loved ones had done to your family. I know, it isn’t a routine experience, but it is an experience you will never wish on any other person; not even your enemy. If it is not possible to forget the experience, it is possible to remain positive even under tough times like you had since that event, when it became obvious that the unimaginable had happened. Doing so will greatly enhance how you are able to overcome the grief of loss of your loved one. 

Protecting this nation is now the duty of everyone, every soul that lives and breathes within this border, not only the military, for there are some heinous people bent on doing us wrong. We have committed close to six trillion dollars to wars against terrors since September 11, 2011; however, we have even committed our blood, sweat and souls to ensure that what happened here a decade ago, never again repeat. There are those who report that the planners or engineers of that dastardly act want to have a better relationship with America, but we will like to tell them, at this rung, we cannot accept their olive leaf; until we are able to figure out who is our genuine friend and who is a peripheral friend or enemy; we do not know which goats are in sheep’s clothing; until we can definitely figure this out, the deaths of the Americans and others who died that day, cannot allow us to bury or put down the sword. Their souls still haunts us and the grief of not being able to save many of them in the inferno of the fire at the Pentagon, field in Pennsylvania and the World Trade Fair towers, still make our eyes wet and sometimes, cry like babies. This is why we just have to hold forth. You know, they say time heals the wound; however, the scar for all of us in this nation, is still fresh, even ten years after. The portrait of grief of beautiful souls we could not identify immediately after the disaster, lingers on in our memories and their families and loved ones eulogized them and so, we as a nation, would forever!

  

For now, we cannot raise any duty higher to our commitment to always remember the events of that day, or what vast consequence the events of September 11 have had on the psyche of America. The intervening decade has allowed the nation to build or probably attempt to complete the World Trade Center Memorial Park with the symbolic names of all the victims engraved in concrete around a water fountain. We are humbled by this experience; we have chosen to replace the heights of those towers with meaningful lighted serenity, steadily inching towards mantra of our labor liberty, pursuit of happiness in the completion the World Trade Center’s Memorial Park. 

Further, we understand the essence of completing the memorials at the three sites and re-solidification of our resolve never to forget what took place a decade ago; and, our commitment to freedom. Apart from the momentous memorial projects underway, the pride of our nation and the reflection of the lives lost on September 11 continue to inform us of our loss as a country and our choice to heal. We will ever keep the bereaved families from this very painful and unfortunate disaster in our prayers. The poignant and somber memorial today is not just about the star spangle banner, but the memory of all those great heroes we lost on that day. The good works of those victims will forever be with us. The indelible image of the nightmare of that day will always be with us forever. To their families, a debt of gratitude!

At a personal level, all my children have graduated from Todd Beamer High School in Federal Way, Washington; it is a name for a school that will always lighten the load of our sadness from the events of that day. Helen, Kevin, Alex graduated from Todd Beamer High School and their diplomas are in a cherished shrine in my study, to always remind our family, the sacrifices made by great men and women, of this country a decade ago. We will always remember the call: Let’s Roll! It is call like this that makes many Americans proud despite the sorrow of the disaster, because it exemplifies the dutiful and heroic nature of being an American.

The Danger of Assessing President Obama’s $447 Billion Jobs Plan?

Keywords or Terms:  Congress; Economy; Unemployment; Corporate Taxes; Jobs Plan; Tax Breaks, Stimulus; and American Job Act


As many economists and politicians go over President Obama’s proposed jobs plan, the content of his speech before the joint congressional houses, will serve as the barometer of measurement regarding whether it will contribute enough jobs or not, to make a dent in the unemployment rate. Outside economists will be able to assess his proposal based on its merits and its contribution to jobs creation in the succeeding quarters. By some account, it appears from the speech that if the plan is passed by congress, we may be able to see the unemployment rate start trending downwards.


But on what account does the President anticipate that this new plan will achieve the purpose of job creation? So many, as indicated in his feisty 38 minute speech; including the opportunity to revamp corporate tax code, rebuild America’s crumbling classrooms infrastructure and public transit systems, rebuild roads and bridges, retain classroom teachers that are laid-off or about to be laid-off, and some more. The President’s Administration wants to improve America’s competitiveness, cut red tape that is preventing new venture capitalists from establishing new ventures, subsidize apprenticeship programs in professions that are difficult to recruit trained hands, allow workers to hold on to some of their earnings that previously go to social security taxes, and help facilitate another GI bill for Iraq and Afghanistan veterans. To save valuable and scarce money on projects, an assessment strategy as to whether a project is needed and how much of it is readily needed at this time, are going to be built into the project’s initiation and completion. Obama’s Administration is offering an employer four thousand dollars to employ Americans who have been out of work for over 6 months. All these are laudable on paper; however, no one can tell if this new plan can achieve the totality of the President’s intention for the American economy and the unemployed.


For the most part, his past proposals, touted as reinvestment plans, have been difficult to appropriately assess, considering the dichotomy over whether they added enough jobs to the economy or not? Congressional Budget Office assessments of the last two stimulus plans indicate that about 1.5 million jobs were contributed to the economy and another two and a half million saved, just by taking the necessary action; although, some critics have doubts. Frankly, no one can adequately do justice to the assessment of the provisions of the new plan until the proposal comes to the hill, debated, passed and implemented. The President has promised to forward the jobs plan bill to congress in the coming week; and, he is going to sell the plan to Americans on the road.

The blog today documents the American Jobs Act, word for word, as offered in the President’s Speech on September 8, 2011 before congress; and, as released by the White house Press Office:

THE PRESIDENT: Mr. Speaker, Mr. Vice President, members of Congress, and fellow Americans:

Tonight we meet at an urgent time for our country. We continue to face an economic crisis that has left millions of our neighbors jobless, and a political crisis that's made things worse.

This past week, reporters have been asking, "What will this speech mean for the President? What will it mean for Congress? How will it affect their polls, and the next election?"

But the millions of Americans who are watching right now, they don't care about politics. They have real-life concerns. Many have spent months looking for work. Others are doing their best just to scrape by -- giving up nights out with the family to save on gas or make the mortgage; postponing retirement to send a kid to college.

These men and women grew up with faith in an America where hard work and responsibility paid off. They believed in a country where everyone gets a fair shake and does their fair share -- where if you stepped up, did your job, and were loyal to your company, that loyalty would be rewarded with a decent salary and good benefits; maybe a raise once in a while. If you did the right thing, you could make it. Anybody could make it in America.

For decades now, Americans have watched that compact erode. They have seen the decks too often stacked against them. And they know that Washington has not always put their interests first.

The people of this country work hard to meet their responsibilities. The question tonight is whether we'll meet ours. The question is whether, in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy. (Applause.) The question is -- the question is whether we can restore some of the fairness and security that has defined this nation since our beginning. (watch the full speech at left)

Those of us here tonight can't solve all our nation's woes. Ultimately, our recovery will be driven not by Washington, but by our businesses and our workers. But we can help. We can make a difference. There are steps we can take right now to improve people's lives.

I am sending this Congress a plan that you should pass right away. It's called the American Jobs Act. There should be nothing controversial about this piece of legislation. Everything in here is the kind of proposal that's been supported by both Democrats and Republicans -- including many who sit here tonight. And everything in this bill will be paid for. Everything. (Applause.)

The purpose of the American Jobs Act is simple: to put more people back to work and more money in the pockets of those who are working. It will create more jobs for construction workers, more jobs for teachers, more jobs for veterans, and more jobs for long-term unemployed. (Applause.) It will provide -- it will provide a tax break for companies who hire new workers, and it will cut payroll taxes in half for every working American and every small business. (Applause.) It will provide a jolt to an economy that has stalled, and give companies confidence that if they invest and if they hire, there will be customers for their products and services. You should pass this jobs plan right away. (Applause.)

Everyone here knows that small businesses are where most new jobs begin. And you know that while corporate profits have come roaring back, smaller companies haven't. So for everyone who speaks so passionately about making life easier for "job creators," this plan is for you. (Applause.)

Pass this jobs bill -- pass this jobs bill, and starting tomorrow, small businesses will get a tax cut if they hire new workers or if they raise workers' wages. Pass this jobs bill, and all small business owners will also see their payroll taxes cut in half next year. (Applause.) If you have 50 employees -- if you have 50 employees making an average salary, that's an $80,000 tax cut. And all businesses will be able to continue writing off the investments they make in 2012.

It's not just Democrats who have supported this kind of proposal. Fifty House Republicans have proposed the same payroll tax cut that's in this plan. You should pass it right away. (Applause.)

Pass this jobs bill, and we can put people to work rebuilding America. Everyone here knows we have badly decaying roads and bridges all over the country. Our highways are clogged with traffic. Our skies are the most congested in the world. It's an outrage.

Building a world-class transportation system is part of what made us a economic superpower. And now we're going to sit back and watch China build newer airports and faster railroads? At a time when millions of unemployed construction workers could build them right here in America? (Applause.)

There are private construction companies all across America just waiting to get to work. There's a bridge that needs repair between Ohio and Kentucky that's on one of the busiest trucking routes in North America. A public transit project in Houston that will help clear up one of the worst areas of traffic in the country. And there are schools throughout this country that desperately need renovating. How can we expect our kids to do their best in places that are literally falling apart? This is America. Every child deserves a great school -- and we can give it to them, if we act now. (Applause.)

The American Jobs Act will repair and modernize at least 35,000 schools. It will put people to work right now fixing roofs and windows, installing science labs and high-speed Internet in classrooms all across this country. It will rehabilitate homes and businesses in communities hit hardest by foreclosures. It will jumpstart thousands of transportation projects all across the country. And to make sure the money is properly spent, we're building on reforms we've already put in place. No more earmarks. No more boondoggles. No more bridges to nowhere. We're cutting the red tape that prevents some of these projects from getting started as quickly as possible. And we'll set up an independent fund to attract private dollars and issue loans based on two criteria: how badly a construction project is needed and how much good it will do for the economy. (Applause.)

This idea came from a bill written by a Texas Republican and a Massachusetts Democrat. The idea for a big boost in construction is supported by America's largest business organization and America's largest labor organization. It's the kind of proposal that's been supported in the past by Democrats and Republicans alike. You should pass it right away. (Applause.)

Pass this jobs bill, and thousands of teachers in every state will go back to work. These are the men and women charged with preparing our children for a world where the competition has never been tougher. But while they're adding teachers in places like South Korea, we're laying them off in droves. It's unfair to our kids. It undermines their future and ours. And it has to stop. Pass this bill, and put our teachers back in the classroom where they belong. (Applause.)

Pass this jobs bill, and companies will get extra tax credits if they hire America's veterans. We ask these men and women to leave their careers, leave their families, risk their lives to fight for our country. The last thing they should have to do is fight for a job when they come home. (Applause.)

Pass this bill, and hundreds of thousands of disadvantaged young people will have the hope and the dignity of a summer job next year. And their parents -- (applause) -- their parents, low-income Americans who desperately want to work, will have more ladders out of poverty.

Pass this jobs bill, and companies will get a $4,000 tax credit if they hire anyone who has spent more than six months looking for a job. (Applause.) We have to do more to help the long-term unemployed in their search for work. This jobs plan builds on a program in Georgia that several Republican leaders have highlighted, where people who collect unemployment insurance participate in temporary work as a way to build their skills while they look for a permanent job. The plan also extends unemployment insurance for another year. (Applause.) If the millions of unemployed Americans stopped getting this insurance, and stopped using that money for basic necessities, it would be a devastating blow to this economy. Democrats and Republicans in this chamber have supported unemployment insurance plenty of times in the past. And in this time of prolonged hardship, you should pass it again -- right away. (Applause.)

Pass this jobs bill, and the typical working family will get a $1,500 tax cut next year. Fifteen hundred dollars that would have been taken out of your pocket will go into your pocket. This expands on the tax cut that Democrats and Republicans already passed for this year. If we allow that tax cut to expire -- if we refuse to act -- middle-class families will get hit with a tax increase at the worst possible time. We can't let that happen. I know that some of you have sworn oaths to never raise any taxes on anyone for as long as you live. Now is not the time to carve out an exception and raise middle-class taxes, which is why you should pass this bill right away. (Applause.)

This is the American Jobs Act. It will lead to new jobs for construction workers, for teachers, for veterans, for first responders, young people and the long-term unemployed. It will provide tax credits to companies that hire new workers, tax relief to small business owners, and tax cuts for the middle class. And here's the other thing I want the American people to know: The American Jobs Act will not add to the deficit. It will be paid for. And here's how. (Applause.)

The agreement we passed in July will cut government spending by about $1 trillion over the next 10 years. It also charges this Congress to come up with an additional $1.5 trillion in savings by Christmas. Tonight, I am asking you to increase that amount so that it covers the full cost of the American Jobs Act. And a week from Monday, I'll be releasing a more ambitious deficit plan -- a plan that will not only cover the cost of this jobs bill, but stabilize our debt in the long run. (Applause.)

This approach is basically the one I've been advocating for months. In addition to the trillion dollars of spending cuts I've already signed into law, it's a balanced plan that would reduce the deficit by making additional spending cuts, by making modest adjustments to health care programs like Medicare and Medicaid, and by reforming our tax code in a way that asks the wealthiest Americans and biggest corporations to pay their fair share. (Applause.) What's more, the spending cuts wouldn't happen so abruptly that they'd be a drag on our economy, or prevent us from helping small businesses and middle-class families get back on their feet right away.

Now, I realize there are some in my party who don't think we should make any changes at all to Medicare and Medicaid, and I understand their concerns. But here's the truth: Millions of Americans rely on Medicare in their retirement. And millions more will do so in the future. They pay for this benefit during their working years. They earn it. But with an aging population and rising health care costs, we are spending too fast to sustain the program. And if we don't gradually reform the system while protecting current beneficiaries, it won't be there when future retirees need it. We have to reform Medicare to strengthen it. (Applause.)

I am also -- I'm also well aware that there are many Republicans who don't believe we should raise taxes on those who are most fortunate and can best afford it. But here is what every American knows: While most people in this country struggle to make ends meet, a few of the most affluent citizens and most profitable corporations enjoy tax breaks and loopholes that nobody else gets. Right now, Warren Buffett pays a lower tax rate than his secretary -- an outrage he has asked us to fix. (Laughter.) We need a tax code where everyone gets a fair shake and where everybody pays their fair share. (Applause.) And by the way, I believe the vast majority of wealthy Americans and CEOs are willing to do just that if it helps the economy grow and gets our fiscal house in order.

I'll also offer ideas to reform a corporate tax code that stands as a monument to special interest influence in Washington. By eliminating pages of loopholes and deductions, we can lower one of the highest corporate tax rates in the world. (Applause.) Our tax code should not give an advantage to companies that can afford the best-connected lobbyists. It should give an advantage to companies that invest and create jobs right here in the United States of America. (Applause.)

So we can reduce this deficit, pay down our debt, and pay for this jobs plan in the process. But in order to do this, we have to decide what our priorities are. We have to ask ourselves, "What's the best way to grow the economy and create jobs?"

Should we keep tax loopholes for oil companies? Or should we use that money to give small business owners a tax credit when they hire new workers? Because we can't afford to do both. Should we keep tax breaks for millionaires and billionaires? Or should we put teachers back to work so our kids can graduate ready for college and good jobs? (Applause.) Right now, we can't afford to do both.

This isn't political grandstanding. This isn't class warfare. This is simple math. (Laughter.) This is simple math. These are real choices. These are real choices that we've got to make. And I'm pretty sure I know what most Americans would choose. It's not even close. And it's time for us to do what's right for our future. (Applause.)

Now, the American Jobs Act answers the urgent need to create jobs right away. But we can't stop there. As I've argued since I ran for this office, we have to look beyond the immediate crisis and start building an economy that lasts into the future -- an economy that creates good, middle-class jobs that pay well and offer security. We now live in a world where technology has made it possible for companies to take their business anywhere. If we want them to start here and stay here and hire here, we have to be able to out-build and out-educate and out-innovate every other country on Earth. (Applause.)

And this task of making America more competitive for the long haul, that's a job for all of us. For government and for private companies. For states and for local communities -- and for every American citizen. All of us will have to up our game. All of us will have to change the way we do business.

My administration can and will take some steps to improve our competitiveness on our own. For example, if you're a small business owner who has a contract with the federal government, we're going to make sure you get paid a lot faster than you do right now. (Applause.) We're also planning to cut away the red tape that prevents too many rapidly growing startup companies from raising capital and going public. And to help responsible homeowners, we're going to work with federal housing agencies to help more people refinance their mortgages at interest rates that are now near 4 percent. That's a step -- (applause) -- I know you guys must be for this, because that's a step that can put more than $2,000 a year in a family's pocket, and give a lift to an economy still burdened by the drop in housing prices.

So, some things we can do on our own. Other steps will require congressional action. Today you passed reform that will speed up the outdated patent process, so that entrepreneurs can turn a new idea into a new business as quickly as possible. That's the kind of action we need. Now it's time to clear the way for a series of trade agreements that would make it easier for American companies to sell their products in Panama and Colombia and South Korea -- while also helping the workers whose jobs have been affected by global competition. (Applause.) If Americans can buy Kias and Hyundais, I want to see folks in South Korea driving Fords and Chevys and Chryslers. (Applause.) I want to see more products sold around the world stamped with the three proud words: "Made in America." That's what we need to get done. (Applause.)

And on all of our efforts to strengthen competitiveness, we need to look for ways to work side by side with America's businesses. That's why I've brought together a Jobs Council of leaders from different industries who are developing a wide range of new ideas to help companies grow and create jobs.

Already, we've mobilized business leaders to train 10,000 American engineers a year, by providing company internships and training. Other businesses are covering tuition for workers who learn new skills at community colleges. And we're going to make sure the next generation of manufacturing takes root not in China or Europe, but right here, in the United States of America. (Applause) If we provide the right incentives, the right support -- and if we make sure our trading partners play by the rules -- we can be the ones to build everything from fuel-efficient cars to advanced biofuels to semiconductors that we sell all around the world. That's how America can be number one again. And that's how America will be number one again. (Applause.)

Now, I realize that some of you have a different theory on how to grow the economy. Some of you sincerely believe that the only solution to our economic challenges is to simply cut most government spending and eliminate most government regulations. (Applause.)

Well, I agree that we can't afford wasteful spending, and I'll work with you, with Congress, to root it out. And I agree that there are some rules and regulations that do put an unnecessary burden on businesses at a time when they can least afford it. (Applause.) That's why I ordered a review of all government regulations. So far, we've identified over 500 reforms, which will save billions of dollars over the next few years. (Applause.) We should have no more regulation than the health, safety and security of the American people require. Every rule should meet that common-sense test. (Applause.)

But what we can't do -- what I will not do -- is let this economic crisis be used as an excuse to wipe out the basic protections that Americans have counted on for decades. (Applause.) I reject the idea that we need to ask people to choose between their jobs and their safety. I reject the argument that says for the economy to grow, we have to roll back protections that ban hidden fees by credit card companies, or rules that keep our kids from being exposed to mercury, or laws that prevent the health insurance industry from shortchanging patients. I reject the idea that we have to strip away collective bargaining rights to compete in a global economy. (Applause.) We shouldn't be in a race to the bottom, where we try to offer the cheapest labor and the worst pollution standards. America should be in a race to the top. And I believe we can win that race. (Applause.)

In fact, this larger notion that the only thing we can do to restore prosperity is just dismantle government, refund everybody's money, and let everyone write their own rules, and tell everyone they're on their own -- that's not who we are. That's not the story of America.

Yes, we are rugged individualists. Yes, we are strong and self-reliant. And it has been the drive and initiative of our workers and entrepreneurs that has made this economy the engine and the envy of the world.

But there's always been another thread running throughout our history -- a belief that we're all connected, and that there are some things we can only do together, as a nation.

We all remember Abraham Lincoln as the leader who saved our Union. Founder of the Republican Party. But in the middle of a civil war, he was also a leader who looked to the future -- a Republican President who mobilized government to build the Transcontinental Railroad -- (applause) -- launch the National Academy of Sciences, set up the first land grant colleges. (Applause.) And leaders of both parties have followed the example he set.

Ask yourselves -- where would we be right now if the people who sat here before us decided not to build our highways, not to build our bridges, our dams, our airports? What would this country be like if we had chosen not to spend money on public high schools, or research universities, or community colleges? Millions of returning heroes, including my grandfather, had the opportunity to go to school because of the G.I. Bill. Where would we be if they hadn't had that chance? (Applause.)

How many jobs would it have cost us if past Congresses decided not to support the basic research that led to the Internet and the computer chip? What kind of country would this be if this chamber had voted down Social Security or Medicare just because it violated some rigid idea about what government could or could not do? (Applause.) How many Americans would have suffered as a result?

No single individual built America on their own. We built it together. We have been, and always will be, one nation, under God, indivisible, with liberty and justice for all; a nation with responsibilities to ourselves and with responsibilities to one another. And members of Congress, it is time for us to meet our responsibilities. (Applause.)

Every proposal I've laid out tonight is the kind that's been supported by Democrats and Republicans in the past. Every proposal I've laid out tonight will be paid for. And every proposal is designed to meet the urgent needs of our people and our communities.

Now, I know there's been a lot of skepticism about whether the politics of the moment will allow us to pass this jobs plan -- or any jobs plan. Already, we're seeing the same old press releases and tweets flying back and forth. Already, the media has proclaimed that it's impossible to bridge our differences. And maybe some of you have decided that those differences are so great that we can only resolve them at the ballot box.

But know this: The next election is 14 months away. And the people who sent us here -- the people who hired us to work for them -- they don't have the luxury of waiting 14 months. (Applause.) Some of them are living week to week, paycheck to paycheck, even day to day. They need help, and they need it now.

I don't pretend that this plan will solve all our problems. It should not be, nor will it be, the last plan of action we propose. What's guided us from the start of this crisis hasn't been the search for a silver bullet. It's been a commitment to stay at it -- to be persistent -- to keep trying every new idea that works, and listen to every good proposal, no matter which party comes up with it.

Regardless of the arguments we've had in the past, regardless of the arguments we will have in the future, this plan is the right thing to do right now. You should pass it. (Applause.) And I intend to take that message to every corner of this country. (Applause.) And I ask -- I ask every American who agrees to lift your voice: Tell the people who are gathered here tonight that you want action now. Tell Washington that doing nothing is not an option. Remind us that if we act as one nation and one people, we have it within our power to meet this challenge.

President Kennedy once said, "Our problems are man-made -- therefore they can be solved by man. And man can be as big as he wants."

These are difficult years for our country. But we are Americans. We are tougher than the times we live in, and we are bigger than our politics have been. So let's meet the moment. Let's get to work, and let's show the world once again why the United States of America remains the greatest nation on Earth. (Applause.)

Thank you very much. God bless you, and God bless the United States of America. (Applause.)





Early observations from Republican leaders indicate that there are parts of the current plan they love, others they can live with, a few they are willing to put their weight behind, and some, a no go area. For most part, this is good. Few things match the test of experience and time. Would the plan get the support and blessing of Republican lawmakers who have constantly attempted to blind sight the country and or work against the efforts of the President? Only time can tell!