2011 Budget

The President mentioned essential investments in areas of clean energy and scientific research included in the budget to foster jobs of the future. He proposed a 6 percent increase in funding for the Education Department to revitalize community colleges and make colleges more affordable." He said: "In the 21st century there is no better anti-poverty program than a world-class education."

"While making investments for future economic success, President Obama outlined the tough spending cuts to reduce the current deficit, and proposed a freeze in government spending for three years, excluding benefits from Social Security, Medicaid, Medicare, and benefits for veterans. He discussed the $20 billion in cuts for programs that are inefficient or have outlived their usefulness, and cuts for worthy programs that must be trimmed accordingly..." Transcript



USNEWS.COM and CNN MONEY Breaks down the budget:

The moon: It would put an end to Constellation, a NASA program whose goal it is to get Americans back to the moon by 2020. But the budget gives NASA $6 billion over five years to use toward helping private companies build commercial ships capable of carrying humans into space.

The rich: Bush-era tax cuts would be allowed to expire for individuals making more than $200,000 per year and for married couples who earn more than $250,000.

This provision would raise the top two individual income tax rates to where they were in 2001, before passage of the Bush tax cuts. The 33% bracket would become 36%. And the 35% bracket would rise to 39.6%.


Banks, oil companies: The tax, which would be imposed on the nation's largest financial institutions, would produce $90 billion over the course of a decade. Oil and natural-gas companies, which would lose $36.5 billion in tax cuts over 10 years. "We cannot continue to ignore the clean energy challenge and stand still while other countries move forward in the emerging industries of the 21st century" - Pres. Obama said.

Small businesses: The spending plan increases the Small Business Administration's 2011 budget by upwards of 20%. It pushes up from $2 million to $5 million the maximum size of the SBA's signature 7(a) loans, which are given to startups and existing businesses. Small businesses get a number of tax benefits, including breaks for companies that hire new workers.

Community banks would get access to $30 billion to lend out to small businesses. The money would come from the funds that Wall Street firms have paid back to the government in the aftermath of the $700 billion bank bailout.

Low- and middle-income Americans: The budget calls for a one-year extension of the Making Work Pay tax credit (the stimulus-created tax credit that adds a few dollars to workers' paychecks every pay period). This credit offsets Social Security payroll taxes and is worth $400 for individuals and $800 for married couples. Around 95 percent of the country's workers are eligible.

The President is looking to permanently extend the American Opportunity Tax Credit, which affects parents and students who are paying for college tuition. The credit gives $2,500 per year to single filers who make less than $80,000 and to married couples who earn less than $160,000. The budget would also increase tax breaks for families who have child-care expenses.

WH.GOV: $730 million to combat violence against women. The VAWA (violence against women act), passed in 1994, already provides thousands of victims with life-saving services, improvements in the criminal justice system and increased public awareness.

State Of The Union Address

Link



" ... We've recovered most of the money we spent on the banks. Most but not all. To recover the rest, I've proposed a fee on the biggest banks. Now, I know Wall Street isn't keen on this idea. But if these firms can afford to hand out big bonuses again, they can afford a modest fee to pay back the taxpayers who rescued them in their time of need. Now, as we stabilized the financial system, we also took steps to get our economy growing again, save as many jobs as possible, and help Americans who had become unemployed.

That's why we extended or increased unemployment benefits for more than 18 million Americans; made health insurance 65 percent cheaper for families who get their coverage through COBRA; and passed 25 different tax cuts.

Now, let me repeat: We cut taxes. We cut taxes for 95 percent of working families. (Applause.) We cut taxes for small businesses. We cut taxes for first-time homebuyers. We cut taxes for parents trying to care for their children. We cut taxes for 8 million Americans paying for college... Because of the steps we took, there are about two million Americans working right now who would otherwise be unemployed. Two hundred thousand work in construction and clean energy; 300,000 are teachers and other education workers. Tens of thousands are cops, firefighters, correctional officers, first responders. And we're on track to add another one and a half million jobs to this total by the end of the year.

The plan that has made all of this possible, from the tax cuts to the jobs, is the Recovery Act........ But I realize that for every success story, there are other stories, of men and women who wake up with the anguish of not knowing where their next paycheck will come from; who send out resumes week after week and hear nothing in response. That is why jobs must be our number-one focus in 2010, and that's why I'm calling for a new jobs bill tonight.

Now, the true engine of job creation in this country will always be America's businesses. But government can create the conditions necessary for businesses to expand and hire more workers.

We should start where most new jobs do –- in small businesses......
But when you talk to small businessowners in places like Allentown, Pennsylvania, or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they're mostly lending to bigger companies. Financing remains difficult for small businessowners across the country, even those that are making a profit.

So tonight, I'm proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. I'm also proposing a new small business tax credit -– one that will go to over one million small businesses who hire new workers or raise wages. While we're at it, let's also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment...... Next, we can put Americans to work today building the infrastructure of tomorrow. From the first railroads to the Interstate Highway System, our nation has always been built to compete. There's no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products.

Tomorrow, I'll visit Tampa, Florida, where workers will soon break ground on a new high-speed railroad funded by the Recovery Act. There are projects like that all across this country that will create jobs and help move our nation's goods, services, and information. We should put more Americans to work building clean energy facilities -- and give rebates to Americans who make their homes more energy-efficient, which supports clean energy jobs. And to encourage these and other businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America...... Now, one place to start is serious financial reform. Look, I am not interested in punishing banks. I'm interested in protecting our economy.....

Next, we need to encourage American innovation. Last year, we made the largest investment in basic research funding in history -– an investment that could lead to the world's cheapest solar cells or treatment that kills cancer cells but leaves healthy ones untouched. And no area is more ripe for such innovation than energy...... You can see the results of last year's investments in clean energy -– in the North Carolina company that will create 1,200 jobs nationwide helping to make advanced batteries; or in the California business that will put a thousand people to work making solar panels. But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country... opening new offshore areas for oil and gas development... continued investment in advanced biofuels and clean coal technologies... passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America........

Third, we need to export more of our goods...... the more products we make and sell to other countries, the more jobs we support right here in America...... We will double our exports over the next five years, an increase that will support two million jobs in America. To help meet this goal, we're launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security....... And that's why we'll continue to shape a Doha trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia.

Fourth, we need to invest in the skills and education of our people. Now, this year, we've broken through the stalemate between left and right by launching a national competition to improve our schools. And the idea here is simple: Instead of rewarding failure, we only reward success.........In the 21st century, the best anti-poverty program around is a world-class education.

To make college more affordable....... give families a $10,000 tax credit for four years of college and increase Pell Grants......... And let's tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years –- and forgiven after 10 years if they choose a career in public service......

Now, the price of college tuition is just one of the burdens facing the middle class.......that's why we're nearly doubling the child care tax credit, and making it easier to save for retirement by giving access to every worker a retirement account and expanding the tax credit for those who start a nest egg.............. That's why we're working to lift the value of a family's single largest investment –- their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments.................... And it is precisely to relieve the burden on middle-class families that we still need health insurance reform.................The approach we've taken would protect every American from the worst practices of the insurance industry. It would give small businesses and uninsured Americans a chance to choose an affordable health care plan in a competitive market. It would require every insurance plan to cover preventive care.................. And by the way, I want to acknowledge our First Lady, Michelle Obama, who this year is creating a national movement to tackle the epidemic of childhood obesity and make kids healthier.............

Our approach would preserve the right of Americans who have insurance to keep their doctor and their plan. It would reduce costs and premiums for millions of families and businesses. And according to the Congressional Budget Office -– the independent organization that both parties have cited as the official scorekeeper for Congress –- our approach would bring down the deficit by as much as $1 trillion over the next two decades..........

Now, even as health care reform would reduce our deficit it's not enough to dig us out of a massive fiscal hole in which we find ourselves............. At the beginning of the last decade, the year 2000, America had a budget surplus of over $200 billion. By the time I took office, we had a one-year deficit of over $1 trillion and projected deficits of $8 trillion over the next decade. Most of this was the result of not paying for two wars, two tax cuts, and an expensive prescription drug program. On top of that, the effects of the recession put a $3 trillion hole in our budget. All this was before I walked in the door............. we took office amid a crisis. And our efforts to prevent a second depression have added another $1 trillion to our national debt. I'm absolutely convinced that was the right thing to do. But families across the country are tightening their belts and making tough decisions. The federal government should do the same.
................ So tonight, I'm proposing specific steps to pay for the trillion dollars that it took to rescue the economy last year................ Starting in 2011, we are prepared to freeze government spending for three years. Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected. But all other discretionary government programs will. Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don't. And if I have to enforce this discipline by veto, I will.

We will continue to go through the budget, line by line, page by page, to eliminate programs that we can't afford and don't work. We've already identified $20 billion in savings for next year. To help working families, we'll extend our middle-class tax cuts. But at a time of record deficits, we will not continue tax cuts for oil companies, for investment fund managers, and for those making over $250,000 a year. We just can't afford it................

Now, even after paying for what we spent on my watch, we'll still face the massive deficit we had when I took office. More importantly, the cost of Medicare, Medicaid, and Social Security will continue to skyrocket. That's why I've called for a bipartisan fiscal commission, modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad. This can't be one of those Washington gimmicks that lets us pretend we solved a problem. The commission will have to provide a specific set of solutions by a certain deadline.

Now, yesterday, the Senate blocked a bill that would have created this commission. So I'll issue an executive order that will allow us to go forward, because I refuse to pass this problem on to another generation of Americans. And when the vote comes tomorrow, the Senate should restore the pay-as-you-go law that was a big reason for why we had record surpluses in the 1990s.......

Now, I know that some in my own party will argue that we can't address the deficit or freeze government spending when so many are still hurting. And I agree -- which is why this freeze won't take effect until next year -- when the economy is stronger. That's how budgeting works........

From some on the right, I expect we'll hear a different argument -– that if we just make fewer investments in our people, extend tax cuts including those for the wealthier Americans, eliminate more regulations, maintain the status quo on health care, our deficits will go away. The problem is that's what we did for eight years. (Applause.) That's what helped us into this crisis. It's what helped lead to these deficits. We can't do it again..........

To do that, we have to recognize that we face more than a deficit of dollars right now. We face a deficit of trust -– deep and corrosive doubts about how Washington works that have been growing for years.......... To close that credibility gap we have to take action on both ends of Pennsylvania Avenue -- to end the outsized influence of lobbyists; to do our work openly; to give our people the government they deserve.......... That's why -– for the first time in history –- my administration posts on our White House visitors online. That's why we've excluded lobbyists from policymaking jobs, or seats on federal boards and commissions.
But we can't stop there. It's time to require lobbyists to disclose each contact they make on behalf of a client with my administration or with Congress. It's time to put strict limits on the contributions that lobbyists give to candidates for federal office..........

I'm also calling on Congress to continue down the path of earmark reform..........
Tonight, I'm calling on Congress to publish all earmark requests on a single Web site before there's a vote, so that the American people can see how their money is being spent.......

Of course, none of these reforms will even happen if we don't also reform how we work with one another................

This week, I'll be addressing a meeting of the House Republicans. I'd like to begin monthly meetings with both Democratic and Republican leadership. I know you can't wait.

Throughout our history, no issue has united this country more than our security. Sadly, some of the unity we felt after 9/11 has dissipated. We can argue all we want about who's to blame for this, but I'm not interested in re-litigating the past. I know that all of us love this country. All of us are committed to its defense. So let's put aside the schoolyard taunts about who's tough. Let's reject the false choice between protecting our people and upholding our values. Let's leave behind the fear and division, and do what it takes to defend our nation and forge a more hopeful future -- for America and for the world......... Transcript

WH.GOV: Breaking It Down

CNN: State of the Union

NYTimes Analyzing The Address

CNN: Highlights, reactions, analyses

President Obama's First year As President

White House: A Year Taking on Unprecedented Challenges Abroad

A panel of historians on the Fareed Zakaria's show speak on Pres. Obama's first year as president.

1.20.10 CNN: 51% approve after the first year

1.20.10 VOANEWS: Barack Obama: a Year as President

Pres. Obama's Health Care Plan

The Obama Plan

Plan in brief: Stability & Security for All Americans (PDF)

CNN: Health Care News

Obama praises the Senate

Q&A on health care

Pres. Obama: 'Real, meaningful reform'

Pres. Obama arrives in Copenhagen, Denmark

President Obama is meeting at the United Nations Climate Change Conference seeking an agreement with world leaders on climate change. He offered a U.S. commitment to reduce emissions by 17 percent by 2020 and by more than 80 percent by 2050 and a commitment to work with others to mobilize a global fund of $100 billion a year by 2020 to help developing countries. Transcript


Video link

Visit msnbc.com for breaking news, world news, and news about the economy

Climate change conference

The Copenhagen accord says greenhouse gases and other emissions by all nations must be reduced enough to prevent average global temperatures - the key index of global warming - from rising more than two degrees Celsius. However, it does not set specific emissions guidelines for achieving that goal. The agreement requires countries to list actions they will take to cut gas emissions by specific amounts and allows for verification.