by Barack Obama

“ But we can't simply cut our way to prosperity. Cutting spending has to go hand-in-hand with further reforms to our tax code so that the wealthiest corporations and individuals can't take advantage of loopholes and deductions that aren't available to most Americans. And we can't keep cutting things like basic research and new technology and still expect to succeed in a 21st century economy. So we're going to have to continue to move forward in deficit reduction, but we have to do it in a balanced way, making sure that we are growing even as we get a handle on our spending. ”

“ We will have to take away the tools of mass destruction. That is why I have made it a central pillar of my foreign policy to secure loose nuclear materials from terrorists, to stop the spread of nuclear weapons and to pursue the goal of a world without them. Because every nation must understand that true security will never come from an endless race for ever more destructive weapons — true security will come for those who reject them. ”

“ It’s a plan to reward small businesses and manufacturers that create jobs here, not overseas. It’s a plan to give people the chance to get the education and training that businesses are looking for right now. It’s a plan to make sure this country is a global leader in research and technology and clean energy, which will attract new companies and high-wage jobs to America. It’s a plan to put folks back to work, including our veterans, rebuilding our roads and our bridges, and other infrastructure. And it’s a plan to reduce our deficit in a balanced and responsible way. ”

“ How can we ask a student to pay more for college before we ask hedge-fund managers to stop paying taxes at a lower rate than their secretaries? How can we slash funding for education and clean energy before we ask people like me to give up tax breaks we don’t need and didn’t ask for? ”

“ If we’re serious about reducing the deficit, we have to combine spending cuts with revenue -- and that means asking the wealthiest Americans to pay a little more in taxes. That’s how we did it in the 1990s, when Bill Clinton was President. That’s how we can reduce the deficit while still making the investments we need to build a strong middle class and a strong economy. That’s the only way we can still afford to train our workers, or help our kids pay for college, or make sure that good jobs in clean energy or high-tech manufacturing don’t end up in countries like China. ”

“ If you can get a majority in the House and you can get a majority in the Senate, then we should be able to pass a bill.
So the American people are watching what we do here. Obviously, their patience is already thin. This is déjà vu all over again. America wonders why it is that in this town, for some reason, you can't get stuff done in an organized timetable; why everything always has to wait until the last minute. Well, we're now at the last minute, and the American people are not going to have any patience for a politically self-inflicted wound to our economy. ”

“ We will support efforts by the Afghan government to open the door to those Taliban who abandon violence and respect the human rights of their fellow citizens. And we will seek a partnership with Afghanistan grounded in mutual respect — to isolate those who destroy, to strengthen those who build, to hasten the day when our troops will leave and to forge a lasting friendship in which America is your partner and never your patron. ”

“ Keep in mind that under a balanced approach, the 98% of Americans who make under $250,000 would see no tax increases at all. None. In fact, I want to extend the payroll tax cut for working families. What we’re talking about under a balanced approach is asking Americans whose incomes have gone up the most over the last decade – millionaires and billionaires – to share in the sacrifice everyone else has to make. And I think these patriotic Americans are willing to pitch in. In fact, over the last few decades, they’ve pitched in every time we passed a bipartisan deal to reduce the deficit. ”

“ I believe with every fiber of my being that we — as Americans — can still come together behind a common purpose. For our values are not simply words written into parchment — they are a creed that calls us together and that has carried us through the darkest of storms as one nation, as one people. ”

“ But I do need to talk about the progress that’s being made in Congress today.
For the last few days, leaders in both parties have been working toward an agreement that will prevent a middle class tax hike from hitting 98 percent of all Americans, starting tomorrow. Preventing that tax hike has been my top priority, because the last thing folks like the folks up here on this stage can afford right now is to pay an extra $2,000 in taxes next year. Middle-class families can't afford it. Businesses can't afford it. Our economy can't afford it. ”

“ The entire world is watching. So let’s seize this moment to show why the United States of America is still the greatest nation on Earth – not just because we can still keep our word and meet our obligations, but because we can still come together as one nation. ”

“ As I said on Tuesday night, the American people voted for action, not politics as usual. "You elected us to focus on your jobs, not ours." And in that spirit, I’ve invited leaders of both parties to the White House next week, so we can start to build consensus around the challenges that we can only solve together. And I also intend to bring in business and labor and civic leaders from all across the country here to Washington to get their ideas and input as well.
At a time when our economy is still recovering from the Great Recession, our top priority has to be jobs and growth. ”

“ Now, if Republicans think that I will finish the job of deficit reduction through spending cuts alone -- and you hear that sometimes coming from them, that sort of after today we're just going to try to shove only spending cuts down -- well -- [laughter] -- shove spending cuts at us that will hurt seniors, or hurt students, or hurt middle-class families, without asking also equivalent sacrifice from millionaires or companies with a lot of lobbyists, et cetera -- if they think that's going to be the formula for how we solve this thing, then they’ve got another thing coming. ”

“ But as we end the war in Iraq and transition to Afghan responsibility, we must rebuild our strength here at home. Our prosperity provides a foundation for our power. It pays for our military. It underwrites our diplomacy. It taps the potential of our people and allows investment in new industry. And it will allow us to compete in this century as successfully as we did in the last. That is why our troop commitment in Afghanistan cannot be open-ended — because the nation that I am most interested in building is our own. ”

“ The one thing that the American people should not have to wait and see is some sort of action.
So if we don’t see an agreement between the two leaders in the Senate, I expect a bill to go on the floor -- and I've asked Senator Reid to do this -- put a bill on the floor that makes sure that taxes on middle-class families don’t go up, that unemployment insurance is still available for two million people, and that lays the groundwork, then, for additional deficit reduction and economic growth steps that we can take in the New Year. ”

“ We can find a way to afford the investments that we need to grow and compete. We can settle this debate, or at the very least, not allow it to be so all-consuming all the time that it stops us from meeting a host of other challenges that we face -- creating jobs, boosting incomes, fixing our infrastructure, fixing our immigration system, protecting our planet from the harmful effects of climate change, boosting domestic energy production, protecting our kids from the horrors of gun violence. ”

“ History is scattered with the stories of those who held fast to rigid ideologies and refused to listen to those who disagreed. But those are not the Americans we remember. We remember the Americans who put country above self, and set personal grievances aside for the greater good. We remember the Americans who held this country together during its most difficult hours; who put aside pride and party to form a more perfect union. ”

“ That’s what we do in America. We take care of our own. We take care of our veterans. We take care of your families. Not just by saluting you on one day, once a year, but by fighting for you and your families every day of every year. That’s our obligation –- a sacred obligation –- to all of you. And it’s an obligation that we gladly accept for Americans like Petty Officer Taylor Morris. Six months ago, Taylor was serving our nation in Afghanistan. ”

“ Under this law, more than 98 percent of Americans and 97 percent of small businesses will not see their income taxes go up. Millions of families will continue to receive tax credits to help raise their kids and send them to college. Companies will continue to receive tax credits for the research that they do, the investments they make, and the clean energy jobs that they create. And 2 million Americans who are out of work but out there looking, pounding the pavement every day, are going to continue to receive unemployment benefits as long as they’re actively looking for a job. ”

“ We will have to use diplomacy, because no one nation can meet the challenges of an interconnected world acting alone. I have spent this year renewing our alliances and forging new partnerships. And we have forged a new beginning between America and the Muslim world — one that recognizes our mutual interest in breaking a cycle of conflict and that promises a future in which those who kill innocents are isolated by those who stand up for peace and prosperity and human dignity. ”

“ While there may be disagreement in Congress over whether or not to raise taxes on folks making over $250,000 a year, nobody -- not Republicans, not Democrats -- want taxes to go up for folks making under $250,000 a year. So let’s not wait. Even as we’re negotiating a broader deficit reduction package, let’s extend the middle-class tax cuts right now. ”

“ But the new approach that Speaker Boehner unveiled today, which would temporarily extend the debt ceiling in exchange for spending cuts, would force us to once again face the threat of default just six months from now. In other words, it doesn’t solve the problem.
First of all, a six-month extension of the debt ceiling might not be enough to avoid a credit downgrade and the higher interest rates that all Americans would have to pay as a result. We know what we have to do to reduce our deficits; there’s no point in putting the economy at risk by kicking the can further down the road. ”

“ So I'm modestly optimistic that an agreement can be achieved. Nobody is going to get 100 percent of what they want, but let's make sure that middle-class families and the American economy -- and, in fact, the world economy -- aren't adversely impacted because people can't do their jobs. ”

“ I agree with Democrats and Republicans that the aging population and the rising cost of health care makes Medicare the biggest contributor to our deficit. I believe we've got to find ways to reform that program without hurting seniors who count on it to survive. And I believe that there’s further unnecessary spending in government that we can eliminate. ”

“ The American people understand that we’re going to have differences and disagreements in the months to come. They get that. But on Tuesday, they said loud and clear that they won’t tolerate dysfunction. They won’t tolerate politicians who view compromise as a dirty word. Not when so many Americans are still out of work. Not when so many families and small business owners are still struggling to pay the bills. What the American people are looking for is cooperation. ”

“ As a country, we are not as young — and perhaps not as innocent — as we were when Roosevelt was President. Yet we are still heirs to a noble struggle for freedom. Now we must summon all of our might and moral suasion to meet the challenges of a new age.
In the end, our security and leadership does not come solely from the strength of our arms. ”

“ And when these Americans come home at night, bone-tired, and turn on the news, all they see is the same partisan three-ring circus here in Washington. They see leaders who can’t seem to come together and do what it takes to make life just a little bit better for ordinary Americans. They are offended by that. And they should be.
The American people may have voted for divided government, but they didn’t vote for a dysfunctional government. So I’m asking you all to make your voice heard. If you want a balanced approach to reducing the deficit, let your member of Congress know. ”

“ I should point out that Taylor couldn’t make it here today because he and Danielle are out kayaking. (Laughter and applause.) In Taylor we see the best of America -- a spirit that says, when we get knocked down, we rise again. When times are tough, we come together. When one of us falters, we lift them up. In this country we take care of our own –- especially our veterans who have served so bravely and sacrificed so selflessly in our name. And we carry on, knowing that our best days always lie ahead. ”

“ We can't not pay bills that we've already incurred. If Congress refuses to give the United States government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic -- far worse than the impact of a fiscal cliff. ”

“ That is the moral source of America's authority.
Since the days of Franklin Roosevelt and the service and sacrifice of our grandparents, our country has borne a special burden in global affairs. We have spilled American blood in many countries on multiple continents. We have spent our revenue to help others rebuild from rubble and develop their own economies. We have joined with others to develop an architecture of institutions — from the United Nations to NATO to the World Bank — that provide for the common security and prosperity of human beings. ”

“ The House of Representatives will once again refuse to prevent default unless the rest of us accept their cuts-only approach. Again, they will refuse to ask the wealthiest Americans to give up their tax cuts or deductions. Again, they will demand harsh cuts to programs like Medicare. And once again, the economy will be held captive unless they get their way. ”

“ We can come together as Democrats and Republicans to cut spending and raise revenue in a way that reduces our deficit, protects our middle class, provides ladders into the middle class for everybody who’s willing to work hard. ”

“ And we must make it clear to every man, woman and child around the world who lives under the dark cloud of tyranny that America will speak out on behalf of their human rights and tend to the light of freedom, and justice, and opportunity, and respect for the dignity of all peoples. ”