State of the Union – Obama Hits Centrist Civil Tone – Number One – Put Business First – Republican and Tea Party Responses - Ideological Differences

The President Delivered an even toned State of the Union address last evening. The speech and tone itself was not particularly rousing, however, the content made one keenly aware that, with the President, clearly defining the fact that there were ideological differences, was ready and willing to work with the new Republican majority. The audience in attendance, included a first, cross political aisle seating arrangement, that gave the appearance, at least from this perspective, of a United Front, specifically when the President addressed getting down to business. In the audience sat CEO’s of fortune 500 companies, along with other dignitaries who were guests of the President, Speaker Boehner or others in position to give out “seats at the table” of democracy in action. Clearly, the fact that we, as a nation, enjoy the ability to argue a variety of ideologies, and elect those who we send to Congress or the White House to work for the United States of America, was part and parcel of the speech.

The full text of the address is available at http://www.miamiherlad.com/2011/01/25/2034021_p/full-text-of-the-state-of-the.html#

On the Tax Code: Obama on Corporate Tax Reform – Understanding that the U.S. does not exactly entice corporations to come to our shores, despite loopholes, a flat corporate tax, and elimination of loopholes that favor one industry over another, may be the ticket to making the U.S a Corporate destination. Although one may disagree with the Presidents singling out the Oil Industry for certain tax breaks – it is imperative, for the nation to lower the corporate tax in order to create business – it does not take an economist to understand that once corporations move to the U.S., or in many cases, back to the U.S., they will actually pay a tax, hire workers who will pay taxes, and thereby aid in reducing the deficit.

The President may try to sell Investments in certain aspects of our society, specifically education, as – literally an investment, instead of the reality of building bigger government programs that said – it is at least a start in the right direction. If he were to have added, remove the corrupt unions and insure that our children have the best teachers, without our cities and municipalities being forced by unions to keep in place teachers that have failed, would have made one think that Obama crossed the aisle by becoming a Republican!

The section of the Speech on Business and the Tax Code:(Source: Miami Herald)

Over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world. It makes no sense, and it has to change.
So tonight, I’m asking Democrats and Republicans to simplify the system. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years – without adding to our deficit.
To help businesses sell more products abroad, we set a goal of doubling our exports by 2014 – because the more we export, the more jobs we create at home. Already, our exports are up. Recently, we signed agreements with India and China that will support more than 250,000 jobs in the United States. And last month, we finalized a trade agreement with South Korea that will support at least 70,000 American jobs. This agreement has unprecedented support from business and labor; Democrats and Republicans, and I ask this Congress to pass it as soon as possible.
Before I took office, I made it clear that we would enforce our trade agreements, and that I would only sign deals that keep faith with American workers, and promote American jobs. That’s what we did with Korea, and that’s what I intend to do as we pursue agreements with Panama and Colombia, and continue our Asia Pacific and global trade talks.
To reduce barriers to growth and investment, I’ve ordered a review of government regulations. When we find rules that put an unnecessary burden on businesses, we will fix them. But I will not hesitate to create or enforce commonsense safeguards to protect the American people. That’s what we’ve done in this country for more than a century. It’s why our food is safe to eat, our water is safe to drink, and our air is safe to breathe. It’s why we have speed limits and child labor laws. It’s why last year; we put in place consumer protections against hidden fees and penalties by credit card companies, and new rules to prevent another financial crisis. And it’s why we passed reform that finally prevents the health insurance industry from exploiting patients.

Additionally, the President spoke, in a roundabout way, on the Repeal of the Health Care Law that Congress Passed in their first new majority session: (Source: Miami Herald)

Now, I’ve heard rumors that a few of you have some concerns about the new health care law. So let me be the first to say that anything can be improved. If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.

It is a start, it is recognition that there needs to be a step back to the drawing board, in order to protect both both business as well as the individual.

Finally, without using the word “exceptionalism”, Obama made it quite clear that the United States is the most exceptional of nations, in this speech, he spoke to what we, as a nation, have done to surpass any other, and how, because, not in spite of our political differences, we are the best nation on earth. (Paraphrasing).

It was overall a speech designed to give all of us hope that the President and the new Congress will work, or attempt to work out their difference, and move us forward to a more business friendly climate that will bring new jobs and increase our productivity. What this speech did was separate Obama from his ideological predecessors by using language that was not hard party line or rhetorical, but open to “congressional negotiations”. There were, obviously, parts of the address that were specifically aimed at the Progressives; however, they were few and far between.

The usual Republican Response was delivered by Rep. Paul Ryan (WI) and a Tea Party Response was delivered by Representative Michele Bachman, both videos shown below. What is of interest is that the Tea Party asked a Representative, or the Respective Volunteered to respond in kind with the Republican, as a separate opposition Political Party. One must, however, keep in mind that the 112th Congress includes members of the Tea Party who ran on the Republican Ticket. The two parties do share the same fiscal and constitutional ideologies, with the Tea Party evidently taking the steps, albeit small ones to being the formation of a third political party that appeals to the disenfranchised moderates and fiscal conservatives from both the Republican and Democrat party ranks. The response by Bachman was pooh-poohed by some members of the press along with, of course, the Republican response. Bachmann’s text is available at www.cnn.com/2011/POLITICS/01/25/sotu.response.bakmann/

How big of an impact did the State of the Union have on those die hard Progressives? If one can stand to watch, also included is the response from MSNBC’s Rachel Maddow on both Obama’s reaching out to Business and her take on Michelle Bachmann.

Progressive Responses (MSNBC)





Republican Response (ABC News)


Tea Party Response (CNN)