Last night many Americans tuned in to see what President Obama had to say about the State of the Union. In case you missed it, below is the video, a budget summary, and the transcript provided by the White house.
State of the Union Address Video
Summary of the Key Budget Points
Like much of his speech, Obama had powerful statements about what needed to be done for economical improvement, but the question is: Can the government and Obama follow through? Jump to the part of the speech where Obama talks about the budget or read the key points mentioned here:
- Freeze on Domestic Spending: Obama said that by freezing annual domestic spending for the next five years the country would be able to reduce the deficit by $400 billion over the next decade. He mentioned that the freeze will bring cuts to like community action programs, and military spending. There have already been pay cuts for federal employees.
- National Deficit: These cuts will only account for annual domestic spending which only accounts for a little over 12% of out budget, the $400 billion may sound like a lot of savings, but with projections of a 6.2 trillion dollar deficit accumulating in the next few years the $400 billion sounds like pennies.
- Deep cuts to excessive spending
- Call out to Millionaires: The president asked millionaires to give up their tax break and mentioned that a permanent tax cut extension is out of the question budget-wise.
- Invest: Obama highly pushed the concept of investing. He said by investing in innovation, education and infrastructure, America will become a better environment for businesses and job creation. In order to help businesses Obama asked congress to lower corporate tax rates for the first time in 25 years.
To read President Obama’s State of the Union Address, click here.