Obama: We can't cut our way to prosperity

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Happy new year about it.

-- central promise of my campaign for president wants to change the tax code that was too skewed towards the wealthy.

At the expense of working middle class Americans.

Tonight we've done that.

Thanks to the votes of Democrats and Republicans in congress.

-- -- all that raises taxes on the wealthiest 2% of Americans while.

-- -- middle class tax like that could have sent the economy back in -- recession obviously had a severe impact on families all across America.

I want to thank all of the leaders of the house and senate.

In particular -- want to thank.

The work that was done by my extraordinary vice president Joseph Biden.

As well as.

Leader Harry Reid.

Speaker Boehner Nancy Pelosi.

And Mitch McConnell everybody worked very hard on this -- -- and you know once again I want to thank you agree or.

Under this law more than 98% Americans and 97% 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 -- college.

Companies will continue to receive tax credits for research that they do the investments they -- and the clean energy jobs that they create.

And two million Americans were out of work but.

Of their walk and on the pavement every day we're gonna continue to receive unemployment benefits as long as there.

Actively looking for job.

But I think we all recognize.

This law is just one step in the broader effort to strengthen our economy and -- opportunity.

For everybody.

The fact is the deficit is still to -- And we're still investing too little in the things that we need for the economy to grow as fast as -- sure.

And that's why speaker Boehner and I originally try to negotiate -- larger agreement.

That would put this country on a path to paying down its debt.

While also putting Americans back to work rebuilding roads and bridges and providing investments in areas like education and job training.

Unfortunately.

There just wasn't enough support or time for that kind of large agreement in lame duck session of congress.

And that failure comes will -- cost as the messy nature of the process over the past several weeks has made business more and certain.

And consumers less confident.

But we are continuing to chip away at this -- step by step.

Last year I signed in -- one point seven trillion dollars in deficit reduction.

Tonight's agreement further reduces the deficit by raising 620 billion dollars in revenue from the wealthiest households in America.

And there will be more deficit reduction as congress decides what to do about the automatic spending cuts that we have now delayed for two months.

I want to make this point as -- demonstrated throughout the past several weeks.

I am very open a couple months.

I agree with.

Democrats and Republicans that the aging population and rising cost of health care makes Medicare the biggest contributor -- our deficit.

I believe we've got to find ways to reform that program without hurting seniors who count on to -- -- And I believe that there is further unnecessary spending and government that we can eliminate.

But we can't simply cut our way to prosperity.

Cutting spending has to go hand in hand with further reforms for tax code so that -- corporations and individuals can take advantage of loopholes and deductions that -- available to most Americans.

And we can't keep cutting things like basically search and new technology.

And still expect to succeed in -- for century economy.

So.

We're gonna have to continue to move forward in deficit reduction.

But we have to do and a balanced way making sure that we are -- even as we get a handle.

On our -- Now.

One last one I won't make while all negotiated over many things.

I will not have another debate what this congress over whether or not they should pay the bills.

That it may have already racked up through the -- that they passed.

And they repeat.

We can't not paid bills that we've already -- 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 the fiscal Clinton.

People remember back in 2011 last time this course of action was threatened our entire -- recovery.

Was put -- -- consumer confidence plunged business investment plunged.

Growth dropped.

We can't go down that path.

Today's agreement and shrines I think principal in the -- to whom remain in place as long as I'm president.

The deficit needs to be reduced in a way that's balance.

Everyone pays their fair share.

Everyone does their part.

-- our economy works best that's how we grow.

The sum total of all the budget agreements we've reached so far proves that there is a path forward that it is possible.

If we focus not on our politics.

But what's but on what's right for the country and the one thing that I think hopefully in the new year will focus on -- seeing if we can.

Put a package like this together with a little bit less drama.

A little less brinksmanship.

Not scare the heck out of folks quite as much.

We can come together as Democrats and Republicans.

To cut spending and raise revenue way to reduce our deficit.

Protects our middle class provides letters into the middle class for everybody -- won't work or.

We can find a way to afford the investments that we need to grow and compete.

We can settle this debate.

Or the very least not allow it.

Be sold all consuming all the time that 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 -- of -- much.

It's not just possible to do these things it's an obligation to ourselves.

And future generations.

And I look forward to working -- Every single member of congress.

To meet this obligation.

In the new year and I hope that everybody that gets at least.

-- like yes few days.

So that people who -- flush themselves because we're gonna have a lot of work to do what -- Banks are quite happy -- it.

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Obama: We can't cut our way to prosperity

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