To hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested, and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well-off and well-connected. After all, why would we choose to make deeper cuts to education and Medicare just to protect special interest tax breaks? How is that fair? How does that promote growth?
Now is our best chance for bipartisan, comprehensive tax reform that encourages job creation and helps bring down the deficit[y]. A The American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring; a tax code that ensures billionaires with high-powered accountants can't pay a lower rate than their hard-working secretaries[z]; a tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that create jobs right here in America. That's what tax reform can deliver. That's what we can do together.[aa]
I realize that tax reform and entitlement reform won't be easy. The politics will be hard for both sides. None of us will get 100 percent of what we want[ab]. But the alternative will cost us jobs, hurt our economy, and visit hardship on millions of hardworking Americans. So let's set party interests aside, and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future. And let's do it without the brinksmanship that stresses consumers and scares off investors. Bhe greatest nation on Earth cannot keep conducting its business by drifting from one manufactured crisis to the next. [ac]Wet's agree, right here, right now, to keep the people's government open, pay our bills on time, and always uphold the full faith and credit of the United States of America[ad]. The American people have worked too hard, for too long, rebuilding from one crisis to see their elected officials cause another.
Now, most of us agree that a plan to reduce the deficit must be part of our agenda. But let's be clear: deficit reduction alone is not an economic plan[ae]. A growing economy that creates good, middle-class jobs - that must be the North Star[af] that guides our efforts. Every day, we should ask ourselves three questions as a nation: How do we attract more jobs to our shores? How do we equip our people with the skills needed to do those jobs? And how do we make sure that hard work leads to a decent living?
A year and a half ago, I put forward an American Jobs Act that independent economists said would create more than one million new jobs. I thank the last Congress for passing some of that agenda, and I urge this Congress to pass the rest. Tonight, I'll lay out additional proposals that are fully paid for and fully consistent with the budget framework both parties agreed to just 18 months ago. Let me repeat - nothing I'm proposing tonight should increase our deficit by a single dime. It's not a bigger government we need, but a smarter government[ag] that sets priorities and invests in broad-based growth.