State of the Union: A Campaign Speech without Substance

Most State of the Union addresses offer more empty promises than substantive policy. Even by that low standard, President Obama's latest annual address to Congress was a disappointment. Instead of proposing realistic solutions to the nation's severe economic challenges, the president offered a campaign speech full of vague goals and budget gimmicks that are either unenforceable, ineffective, or both.

Of course, it wouldn't be an Obama speech without a call for tax increases. The president again advocated increasing tax rates for those earning more than $250,000 per year. As columnist Charles Krauthammer points out, this amounts to "a tax hike of all of 4.6 points for 2 percent of households — 10 years of which wouldn’t cover the cost of Obama’s 2009 stimulus alone." It bears repeating that such a tax increase would hit a substantial number of small businesses -- as many as 34 percent under some proposals, according to the Joint Committee on Taxation. Likewise, the so-called "Buffet rule" could also adversely affect job creators while having little to no positive impact on the deficit. To reduce our debt and encourage economic growth, we need tax reform, not tax increases. Only a complete tax overhaul that lowers rates while eliminating unfair loopholes will increase revenues enough to balance the budget.

Although the president's tax arguments are flawed, at least he is consistent. In the case of job creation, however, President Obama's rhetoric wildly contradicts his actions. For all his talk about lowering the unemployment rate, the president has joined with Senate Democrats to block the 30 bipartisan jobs bills passed by House Republicans. However, the worst instance of job creation malpractice has to be blocking construction of the Keystone pipeline, by which the president singlehandedly destroyed 20,000 shovel-ready jobs as a favor to radical environmentalists.

With outrage over the Keystone decision still echoing, the president's boasts regarding energy policy are all the more absurd. The president took credit for gains in oil and natural gas production and pledged to increase energy exploration. In reality, President Obama's administration has been an obstacle to the development of domestic energy resources. During the president's tenure, the number of deepwater drilling permits approved monthly has dropped by 78 percent from the historical average, a number of previously approved drilling permits have been canceled or postponed, and a proposed five-year ban on the majority of Outer Continental Shelf exploration threatens to make some of our most promising resources off limits through 2017. Once again, House Republicans have passed a number of bills to increase American energy production to lower energy costs and create jobs. But the president and the Democratically controlled Senate have rejected these commonsense measures, as well.

House Republicans remain ready to work with the president on real budget reforms, energy policy and job creation. Unfortunately, it seems President Obama is more interested in campaigning than in getting serious about our economic challenges.