Full text of 2007 State of the Union speech

Spreading opportunity and hope in America also requires public schools that give children the knowledge and character they need in life. Five years ago, we rose above partisan differences to pass the No Child Left Behind Act — preserving local control, raising standards and holding schools accountable for results. And because we acted, students are performing better in reading and math, minority students are closing the achievement gap.

Now the task is to build on this success, without watering down standards ... without taking control from local communities ... and without backsliding and calling it reform. We can lift student achievement even higher by giving local leaders flexibility to turn around failing schools ... and by giving families with children stuck in failing schools the right to choose some place better. We must increase funds for students who struggle — and make sure these children get the special help they need. And we can make sure our children are prepared for the jobs of the future, and our country is more competitive, by strengthening math and science skills. The No Child Left Behind Act has worked for America’s children — and I ask Congress to reauthorize this good law.

A future of hope and opportunity requires that all our citizens have affordable and available healthcare. When it comes to healthcare, government has an obligation to care for the elderly, the disabled, and poor children and we will meet those responsibilities. For all other Americans, private health insurance is the best way to meet their needs. But many Americans cannot afford a health insurance policy.

And so tonight, I propose two new initiatives to help more Americans afford their own insurance. First, I propose a standard tax deduction for health insurance that will be like the standard tax deduction for dependents. Families with health insurance will pay no income or payroll taxes on $15,000 of their income. Single Americans with health insurance will pay no income or payroll taxes on $7,500 of their income. With this reform, more than 100 million men, women, and children who are now covered by employer-provided insurance will benefit from lower tax bills.

At the same time, this reform will level the playing field for those who do not get health insurance through their job. For Americans who now purchase health insurance on their own, this proposal would mean a substantial tax savings -- $4,500 for a family of four making $60,000 a year. And for the millions of other Americans who have no health insurance at all, this deduction would help put a basic private health insurance plan within their reach. Changing the tax code is a vital and necessary step to making healthcare affordable for more Americans.

My second proposal is to help the states that are coming up with innovative ways to cover the uninsured. States that make basic private health insurance available to all their citizens should receive federal funds to help them provide this coverage to the poor and the sick. I have asked the Secretary of Health and Human Services to work with Congress to take existing federal funds and use them to create “Affordable Choices” grants. These grants would give our Nation’s governors more money and more flexibility to get private health insurance to those most in need.

There are many other ways that Congress can help. We need to expand Health Savings Accounts ... we need to help small businesses through Association Health Plans ... we need to reduce costs and medical errors with better information technology ... we will encourage price transparency ... and to protect good doctors from junk lawsuits we need to pass medical liability reform. And in all we do, we must remember that the best healthcare decisions are not made by government and insurance companies, but by patients and their doctors.

Extending hope and opportunity in our country requires an immigration system worthy of America — with laws that are fair and borders that are secure. When laws and borders are routinely violated, this harms the interests of our country. To secure our border, we are doubling the size of the Border Patrol — and funding new infrastructure and technology.

Yet even with all these steps, we cannot fully secure the border unless we take pressure off the border — and that requires a temporary worker program. We should establish a legal and orderly path for foreign workers to enter our country to work on a temporary basis. As a result, they won’t have to try to sneak in — and that will leave border agents free to chase down drug smugglers, and criminals, and terrorists. We will enforce our immigration laws at the worksite, and give employers the tools to verify the legal status of their workers — so there is no excuse left for violating the law. We need to uphold the great tradition of the melting pot that welcomes and assimilates new arrivals. We need to resolve the status of the illegal immigrants who are already in our country — without animosity and without amnesty.

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