Daniels Gives State of the Union Response

Indiana Governor Mitch Daniels says President Obama isn't responsible for America's fiscal and economic crises.

But in the Republican response to the State of the Union speech Tuesday night, Daniels says the President has failed to deliver on a promise to fix these conditions.

The Governor says Obama has put the country on a course to make it radically worse in the years ahead, while the federal government borrows one of every three dollars it spends.

"The President's grand experiment in trickle-down government has held back rather than sped economic recovery," Daniels said. "He seems to sincerely believe we can build a middle class out of government jobs paid for with borrowed dollars. In fact, it works the other way: a government as big and bossy as this one is maintained on the backs of the middle class, and those who hope to join it."

Daniels says Republicans did credit the President for his aggressive pursuit of terrorists with ties to 9-11, and what he calls 'long overdue changes' in public education.

But he also accused Obama of attacking Republicans in Congress as obstacles as the country looks for ways to reform the tax system. Daniels also says Obama has cancelled plans that could have helped the economy, citing his decision to delay construction of the Keystone XL pipeline.

"The extremism that stifles the development of homegrown energy, or cancels a perfectly safe pipeline that would employ tens of thousands, or jacks up consumer utility bills for no improvement in either human health or world temperature, is a pro-poverty policy," Daniels said.

Daniels says he favors a simpler tax system of 'fewer loopholes and lower rates', and maximizing on domestic energy policies, calling them the 'best break our economy has gotten in years.'

Gov. Daniels, who had considered a presidential run himself last year, also said the safety net of Medicare and Social Security need some repairs for the next generation.