Obama Demands Action On Taxes and Terrorism

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By Sky News US Team

President Barack Obama said the US has turned the page on years of hardship, as he urged Republicans to back tax increases on the rich to help struggling American families.

In his annual State of the Union speech to Congress, a bullish Mr Obama also called on lawmakers to pass a new authorisation of military force against Islamic State militants.

He said the US-led effort to stop the extremists from advancing in Iraq and Syria is working without sucking the US into another Middle East ground war.

Declaring "the shadow of crisis has passed", the Democratic president said that in the last 15 years the US had been touched by terror, two long wars and a "vicious recession".

"It has been, and still is, a hard time for many," he said. "But tonight, we turn the page."

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Gallery: Key Moments From State Of The Union

A bullish President Barack Obama has delivered his sixth State of the Union speech in the US House of Representatives

The main aisle of the chamber was thronged as usual with lawmakers eager to greet him as he arrived to give his address

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The President greeted the new Republican-led Congress with defiance, calling for his opponents to end their resistance to raising taxes on the wealthy

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He challenged the conservatives to break out of the "tired old patterns" of confrontational politics

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In one of the lighter moments, he told the crowd he has no more campaigns to run, prompting applause from Republicans. "I know because I won both of 'em," he added

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The President wants to increase the capital gains tax rate on couples making more than $500,000 (£330,000) per year from 23.8% to 28%.

He said: "Will we accept an economy where only a few of us do spectacularly well?

"Or will we commit ourselves to an economy that generates rising incomes and chances for everyone who makes the effort?"

Winking at the chamber, he added: "So the verdict is clear. Middle-class economics works. Expanding opportunity works."

Mr Obama, whose approval ratings are on the up, appeared undaunted by Republicans who have just assumed control of both houses of Congress for the first time since he came to office.

He elicited applause from both sides of the aisle as he said: "I have no more campaigns to run."

There was more laughter among lawmakers as he added off the cuff: "I know 'cause I won both of 'em."

Newly elected Iowa Senator Joni Ernst issued the Republicans' rebuttal.

She said: "Americans have been hurting, but when we demanded solutions, too often Washington responded with the same stale mindset that led to failed policies like Obamacare."

Republicans will not pass the new tax increases, but Mr Obama will place them in the difficult position of blocking measures that could offer a lift to the middle class.

The issue of income inequality is likely to be a defining one as Republicans and Democrats vie to replace Mr Obama in the 2016 White House election.

During Tuesday night's nationally televised speech, the President also defended his move to end the US embargo against Cuba.

Alan Gross, the US aid worker whose release by the communist-ruled island helped pave the way toward restoring diplomatic ties, was among Michelle Obama's guests.

He punched the air and said to the President: "Thank you!"

Six years after Mr Obama came to power during the Great Recession, US unemployment has fallen to 5.6%, the stock market has rebounded to near record levels, growth is surging and petrol prices have plummeted.

Using a sporting analogy, he recently pledged to "play offence" in the last two years of his presidency.

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Muke Nyerate