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Focusing on America as a nation of big ideas, President Obama told Congress on Tuesday night that he wants to reorganize the federal government to make it serve a more competitive nation while also simplifying the tax code, doubling exports in three years and investing in free enterprise that drives innovation.

In a speech that clearly aimed at tacking toward the middle, the president offered suggestions that may be welcomed by many of his political opponents -- reducing federal spending, abolishing cumbersome regulations, cutting the deficit and even changing his signature health care law.

The offer to cooperate is part of a new theme by the White House about "shared responsibility." Offered up as the president tries to lay the groundwork for a 2012 re-election bid, Obama's move toward cooperation meant a speech filled with something for everyone. 

The president appealed to his own party by saying he wants to increase infrastructure investments and expand educational opportunities, advance clean energy by cutting off tax breaks for oil companies and securing Social Security so no one faces cuts in benefits.

Most of all, the president urged the country to think big, even if government must recede in the process.

"This is our generation's Sputnik moment," the president said, referring to the space race of 50 years ago. "We are the first nation to be founded for the sake of an idea – the idea that each of us deserves the chance to shape our own destiny."

In the pall of a chamber sombered by the shooting of Rep. Gabrielle Giffords and 18 others in Tucson less than three weeks ago, Obama infused his remarks with bipartisan tones and highlighted some of America's past achievements.

Saying he wants to set the country on another step toward greatness, Obama argued the future is America's to win as long as it doesn't sit still.

But the president also made suggestions that are sure to divide lawmakers. To support innovation needed to develop the next Apollo Projects, Obama said he wants to cut tax credits for oil companies.

"We need to get behind this innovation. And to help pay for it, I'm asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies. I don't know if you've noticed, but they're doing just fine on their own. So instead of subsidizing yesterday's energy, let's invest in tomorrow's," Obama said.

The president also appealed to lawmakers to let children of illegal immigrants stay in the United States.

"Today, there are hundreds of thousands of students excelling in our schools who are not American citizens. Some are the children of undocumented workers, who had nothing to do with the actions of their parents. They grew up as Americans and pledge allegiance to our flag, and yet live every day with the threat of deportation. Others come here from abroad to study in our colleges and universities. But as soon as they obtain advanced degrees, we send them back home to compete against us. It makes no sense," he said, 

"Now, I strongly believe that we should take on, once and for all, the issue of illegal immigration. I am prepared to work with Republicans and Democrats to protect our borders, enforce our laws and address the millions of undocumented workers who are now living in the shadows. I know that debate will be difficult and take time. But tonight, let's agree to make that effort. And let's stop expelling talented, responsible young people who can staff our research labs, start new businesses, and further enrich this nation," the president continued.

On the debt, Obama proposed freezing domestic discretionary spending for five years, though he acknowledged debt reduction will be difficult since he didn't agree with his own deficit commission's recommendations.

Instead, the president suggested simplifying the tax code to get rid of loopholes for special interests. 

"Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years -- without adding to our deficit," he said.

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