(AP) - Declaring the American dream under siege, President Barack Obama called Tuesday night for a flurry of help for a hurting middle class and higher taxes on millionaires, delivering a State of the Union address packed with re-election themes. Restoring a fair shot for all, Obama said, is "the defining issue of our time."

Obama outlined a vastly different vision for fixing the country than the one pressed by the Republicans challenging him in Congress and fighting to take his job in the November election. He pleaded for an active government that ensures economic fairness for everyone, just as his opponents demand that the government back off and let the free market rule.

Standing in front of a divided Congress, with bleak hope this election year for much of his legislative agenda, Obama spoke with voters in mind.

"We can either settle for a country where a shrinking number of people do really well, while a growing number of Americans barely get by," Obama said. "Or we can restore an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules."

At the core of Obama's address was the improving but deeply wounded economy - the matter still driving Americans' anxiety and the one likely to determine the next presidency.

"The state of our union is getting stronger," Obama said, calibrating his words as millions remain unemployed. Implicit in his declaration that the American dream is "within our reach" was the recognition that, after three years of an Obama presidency, the country is not there yet.

He spoke of restoring basic goals: owning a home, earning enough to raise a family, putting a little money away for retirement.

"We can do this," Obama said. "I know we can." He said Americans are convinced that "Washington is broken," but he also said it wasn't too late to cooperate on important matters.

Republicans were not impressed. They applauded infrequently, though they did cheer when the president quoted "Republican Abraham Lincoln" as saying: "That government should do for people only what they cannot do better by themselves - and no more."

Indiana Gov. Mitch Daniels, offering the formal GOP response, called Obama's policies "pro-poverty" and his tactics divisive.

Obama will follow up Tuesday night's address with a three-day tour of five states key to his re-election bid. On Wednesday he'll visit Iowa and Arizona to promote ideas to boost American manufacturing; on Thursday in Nevada and Colorado he'll discuss energy, and in Michigan on Friday he'll talk about college affordability, education and training.

Polling shows Americans are divided about Obama's overall job performance but unsatisfied with his handling of the economy.

To see the entire State of the Union address, go to Channel 612 on your iO Digital Cable box and select iO Extra.