Bush To Push For Big Changes

In Social Security, Taxes And Medical Malpractice

(CBS/AP)  Contending Americans have embraced his conservative agenda, President Bush pledged Thursday to aggressively pursue major changes in Social Security, the tax code and medical malpractice awards, working with Democrats if they are receptive and leaving them behind if they're not.

"I earned capital in the campaign, political capital, and now I intend to spend it," Bush said a day after a decisive victory that also saw the GOP gain seats in both the House and Senate.

CBS News Correspondent Wyatt Andrews reports the president's idea of reforming Social Security begins with creating private accounts for Americans under age 55.

Right now in every paycheck, workers pay a 6.2 percent tax into the system. Depending on the rules of the reform, you could divert anywhere from 2 to the entire 6.2 percent out of the system and into your personal account -- including an approved account invested in stocks and bonds.

However - and this is a critical detail - your account would be untouchable. No withdrawals until you retire, reports Andrews.

Because of the election, Social Security, the once untouchable program, is on the table and on top of the pile. And it will rank among the most ambitious reforms any President or Congress has ever attempted, says Andrews.

"I'll reach out to everyone who shares our goals," said Mr. Bush, who 24 hours earlier had promised to try to win over those who voted for his Democratic opponent.

Buoyant and relaxed on Thursday, President Bush cracked jokes at his first post-election news conference and said he had not decided on any changes in his Cabinet for the second term.

He took congratulatory calls from world leaders from Russia, Poland, Iraq, Afghanistan, Israel and Italy before flying to Camp David for four days of rest after the grueling campaign.

As U.S. forces in Iraq mobilize for an all-out offensive in Fallujah and other Sunni militant strongholds, the president refused to say how much the war would cost or whether he planned to increase or cut troop strengths.

"I have yet to hear from our commanders on the ground that they need more troops," the president said. He is expected to ask Congress early next year for up to $75 billion for Iraq, Afghanistan and operations against terrorism.

The president was unapologetic about the unpopularity of his decisions in many world capitals, such as his commitment to spread democracy in the Middle East. "Listen, I've made some very hard decisions: decisions to protect ourselves, decisions to spread peace and freedom." The war on terror would remain a priority, he said.

President Bush said that at home, he had set an unmistakable direction for the country and he emphasized anew he does not foresee the need for any tax increase despite big budget deficits.

Coming from a campaign that offered clear policy choices, Mr. Bush said: "When you win, there is a feeling that the people have spoken and embraced your point of view, and that's what I intend to tell the Congress." He urged lawmakers to show discipline on spending bills and to enact an intelligence reform bill when they return to town later this month.

On Capitol Hill, Democrats were stunned by some unexpected losses in the Senate and the defeat of their leader, Tom Daschle, an 18-year veteran. Republicans also gained seats in the House.

Democrats promised to challenge Mr. Bush's priorities.

"What the president is doing in fiscal policy is weakening the country, making us more vulnerable. It's so strange," said Sen. Kent Conrad of North Dakota, top Democrat on the Senate Budget Committee. "There's no free lunch, and at the end of the day our country will have a tremendous price to pay for this profligacy."

North Dakota, Conrad's home state, voted 63 percent for Mr. Bush and 36 percent for Sen. John Kerry.

North Dakota's junior senator nonetheless agrees with Conrad.

"All he talked about today were things that will increase the deficit," said Democratic Sen. Byron Dorgan, commenting after the Bush news conference. "He's going to have to at some point confront reality."

Said President Bush, "I readily concede I've laid out some very difficult issues for people to deal with. And I would hope to be able to work with Democrats to get this done."

In setting priorities, President Bush said some issues would be at the front of the line simply because they have been at the center of the political arena before. Capping medical malpractice limits, a prized goal of Republicans, will be one of his first proposals because it "had been debated and got thwarted a couple of times," the president said.

Education initiatives could move quickly, too, said the president, while Social Security reform "will require some additional legwork."

Another divisive issue, reforming the complicated U.S. tax system, is "going to take a lot of legwork to get something ready for a legislative package. I fully understand that," the president said. He has avoided specifics but has said ideas such as a national sales tax deserve study.

"I've earned capital in this election and I'm going to spend it for what I told the people I'd spend it on, which is — you've heard the agenda: Social Security and tax reform, moving this economy forward, education, fighting and winning the war on terror," the president said.

Complaining about political bitterness and division, Mr. Bush said there was "a certain practicality to life here in Washington. And that is, when you get a bill moving, it is important to get the votes, and if politics starts to get in the way of getting good legislation through, you know, that's just part of life here."

He said he was hoping for bipartisan support but focused on results.

In an election where many voters said moral values were a key issue, Mr. Bush cautioned against suggestions that the United States was becoming politically divided by religion.

"I will be your president regardless of your faith, and I don't expect you to agree with me necessarily on religion," President Bush said. "As a matter of fact, no president should ever try to impose religion on our society. ... The great thing that unites is the fact you can worship freely if you choose, and if you — you don't have to worship."