Bush Pitches Social Security Fix

In the first State of the Union address of his second term, President Bush laid out an ambitious agenda, including an overhaul of Social Security and continued efforts to spread democracy in the Middle East.

He challenged Congress to take political risks "to strengthen and save Social Security," warning that the government's costliest social program was headed for bankruptcy unless changed.

Mr. Bush's Social Security plan would cut guaranteed retirement benefits for younger Americans by an unspecified amount, but he reassured older Americans their checks would not be affected.

"I have a message for every American who is 55 or older: Do not let anyone mislead you. For you, the Social Security system will not change in any way."

Mr. Bush pledged to work with lawmakers "to find the most effective combination" of revisions, although he has ruled out some remedies such as raising Social Security taxes.

"One of American's most important institutions — a symbol of trust between generations — is also in need of wise and effective reform," the president said.

Immediately after the speech, CBS News polled a scientific sample of viewers who gave their answers over an Internet connection. The poll found an overwhelming majority, 80 percent, said they approved of the president's proposals. But most of those polled, 59 percent, said they didn't think he would be able to achieve his goals; 41 percent said he would achieve them.

Democrats vehemently oppose Mr. Bush's proposal to divert Social Security taxes into private investment accounts, a plan that offers the possibility of higher returns as well as risks from the stock market and almost certainly a cut in guaranteed benefits.

Senate Minority Leader Harry Reid, in the Democratic response to Mr. Bush's speech, said the president's Social Security plan sounds more like "Social Security roulette" than reform.

"It's wrong to replace the guaranteed benefit that Americans have earned with a guaranteed benefit cut of 40 percent or more," Reid, D-Nev., said.

Republicans repeatedly jumped to their feet, cheering and applauding during Mr. Bush's speech. Democrats scowled in their seats, some protesting out loud as the president rattled off new details of his agenda.

"At a couple of points in this address it looked more like the British Parliament than the U.S. Congress," said CBS News Chief White House Correspondent John Roberts. When he said Social Security would expire in 2042, you heard Democrats shouting, 'No.'"

On the international front, Mr. Bush said last Sunday's election in Iraq "opens a new phase in our work in that country. We will increasingly focus our efforts on helping prepare more capable Iraqi security forces – forces with skilled officers, and an effective command structure."

Despite Democrats' criticism, he offered no hint of a timetable for a troop withdrawal from Iraq.

Mr. Bush said promoting peace in the Middle East required the U.S. to "confront regimes that continue to harbor terrorists and pursue weapons of mass murder," singling out Syria and Iran.

He accused Syria of allowing its territory and parts of Lebanon to be used by terrorists, and said he expected Syria "to end all support for terror and open the door to freedom."

And Mr. Bush accused Iran of being "the world's primary state sponsor of terror," and said Iran was pursuing nuclear weapons while depriving its people of the freedom they seek and deserve.

The president also said he would seek $350 million to support political, economic and social reforms for the Palestinians.

"The goal of two democratic states, Israel and Palestine, living side by side in peace, is within reach, and America will help them achieve that goal," he said.

With the United States spending more than $1 billion a week in Iraq, Mr. Bush urged Congress to support his request for an additional $80 billion. "During this time of war we must continue to support our military and give them the tools for victory," he said.

He also reaffirmed his commitment to using diplomacy to deter the nuclear ambitions of North Korea and Iran.

Mr. Bush addressed a joint session of Congress – and a national television audience – from the rostrum of the House chamber. Vice President Dick Cheney and House Speaker Dennis Hastert were seated behind him.

More than two-dozen guests were invited to sit in the first lady's box with Laura Bush, including women who voted in the recent Iraqi and Afghan elections, relatives of fallen U.S. troops and a pilot helping tsunami victims.

Two guests, a former doctor and her patient, were chosen to illustrate Mr. Bush's call for capping awards in medical malpractice lawsuits. Another guest is a small business owner who says he was driven into bankruptcy by asbestos litigation.

The capital's political establishment, from members of Congress and the Cabinet to the diplomatic corps and Supreme Court justices, also gathered for the address. Security was intense, as it was for Mr. Bush's inauguration Jan. 20. Police closed off streets surrounding the Capitol and its office buildings.

Emboldened by his re-election, Mr. Bush also called on lawmakers to move on several controversial fronts, including liberalizing the nation's immigration laws, imposing limits on medical malpractice lawsuits and simplifying taxes.

Transforming Social Security is a political gamble for Mr. Bush and for Republican allies wary of taking big political risks. While Mr. Bush cannot run for another term, most GOP lawmakers face re-election next year and are nervous about tampering with a system that Americans like and see no immediate need to overhaul.

Democrats, on the other hand, run the risk of appearing obstructionist if they simply oppose all of the president's plans.

Under Mr. Bush's Social Security plan, workers would be allowed to divert up to two-thirds of their payroll taxes into private investment accounts, according to a Social Security expert who was briefed on the plan Wednesday. Contributions would be capped at $1,000 per year, rising each year by $100. Social Security's guaranteed benefits would be reduced to make up for money diverted to the private accounts.

Following Wednesday's speech, Mr. Bush was embarking Thursday on a five-state, two-day trip to rally support for his Social Security plan in North Dakota, Montana, Nebraska, Arkansas and Florida.