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State of the Union
Now, the domestic agenda
THE SOCIAL SECURITY SPEECH: The president outlines his plan for "wise and effective reform."
By ANITA KUMAR and WES ALLISON
Published February 3, 2005
WASHINGTON - President Bush encouraged Congress Wednesday night to let workers invest some of their Social Security taxes in stocks and bonds even as he warned that securing the system for future retirees may require a series of painful steps.
In the first State of the Union Address of his second term, Bush unveiled some long-sought after ideas on how he would radically revamp Social Security, but he omitted key details, including how he would pay the billions of dollars in initial costs.
"One of America's most important institutions - a symbol of trust between generations - is also in need of wise and effective reform," Bush said. "Social Security was a great moral success of the 20th century, and we must honor its great purposes in this new century."
Social Security was the centerpiece of a wide-ranging speech designed to sell Congress and the American people on an aggressive second-term agenda focused heavily on domestic issues, while pledging to continue the work in Iraq and spread democracy throughout the world.
Bush addressed a joint session of Congress and the nation with the lowest approval rating of any second-term U.S. president since Richard Nixon. But he is also the first Republican in 80 years to start his second term with a Republican majority in Congress, and he offered a slate of ambitious domestic proposals following a re-election in November that he considers a mandate and a last chance for change.
Bush opened the door to a series of potentially painful steps for reforming Social Security, including limiting benefits for wealthy retirees; raising the retirement age; tying benefits to inflation rather than wage increases; and discouraging early collection of Social Security benefits. But he said he would not raise taxes.
"All these ideas are on the table," Bush said. "I know that none of these reforms would be easy. But we have to move ahead with courage and honesty because our children's retirement security is more important than partisan politics."
The president acknowledged his proposals alone won't be enough to fix Social Security, and called on Congress to help him create a larger proposal, despite the political risks of tinkering with the nation's most popular entitlement program.
Under Bush's plan, retirees and workers 55 and older would receive Social Security benefits without any changes.
Younger workers would be offered the opportunity to invest starting up to two-thirds of payroll taxes in 2009. All younger workers, whether they opt for accounts or not, would see a cut in their Social Security benefits by 40 percent or more.
"If you are a younger worker, I believe you should be able to set aside part of that money in your own retirement account, so you can build a nest egg for your own future," Bush said.
Democrats insist that less dramatic changes, such as increasing payroll tax payments by upper-income workers or changing how benefits are calculated, would be enough to fix any future problems.
They argue that Bush's proposals would add trillions of dollars to the national debt while privatizing a program that has kept millions of Americans out of poverty since the first benefit check was delivered in 1940.
"The Bush plan isn't really Social Security reform. It's more like Social Security roulette," Senate Minority Leader Harry Reid said. "Democrats are all for giving Americans more of a say and more choices when it comes to their retirement savings. But that doesn't mean taking Social Security's guarantee and gambling with it."
In his 53-minute speech, Bush was upbeat about the economy, last weekend's successful election in Iraq and the rebuilding of Afghanistan. But he also warned of the continued danger the nation faces with the threat of terrorism and that Social Security was headed for a crash.
With Republicans cheering heartily throughout and Democrats occasionally hissing or interjecting "No, no, no," especially during the section on Social Security, the president alternately promised to halve the deficit while asking Congress to fund a host of new programs.
He also promised that the United States would remain a key player in the Middle East, honoring fallen soldiers in Iraq while praising the apparent success of Sunday's elections there, and asking Egypt and Saudi Arabia to help lead the way toward more democracy in the region. He said he would ask Congress for $350-million to support Palestinian political, economic and security reforms.
He offered no timetable for a troop withdrawal from Iraq. "We are in Iraq to achieve a result: A country that is democratic, representative of all its people, at peace with its neighbors, and able to defend itself," he said. "And when that result is achieved, our men and women serving in Iraq will return home with the honor they have earned.
Much of Bush's State of the Union addresses in his first term focused on foreign issues, protecting the United States against terrorism after Sept. 11 and fighting the war in Iraq. But Wednesday's speech was split evenly between domestic and foreign issues.
He talked of expanding the No Child Left Behind Act to include standardized tests in high school, urged Congress to make recently enacted tax cuts permanent over the next decade, to deal with the rising cost of health care and call for an "up or down vote" or his judicial nominees, some of whom have been blocked by Senate Democrats.
He called for fiscal discipline as he prepares to release an extremely tight budget Monday that calls for substantial reductions or elimination of more than 150 government programs, to cut the record deficit in half by the end of his term in 2009.
Bush met the expectations of social conservatives who strongly supported his re-election, renewing his call for a constitutional amendment banning gay marriage and reiterating his support for restrictions on embryonic stem cell research.
He also promised to continue his faith-based initiative, which gives federal funding to social service programs run by religious groups.
He gave Democrats a few things to cheer, too, announcing a three-year program designed to deter young men out of gangs that is to be led by first lady Laura Bush. He proposed expanding the use of DNA evidence to prevent wrongful convictions and, as Democrats cheered and Republicans looked befuddled, he said he would send Congress a proposal to fund special training for defense attorneys in death penalty cases.
"People on trial for their lives must have competent lawyers by their side," he said.
The State of the Union speech is the closest thing America has to the convening of a royal court: The Joint Chiefs of Staff in dress uniforms, the medals on their chest gleaming in the stage lights. Democratic Sen. John Kerry, with a Florida tan, shaking hands with Rep. Kendrick Meek, D-Miami, his campaign chief in Florida. Sen. Hillary Clinton, D-N.Y., fresh from fainting at a speech this week, assuring colleagues she feels just fine.
Just before 9, the procession down the center aisle of the House chamber began formally. After the Cabinet came the crash of the gavel, and the sergeant of arms announced President Bush. He marched down the center, smiling, poised, confident, shaking hands with Democrats as well as his fellow Republicans. After his speech, as he tries to turn his words into policy, he will need them, too.
Times researcher Carolyn Edds contributed to this report.
[Last modified February 3, 2005, 09:27:34]
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