WASHINGTON -- President George W. Bush used his State of the Union address Wednesday to outline an ambitious second-term agenda that includes continued support of a democratic Iraq and a controversial plan to reform the Social Security system.
Speaking to a joint session of Congress, Bush declared the state of the union "confident and strong," but called on lawmakers of both political parties to "do what Americans have always done, and build a better world for our children and grandchildren."
On the issue of the proposed Social Security overhaul, Bush called for a "wise and effective" reform of the system that he said is "headed toward bankruptcy."
He told Congress he plans on having an "open, candid review to find the most effective combination of reforms." But he said the best deal for younger workers is through voluntary personal retirement accounts.
Such investments, the president said, "will grow, over time, at a greater rate than anything the current system can deliver."
Bush said careful guidelines for personal accounts will ensure the money goes only into "a conservative mix of bonds and stock funds" and is not "eaten up by hidden Wall Street fees."
The president said his plan calls for no change in existing benefits for workers age 55 and older.
"I will listen to anyone who has a good idea to offer. We must, however, be guided by some basic principles. We must make Social Security permanently sound, not leave that task for another day. We must not jeopardize our economic strength by increasing payroll taxes," Bush said.
Critics have said the plan will subject seniors to market ups and downs and could add another $2 trillion to the federal debt. They also dispute the notion that the system is in crisis, saying that Bush is using rhetoric to advance his goals.
During his address, Bush promised to submit a federal budget to Congress that "holds the growth of discretionary spending below inflation, makes tax relief permanent and stays on track to cut the deficit in half by 2009."
He said his budget "substantially reduces or eliminates more than 150 government programs that are not getting results, or duplicate current efforts, or do not fulfill essential priorities."
"The principle here is clear: A taxpayer dollar must be spent wisely, or not at all," Bush said.
Bush said that he will also call on lawmakers to consider the recommendations of a bipartisan panel put together to study what he called "an archaic, incoherent federal tax code."
"When their recommendations are delivered, you and I will work together to give this nation a tax code that is pro-growth, easy to understand, and fair to all," he said.
The speech was balanced between domestic and foreign issues, with much of the address focused on the ongoing situation in the Middle East.
Bush said that peace in that region requires the Untied States to "confront regimes that continue to harbor terrorists and pursue weapons of mass murder."
He accused Syria of allowing its territory and parts of Lebanon to be used by terrorists and said he expects it to "end all support for terror and open the door to freedom."
Bush also accused Iran of being "the world's primary state sponsor of terror." Iran is pursuing nuclear weapons while depriving its people of the freedom they seek and deserve, he said.
"And to the Iranian people, I say tonight: As you stand for your own liberty, America stands with you," Bush said.
Saudi Arabia, a longtime U.S. ally, was also urged to adopt democratic reforms, as was Egypt.
"The government of Saudi Arabia can demonstrate its leadership in the region by expanding the role of its people in determining their future," Bush said. "And the great and proud nation of Egypt, which showed the way toward peace in the Middle East, can now show the way toward democracy in the Middle East."
The president called for $350 million to support Palestinian political, economic and security reforms. He said the goal of two democratic states in the Middle East -- Israel and Palestine -- is within reach.
The president also refused to set what he called "an artificial timetable for leaving Iraq," saying that to do so "would embolden the terrorists and make them believe they can wait us out."
Bush said the United States is in Iraq until there is "a country that's democratic, representative of all its people, at peace with its neighbors, and able to defend itself."
"When that result is achieved, our men and women serving in Iraq will return home with the honor they have earned," he said.
In one of the most emotional images from the evening, Bush looked on as Safia Taleb al-Suhail, one of Iraq's leading human rights advocates, embraced Janet Norwood, the mother of Sgt. Byron Norwood, of Pflugerville, Texas, who was killed during the assault on Fallujah. Bush had earlier paid tribute to both of the women.
Bush Touts HIV, Gang Proposals; Vows To Honor 'Values'
During the speech, Bush proposed a three-year initiative to help faith-based and community groups keep kids out of gangs.
He said part of that effort should be to "show young men an ideal of manhood that respects women and rejects violence."
Bush said he wants to give young people, especially young men in cities, "better options than apathy or gangs or jail."
Bush said the anti-gang effort will be part of a broader outreach to at-risk youth through programs ranging from literacy to sports, an effort that will be led by First Lady Laura Bush.
He also called for the reauthorization of the Ryan White Act, a federal law that helps pay the health care bills of persons living with HIV or AIDS.
The victims have to deal with suffering and fear, and updating the act will provide care and treatment for them, and will encourage prevention, the president said.
In addition, Bush said a new focus is needed on African-American men and women, a group with the highest rates of new cases of HIV/AIDS.
The Ryan White Comprehensive AIDS Resources Emergency Act is named for an Indiana teenager whose struggle with AIDS and against AIDS-related discrimination ended with his death in 1990, but helped raise people's consciousness about the disease.
Bush also touted what he called a "great responsibility to our children and grandchildren," which he said is "to honor and to pass along the values that sustain a free society."
In a bow to the religious conservatives who helped re-elect him, the president used the speech to voice support for faith and family, and for those who bring up "responsible, moral children."
"Government is not the source of these values, but government should never undermine them," he said.
The president renewed his anti-abortion call to "build a culture of life" and again called for a constitutional ban on gay marriage.
"Because marriage is a sacred institution and the foundation of society, it should not be redefined by activist judges. For the good of families, children and society, I support a constitutional amendment to protect the institution of marriage," he said.
But he acknowledged ahead of time that the votes aren't there yet to win congressional passage of an amendment on either abortion or gay marriage.
Democrats Denounce Social Security Plan, Iraq Planning
Responding to Bush's State of the Union speech, Democratic leaders denounced his Social Security privatization plan and outlined a path to reduced U.S. involvement in Iraq.
Senate Minority Leader Harry Reid said Bush's Social Security plan would cut the guaranteed benefit by 40 percent while gambling that the stock market would make it up.
"There's a lot we can do to improve Americans' retirement security, but it's wrong to replace the guaranteed benefit that Americans have earned with a guaranteed benefit cut of 40 percent or more.
"Make no mistake, that's exactly what President Bush is proposing," Reid said.
The Nevada senator said the cost of converting the system would hike the nation's debt by $2 trillion.
House Minority Leader Nancy Pelosi said Bush must make Iraqis responsible for their own security soon and accelerate Iraq's economic development.
"We all know that the United States cannot stay in Iraq indefinitely and continue to be viewed as an occupying force," she said.
"Neither should we slip out the back door, falsely declaring victory but leaving chaos. ... We have never heard a clear plan from this administration for ending our presence in Iraq. And we did not hear one tonight," Pelosi said.
Pelosi also called for an increase in regional diplomacy to deprive insurgents of the anti-Americanism she said is fueling their efforts.
America Reacts
Hoping to build support for policies outlined in his State of the Union address, President Bush was to next embark on a two-day swing through North Dakota, Montana, Nebraska, Arkansas and Florida. Here is a sampling of some reaction to his speech in those states.
FLORIDA: Nine residents of The Palace Suites retirement home in the Miami suburb of Kendall watched the address from a row of high-backed chairs in front of a projection-screen television.
As Bush rattled off a litany of his priorities, 89-year-old Thelma Center scoffed: "Who is going to pay for it? Pie in the sky."
Center has six grandchildren and four great-grandchildren. She said she's worried that they will have to go to war and is also concerned how the Social Security changes will affect them.
"It won't affect me, but what's going to happen to 19-year-olds told to invest in the stock market that they know nothing about?" Center asked.
Also watching the speech was Joseph DeArmas, 80, retired professor of Spanish literature. He said he was looking for an explanation for the problems of Social Security and was willing to give Bush a chance.
"I didn't vote for him, but he's my president now and I have to support my president," said the registered Democrat who voted for John Kerry.
NORTH DAKOTA: About 75 people attended a Young Republicans gathering at North Dakota State University in Fargo to watch the president. Pizza and soda were served, and 25 tickets to Bush's appearance on Thursday were raffled off.
Steve Collins, 22, was pleased that the president was tackling Social Security reform. "I don't plan on counting on Social Security when I retire. Something needs to change, and I think the president has a good idea," he said.
For Kelly Hansen, 19, who came to hear the speech from Browns Valley, Minn., the proposal for personal accounts signaled the end of an era. "My grandparents lived through the Depression when Social Security was started. He said all they had to depend on for retirement was Social Security. We're never going to see that again," Hansen said.
MONTANA: Paul Whiting, 67, was watching the speech at his home in Billings - though "with some reluctance."
"I don't trust him anymore. I'm just lacking a lot of trust in what he says," said Whiting, who is semi-retired. He did not vote for Bush.
One big issue for him has been the war in Iraq. Whiting attended peace vigils leading up to the war and said he hoped to see from Bush "some humility."
"Before he got elected the first time, he said we didn't want to become an arrogant nation, or try to impose ourselves on the rest of the world," Whiting said. "I'd like to see him return to that."
Whiting said he planned to be in Great Falls on Thursday, the same day Bush was expected in the city, but said he didn't plan to see the president.
Darin Arganbright, 36, a farmer and father to three kids, watched the speech from his farm near Carter, in north-central Montana.
Arganbright, who considers himself a "Republican, moderate," said he didn't vote for Bush in 2004 because of the president's stand on tax cuts. He and his wife hope to hear Bush in person Thursday in Great Falls.
He said he thought the speech was good, overall, and liked the president's comments on Iraq. "I think there's progress being made there," he said.
As far as the domestic agenda, "I guess he was pretty clear that there's going to be some hard discussions about what needs to be cut and what doesn't. Time will tell if agriculture, and the state of Montana in general, are going to come out in the long run."
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