Transcript: President Bush's News Conference

QUESTION: No reaction to the lying?

No reaction?

(LAUGHTER)

BUSH: Is that your question? The answer's no. 

BUSH: Next.

(LAUGHTER)

QUESTION: Sir, I'd like to ask you about the deficit. 

But before I do that, there is a developing story this morning, the helicopter crash in Iraq. Can you tell us what you know about that and what may have caused that and your reaction to it?

BUSH: I know that it is being investigated by the Defense Department. 

And, obviously, any time we lose life it is a sad moment. 

QUESTION: You don't know whether it was weather-related or...

BUSH: Not yet. 

I've heard rumors, but -- wait till the facts.

QUESTION: You're preparing to ask Congress for an additional $80 billion in war spending in Afghanistan and in Iraq. The White House is also prepared to predict a budget deficit of $427 billion for this year.

You talk about sacrifice in this country. Do you think that you're really asking Americans to sacrifice financially when you're asking them to fund the war, yet at the same time perhaps pay an exorbitant amount to set up private accounts and Social Security, pay for a prescription drug benefit, as well as other spending plans?

BUSH: So the...

QUESTION: And tax cuts? Make those permanent? It's a lot of money.

BUSH: OK, let me see if I can dissect your question into separate parts. 

First, Americans pay a lot of taxes. They pay tax at the federal level. They pay tax at the state level. They pay tax at the local level. Americans do pay taxes.

Secondly, I made the commitment to our troops, we'll fund them. And that's exactly what we're doing. We've got people in harm's way. I look forward to working with Congress to fund what is necessary to help those troops complete their mission.

Thirdly, we have presented a plan in the past and will present one here later on this -- in February, that will show -- cut the deficit in half.

BUSH: And it's obviously going to require cooperation with the United States Congress to make some very difficult decisions when it comes to funding the budgets.

Fourthly, we not only were attacked and therefore needed to defend ourselves, we also had a recession. And I felt it was very important to reduce the tax burden on the American people to get out of the recession. In other words, we were dealing with twin problems. 

And because of the tax relief, our economy is growing forward. Last year at this time, the projected budget was $527 billion. You might remember that. It turned out that the budget was $412 billion for last year. 

Now, the budget is projected to be at $427 billion. 

BUSH: We look forward to working to hold the line with the United States Congress on spending. And as I say, I'll promote a package that will show the budget being cut in half over the next five years.

QUESTION: Mr. President, I want to try another way to ask you about Iraq. 

When you made the decision to go to war in Iraq, you clearly had majority support in the country. A string of recent polls have shown a clear majority of the American people now believe it was a mistake to go to war in Iraq. 

You've asked for $80 billion in more money on top of the billions already spent. The Army says it will probably have 100,000 or more troops in Iraq for at least another year. 

What would you say to the American people, including a significant number who supported you at the beginning of the war, who now say, this is not what we were led to believe would happen.

BUSH: A couple of things. I'd say the world is better off without Saddam Hussein in power. A world with Saddam Hussein in power would've been a more dangerous world today.

Secondly, that we're making progress in helping Iraq develop a democracy. And in the long term, our children and grandchildren will benefit from a free Iraq.

In terms of troop levels, obviously we're going to have to the troop levels necessary to complete the mission.

BUSH: And that mission is to enable Iraq to defend herself from terrorists, homegrown or terrorists that come in from outside of the country. 

And so our mission is focused on not only an increase in the number of Iraqis in uniform, whether it be army or national guard or border patrol or police, but to make sure that the quality of their ability to fight is enhanced.

And so, over the next year, we'll be advancing our plan to make sure the Iraqis are better prepared to defend themselves and to fight.

There have been some really fine units that have been stood up so far, and, obviously, we want to make sure there are more units that are capable of fighting. 

BUSH: Listen, this problem will eventually be solved when the Iraqis take the initiative and the Iraqi people see Iraqi soldiers willing to defend them. 

And the American people, when they see the Iraqis step up and begin to fight, will be seeing progress being made toward an objective which will make this world a better place.

I don't want to rehash something that I'm sure you got tired of hearing me talk about on the campaign trail. But it is -- the decisions we make today can affect how people live 30, 40 or 50 years from now. 

And I bring up, once again, my example about working with Prime Minister Koizumi of Japan. And it wasn't all that long ago that Japan was a bitter enemy. And today, because Japan is a democracy and a free country, the Japanese are strong allies with the United States of America, and we're better off for it. 

BUSH: And, listen, the story today is going to be very discouraging to the American people. I understand that. We value life and we weep and mourn when soldiers lose their life. 

But it is the long-term objective that is vital, and that is to spread freedom. Otherwise, the Middle East will continue to be a cauldron of resentment and hate, a recruiting ground for those who have this vision of the world that is the exact opposite of ours.

QUESTION: A question on Social Security, if we may, sir.

There has been, as you work forward to making your ultimate proposal, growing concern among Republicans on Capitol Hill. We had Chairman Thomas last week with some concern about the process and Senator Olympia Snowe on the other side suggesting that she's concerned about a guaranteed benefit.

QUESTION: Are you prepared today to say that those who opt into a potential private account, personal account, could in fact have a guaranteed benefit as well?

And what do you say to Republicans who are beginning to worry?

BUSH: I am looking forward to working with both Republicans and Democrats to advance a plan that will permanently solve Social Security. There is -- I met yesterday with members of the United States Senate, I'm meeting today with members of the House of Representatives to discuss the need to work together to get a solution that will fix the problem.

And here's the problem: As dictated by just math, there is the -- the system will be in the red in 13 years. And in 2042, the system will be broke. That's because people are living longer and the number of people paying into the Social Security trust is dwindling.

BUSH: And so, therefore, if you have a child -- how old is your child?

QUESTION: Fourteen years old.

BUSH: Yes, 14. Well, if she were...

QUESTION: He, sir.

BUSH: He, excuse me. Should've done the background check. 

(LAUGHTER)

When she gets ready to -- when she's 50, the system will be broke, if my math is correct.

In other words, if you have a child who's 25 years old, when that person gets, you know, gets near retirement the system will be bankrupt.

And therefore, it seems like to me -- and if we wait, the longer we wait, the more expensive the solution. So therefore, now's the time to act. 

And Social Security has been an issue that has made people nervous. I understand that. I mean, you know, people felt like it was the third rail of American politics. That means if you touch it, you will have -- it'd be political death.

BUSH: I have said to the American people that our job is to confront issues and not pass them on.

And we have a serious issue with Social Security. The math shows that we have an issue. And now is the time to come together to solve it.

And so, what you're hearing a little bit is whether or not it is worth the political price. I think it is.