Bush Plan Cuts Social Security

No longer facing re-election, Bush to lay hand on Third Rail of politics. To pass, his plan must first win more support from Congressional Republicans, who nay feel a curt in social security benefits clashes directly with their plans to remain in office or climb up the political ladder.

President Bush called Thursday night for cutting Social Security benefits for future retirees to put the system on sound financial footing, and he proposed doing so in a way that would demand the most sacrifice from higher-income people while insulating low-income workers.

Saying the retirement program is headed for "bankruptcy," a term his opponents say is an exaggeration, Mr. Bush edged tentatively - but for the first time explicitly - into the most politically explosive aspect of the debate over how to assure Social Security's long-term health: the benefit cuts or tax increases needed to balance the system's books as the baby boom generation ages and life expectancy increases.

Full Transcript

More...