ECONOMIC REFORMS Bush to launch new campaign

Some groups are planning a campaign to block the president's Social Security plan.
KNIGHT RIDDER NEWSPAPERS
WASHINGTON -- Getting an early start on an ambitious second-term agenda, President Bush convenes a two-day economic forum today to build support for his plans to limit lawsuits and overhaul Social Security and the federal income tax.
To kick off this first stage of a carefully planned public-lobbying campaign, Bush has invited business leaders, academics and other experts who share his opinions to a "White House Conference on the Economy." Participants will cover a range of topics in a series of panel discussions, but the conversation is sure to echo Bush's views.
After focusing in his first term on the war on terrorism and the Iraq invasion, the president has signaled his intention to make domestic policy the centerpiece of his next four years. His top legislative priorities include far-reaching plans to let workers invest some of their Social Security payroll taxes in the stock market, a sweeping overhaul of the federal income-tax system and new limits on damage awards in civil lawsuits.
'Public education'
White House officials said the two-day conference was part of a "public education" campaign to jump-start a debate that will carry over into the new Congress in January. At Thursday's session, a panel on Social Security will highlight the coming financial strains on a system that soon will have to provide retirement benefits to 79 million baby boomers.
Other panels will examine the societal costs of medical-liability lawsuits and other types of litigation, the economic effects of rising health-care costs, the demand for well-trained workers, and long-term threats to the economy.
"I don't think on Social Security there's going to be any difference of opinion," said panelist Tim Penny, a former Democratic congressman from Minnesota. "I have a point of view that is pretty close to the White House point of view."
Some panelists are major Republican Party donors. Robert Nardelli, the head of Home Depot, will participate in a discussion on "the high cost of lawsuit abuse." He donated $45,000 to the Republican Party and $4,000 to Bush last year, according to data compiled by the Center for Responsive Politics.
But there will be plenty of dissenters outside the conference room at the Ronald Reagan Building and International Trade Center, a few blocks from the White House. A coalition of liberal organizations, including the AFL-CIO, the NAACP and the National Organization for Women, has scheduled a news conference Thursday to announce a national campaign to block the president's Social Security plan.
The groups hope to mobilize public opinion against Bush's plan to partially privatize the federal-retirement insurance system by giving workers the chance to put some of their payroll taxes in private investment accounts. Critics contend that the president's plan, intended to help Social Security avoid bankruptcy projected for 2042, would destabilize the program. Others support the concept of a partially privatized system but worry about the short-term cost of change.
Because Bush's plan would let younger workers divert some of their payroll taxes to private investments, the federal government would have to find some way to maintain benefits to current retirees. Estimates on the size of the funding shortfall range from $800 billion to $2 trillion over 10 years.
No tax increase
The president has ruled out increasing payroll taxes, and advisers say he's willing to pile up short-term debt for the potential long-term benefits of restructuring Social Security. That approach might meet resistance not only from Democrats determined to avoid putting now-guaranteed benefits at risk from market fluctuations, but also from Republicans and business groups worried about the potential drag on the economy from the growing federal debt.
In a letter to the president Monday, the Business Roundtable, a leading business group, urged action to balance the federal budget. The organization, which represents 160 leading corporations, also said it strongly favored reducing spending on Social Security, Medicare and Medicaid.
Although conference participants may toss out various ideas for meeting Bush's goals, White House officials said the gathering wouldn't produce a more specific plan for Social Security. Bush plans to withhold support for any specific proposal until the outline of a consensus emerges in Congress.
"There will be different ideas expressed within the conference about how we move forward on these different issues," White House spokesman Scott McClellan said. "But I think, generally speaking, you'll have people that share his philosophy."