In fact, since Bush has already allocated virtually all of the surplus he anticipates in the federal operating budget to proposed tax cuts and new spending, it's not clear where else he could obtain the money needed to fund the accounts.
Showing Support for Medicare Reform
Though Bush focused Monday mostly on Social Security, he also reaffirmed his support for a bipartisan Medicare reform plan sponsored by Sens. John B. Breaux (D-La.) and Bill Frist (R-Tenn.). That plan would transform Medicare from the current program, where Washington directly compensates doctors and hospitals, into a system where the government provides seniors subsidies to purchase private insurance.
"This is a realistic reform--balancing personal and public responsibilities," Bush said. "Just as important, it keeps government out of the business of setting prices or dictating treatments, which it must never do."
The plan's goal is to lower costs by increasing competition, though Gore and other critics say it would result in higher premiums for seniors who want to remain in the conventional program. The plan would also provide the elderly with subsidies to help them purchase prescription drugs, though the benefit is more narrowly targeted toward low-income seniors than the plan Gore and Clinton have proposed.
Times staff writer Edwin Chen contributed to this story.
