Bush says he will use political capital from election

11.00am

Washington - President George W Bush said on Thursday he earned "political capital" from the 59 million people who voted for him and will use it to advance a broad agenda that includes protecting America and reforming the intelligence community, the tax code and Social Security.

"I earned capital in the campaign, political capital, and now I intend to spend it," Bush told a news conference a day after Democrat John Kerry conceded the election to the president and the two men talked about the need for unity.

Bush captured a majority of the national popular vote, winning 51 per cent to Kerry's 48 per cent, or 3.5 million votes more than the Massachusetts senator.

Appearing confident if not a bit tired from the gruelling campaign and all-night anguish over the fate of Ohio, Bush said he would seek greater bipartisanship with members of the Democratic opposition in the US Congress after his first term was marred by partisan battles.

However, he signalled some limits as to how far he would go, saying he would reach out to "everyone who shares our goals." Besides winning re-election in Tuesday's election, Bush saw Republican majorities in the Senate and House of Representatives grow.

The top goals he outlined were reforming Social Security And the tax code, two items in which his preferred outcome clashes sharply with that of Democrats.

On Social Security, he wants to give younger workers the ability to put some of their income in a personal account that could be invested in bonds and stocks. The cost of shifting to private accounts is estimated at between US$1 trillion and US$2 trillion, and Bush has yet to say how he would pay for it.

Democrats fear Bush would alter the tax code's reliance on a progressive tax system to perhaps a flat tax system that would hurt the poor and middle class and favour the wealthy. Bush has given few details of his tax plan, saying he will appoint a task force to study possible changes.

Bush also wants an agreement on Capitol Hill on reforming intelligence after a report on the September 11, 2001, attacks cited widespread intelligence failures. An attempt was made to complete a deal before the election but negotiations bogged down how much power to give a new intelligence director.

"I readily concede, I've laid out some very difficult issues for people to deal with," Bush said and noted that one of his disappointments with Washington "is how bitter this town can become and how divisive."

However, he said he believed there would be good will and that he has become seasoned to the capital's ways in his first term.

Bush's father lost his re-election bid in 1992, putting extra pressure on the son to avoid defeat. But the president said his father taught him, in defeat, a valuable lesson -- "that life moves on."

"And it's very important for those of us in the political arena, win or lose, to recognize that life is bigger than just politics," he said.

Bush said spreading freedom around the world will be a central part of his foreign policy. He said fighting terrorism was essential and he would reach out to foreign leaders but gave no indication of any major concessions to US critics of the Iraq war.

"Whatever our past disagreements, we share a common enemy," Bush said. He received congratulatory phone calls from several leaders including Italian Prime Minister Silvio Berlusconi, Polish President Aleksander Kwasniewski, Russian President Vladimir Putin and Israeli Prime Minister Ariel Sharon.

On the domestic front, Bush showed little inclination to seek a consensus candidate for any Supreme Court openings in a second term, a possibility magnified by the recent illness of Chief Justice William Rehnquist and the advanced ages of several justices.

He insisted he wanted judges who would make a strict interpretation of the US Constitution and not legislate from the bench, "someone who knows the difference between personal opinion and the strict interpretation of the law." Many of Bush's nominees to federal judgeships are languishing in Congress because of Democratic opposition.

- REUTERS