Lawrence Ari Fleischer

“ I think Senator Moynihan, the former Democratic Chairman of the Senate Finance Committee, said it very well when he said this morning that personal retirement accounts are a way to create wealth for individuals, wealth for younger workers, wealth that people can pass on from one generation to the next, which you cannot currently do under the Social Security system. So the answer is the answer that many other Democrats have given. Social Security personal accounts represent a new way of thinking that creates individual wealth that allows people to retire in greater comfort and security. ”

“ The problem with Social Security is, as it is currently constituted, it's a wonderful program for existing seniors and those who are near retirement, which is why the President will make no changes and will preserve the program in its exact form for those people. But for younger workers, they will pay so much more in taxes than they can ever hope to get back in benefits, the only solutions are to raise taxes, which the President does not believe in, to cut benefits or to find a way to let those younger workers have a higher rate of return on the money that is taken out of their paycheck. ”

“ In addition, tens of millions of Americans have become investors in recent years, who never used to be investors before. America is increasingly -- has a new class of people, and the investor class. The last count I saw, there were some 60 million to 70 million Americans who own mutual funds. That's changed the nature of the debate from where it was five or 10 years ago, where the only answers were to cut benefits or to raise taxes. ”

“ You have to allow the commission to complete its work. Let's see what the commission comes up with. But there is only one guarantee. And that guarantee is that unless something is done to save the system, there won't be Social Security for younger workers. The system will start paying out more than it takes in, in just around 15 years from now -- and the Social Security system won't even be able to pay benefits for people who are young. ”

“ The President does not support raising taxes to save Social Security. So why on earth would he put somebody on the commission, for example, who advocates raising taxes? That's a formula for a gridlock, that's a formula for more division, and that's not the formula the President thinks will be the most successful bipartisan one to actually get action on Social Security. Q Who are you kidding? This is window dressing. You want the panel to endorse exactly what you're thinking, why issue a report? ”

“ Now it is just a question of how few people are left who don't support that idea, Democrats, Republicans, many new thinkers -- the new Democrats, for example, are powerful advocates of the idea of personal accounts. So the dynamic of the debate has changed dramatically as a new generation of seniors hits 65 who are used to having control of their own money for investments, and they use their own choices, made their own decisions and have been pleased with the returns they've gotten on money they've invested. ”

“ Since the President made his proposal, there have been reflections from both the left and the right that have raised questions. But the mainstream middle, many people on all sides, including others on the left and right, have supported it. ”

“ One, the dynamic of the debate has changed dramatically in just the last five to 10 years. There used to be a time when people would not even countenance the idea of allowing people to have their own personal retirement accounts. ”

“ Where religious freedom is -- people who want to practice their religion are persecuted. And his remarks will be a very clear call around the world to recognize the importance of religious freedom so people of all faiths can have the right to worship as they see fit. Q Will we get an advance text? Q Will he single out China or Sudan, Ari? MR. FLEISCHER: We are going to try to distribute the remarks tomorrow prior to the speech. So let's talk tomorrow and I'll see what time I can get you an embargoed topic. ”

“ Q Ari, why does the President think he hasn't had more success with moderates, in terms of convincing them or -- one or two, however many he needs to jump ship and support the tax cut that he wanted, the size and the spending at the level he wanted? ”

“ They will work under the President's leadership. So after they make their report, there will be an interim report and then this fall they'll have the final report. Then I think you'll see the President work very diligently in displaying great leadership to work with members of Congress of both parties who are willing to listen and work with him to get Social Security reform. Q Does he expect this commission to help him with Congress? MR. FLEISCHER: He expects the commission to come out with good ideas; and to the degree that good ideas help with Congress, of course the answer is, yes. ”

“ One is to raise taxes, two is to cut benefits, three is to get a higher rate of return. And the President believes the answer lies in the third category and so, too, do many Democrats and Republicans, and that's why he's pleased to put together this commission. Q You're, in effect, cutting benefits by getting people to move part of the money out of the system. ”

“ I think it's likely they will. Q Ari, last month, Koch Industries, one of the nation's largest oil companies, pled guilty to a felony environmental crime. The Washington Post reported also last month that the company and its employees gave $30,000 to President Bush during the presidential race and a similar amount in 1995 as governor of Texas when he was running. Questionis the President now going to give the money back because the company has been convicted of a felony, and does the President have a policy of accepting campaign contributions from convicted felons? ”