Nov. 4 (Bloomberg) -- President George W. Bush said he would press ahead with the war on terrorism and his goals for the U.S. economy such as changing the tax code during his second term.

``This week, the voters of America set the direction of our nation for the next four years,'' Bush said during a White House press conference. ``Every American has a stake in the outcome'' of the war on terror.

Bush made his Nov. 2 re-election race against John Kerry, the four-term Massachusetts senator, a referendum on his leadership, saying his handling of the war on terrorism and the invasion of Iraq is evidence of his character and determination.

The president vowed to help Iraqis defeat insurgents and ensure that elections are held in January. ``These elections are important and we will respond to the requests of our commanders on the ground,'' he said. ``I have yet to hear from our commanders on the group that they need more troops.''

Aided by expanded Republican control of Congress, Bush will try to carve out private retirement accounts from Social Security, change the tax code, open up more U.S. lands to oil drilling and make permanent his $1.7 trillion in tax cuts, undeterred by record deficits.

``I urge members to pass the appropriations bills that remain, showing spending discipline while focusing on our nation's priorities,'' he said. ``We must reform our complicated and outdated tax code.''

``We must lead on Social Security because our system is not going to be whole for our children and our grandchildren,'' Bush said. ``We'll start on Social Security now.''

Political Capital

Bush, 58, and Vice President Dick Cheney received 58 million votes, or 51 percent of the national popular vote, becoming the first candidates to garner more than 50 percent in a presidential race since 1988, when Bush's father was elected. Kerry and his vice presidential choice, North Carolina Senator John Edwards, received 54.5 million votes, or 48 percent, with 98 percent of precincts reporting, CNN said.

``I earned some political capital and now I intend to spend it,'' he said.

Bush enters his second term with the outlook for economic growth stronger than when his father, George H.W. Bush, unsuccessfully sought re-election in 1992 -- even though he's the first president since Herbert Hoover in the Great Depression to preside over a net loss of employment.

Since Bush became president in January 2001, 821,000 jobs have been lost. The economy will expand 4.4 percent this year, it's fastest since 1999, according to a Bloomberg News survey of economists last month.

To contact the reporter on this story: Holly Rosenkrantz in Washington Or hrosenkrantz@bloomberg.net.

Last Updated: November 4, 2004 11:42 EST