NEW YORK (CNN/Money) - In his first news conference since winning a second term in office, President Bush touched on a variety of economic issues Thursday, from reducing the budget deficit to revamping Social Security and the tax code.

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"The Social Security system is not going to be whole for our children and grandchildren, and reforming [it] will be a priority," he said, adding he wanted to start reforming it "now" though he didn't offer specifics.

The future of Social Security was a contentious issue in the presidential campaign, with both Bush and Sen. John Kerry agreeing that something needs to be done to fix the current system. Bush has said he favors some privatization of individual accounts.

When asked about the cost of privatizing the system, Bush said, "Sure there will be costs, but the cost of doing nothing will be greater. It's a difficult issue, otherwise it would have been done."

Bush also touched upon the budget deficit, which has ballooned in recent years as the country fought wars in Afghanistan and Iraq while the economy recovered from a recession, though growth remains tepid.

"If you look at the [proposed] budget, it does have the deficit being cut in half in five years," he said. "With the economy growing, more revenues are coming into the Treasury. When the revenue streams begin to increase, along with spending discipline, we'll see the deficit start to decrease."

As far as the cost of the war in Iraq, the president said the White House will work with the Office of Management and Budget and the Department of Defense to provide a realistic assessment of what the cost will be.

Another of Bush's priorities has been restructuring the tax code, a subject he frequently spoke about during his campaign.

"The goal is to create a fair system that won't be complicated," he said Thursday, though again, he offered no new specific proposal.