NEW YORK (CNNMoney.com) - President Bush affirmed the economy's recent growth Tuesday, highlighting job and income growth -- and the possibility of another shot at Social Security legislation -- at a presidential news conference.

He urged Congress to make permanent the temporary tax-reduction measures he had passed in 2003, which are due to expire at the end of 2008.

"I believe America prospers when people are allowed to keep more of what they earn so they can make their own decisions about how to spend, save and invest," he said in an opening statement.

Bush reiterated that American dependence on oil was a problem that he intended to address through future legislation.

"I look forward to working with both Republicans and Democrats to advance an agenda that will make us less dependent on foreign oil, an agenda that includes hybrid cars and advanced ethanol fuels and hydrogen cells," the president said.

He said that Social Security reform remained a priority for him, despite the fact that Congress had rejected his previous legislation.

"I think the American people now are beginning to get the picture; that if we don't do something, Social Security and Medicare will go bust," he said. "If we don't do something, future Congresses, not this Congress, but future Congresses are going to be confronted with some serious decisions about raising taxes enormously or cutting benefits drastically."

Developing bipartisan support for new legislation is crucial, he said.

"The new tactic to get people involved in this process is to try to take the politics out of it and bring members of both parties in both chambers together," said Bush. "There's quiet consultations going on to get this commission together of members that could get something put in place that would have a bipartisan appeal to it."

Bush was asked about the increase in the budget deficit since he had taken office.

He said that he had no control over mandatory spending such as Social Security and Medicare.

"In terms of discretionary spending -- that part of the budget over which Congress has got some control and over which the president can make suggestions -- we have suggested that the Congress fully fund the troops in harm's way," he said. "Secondly, we suggested that Congress fund the reconstruction efforts for Katrina. They have spent now a little more than $100 billion. And I think that's money well spent -- a commitment that needed to be kept."

"Thirdly, we have said that, other than security discretionary spending, that we ought to actually reduce the amount of discretionary spending. And were able to do so. Ever since I've been the president, we have slowed the rate of growth of non-security discretionary spending and actually cut nonsecurity discretionary spending," said the president.

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