Bush attacks Democrats over taxes

WASHINGTON, Oct 28 (Reuters) President George W Bush, struggling to boost Republicans at risk of losing control of the US Congress, said today his tax cuts were spurring vibrant economic growth and accused Democrats of wanting to raise taxes.

''Cutting your taxes worked,'' Bush said in his weekly radio address. ''Unfortunately, the Democrats are still determined to raise your taxes, and if they gain control of the Congress, they can do so without lifting a finger.'' In a campaign dominated by growing concerns about the unrelenting bloodshed in Iraq, Bush has fallen back on a favorite Republican campaign theme that if Democrats were in control they would raise taxes, hurting the economy.

Polls show Democrats have a good chance of seizing control of the House of Representatives and possibly also the Senate in the November. 7 election.

New York Democratic Rep Charles Rangel, who would likely become chairman of the tax-writing Ways and Means Committee if his party wins a majority in the House, said he had no intention of trying to roll back the tax cuts, which are due to expire in 2010, the Washington Post reported today.

''I don't want to go retroactive in terms of any of the tax cuts. I think retroactive tax increases are bad tax policy,'' Rangel told the Post.

But Rangel said he's against extending the tax cuts beyond 2010.

Republicans seeking to keep votes have raised the specter of Rangel's elevation to chairmanship of the Ways and Means Committee and his opposition to extending the tax cuts.

Democrats contend Bush's cuts in tax rates on income and investments have overwhelmingly favored the wealthy.

They say Bush's economic policies have racked up huge deficits, while failing to help middle-class Americans struggling with lackluster wage gains and rising costs for health care and college tuition.

While the US economy grew briskly in the first half of this year, fresh data from the Commerce Department showed it slowing down amid a cooling off in the once-sizzling housing market.

Gross domestic product grew at sluggish 1.6 per cent in the three months ended in September, the government said.

Bush said the slower pace of growth had been expected but added, ''The evidence still points to a vibrant economy.'' In the final 10 days before Election Day, Bush plans a blitz of campaign appearances. He was headed today to Indiana for a campaign rally and to South Carolina for a fund-raiser and a speech at Charleston Air Force Base.

REUTERS PB RK2245