Bush sharpens budget attack on Democrats

WASHINGTON, July 7 (Reuters) Escalating a budget battle with Democrats who control Congress, President George W Bush accused them today of pushing tax-and-spend policies and renewed his veto threat.

Though he stopped short of branding them a do-nothing Congress as some fellow Republicans have, Bush complained that Democrats were ''behind schedule passing the individual spending bills needed to keep the federal government running'' beyond the end of the fiscal year on Sept. 30.

''They are working to bring back the failed tax-and-spend policies of the past,'' he said in his weekly radio address.

''Democrats are failing in their responsibility to make tough decisions and spend the people's money wisely.'' With approval ratings driven down to lows of his presidency largely by the Iraq war, Bush is trying to turn the tables on the Democratic-led Congress. Dismal poll numbers for Congress show growing disappointment with its performance as well.

Bush's sharpened criticism reflects increased tensions with Congress, which came under Democratic control in November's midterm election, slowing his domestic agenda.

Since then, Democratic lawmakers have started to challenge Bush not only on the unpopular Iraq war but with their broad authority to investigate his administration.

Bush also has had trouble keeping Republicans in line. Several influential senators have broken with him over his Iraq policy, and once-loyal conservatives contributed to last week's collapse of his planned immigration overhaul.

Bush and Congress sparred for several months this year over a war-funding bill and now are headed for a showdown on measures to fund items from homeland security to health care.

Bush has proposed a 3 billion spending cap for the fiscal year starting on Oct. 1 and has vowed to enforce it.

Democrats have sketched out a budget blueprint billion higher. They say Bush's insistence on heavy spending on Iraq has starved domestic programs and they also accuse him of fiscal irresponsibility for pushing through large tax cuts in 2001 and 2003, which they say have mostly benefited the rich.

Bush seeks to make those tax cuts permanent while Democrats want to let tax reductions for the wealthiest expire.

Bush accused Democrats of proposing in the next five years the ''biggest tax increase in history'' though he gave no details how he reached that conclusion. ''I have made clear that I will veto any attempt to take America down this road,'' he said.

Bush's fiscal policies also have come under criticism by conservatives furious that he allowed spending to surge when Republicans led Congress.

REUTERS SV PM1954