Democrats say Bush's comments helped bring downturn

WASHINGTON (CNN) -- House and Senate Democratic leaders took aim at President Bush on Thursday, saying he's responsible for an economic downturn because he's used the bully pulpit to repeatedly cite a slowing economy as he pitches his 10-year, $1.6 trillion tax cut.

House Minority Leader Richard Gephardt, D-Missouri, claims President Bush is participating in "a talking down of the economy."

Senate Minority Leader Tom Daschle, D-South Dakota, and House Minority Leader Richard Gephardt, D-Missouri, came to a press conference armed with charts tracking comments Bush and his deputies made about the economy. Gephardt called the remarks an irresponsible "self-fulfilling prophecy."

"What we're seeing is a talking down of the economy, the suggestion of a recession, the suggestion of a slowdown in order to justify what looks like it's going to be a $3 trillion tax cut," said Gephardt.

"I think that kind of economic leadership is irresponsible," he added. "I think it's a mismanagement of our economy. I think rather than talking it down, the president ought to be pointing out the positive signs that are still there in the economy."

Sen. Richard Durbin, D-Illinois, joined in the criticism.

"The president has talked down the economy in an effort to talk up his tax cut," Durbin said at a separate event. "It appears that when President Bush looks at the economy he doesn't see the doughnut -- he just sees the hole. We believe that there is strength in America and in our economy, and that we can recover. But the president has to change his tune."

The Democrats stepped up their attack on Bush a day after House Republicans used the downturn to buttress their case for accelerating and expanding the tax-cut proposal. GOP lawmakers said it will help stimulate the economy.

"They don't want a $1.6 trillion dollar tax cut. Now they want a $3.2 trillion dollar tax cut. I don't know why they don't just give the entire federal budget away," said Daschle.

"But this is irrational, this is wrong, and I believe the more they use the 'R' word, the more trouble we're going to find ourselves in," Daschle added.

House Republicans said the additions to the tax cuts they made yesterday make the total price tag roughly $2.2 trillion over 10 years.

Echoing some conservative economists' criticisms of the Bush tax plan, the Democratic leaders questioned whether it would provide any real stimulus since the deepest cuts won't kick in until the last 5 years.

"Less than 1 percent of his tax cut takes effect this year. All economists are saying it does not stimulate the economy and I would argue it would have the opposite effect," said Gephardt, who maintained it would discourage the Federal Reserve from lowering interest rates, which he believes is the way to jump-start the economy.

Republicans argue that even though the bulk of Bush's tax cut won't be felt for years, the entire package would have an immediate, positive psychological effect on the markets and consumers -- if Congress passes it.

Democrats have slammed Bush's tax cut as too high and geared to the wealthy. Their own proposal would cut taxes $750 billion over ten years.

An aide to Sen. Max Baucus, D-Montana, the ranking Democrat on the tax-writing Finance Committee, said the senator is entertaining the idea of backing a "rolling tax cut" that would provide a larger, quicker tax cut over the first few years, as opposed to spreading it out over 10 years.

Although House Republican leaders are pushing to expand the Bush tax cut proposal, Senate Republicans are sticking to Bush's $1.6 trillion cap.

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