Tampa, Fla. ? President Bush, brushing aside concerns about the unprecedented budget deficit, renewed his demand that Congress extend his tax cuts, and charged Monday that Democrats would increase taxes.

Sen. John Kerry, the front-running Democratic presidential candidate, said he agreed with Bush on keeping in place two tax cuts mentioned by Bush. But Kerry said Bush’s overall economic policies had failed to create jobs.

“President Bush’s failed economic policies have resulted in the loss of 3 million jobs and the biggest surpluses in history turned into the biggest deficits,” Kerry said.

The duel between Bush and Kerry foreshadowed a major issue in this year’s presidential campaign, with Bush trying to cast Democrats as tax-hikers and the Democrats saying Bush’s tax cuts favored the rich.

The exchange exposed a fundamental policy difference: Bush wants all his tax cuts made permanent, while Kerry would halt tax cuts for Americans who earn more than $200,000.

The tax bills that Bush signed in 2001 and 2003 contain expiration dates next year on some provisions. The child tax credit would drop from $1,000 per child to $700, and some married couples would have to pay more than they would as two single individuals.

“You hear people in Washington saying, ‘Oh, let’s not make the tax cuts permanent.’ When you hear somebody say that, they’re saying ‘We’re gonna tax you. We’re gonna raise your taxes,”‘ the president said.

Kerry, like Bush, favors making permanent the child tax credit, and permanently ending the “marriage penalty,” campaign spokeswoman Stephanie Cutter said.

Home-schooled students hold up signs wishing President Bush a happy Presidents Day as he arrives at Andrews Air Force Base. The president on Monday renewed his demand that Congress extend his tax cuts.

While Bush reported “an optimism in our country that is undeniable,” Democrats pointed out that more than 8 million Americans are out of work.

“Every day, President Bush travels the country telling hardworking Americans that there is an economic turnaround, but they see no sign of it in their lives, their jobs or their paychecks,” Kerry said. “This country cannot afford one more day of President Bush’s misguided and irresponsible leadership.”