By Jeffrey McMurray
Associated Press Writer
Wednesday, May 9, 2001; 7:01 p.m. EDT

WASHINGTON –– Georgia Sen. Zell Miller distanced himself anew from fellow Democrats Wednesday, accusing them of "class warfare" and proposing a tax cut that goes beyond President Bush's plan.

In a speech to Empower America, a conservative economic group led by former GOP presidential candidate Jack Kemp, Miller blasted Democrats for their economic policies.

"My Democrat friends need to be reminded and return to those days of yesteryear when they supported cutting tax rates and did not engage in this endless class warfare that they have today become a Johnny-one-note on," Miller said.

The speech came less than a week after Miller's muted response to rumors he might switch parties. He said he had no such plans "at this time" but praised Sen. Phil Gramm, R-Texas, for the way he changed parties in the 1980s.

Miller did not mention party allegiance during his speech Wednesday, which was closed to the media. Copies of the speech were distributed afterward.

In the speech, Miller proposed wide cuts in capital gains taxes, a concept embraced by many conservative Republicans but not listed as one of Bush's top priorities.

Miller, the only Democrat to sponsor Bush's original 10-year, $1.6 trillion tax cut plan, said he would like to cut the capital gains tax rate from 20 percent to 15 percent. The tax is applied to profits on stocks, bonds and most other investments.

On Wednesday, Republicans pushed through the House a final 2002 budget that calls for $1.35 trillion in tax cuts over the next 11 years. The Senate plans to vote final passage on Thursday.

Last week, Republican and Democratic leaders in the Senate agreed to a $1.25 trillion, 10-year tax reduction plan plus a $100 billion tax cut for 2001 and 2002 for stimulating the economy. Miller suggested that all $100 billion go toward cutting capital gains taxes.

Miller also proposed doing away with a law that requires an investment to be held for more than a year before the investor qualifies for a lower tax rate on profits. Miller's press secretary, Joan Kirchner, said the senator is drafting legislation on that.

Miller conceded even Bush hasn't proposed going that far on capital gains.

"I don't want to get off the reservation with the president. I'm already off my other reservation," Miller said, referring to Democrats.