ST. LOUIS (AP) – In a heated debate rematch, Sen. John Kerry accused President Bush on Friday night of transforming huge budget surpluses into massive deficits with tax cuts for the rich during wartime. Bush said Kerry would have to raise taxes on middle-class Americans to pay for $2.2 trillion in new spending programs. “That’s just reality,” Bush insisted.

The two candidates quarreled aggressively over the war in Iraq, jobs, education, health care, the environment, cheaper drugs and tort reform at a town-hall session 25 days before the election.

Under questions from a select audience of uncommitted voters, Kerry was asked to pledge not to raise taxes on people making $200,000 or less. “Absolutely yes, right into the camera. Yes – I am not going to raise taxes,” the Democratic challenger said. Bush scoffed at the answer. “Of course he’s going to raise your taxes.”

Estimating that Kerry’s proposals would cost $2.2 trillion, Bush declared, “He’s going to tax everybody here to fund these programs.” He said Kerry’s plan to raise taxes on the wealthy would force 900,000 small business owners to pay more – a contention disputed by the Kerry campaign.

Bush drew criticism in his first debate with Kerry last week for scowling at his opponent’s criticism. The president’s frustration showed again Friday night when he jumped from his seat for forceful answers. At one point, he interrupted moderator Charles Gibson after Kerry had said he was “not going to go alone like this president did” in Iraq.

“I’ve got to answer this,” Bush said, cutting off Gibson, then indignantly responded to Kerry. “You tell Tony Blair we’re going alone.”

While foreign policy and national security dominated the first debate, Friday night’s session was open to all questions – and the economy was a dominant theme.

“We did something that you don’t know how to do,” Kerry told Bush. “We balanced the budget. And we paid down the debt of our nation for two years in a row and we created 23 million new jobs at the same time.” He accused Bush of driving up the biggest deficits in history.

“He’s added more debt to the debt of the United States in four years than all the way from George Washington to Ronald Reagan put together. Go figure.” The budget swung from a record $313 billion surplus projected when Bush took office to a record $422 billion deficit this election year.

One questioner asked Bush who he would pick if there were a Supreme Court vacancy. “I’m not telling you,” the president said. “I really haven’t picked anybody yet.” He added lightheartedly, “Plus I want them all voting for me.”

Kerry said that if he had to pick a Supreme Court justice, “I want to make sure we have judges who interpret the Constitution of the United States according to the law.”

Criticizing the president’s decision to invade Iraq, Kerry said, “If we’d use smart diplomacy, we could have saved $200 billion and an invasion of Iraq and right now Osama bin Laden might be in jail or dead. That’s the war on terror.”

The debate came two days after the chief U.S. arms inspector reported that Saddam did not have illicit weapons nor the means to make them. Bush said, “We didn’t find out he didn’t have weapons till we got there.” Weapons of mass destruction was the central rationale for the war that has cost more than 1,000 American lives.

The debate – the second of three – opened with a question to Kerry about whether he was too wishy-washy. Kerry turned that question into an attack against Bush, saying the president “didn’t find weapons of mass destruction in Iraq, so he’s really turned his campaign into a weapon of mass deception” by claiming that the four-term Massachusetts senator had changed his mind when he had not.

“I can see why people think he changes a lot,” Bush retorted, “because he does.” He pointed out that Kerry had said he had voted for an $87 billion appropriation for Iraq and Afghanistan before he voted against it.

Kerry used the opportunity to point out that the nation has suffered a net job loss under Bush.

Expanding his criticism of Bush on Iraq, Kerry said the president had diverted resources from the war against terror and also ignored a threat from Iran as it accelerated its nuclear program. “It’s a threat. It’s a huge threat. It has grown while the president was preoccupied with Iraq,” the Democratic challenger said.

After stumbling in the first debate with a scowling performance, Bush sought to regain his footing, reassure Republicans and throw Kerry on the defensive. Kerry, meanwhile, hoped to build on the momentum of their first encounter, which gave him a lift in the polls.

Responding to criticism from Kerry in their second debate, Bush said, “That answer made me almost want to scowl.” He went on to accuse the senator of advocating a policy that was “naive and dangerous” for bilateral talks between the United States and North Korea rather than the six-nation negotiations set in motion by the Bush administration.

Bush also set to lay to rest persistent rumors that the war in Iraq would require the nation to return to a military draft. “We’re not going to have a draft. Period,” the president said.

The Republican incumbent accused Kerry of denigrating the U.S.-led coalition in Iraq with his claim that the United States is shouldering 90 percent of the costs and casualties. “We’ve got 30 countries there,” Bush said, his voice rising. He mentioned Britain, Italy, Poland as well as other allies.

“Mr. President, countries are leaving the coalition, not joining,” Kerry said, asserting that eight countries are pulling out their troops from post-war Iraq.

Asserting that Kerry would not be a steadfast leader in Iraq, Bush said, “This war is a long, long war. It requires steadfast determination.”

The questions were picked from queries submitted by a pool of more than 100 likely voters chosen by the Gallup organization. Gallup described the audience as uncommitted voters who leaned toward Bush or Kerry but could change their minds, as well as some voters who said they were undecided. The questions were submitted in advance, and people were prohibited from asking follow-ups.

AP-ES-10-08-04 2235EDT