DOLE REASSERTS NEED TO REDUCE TAXES : PLAN CALLED TONIC FOR `SOUR' ECONOMY.

Byline: Tom Raum Associated Press 

Defending his tax cut plan against Democratic convention attacks, Bob Dole said Tuesday it would return strong growth to an economy ``gone sour'' under President Clinton. Dole also named a new campaign chairman for the final 10-week sprint.

Dole interrupted a California vacation to team up with running mate Jack Kemp to promote his $548 billion tax cut plan and respond to attacks from Clinton and other Democrats that it would explode the deficit. ``It's already blown a hole in his lead - I think that's his problem,'' Dole said, but he offered no fresh details on what programs he would cut to pay for the tax cuts.

One decision settled on during Dole's vacation was naming former Defense Secretary Donald Rumsfeld as the campaign's national chairman, a new position. New Hampshire Gov. Steve Merrill retains his largely honorary title as general chairman. Rumsfeld, a longtime Dole ally, has been serving as the campaign's top policy adviser.

Former Education Secretary Bill Bennett and former Labor Secretary Ann McLaughlin were named national vice chairs of Dole's campaign. Both were in President Reagan's Cabinet and Bennett also was President Bush's drug czar.

``We are adding people here, we are not subtracting or replacing,'' Rumsfeld said.

Merrill said he had been meeting in Washington with Rumsfeld for a couple of months. ``The strategy remains,'' he said. ``I will deal with the 32 Republican governors and produce their state victories while Don Rumsfeld promotes the economic plan.''

At a round table with his top economic advisers, Dole said his tax cut plan was the tonic necessary to revive an economy plagued by sluggish growth.

``President Clinton inherited a good economy, and it's gone sour,'' Dole told a group of local business owners in a carefully scripted event timed to coincide with the second day of the Democratic convention in Chicago.

Dole predicted Clinton would soon mimic his call for tax cuts, either at the convention or soon after.

``He's going to promise you tax relief. I don't know how many people are going to believe that, based on his past record,'' Dole said. ``There's only one ticket talking about economic growth. . . . They (Democrats) have already demonstrated they don't mean it.''

Dole's plan calls for a 15 percent across-the-board cut in income tax rates, a $500-a-child tax credit and a halving of the capital gains tax rate to 14 percent.