In the first direct challenge of the U.S. Senate primary, U.S. Sen. Daniel Akaka yesterday faulted U.S. Rep. Ed Case for his vote to support a $70 billion tax cut bill favored by the White House.

The bill, which passed the Senate yesterday and the House on Wednesday, extends for two years a lower, 15 percent tax rate on capital gains from investments and dividends that was to expire in 2008. It also preserves for one year changes to the alternative minimum tax that could save an estimated 15 million upper-income families from paying the tax.

President Bush has urged Congress to extend several of the tax breaks that were approved early in his first term, and which many Republicans credit for stimulating the economy. But many Democrats have said the tax breaks have benefited mainly the wealthy and have contributed to the nation's budget deficit.

"This vote is about priorities, and I think our priorities are healthcare, education and ensuring quality of life for all Hawai'i families," Akaka said in a statement released by his campaign office in Honolulu that contrasted his vote and Case's. "I opposed this reckless tax bill because in Washington I represent the majority of the people in Hawai'i, not just the wealthy few."

Akaka was in the minority in a 54-44 Senate vote in favor of the bill, which now goes to Bush for his signature. Case was among 15 Democrats who joined Republicans in a 244-185 House vote.

"Fundamentally, my vote was in favor of alternative minimum tax relief, which is very much middle-class tax relief," Case said. "We all know the AMT is crowding in on the middle class. We all know that without that relief we will see increased pressure on middle-class living standards and we all know we need to fix it."

The alternative minimum tax was created to help prevent the wealthy from using tax shelters to avoid paying much in income taxes but has also been applied to upper-income families that are not generally considered rich.

Case said the extension of the lower capital gains tax rate was less compelling to him but could encourage new investment that could help the economy. "If you are going to give some tax relief, and try to target it to very specific purposes and outcomes in an affordable way, I think this is a good way to do it," he said.

Case said it was too simplistic to paint his vote as support for the Bush administration.

"I have voted against the Bush administration on several tax proposals, but I have voted with the Bush administration where I felt it was justified and advisable. And this is one of those occasions," he said.

Akaka and Case have not had many confrontations since Case announced in January that he would challenge Akaka in the Democratic primary this September. But Akaka, who is known as likable and friendly, has shown signs that he intends to be more aggressive. Earlier this week, he announced that he would speak daily on the Senate floor in favor of a Native Hawaiian federal recognition bill that has been stalled in the Senate for nearly seven years.

Akaka's allies were also quick to jump on Case's vote.

Randy Perreira, the deputy executive director of the Hawai'i Government Employees Association, said Case sided with Bush and the Republicans over low-and middle-income families.

"What is even more frightening is Case's shortsightedness," Perreira said in a statement. "He doesn't see that this bill not only affects Americans now, but results in a greater legacy of debt for our children, leaving them to pay for the greed of the GOP."

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com.