(Adds quotes from Rep. Pascrell, Robert Rubin in the 11th, 12th and 17th paragraphs.)

By Martin Vaughan

Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Sen. Kent Conrad (D., N.D.), a senior Senate Democrat with influence over tax and budget policy, said Wednesday that Congress shouldn't allow taxes on the wealthy to rise until the economy is on a more sound footing.

Conrad told Dow Jones Newswires in an interview outside the Senate chamber that Democrats should cancel plans to let the top individual income-tax rates and capital-gains rates rise for the wealthy at the end of this year. He said a tax increase might imperil an economy already weakened by the effects of persistent unemployment and turmoil in European debt markets.

"As a general rule, you don't want to be cutting spending or raising taxes in the midst of a downturn," Conrad said.

"At the same time, we know that very soon we've got to pivot and focus on the deficit," he said. "But it probably is too soon to cut spending or raise taxes."