Obama rips into McCain

Washington - Democratic White House hopeful Barack Obama on Monday assailed Republican John McCain's "outrageous" economic policies and promised a new approach that rewards the struggling middle-class.

Obama ventured deep into Republican territory in North Carolina to kick off the first full week of the presidential election campaign, after Hillary Clinton quit the Democratic primary race on Saturday.

In a speech in Raleigh, Obama tarred McCain as an extension to President George W Bush and the "most fiscally irresponsible administration in history".

The Illinois senator mocked his rival presidential contender for confessing to limited knowledge about the economy, and for reversing his initial opposition to multi-billion-dollar tax cuts rammed through by Bush.

A mountain of debt

"He calls himself a fiscal conservative and on the campaign trail he's a passionate critic of government spending, and yet he has no problem spending hundreds of billions of dollars on tax breaks for big corporations and a permanent occupation of Iraq - policies that have left our children with a mountain of debt," he said.

Obama said McCain was now calling for "a new round of tax giveaways that are twice as expensive as the original Bush plan" and include $2trillion in tax breaks for companies, including $1.2bn for energy giant ExxonMobil.

"Think about that. At a time when we're fighting two wars, when millions of Americans can't afford their medical bills or their tuition bills, when we're paying more than four dollars a gallon for gas, the man who rails against government spending wants to spend $1.2bn on a tax break for ExxonMobil.

"That isn't just irresponsible. It's outrageous," the Democrat said.

But in a statement, McCain spokesperson Tucker Bounds said Obama was a tax-and-spend liberal whose policies would destroy businesses and jobs.

More taxes

"While hardworking families are hurting and employers are vulnerable, Barack Obama has promised higher income taxes, Social Security taxes, capital gains taxes, dividend taxes, and tax hikes on job-creating businesses," he said.

"In fact, during just three years in the US Senate, Barack Obama has already voted 94 times for higher taxes. Barack Obama doesn't understand the American economy and that's change we just can't afford."

Obama called for the government's monthly Iraq bill of $12bn to go instead to long-term investment in transport infrastructure, and for an education revolution to retool US workers for the globalised economy.

The senator called also for a second stimulus package worth $50bn, in addition to a $168bn package enacted in February, to help Americans who have lost their jobs and homes in the current downturn.

- AFP