The Trail

A FISCALLY FOCUSED WEEK

Obama Likens McCain To Bush on Economics

RALEIGH, N.C. -- Barack Obama launched a two-week economic tour Monday by blasting John McCain's platform as akin to a third term for President Bush.

"You can vote for John McCain and see a continuation of Bush economic policies -- more tax cuts to the wealthy, more corporate tax breaks," Obama told a crowd of several hundred.

Obama laid out his approach for improving the economy and helping struggling Americans: an immediate $50 billion economic stimulus plan that would include rebate checks and aid for people who are unemployed, subsidies for people who cannot afford health insurance, and tax cuts for middle-income Americans of up to $1,000. He is proposing increased taxes on families making more than $250,000 to help pay for these programs.

Tucker Bounds, a McCain spokesman, said that "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."

The charges from both sides are largely true. While McCain has offered additional proposals to improve the economy, such as major corporate tax cuts, many of his ideas are similar to Bush's. Obama is proposing tax increases to pay for his programs, although he has promised to raise taxes only on upper-income Americans.

Also Monday, Obama named Jason Furman, a close associate of former Treasury secretary Robert Rubin, as his economic policy director.

-- Perry Bacon Jr.

'A CONTRADICTION'

McCain Points to Loans Taken by Obama Adviser

John McCain criticized Barack Obama on Monday for enlisting former Fannie Mae chief executive James A. Johnson to lead his search for a running mate.

The Wall Street Journal reported Saturday that Johnson received mortgages totaling more than $7 million from beleaguered lender Countrywide Financial, including at least two loans at interest rates below the market average. The article noted that the transactions may have been aboveboard but that several could prove too cozy, depending on how much they overlapped with Johnson's Fannie Mae tenure.

"I think it suggests a bit of a contradiction talking about how his campaign is gonna be not associated with people like that," McCain said on Fox News, according to a campaign statement.

Obama spokesman Tommy Vietor said, "It's the height of hypocrisy for the McCain campaign to try and make this an issue when John Green, one of John McCain's top advisers, lobbied for Ameriquest, which was one of the nation's largest subprime lenders and a key player in the mortgage crisis."

Johnson consulted separately with congressional leaders about Obama's vice presidential pick.

-- Shailagh Murray