Presidential Candidates Address Economic Woes

Obama Blasts Bush on Tax Cuts

Like Clinton, Obama blasted Bush for giving tax cuts to businesses and high-income Americans.

Democratic contenders Sens. Barack Obama, D-Ill., and Hillary Clinton, D-N.Y., and presumptive Republican nominee Sen. John McCain, R-Ariz., are tackling tough questions about the economy on the campaign trail.

(ABC News Photo Illustration)

"We are going to stop giving tax breaks to companies that ship jobs overseas and start giving tax breaks to companies that invest right here in Pennsylvania and all across America. We're gonna roll back tax cuts to the wealthiest Americans who don't need 'em, and we're even asking for them, and give those tax breaks to hardworking ordinary Americans who deserve them right now," Obama said.

In a statement released earlier by his campaign, Obama also slammed the president for his handling of the economic downturn.

In a media availibility later Monday afternoon, Obama said he has not spoken with Treasury Secretary Henry Paulson, or the president of the Federal Reserve like Clinton did this morning.

"We have a number of phone calls that have been scheduled, I've been talking to the heads of the larger banks on Wall Street just to get a sense of where they see this going," Obama said, arguing the central bank did the right thing by working with investment firm JP Morgan to buy out embattled investment firm Bear Stearns.

The Republican National Committee pounced on Obama's statement Monday.

"The irony is that if Barack Obama studied history, he'd know that his tax-and-spend proposals would only hurt the economy. Barack Obama may not have much experience with national economic policy, but he should know that new taxes won't create new jobs," RNC spokesperson Alex Conant said.

In Washington Monday, Bush met with Treasury Secretary Paulson to discuss the economic situation and held talks with his task force on financial markets.

"We're in challenging times. But another thing is for certain: that we've taken strong and decisive action," Bush said at the White House, defending the Federal Reserve's move to be a lender of last resort for struggling investment firms.

"When need be, we'll act decisively, in a way that continues to bring order to the financial markets," he said.

McCain Travels in Iraq

McCain was in Baghdad Monday and didn't comment on the economic troubles, but his senior policy adviser put out a statement.

"Sen. McCain has complete confidence in Chairman Bernanke and the actions of the Federal Reserve, and is committed to ensuring the economy continues to grow -- because no government program or policy is a substitute for a good job," read a statement from Obama's senior policy adviser Doug Holtz-Eakin.

"John McCain understands the federal government's responsibility to ensure the stability of the U.S. financial system, and is equally committed to protecting the pocketbooks of hardworking American families."