Debate tackles domestic policy
HEMPSTEAD, N.Y. -- Democrat Barack Obama and Republican John McCain clashed Wednesday over taxes, jobs and the harsh tone of their presidential campaign in their last debate, just 20 days before Election Day.
On the heels of another Wall Street plunge, the candidates sparred over whose economic plan could help most Americans in what both termed a historic financial crisis.
"I'm not going to raise taxes the way Senator Obama wants to raise taxes in a tough economy," said McCain, repeatedly invoking Ohio plumber Joe Wurzelbacher, or "Joe the Plumber," as someone who would lose under the Obama plan.
Obama said a vast majority of taxpayers would get a cut under his plan: "We both want to cut taxes, the difference is who we want to cut taxes for."
A question from moderator Bob Schieffer about the "very nasty" tone of the contest led to a pugnacious exchange over negative TV ads and campaign language. McCain charged that Obama "didn't tell the American people the truth" when he abandoned a pledge to accept taxpayer funding for the general election.
Obama said McCain has spent too much time talking about him "palling around with terrorists," a reference to GOP running mate Sarah Palin's comment about Obama's ties to Vietnam-era radical Bill Ayers. Ayers, now a Chicago college professor, once held a fundraiser for Obama.
McCain said he regretted the campaign's tone but noted that Obama "has spent more money on negative ads" than any other race in history. Obama referred to a study of McCain's ads, saying "100% of them have been negative."
McCain responded, "It's not true."
Though the global credit crisis has meant the candidates have been focused recently on the economy, they were also able to touch on abortion, health care, trade policy and education in a series of aggressive exchanges.
The presidential candidates met at Hofstra University just hours after the stock market dropped more than 700 points.
Obama, who has pulled ahead in national polls, this week proposed a new package of tax relief, including credits for businesses that create new jobs. McCain's plan includes cutting the capital gains tax in half to 7.5% and eliminating income taxes on unemployment benefits.
Related Stories
ABC News Live