Obama claims McCain trying to distract voters

ASHEVILLE -- In his third North Carolina rally in two weeks, Democrat Barack Obama on Sunday took aim at what he called John McCain's "radical" health care plan and accused his GOP opponent of "Swift Boat-style attacks."

Before more than 22,000 people in a sun-drenched football stadium, Obama spoke extensively about health care. And a day after Republican vice presidential candidate Gov. Sarah Palin accused him of "palling around with terrorists who would target their own country," he fired back.

"Sen. McCain and his operatives are gambling that he can distract you with smears rather than talk to you about substance," Obama said. "They'd rather try to tear our campaign down than lift this country up. It's what you do when you're out of touch, out of ideas, and running out of time."

Palin was referring to Obama's association with fellow Chicagoan William Ayers, a founder of the Weather Underground, a radical 1960s group. Obama has denounced Ayers' radical views and pointed out that he was 8 when the group was most active.

But McCain spokesman Tucker Bounds said Sunday that voters will judge Obama's "ties to radical figures like unrepentant domestic terrorist William Ayers."

But Obama, in town preparing for Tuesday's debate with McCain in Nashville, turned for the second straight day to health care. He has three ads about the subject running in North Carolina.

He outlined his plan. Among other things, it would force drug companies to lower costs, would cut expensive red tape, stress prevention and subsidize the cost of catastrophic illnesses, reducing the burden to insurers.

As if rehearsing for Tuesday's debate, he also lashed out at McCain's plan. He repeated McCain's promise to deregulate health insurance "as we have done over the last decade in banking."

"We can all see how well that worked out," Obama said.

The watchdog site FactCheck.org says the Obama campaign has taken McCain's comment out of context. McCain, it says, "was referring narrowly to his proposal to allow people to purchase health insurance across state lines." McCain argues that would give consumers more choice in insurers.

McCain also has proposed giving families a $5,000 tax credit to pay insurance premiums. But Obama said McCain also would require people to pay taxes on health care benefits paid by their employer. Now those benefits are tax-free to employees.

Obama called that plan "radical."

But McCain supporters say allowing people to buy insurance across state lines would mean more choice.

"The deregulation John is talking about would let people in North Carolina buy policies in California if it was a better deal for their families," Republican Sen. Lindsey Graham of South Carolina said in a conference call with reporters.

FactCheck says taxing benefits would partially offset a $5,000 credit. Experts say the plan would likely cause companies to reduce or eliminate health benefits.

Obama said his plan would cost $65 billion a year, though critics say it would cost more. He would pay for it by eliminating President Bush's tax cuts on those with annual incomes of more than $250,000.

Police estimated that Obama's rally drew 22,000 into the stadium while another 6,000 waited outside. One person in the crowd was Bruce Tallent, who left his Macon County home at 5 a.m. for the afternoon rally.

"Just came here to listen to a good, positive, uplifting message," said Tallent, 40.