Obama vs. McCain: sharp differences on key issues

By John Whitesides, Political Correspondent

WASHINGTON (Reuters) - Democrat Barack Obama and Republican John McCain head into their general election race for the White House with vastly different approaches to the thorniest political issues, from Iraq and diplomacy to taxes and health care.

Their recent sparring over Obama's willingness to speak to hostile foreign leaders without preconditions was a warm-up for what promises to be a rancorous five-month run-up to November's election.

"It will be as clear a choice as there has been in a generation," said Doug Schoen, a Democratic consultant and former adviser to President Bill Clinton. "You've got two very different views of the world presented in stark relief."

Obama clinched the Democratic presidential nomination over rival Sen. Hillary Clinton of New York on Tuesday and immediately turned his attention to McCain with a rally in St. Paul, Minnesota -- site of the Republican convention in September.

McCain held his own rally in Louisiana where he criticized Obama's judgment and willingness to go against his own party.

The contrasts between McCain, 71, a white former Navy pilot and Vietnam prisoner of war, and Obama, 46, a black Harvard Law School graduate and former community organizer, go far beyond the personal.

Their ideological gulf is most evident on two issues usually ranked in opinion polls as the top concerns of American voters -- the Iraq war and the faltering economy.

"On the two big-ticket issues, they couldn't be farther apart," said Dan Schnur, a California-based Republican consultant and a McCain aide during his 2000 presidential bid.

McCain was a prominent and ardent supporter of the decision to invade Iraq and vows to keep U.S. troops there until the war is won. He recently said 2013 was a reasonable date for achieving that goal and ending U.S. involvement.

Obama, an Illinois senator, was an early opponent of the war who has promised to remove U.S. combat troops from Iraq within 16 months of taking office.

The chasm is similar on taxes. McCain supports extending President George W. Bush's cuts and cutting corporate tax rates, while Obama would let Bush's cuts expire for wealthy Americans -- those making more than $250,000 annually -- and raise capital gains tax rates, another item that normally affects primarily high-income earners.

McCain, an Arizona senator, opposed Bush's cuts when they were passed in 2001 and 2003 because he said they would increase the budget deficit and disproportionately favor the wealthy. He supports extending them now, saying they would offer help to a struggling economy.

The two already have clashed over Obama's opposition to McCain's idea of a summer holiday from the federal gasoline tax. Obama called it a political stunt that would provide little help, while McCain said the idea could give a slight boost to struggling families seeking a vacation.

Obama also would renegotiate the North American Free Trade Agreement, blamed by some Democrats and labor unions for costing U.S. jobs. McCain opposes amending the pact and says it has been beneficial.

HEALTH CARE SPLIT