Obama looks to military for running mate

US: BARACK OBAMA is considering retired military leaders as possible running mates, according to a senator who met members of…

US:BARACK OBAMA is considering retired military leaders as possible running mates, according to a senator who met members of the Democrat's vice-presidential vetting team.

Senator Kent Conrad of North Dakota said the team had discussed a number of potential running mates, including current top elected officials, former top elected officials, and former top military leaders.

"We talked about many names, some that are out of the box but I think would be very well received by the American people, including former top military leaders," Mr Conrad said.

Mr Obama has appointed a three-person team of Caroline Kennedy, former deputy attorney general Eric Holder and Jim Johnson, the former head of mortgage lender Fannie Mae, to oversee his search for a running mate. Mr Holder and Mr Johnson have met a number of Democratic senators and congressmen this week to discuss potential candidates but no final decision is expected until August.

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Some of Hillary Clinton's former backers want Mr Obama to choose the former first lady as his running mate but other Democrats believe a vice-presidential candidate with military experience could boost the Democratic ticket's foreign policy credentials.

Mr Obama and Republican John McCain yesterday exchanged jabs over the economy after Mr McCain told small business leaders that the Democrat would increase their taxes and send overheads soaring.

Addressing the National Federation of Independent Business in Washington, Mr McCain said that Mr Obama would enact the biggest tax increase Americans have seen since the second World War.

"Under Senator Obama's tax plan, Americans of every background would see their taxes rise - seniors, parents, small business owners, and just about everyone who has even a modest investment in the market," Mr McCain said.

"He proposes to eliminate the social security earnings cap, and thereby to increase the tax on employers. He proposes to eliminate the secret ballot for union votes, and to raise the minimum wage and then index it, which is a sure way to add to your costs and to slow the creation of new jobs. You work hard in small businesses to grow and to create new jobs and opportunities for others - and the federal government shouldn't make your work any harder."

Campaigning in St Louis, Mr Obama said he would cut taxes for 95 per cent of Americans but would roll back the tax cuts George Bush introduced for the highest-earning 5 per cent. The Democrat also criticised Mr McCain's proposal to use tax incentives to encourage workers to leave employer-based health insurance plans and to take out private insurance instead.

"He's offering a tax cut that won't ensure that healthcare is affordable for hard-working families who need help most. And his plan could actually put your coverage at risk by undermining the employer-based system that most Americans depend on," Mr Obama said.

Mr Obama has proposed higher taxes for capital gains, for dividends and for high-earners to pay for spending plans but he suggested yesterday that he could defer some tax increases if the economy is too weak.

"I think that we've had an economy that's been out of balance for too long. So the general principle of raising taxes on higher-income Americans, like myself, and providing relief to those who haven't benefited as much from this new global economy, I think, is a sound one. And keep in mind on all of these proposals, that what I've said is let's make sure that we define the well off, so we're not hitting the middle class," he said.