NEW YORK - REPUBLICAN John McCain and Democrat Barack Obama battled fiercely on Wednesday in their liveliest and most contentious debate, with Mr McCain attacking Mr Obama's tax plan, campaign tone and relationship with a former 1960s radical.

The presidential rivals complained about the negative approach of each other's campaigns during a tense and frequently testy debate.

Mr McCain said the tone could have been elevated if Mr Obama had agreed to his request for a series of town hall meetings.

'Mister Ayers is not involved in my campaign', Mr Obama said.

Mr McCain, an Arizona senator, entered the debate under intense pressure to turn in a strong performance that could turn around a presidential race that has shifted decisively in Mr Obama's favour after weeks of economic turmoil and plunging stock markets.

Opinion polls three weeks before the Nov 4 election show more voters say they trust Mr Obama's leadership on the economy, which has dominated the campaign-trail discussion and dwarfed Mr McCain's expertise in foreign and military policy.

Mr McCain rebuked Mr Obama for frequently claiming that he is too close to the policies of President George W. Bush.

'Senator Obama, I am not President Bush. If you wanted to run against President Bush you should have run four years ago,' Mr McCain said.

Mr Obama said he sometimes had trouble spotting the difference.

'If I occasionally mistaken your policies for George Bush's policies, it's because on the core economic issues that matter to the American people, on tax policy, on energy policy, on spending priorities you have been a vigorous supporter of President Bush,' Mr Obama said.

Joe the plumber
The candidates fought over their tax plans and promised to help working Americans like 'Joe the plumber'. Mr McCain criticized Mr Obama's proposal to raise taxes on Americans who make more than US$250,000 (S$370,434) a year, saying it would hurt small business owners like a plumber named Joe who Mr Obama met on the campaign trail.

'Why would you want to raise anybody's taxes right now?' Mr McCain asked Mr Obama. 'We need to encourage businesses'.

Mr Obama said his plan would cut taxes for 95 per cent of Americans and raise them on only a small slice of the most high-income Americans, while Mr McCain would give tax breaks to oil and gas companies.

'We both want to cut taxes,' Mr Obama, an Illinois senator, said in their third and final White House debate at Hofstra University.

'The difference is who we want to cut taxes for.'

Several recent opinion polls have shown Mr McCain's attacks on Mr Obama's character have largely backfired, increasing unfavourable opinions about Mr McCain among voters looking for solutions on the economy.

But the two candidates spent long stretches battling over the grievances about their campaigns and not discussing the economy.

The debate focused on domestic policy and the economy. Mr Obama and Mr McCain were seated at a table with moderator Bob Schieffer of CBS News instead of standing at podiums as in the first debate.