Democratic presidential candidate Barack Obama is sharply criticizing Republican John McCain on economic matters, saying his rival would continue President Bush's failed policies.

Campaigning in North Carolina, Obama said he would raise taxes on high-earning Americans and grant a $1,000 tax break to most working families. Speaking in Virginia, McCain pushed back, saying tax hikes on anyone would worsen the already struggling economy.

In the Raleigh audience listening to Obama were several Democratic governors and former Sen. John Edwards, who also sought the Democratic nomination. With him was his wife, Elizabeth, who did not endorse Obama although her husband did.

(with wire reports)

This video is from CNN's Newsroom, broadcast June 9, 2008.

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