The latest Rasmussen Reports national telephone survey found that voters trust the Democrats more than Republicans on eight out of ten key electoral issues. The economy is still seen as the most important issue of the campaign. Number two on the list is an issue few like to talk about in Washington—government ethics and reform. Democrats hold a single-digit advantage over the GOP on each of these issues. Democrats are also trusted more when it comes to the War in Iraq, Health Care, Social Security, Education, Immigration, and Abortion.

The Republicans hold the advantage on just taxes and national security (see data tables). See video commentary by Scott Rasmussen.

While these indicators are troublesome for the GOP and its Election 2008 prospects, its’ important to note that John McCain outperforms both the GOP brand and Barack Obama on a number of key issues.

Each month, Rasmussen Reports asks the likely voters to rank the importance of ten electoral issues and which of the two major parties they trust more on these issues. Seventy-nine percent (79%) of likely voters say the economy is Very Important. The Democrats have the advantage on this issue by a 48% to 40% margin. That advantage has fallen from an eleven-point lead last month.

Government ethics and corruption comes in second as the most important issue for voters, with 76% who say it is a very important issue. Democrats have a six-point advantage on this issue. That lead has fallen significantly since last month, when the party was ahead by sixteen points.

The GOP’s have a four-point advantage on taxes and a five-point advantage when it comes to National Security and the War on Terror. Taxes are a Very important issue for 58% of voters and National Security is Very Important for 62% of voters.

When it comes to the War in Iraq, the Democrats hold a modest advantage over the Republicans. The War is a Very Important issue for 60% of Americans. A separate tracking poll has found consistently that roughly six-out-of-ten voters would like to see the troops brought home from Iraq within the year.

To see the top issues of importance and leading party among issues, click here.

Historical data for Trust on Issues I and Issues II and Importance of Issues I and Issues II are available for Premium Members only.