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***10/22 UPDATE: Taylor re-enters the race.
A Republican candidate today (10/10) dropped out of the Montana Senate race claiming that the state's Democratic party gay-baited him in a new attack ad. The 30-second TV commercial, paid for by the Montana Democratic Party, focuses on allegations that GOP candidate Mike Taylor diverted federal student loans when he ran a Colorado beauty salon/hair care school. The controversial spot uses clips of Taylor from a segment that once ran on a Denver station (and which promoted the Michael Taylor Institute of Hair Design). Taylor contends that the Democratic party's use of the "Beauty Corner" clip was done to insinuate that he was a gay hairdresser. In the spot, Taylor appears to be giving a facial (click here for video stills) to a male customer. "The ad has destroyed the campaign. We have no money left and we don't want to stoop to the same level," said Alan Mikkelsen, who spoke today to the Billings Gazette. (2 pages)