He didn't seem to mind it when he has Sarah Palin running around accusing Obama of being a terrorist

McCain: GOPers' Use Of Derogatory Language Is Hurting The Republican Party

"I think we are hurting ourselves and our chances to win the general election," McCain said. "If we disparage each other and impugn character of each other, then after the primary is over then obviously there's a trust and support deficit among the American people."

"We can fight like blazes with each other where we disagree, but to impugn each other's characters and integrity is very harmful to each other, ourselves, and our chances of winning a general election," he said, adding that he thought leaders should condemn bigotry when they hear it.

http://talkingpointsmemo.com/livewire/john-mccain-refugee-stretegy-donald-trump