Obama proposes immediate fixes for the U.S. economy By SUZETTE HACKNEY AND TODD SPANGLER ● FREE PRESS STAFF WRITERS ● October 13, 2008
TOLEDO -- Amid an enthusiastic crowd, Democratic presidential nominee Sen. Barack Obama today rolled out an economic rescue plan that would provide immediate tax relief to middle-class families and put a moratorium on home foreclosures. His wide-ranging plan Includes an additional $25 billion more to help automakers retool plants and jump-start production, give a tax credit to companies adding U.S. jobs, extending unemployment benefits and allowing penalty-free withdrawals from retirement and 401(k) accounts this year and next. The plan also calls for a tax cut for most working families - $1,000 per family - which could be mailed out immediately based on last year’s tax returns as well as a voluntary three-month moratorium on home foreclosures for homeowners who are making good faith efforts to pay their mortgages. Obama called for the plans to be enacted now - three weeks before the election - saying the nation has already lost three-quarters of a million jobs this year and unemployment is on the rise. “Today I’m proposing a number of steps that we should take immediately to stabilize our financial system, provide relief to families and communities and help struggling homeowners,” said Obama, who is preparing for Wednesday night’s debate with Republican nominee John McCain near Toledo. “It’s a plan that begins with one word that’s on everyone’s mind, and it’s spelled J-O-B-S.” “We can’t wait to help workers and families and community who are struggling right now - who don’t know if their job or their retirement will be there tomorrow, who don’t know if next week’s paycheck will cover this month’s bills,” Obama said. “We need to pass an economic rescue plan for the middle class and we need to do it now.” The speech - a major one from Obama with only three weeks left in the general election campaign - comes at a time when the Democrat has seen his support in public opinion polls rising with bad economic news rocking the nation and McCain shifting his strategy to that of an underdog fighting against a party he says wants to raise Americans’ taxes. Of particular interest to metro Detroit - where the situation for automakers has gotten so bad General Motors has talked to Chrysler about a merger - is the auto loan. Initially approved at $50 billion to retool plants and spark production, Congress approved $25 billion of that amount last month. Obama’s plan calls for approving the rest immediately and he says all options must be kept on the table to help domestic automakers “weather the financial crisis.” Here are some of the details of Obama’s plan, according to documents released by his campaign: ● Implement a temporary tax credit for 2009 and 2010 for companies that add jobs in the United States. Existing businesses would receive a $3,000 refundable tax credit for each additional full-time employee hired. ● Eliminate capital gains taxes on investments made in small businesses and start-up businesses. ● Make $25 billion available immediately for infrastructure projects. ● Cut taxes for 95% of workers and their families, plus seniors. ● Extend unemployment insurance benefits for another 13 weeks. ● Allow penalty-free hardship withdrawals from retirement accounts and 401(k) accounts this year and next. The plan would call for withdrawals of up to 15% of an account up to $10,000 without penalty. It could also be applied retroactively. ● Allow seniors to delay required withdrawals from 401(k) accounts and individual retirement accounts. ● Allow bankruptcy judges to modify terms of mortgages on primary residences. ● Enact a 90-day foreclosure moratorium for financial institutions that participate in the congressional bailout plan. Toledo resident Deidrei Campbell, 56, applauded Obama’s plan. “He’s the better candidate with the best ideas,” said Campbell, a Head Start employee. “A lot of people are disappointed by the economy and the direction of this country. Obama is lifting our spirits and we’re fired up to get him in office. We know things won’t happen over night, but he is the man to help America.” This message has been scanned for malware by SurfControl plc. www.surfcontrol.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
