Tuesday, October 14, 2008

Obama Wants Bailout For Middle Class

Toledo, OH (AHN) - Sen. Barack Obama (D-IL) proposed an economic rescue plan for middle class Americans on Monday, outlining a four-point proposal that he said would "immediately stabilize" the nation's financial system.

"Congress should pass this emergency rescue plan as soon as possible," Obama said. "If Washington can move quickly to pass a rescue plan for our financial system, there's no reason we can't move just as quickly to pass a rescue plan for our middle-class that will create jobs, provide relief, and help homeowners. And if Congress does not act in the coming months, it will be one of the first things I do as President."

The Democratic presidential candidate wants to give businesses a temporary $3,000 tax credit worth for every job they create in the nation over the next two years. He also wants to give "homeowners that are acting in good faith" to try to pay their mortgages, a 90-day foreclosure moratorium.

Obama's proposal also calls for the creation of a lending facility to allow the Federal Reserve and the Treasury Department help state and municipal governments. He praised Sen. John McCain's(R-AZ) proposal last week to suspend the law requiring investors to sell retirement funds after they reach 70 years old.

"I welcome Senator McCain's proposal to waive the rules that currently force our seniors to withdraw from their 401(k)s even when the market is bad. I think that's a good idea, but I think we need to do even more...I propose that we allow every family to withdraw up to 15% from their IRA or 401(k) - up to a maximum of $10,000 - without any fine or penalty throughout 2009," Obama said.

McCain, however, did not requite the gesture. In a conference call, his economic advisor Doug Holtz-Eakin said, "What we saw today was the hypocrisy of Barack Obama's economic policy continuing at the very same time he's threatening the weak American economy with tax increases, explosive spending proposals... He pretends to offer a, quote, rescue package to Americans, when in fact the rescue is simply from the threat of his own policies."

"Obama, himself, when Senator Clinton proposed such a foreclosure moratorium, labeled it a 'disastrous' policy and proceeded to rail against it. Now he's proposing it," Holtz-Eakin added.

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