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Obama offers new proposals to help economy

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BY CHRISTOPHER WILLS / The Associated Press

Monday, Oct 13, 2008 - 01:40:13 pm CDT

TOLEDO, Ohio — Democrat Barack Obama on Monday called for more immediate steps to heal the nation’s ailing economy, proposing a 90-day moratorium on home foreclosures at some banks and a two-year tax break for businesses that create new jobs.

The presidential candidate also proposed allowing people to withdraw up to $10,000 from their retirement accounts without any penalty for the remainder of the year and 2009.

Obama said his proposals, with a pricetag of $60 billion over two years, can be enacted quickly, either through the government’s regulatory powers or legislation that Congress could pass in a special session after the election.

Story Photo
Sen. Barack Obama, D-Ill., talks to supporters as he campaigns in Holland, Ohio, on Sunday. (AP)

Related Link(s):


McCain vows to fight for new economic direction
Text of Obama's Monday speech in Ohio

“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,” Obama said in prepared remarks. “It’s a plan that begins with one word that’s on everyone’s mind, and it’s spelled J-O-B-S.”

Obama delivered his economic message in Toledo, a blue-collar city in a state that could be critical to Obama’s presidential hopes. Polls show a close race between Obama and Republican John McCain in Ohio, which decided the 2004 presidential election. At stake are 20 electoral votes.

His latest proposals are in addition to other policies the Illinois senator has already offered as the stock market struggles, financial institutions wobble and tight credit chokes the economy.

Obama supported the $700 billion Wall Street bailout plan and endorsed the latest twist on it: the government buying ownership in major banks and partially nationalizing them to keep them afloat. He also calls for tax breaks for most families, cutting capital gains taxes for investment in small business and extending unemployment benefits.

Obama said that banks participating in the federal bailout should temporarily postpone foreclosures for families making good-faith efforts to pay their mortgage.

“We need to give people the breathing room they need to get back on their feet,” he said, adding that families living beyond their means share some of the responsibility.

He also called for a $3,000 tax credit for each additional full-time job a business creates. That means a business that adds five jobs would get a $15,000 break. That would end after 2010 and would cost $40 billion, the campaign estimates.

Obama also is proposing letting people withdraw up to 15 percent of their retirement funds, to a maximum of $10,000, without any penalty this year and next. They would still have to pay normal taxes on the money. He said letting people dip into their IRAs and 401(k)s would help them get through tough times when money is tight.

State and local governments face a money crunch, too, and Obama called for new federal short-term loans to help them through the crisis. He called it a “funding backstop” to ensure that states and cities can meet payroll or keep projects moving.

 


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J-O-B-S wrote on October 13, 2008 1:58 pm:
" Dear Obama,

I know how to spell and I must know more about the economy than you. The one way to boost the economy is to lower taxes, not raise them. And for the record, companies don't pay taxes people do (the costs get past down- watch!) "

 Ignignokt wrote on October 13, 2008 2:10 pm:
" Quote: "“We need to give people the breathing room they need to get back on their feet,” he said, adding that families living beyond their means share some of the responsibility."

Wha??? If you're living beyond your means, you are not partially responsible for financial trouble, you are FULLY responsible!

With 60 billion in new spending, where is the money for all of his other programs going to come? BTW, I thought Dems were against corporate welfare. "

 Need Jobs wrote on October 13, 2008 2:28 pm:
" To J-O-B-S. If you open your eyes instead of listening to the right wing pundits, you will see Obama IS proposing a tax break to businesses that create jobs and not raise them. Besides, your "Trickle Down" theory you proclaim does not work! If it did, why has there been a net loss of jobs in this country in the last 8 years? "

 mTm wrote on October 13, 2008 2:30 pm:
" What a joke - Whomever is living among their means needs to go down. i don't want my tax dollars bailing out people who are mostly trying to cheat the system. I do have a heart. "

 Right on mtm wrote on October 13, 2008 2:47 pm:
" That also includes Corportate America and Wall Street right? Bailing out real people is easy compared to bailing out these overpaid, inept crooks. "

 Domestic Spending wrote on October 13, 2008 3:37 pm:
" Let's see, $60 Billion? Isn't that equivilant to what six weeks of the Bush war is costing our great grandkids?

Correct me if I'm wrong. "

 Whatever wrote on October 13, 2008 3:39 pm:
" Typical campaign stump spin. Say/read anything off of teleprompter to sound good with no follow through, and the followers will have hope and vote for me. What jobs are you thinking of creating Barry? How about building nuclear power plants and staffing those. J-O-B-S is correct, if you tax companies, they pass the cost of taxes to consumers, therefore creating a higher cost of products THAT YOU PAY. Can't you Obama sheep get that through your heads? "

 Randy wrote on October 13, 2008 3:50 pm:
" What about us stupid suckers who have been paying our mortgages and bills? I guess we were just stupid for buying a house we could afford. Our national debt is going up faster than anyone can imagine. Where will all this money come from? From us stupid suckers who have been living within our means and paying our bills. Get ready to dig real deep if the messiah is elected. "

 Hey Whatever wrote on October 13, 2008 4:07 pm:
" If you read the article, it says that Obama proposes "TAX BREAKS" for companies that create jobs!

What is so hard to understand? TAX Breaks for companies that create jobs.

The only thing McCain has to offer is to spend $300 Billion to buy up bad loans. That isn't cutting taxes, that is spending taxes. What is so hard to understand about that? McCain wants to spend, spend, spend, spend..... "

 Knee-Jerk wrote on October 13, 2008 4:38 pm:
" Maybe you people from the party formerly know as "Conservative" might possible want to read the article. Looks like you agree with Obama. "

 Financial Advisor wrote on October 13, 2008 4:42 pm:
" Great---let people take up to $10,000 out of retirement to "get by" now--so then we will have to help out these people once again when they are short-for-cash and struggling in retirement. "

 Jon wrote on October 13, 2008 4:49 pm:
" This is the same ideas Hillary brought up in the primary and Obama called them irresponsible and disastrous. Hmm.... "

 Kris wrote on October 13, 2008 4:50 pm:
" I'd like see everyone be allowed an option to tranfer the $10,000 tax free from a 401(k) or traditional IRA into a Roth IRA without penalty. Now that we've lost so much with the decline in the markets, it is only fair to get a tax break now and also pay no taxes later. "

 whoa wrote on October 13, 2008 4:57 pm:
" Obama's Tax Breaks are through 2010. Then after that corporate taxes go through the roof. You will see unemployment equal to the 1930's. Welfare lines around the block. It will make the Iraq war look like chump change. Obama has not a clue about the economy or how to run it, nor do his advisors. "

 to Financial Advisor wrote on October 13, 2008 5:09 pm:
" I think this 10k plan is a good idea. I'd pay off my car immediately and then dump the $300 a month right back into my IRA thereby earning myself money rather than the bank. I think this is a good plan provided people are required to use the IRA/401K money to pay down debt and not buy a new TV. "

 Great idea wrote on October 13, 2008 5:20 pm:
" Yep, I bought and paid for a low cost house that I have to put money into yearly. However it is what I could afford. I should have bought a nice expensive house and stuck out my hand. The difference between now and the depression of the 30's is people back then all they could to help themselves, handouts were for those that really need them. Now handouts are for those to lazy to work 2 jobs and live within their means. Neither candidate will do worth a darn with our do nothing worthless congress. That is where the focus should be. "

 Nope wrote on October 13, 2008 6:04 pm:
" Nothing in his plan that will help me. "

 jWow wrote on October 13, 2008 6:36 pm:
" Everyone that is buying in on this is either asleep or dreaming. Wait until you don't have a job, your taxes will be little to nothing but you will still have to pay them, even though you don't have any money. Guess you will get the big prize that has been so called, promised to you, by this guy. Well, good luck, and happy tax paying too you. "

 OK wrote on October 13, 2008 7:46 pm:
" all you experts. What the hell are you afraid of? We have had republicans run the deficit up since reagan. We're just ending 8 years of the worse leadership in history and another record deficit. I am all for giving someone else a chance to see if there is help out there. No one likes clinton but everyone even the republicans enjoyed the government in the black and lots of money to spend and jobs abound. I read these blogs written by supposedly smart people from nebraska and I just cringe. Don't ever make fun of the arkies as they seem to be a much smarter group of people. I don't want anymore trickle down economics. The republican party make reagan out to be a god. I guess in nebraska thats easy to do as everyone wearing a red nebraska football jersey is one. "

 Ghostzapper wrote on October 13, 2008 7:51 pm:
" J-O-K-E. So why am I am I crying. I am calling Union Bank in the morning to tell them I am going to stiff them as I am on a Obamabreak until Feb. Seems to me I read we (tax payers) were buying into 9 banks today as part of the bail. So This really makes no sense. This guy has never had a genuine thought in his life but geez his WHIZ people should have thought this through. stupidity. "

 To J-O-B-S wrote on October 13, 2008 8:26 pm:
" For the record J-O-B-S, companies ABSOLUTELY pay taxes. Maybe you should read up on some corporate law. The money companies save in taxes can be used to expand business, which CREATES jobs. So, you think its okay to give companies tax incentive financing for locating their business in a certain community, but its NOT okay to give that same business a tax break for hiring on employees?? "

 KT wrote on October 13, 2008 8:38 pm:
" Surprise? Kashkari has been working on the housing problem for nearly two years... "

 Socialism wrote on October 13, 2008 9:14 pm:
" A Conservative Republican administration taking ownership in American big business. If this isn't socialism, then what is it. Looks like Republicans are their own worst enemy. "

 Break wrote on October 13, 2008 11:43 pm:
" Obama has promised so many people so many things he can not make good on all of them! A $3000 tax credit if a company creates a job does nothing for that business except make them spend another $75000/year in salary and benefits. And by the way that $3000 is not even going to offset the tax increase that he is going to slap that business with in the first place. Anything to get elected! There are a lot of people who have posted here that have it right, I just hope there are that many when it comes to election day. McCain may not have all the answers but compared to the disaster that Obama would be he is the lesser of 2 evils. "

 Nina wrote on October 14, 2008 8:57 am:
" A tax credit of $3,000 is more likely to apply to a $30,000 job, 'Break.' Especially here in Nebraska. There are many more of that type (and under) than there are of $75,000 jobs. "

 nemo wrote on October 14, 2008 10:02 am:
" I can see why people believe trickle down doesn't work. Look at the price of gas right now. Remember all those fuel surcharges companies started adding a year or so ago? It's still there on my garbage company bill, even though fuel is down. Once they are hauling in that money, they keep it. But if you raise taxes then you just give them an excuse to raise prices again, so trickle down may not work on the down? side but it sure does when things are going up! "

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