US presidential race front-runner Barack Obama yesterday rolled out what
his campaign called a four-part "economic rescue plan" for the middle class.
"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 at a rally in Toledo, Ohio.
"It's a plan that begins with one word that's on everyone's mind, and it's
easy to spell: J-O-B-S," said the Democratic senator from Illinois.
Meanwhile, aides to his Republican opponent John McCain said their candidate
would likely wait to lay out any further plans until the Treasury Department
issues a report or recommendations on what to do with the bailout.
McCain has already unveiled a plan to buy US$300 billion in troubled
mortgages and renegotiate the terms directly with homeowners.
On Oct.9, he endorsed the idea of suspending the current requirement that
seniors start drawing down their IRAs and 401(k)s once they reach age 70 and a
half.
Yesterday, Obama proposed a temporary tax credit for firms that create new
jobs in the United States over the next two years, and penalty-free withdrawals
from IRAs and 401(k)s in 2008 and 2009.
The Democratic candidate called for new legislation that would give families
the option of withdrawing as much as 15 percent of their retirement savings ---
up to a maximum of 10,000 dollars ---without facing a tax penalty this year or
next.
He also called for a temporary lifting of taxes on unemployment insurance
benefits.
Moreover, Obama proposed a 90-day foreclosure moratorium for homeowners
acting in good faith, and a new effort to address the growing credit crisis at
the state and local level.
Under the Obama plan, the Federal Reserve and the Treasury would provide much
the same kind of backing to state and municipal governments as the recent
federal bailout did to the commercial credit market.
The McCain campaign said Obama's economic rescue plan was a political move
that would not provide solutions.
CNN's most recent poll of polls shows Obama leading McCain by 8percentage
points, 50 to 42 percent.