Obama’s Economic Rescue Plan for Middle Class

“We can’t wait to help workers and families and communities 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,” [Sen. Barack Obama] told 3,000 supporters in a convention center in [Toldeo, OH]. “We need to pass an economic rescue plan for the middle class, and we need to do it not five years from now, not next year; we need to do it right now.”

Under Obama’s proposal, companies that create new jobs in 2008 and 2009 would receive a $3,000 tax credit per worker. Families would be able to withdraw up 15% from their IRA or 401(k) accounts, up to $10,000, without penalty. Families facing foreclosure would get a 90-day reprieve if they are working with finance firms taking part in the $700-billion rescue package Congress passed last month and if they are making a good-faith effort to pay their mortgages. Finally, the Democratic nominee would like the Federal Reserve and the Treasury to create an agency to lend money to states and cities that are caught in the credit crunch, such as California.

Some of these proposals could be done under existing law, such as the foreclosure moratorium. Others, such as allowing workers to dip into their retirement accounts, would require legislative action. Obama called on Congress to act immediately.

“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 and provide relief and help homeowners,” he said.

via LA TimesObama calls for moratorium on foreclosures

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