Obama offers new proposals to help economy
By CHRISTOPHER WILLS
Associated Press
October 14, 2008
Page 2 of 2
"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.
"Part of the reason this crisis occurred, if we're honest with ourselves, is that everyone was living beyond their means -- from Wall Street to Washington to even some on Main Street," Obama said.
McCain opposes a temporary foreclosure moratorium and instead wants to focus on policies that would keep homeowners from ever facing foreclosure, said economic adviser Douglas Holtz-Eakin.
Obama 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 proposes letting people withdraw up to 15 percent of their retirement funds, to a maximum of $10,000, without the penalty that now applies to early or excess withdrawals. The change would apply retroactively to all of 2008, as well as 2009. People 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.
He ended the speech with a call for people to unite and make sacrifices, as America did during the Great Depression, until the economy is back on track.
"Together, we cannot fail. Not now. Not when we have a crisis to solve and an economy to save. Not when there are so many Americans without jobs and without homes," Obama said. "We can do this because we've done it before."
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