Now that the governments of Europe and America are dealing with the financial crisis on Wall Street, Barack Obama is now proposing an economic rescue plan for the 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.
We need to pass an economic rescue plan for the middle-class and we need to do it now. Today 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. It's a plan that begins with one word that's on everyone's mind, and it's spelled J-O-B-S.
We've already lost three-quarters of a million jobs this year, and some experts say that unemployment may rise to 8% by the end of next year. We can't wait until then to start creating new jobs. That's why I'm proposing to give our businesses a new American jobs tax credit for each new employee they hire here in the United States over the next two years.
More, after the fold.
Obama is proposing a temporary tax credit for firms that create new jobs in the United States over the next two years, a 90-day moratorium on foreclosures for those making a good faith effort to pay, asking the federal government to lend money to struggling states and municipalities, and penalty-free withdrawals from IRAs and 401Ks in 2008 and 2009. See cnn.com for more details.
Democrat Barack Obama is proposing lifting penalties for withdrawals of up to $10,000 from retirement accounts and imposing a 90-day moratorium on foreclosures on some homeowners as part of a plan to boost the economy and aid middle-income taxpayers.
Obama also wants the Federal Reserve and Treasury to lend money to state and municipal governments that are have having trouble raising money and for federal lawmakers to ``keep all options open'' to help struggling automakers.
The Democratic presidential candidate's advisers say all of the measures, including a $3,000 tax credit to companies for each new job they create in the U.S, should be done immediately, either through existing authority or emergency legislation.
Bloomberg: Obama Proposes New Steps to Stem Foreclosures, Aid Taxpayers
I'm okay with tax credits for creating jobs. The other proposals are fine. A foreclosure moratorium may be a good idea. It can slow down the crash in the housing market as the financial market problems are addressed, and it will help people.
For those Americans in danger of losing their homes, today I'm also proposing a three-month moratorium on foreclosures. If you are a bank or lender that is getting money from the rescue plan that passed Congress, and your customers are making a good-faith effort to make their mortgage payments and re-negotiate their mortgages, you will not be able to foreclose on their home for three months. We need to give people the breathing room they need to get back on their feet.
Prepared Remarks of Barack Obama, from TPM
The most important part of Obama's program is something he has long supported, but that he did not mention today:
"We will pass the Employee Free Choice Act. It's not a matter of if, it's a matter of when. We may have to wait for the next president to sign it, but we will get this thing done." -Sen. Barack Obama
UFCA
Building unions and reversing the great class stratification is the way to rebuild the middle class and Obama knows it. We need a New, New Deal, and I think Barack Obama and a Democratic Congress can make one.
Update I: Video from NCDem Amy:
Also a link to video of most of the speech:
Video of Obama Speech on msnbc.com
Update II: Obama also called for extending unemployment benefits and stopping taxation on such benefits. And he proposed that Congress enact his middle class tax cuts ASAP, so people would be able to heat their homes this winter.
I've already proposed a middle-class tax cut for 95% of workers and their families, but today I'm calling on Congress to pass a plan so that the IRS will mail out the first round of those tax cuts as soon as possible. We should also extend and expand unemployment benefits to those Americans who have lost their jobs and are having a harder time finding new ones in this weak economy. And we should stop making them pay taxes on those unemployment insurance benefits as well.
Prepared Remarks of Barack Obama, from TPM