Tuesday, October 14, 2008

Obama’s plan

While McCain is still yelling drill, baby, drill and mustering up the lynch mobs, Obama has come up with a strong, common sense, road map OUT of these perilous financial times.

On Monday Senator Obama unveiled his economic plan:
· A temporary tax credit for firms that create jobs in the United States.
· Penalty-free 401(k) and IRA withdrawals through 2009, to allow struggling families to withdraw up to 15 percent of their savings, up to $10,000. (Obama acknowledged that McCain had earlier proposed a similar but more limited plan.)
· A 90-day foreclosure moratorium for homeowners making "good-faith efforts" to keep up with their mortgage payments.
· A new entity created to lend to state and local governments, allowing for an effort similar to the liquidity assistance that the Federal Reserve recently extended to commercial banks.
· The temporary elimination of taxes on unemployment insurance benefits.



Today in Virginia, John McCain said he would lower taxes on retirement accounts, reduce capital gains taxes, and eliminate taxes on unemployment benefits.

"If I am elected president, I will help to create jobs for Americans in the most effective way a president can do this -- with tax cuts that are directed specifically to create jobs, and protect your life savings," McCain said. "Retirees have suffered enough and need relief, and the surest relief is to let them keep more of their own savings."

But McCain does not believe people should be allowed to make early withdrawals from their IRAs and 401k plans, and instead proposed cutting the capital gains tax in half.

The problem with this plan is there is no help for working people like you and I. If you are paying capital gains taxes, you do NOT need financial help. People who have to choose between a loaf of bread and a gallon of milk for their kids over a gallon of gas to get to work need the help. McCain is out of touch with reality. Remember, this is the man with 9 houses and 13 cars. He doesn't understand sacrifices like holding two jobs to pay the mortgage.
And then deciding which to pay this month - the electricity or the gas. Unless you are making over $250,000 a year, McCain's plan will NOT help you.

Mr McCain's proposals shows he is out-of-touch. "Senator McCain also shows how little he understands the economy by offering lower capital gains rates in a year in which people don't have an awful lot of capital gains," Obama campaign spokesperson Bill Burton said. "His trickle-down, ideological recipes won't strengthen our economy and grow our middle-class."

He added that the McCain plan provided "no tax relief at all to 101 million hardworking families, including 97% of senior citizens, and it does nothing to cut taxes for small businesses or give them access to credit".

JOBS, baby, JOBS!

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