Obama's New Econ Proposals

Posted: Oct 13, 2008 1:54 PM
Barack Obama presented a new housing/econ plan today that looks like it was cobbled from the one Hillary Clinton was pushing last winter. Politico rightly notes Obama blasted her plan back in February. At that time Obama was stumping on a $10 billion "foreclosure prevention fund" and said Hillary's plan to freeze foreclosures would be "disastrous."

These are Obama's four new planks, via WSJ. Hillary's "disastrous" plan is number 3.

1. JOB CREATION: A New American Jobs Tax Credit. Obama is calling for a temporary tax credit for firms that create new jobs in the United States over the next two years.

 2.. RELIEF TO FAMILIES: Penalty-Free Withdrawals from IRAs and 401(k)s in 2008 and 2009. Obama is calling for new legislation to allow families to withdraw 15% of their retirement savings – up to a maximum of $10,000 – without facing a tax-penalty this year (including retroactively) and next year.

3. RELIEF TO HOMEOWNERS: 90 day foreclosure moratorium for homeowners that are acting in good faith. Financial institutions that participate in the Treasury’s financial rescue plan should be required to adhere to a homeowners code of conduct, including a 90-day foreclosure moratorium for any homeowners living in their homes that are making good faith efforts pay their mortgages.

 4. RESPONDING TO THE FINANCIAL CRISIS: A Lending Facility to Address the Credit Crisis for States and Localities. Obama is calling on the Federal Reserve and the Treasury to work to establish a facility to lend to state and municipal governments, similar to the steps the Fed recently took to provide liquidity to the commercial paper market.