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WORLD> America
Obama outlines economic rescue plan
(Xinhua)
Updated: 2008-10-14 09:05

WASHINGTON -- US presidential race front-runner Barack Obama on Monday rolled out what his campaign called a four-part "economic rescue plan" for the middle class.

"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," Obama said at a rally in Toledo, Ohio.


US Democratic presidential nominee Senator Barack Obama speaks at a campaign rally in Philadelphia, October 11, 2008. [Agencies] 

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"It's a plan that begins with one word that's on everyone's mind, and it's easy to spell: J-O-B-S," said the Democratic senator from Illinois.

Meanwhile, aides to his Republican opponent John McCain said their candidate would likely wait to lay out any further plans until the Treasury Department issues a report or recommendations on what to do with the bailout.

McCain has already unveiled a plan to buy $300 billion in troubled mortgages and renegotiate the terms directly with homeowners.


Republican presidential nominee Senator John McCain speaks during a rally in Virginia Beach, Virginia October 13, 2008. [Agencies] 

On Oct.9, he endorsed the idea of suspending the current requirement that seniors start drawing down their IRAs and 401(k)s once they reach age 70 and a half.

On Monday, Obama proposed a temporary tax credit for firms that create new jobs in the United States over the next two years, and penalty-free withdrawals from IRAs and 401(k)s in 2008 and 2009.

The Democratic candidate called for new legislation that would give families the option of withdrawing as much as 15 percent of their retirement savings --- up to a maximum of US$10,000 ---without facing a tax penalty this year or next.

He also called for a temporary lifting of taxes on unemployment insurance benefits.

Moreover, Obama proposed a 90-day foreclosure moratorium for homeowners acting in good faith, and a new effort to address the growing credit crisis at the state and local level.

Under the Obama plan, the Federal Reserve and the Treasury would provide much the same kind of backing to state and municipal governments as the recent federal bailout did to the commercial credit market.

The McCain campaign said Obama's economic rescue plan was a political move that would not provide solutions.

CNN's most recent poll of polls shows Obama leading McCain by 8percentage points, 50 to 42 percent.

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