October 13th, 2008
12:15 PM ET
12 years ago

Obama to propose new tax credits in economic speech

 Obama is ready to announce new information about his economic plan.

Obama is ready to announce new information about his economic plan.

(CNN) - Barack Obama plans to propose a series of temporary tax credits and suspensions of tax penalties Monday afternoon as part of his new economic plan.

The Democratic nominee will propose 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 401Ks in 2008 and 2009. He will call 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 $10,000 –- without facing a tax penalty this year or next, and a temporary lifting of taxes on unemployment insurance benefits.

Watch: Obama pledges tax cuts

The Illinois senator will also call for 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.

“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,” Obama will say. “We need to pass an economic rescue plan for the middle-class and we need to do it now.”

Listen: Obama's economic policy director gives reporters the details on a Monday conference call

The new plan, which will be laid out at an Ohio campaign event this afternoon, comes as McCain aides say the Republican nominee will likely wait until Treasury issues a report or recommendations on what to do with the bailout before laying out any further plans. Advisors downplayed weekend reports the Arizona senator would be unveiling several economic proposals over the final three weeks of the campaign, saying it was likely he would lay out one or two new ideas, but not the swarm that had been rumored.

They also downplayed a Sunday suggestion by major McCain surrogate Lindsey Graham that a new economic plan rollout might focus on plans to cut taxes on capital gains and dividends, saying that the South Carolina senator had good ideas but that they had not yet been approved by the campaign.

McCain has already laid out a plan to buy $300 billion in troubled mortgages, and re-negotiate the terms directly with homeowners. On Friday, he endorsed the idea of suspending the current requirement that seniors start drawing down their IRAs and 401Ks once they reach age 70-and-a-half.

- CNN’s Dana Bash contributed to this report

Filed under: Candidate Barack Obama
soundoff (215 Responses)
  1. juiceball

    Here's John McCain's Plan

    From Political:

    "On Sunday, hours before attending a big strategy meeting at McCain campaign headquarters, Sen. Lindsey Graham (R-S.C.) told Bob Schieffer on CBS’ “Face the Nation” that McCain was planning “a very comprehensive approach to jump-start the economy, by allowing capital to be formed easier in America by lowering taxes."

    But when the meeting ended, so did plans for a new economy push. The campaign now says no new policy announcements are planned. Participants in the meeting refused to say what happened.

    “We’re locked down,” said one official."

    October 13, 2008 02:09 pm at 2:09 pm |
  2. David

    This guy is a joke. McCain, too. The two party systems is a scam and the sheep follow it along.

    October 13, 2008 02:10 pm at 2:10 pm |
  3. Seattle Voter

    Notice: Most Obama supporters are young and educated.

    McCain-like the elderly woman on his campaign she thinks Obama is an ARAB. Wow, that makes a big difference! I'm guessing that a lot of McCain supporters are old and uneducated. It's a shame that this people are still thinking the OLD WAY!

    October 13, 2008 02:11 pm at 2:11 pm |
  4. demwit

    "acting in good faith"

    Is that like sitting in church without hearing Rev. Wright for 20 years??

    October 13, 2008 02:11 pm at 2:11 pm |
  5. Sam


    Companies that receive taxpayer-sponsored bailouts are not to be allowed to take actions against taxpayers on foreclosures. Brilliant, brilliant, brilliant! And it is a heap full of COMMON SENSE!

    October 13, 2008 02:14 pm at 2:14 pm |
  6. Dazed and Confused


    Didn't McLame attack Barack on waiting for a recommendation just a couple of weeks ago? Now he is on the sideline..... What a hypocrite this old fossil is. Take the fake back to Alaska you liars and you Palin are truly a disgrace to all that call themselves Evangelicals and follow your blatant disrespect for the American public. You are still guilty of abuse of power and we knew it would be true. You are a redneck racist that only believes in your kind.

    October 13, 2008 02:14 pm at 2:14 pm |
  7. Joy Remson-Johnson

    I agree with one of the comments concerning the idea that most of the commentators probably do not even no or understand the meaning of socialism which is an ideology that in practice does not and will never work it is not a form of government or an economic policy. People really need to take more time to learn than just spewing the rhetoric they hear. I get so irritated with level of basic ignorance about our own history and government in this nation. Every time I hear someone talk about our Democracy is just kills me. This nation is not a Democracy, read the Federalist Papers and the Constitution, this nation is a Republic meant to prevent the dangerous trappings that come along with pure Democratic governments. The dangers of pure democratic governments is that they fall to socialist and communist tendencies. This is a Republic and noone wants to destroy free capitalism they just want oversight. VOTE OBAMA-BIDEN

    October 13, 2008 02:17 pm at 2:17 pm |
  8. Chuck, Tennessee

    I agree with Nightingale. MANY Americans don't pay taxes or pay very little. Now, Obama is proposing penalty-free withdrawals from IRAs and 401(k) accounts. Great! Let people raid their retirement accounts so they will need even more help in retirement. That help will no doubt come from fellow Americans. Keep those great ideas flowing Barack. We will all be in the poorhouse by the time you implement all the government giveaways you are proposing!

    October 13, 2008 02:21 pm at 2:21 pm |
  9. bannedfromcnnfornotbeingamoron

    At least I'm not tired of typing even thuogh unposted.Always a Brides Maid,never a Bride.Thats okay Cnn.I still believe in your first ammenment rights even though you deny me mine.however,once again I ask that you post SOMETHING,ANYTHING that is moderate.We do still exist.

    October 13, 2008 02:23 pm at 2:23 pm |
  10. Brian Rich

    Brilliant plans.

    October 13, 2008 02:26 pm at 2:26 pm |
  11. ohio

    smart guy only talks about country problems not mccain problems....... mccain stop your lies and attacks. today mccain said again tha obama will raise taxes on small business but on the second debated Obama corrected him and mccain didnt say anything now he lieas again go home dude you forgot what you were saying in your last debate

    October 13, 2008 02:27 pm at 2:27 pm |
  12. NJ

    More Obama BS and people are too ignorant to realize one important factor "WHERE IS ALL THIS MONEY FOR ALL HIS PROGRAMS COMING FROM".
    Thanks, but No Thanks Obama we don't need to be another trillion more in the hole.

    October 13, 2008 02:27 pm at 2:27 pm |
  13. Nidwaldner

    Sorry to say, I am not thrilled by the idea of eliminating penalties for withdrawals from retirement funds. Those funds can never be replaced once they are taken out. Most American's future retirement already looks bleak. I could see taking the funds out for emergency health care expenses or loss of job but just look at all the idiots who used their homes as a cash machine for toys? If not done properly it could turn into the same sort of situation. Also, couldn't this make the stock market worse at this time?

    What we needed to do was spend those 2 rounds of "stimulus check" funds on investing in long-neglected infrastructure, education needs, and research and development to create real jobs and long-term economic viability. I weep for those lost opportunities.

    October 13, 2008 02:27 pm at 2:27 pm |
  14. Joe in NJ

    I think allowing people to dip into their 401k's without a penalty is a bad idea. A 401k is not a savings account. It should be used strictly for retirement. I understand people need money but think how long it will take to put that money back. In the long run there will be a lot of people with a lot less money to retire with. I also think removing the penalty might encourage some people to dip into their funds who normally wouldn't do so.

    October 13, 2008 02:29 pm at 2:29 pm |
  15. Rob R

    Obama's plan to temporarily take away the penalty on 401K for hardship withdrawls is a great idea. If people are going to start losing their jobs due to this economy, most people only have that 401K money as an instant source of cash to bridge the gap. Hey, I know I would need to dip in there if I absolutely had to. Nobody wants to have to dip into their retirement savings, but if it can help solve short term problems, like making mortgage payments while you look for a new job, then that can help a lot of people.

    And that is why Obama is the clear choice. Day after day, he is out there talking about the problems average Americans face and coming up with ideas on how to solve them. That's what Americans want to hear. They don't want to hear petty attacks that have no bearing on their bank accounts. They don't want a VP candidate who continues to lie about abusing power even though a bi-partisan report said she did.

    I believe that at the end of the day, families who are struggling to pay bills and put food on the table will look at these 2 candidates and see that Obama has been a steady voice all along. He has been consistent in the direction and focus of his campaign, while McCain keeps trying to fling anything out there hoping something will stick no matter how sinister it may be.


    October 13, 2008 02:31 pm at 2:31 pm |
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