Obama Asks For Ninety Day Moratorium on Foreclosures

October 16th, 2008

Asking for quicker steps to be taken to solve the country’s massive economic crisis, democrat presidential candidate Barack Obama has asked for a 90 day freeze on foreclosures for homes, as well as a 2 year tax break for companies that help create new jobs. While the current economic crisis weighs down heavily on his rival McCain, Obama also wants people to be able to withdraw up to $10,000 without incurring any penalties from their retirement funds.

Obama said that his $60 billion proposal spread out over the next two years can be implemented fast by passing a special session after the elections in Parliament, or by virtue of the governments regulatory powers. Talking to a crowd of 3,000 strong Obama said “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.”

Delivering this message in Toledo, he came closer to winning over this mostly blue-collar hub in a state where winning will really boost Obama’s presidential chances in the upcoming election. There are 20 electoral votes at stake in the state. While a spokesman for McCain, Tucker Bounds, accused him of planning to raise taxes if he was elected, Lindsey Graham, who is a key advisor to McCain, said that McCain was considering a proposal to reduce taxes people made on investments, which could include a reduction in capital gains tax, though this was not spoken about by McCain when he made his stump speech on Monday.

Many have applauded Obama’s plans to raise taxes for just 5% of the population that make over $250,000 annually. By taxing the richest 1% of the US population, Obama hopes to rake in an average of $93,709 more per taxpayer for this bracket in 2009. Obama also wants to cut taxes for all other taxpayers who make less than $200,000 every year.

He wants that banks that are part of the federal bailout package should freeze all foreclosure proceedings for three months so that families can get a second chance to repay their outstanding dues back to the bank, and get back on track. Obama said “We need to give people the breathing room they need to get back on their feet. Part of the reason this crisis occurred, if we’re honest with ourselves, is that everyone was living beyond their means — from Wall Street to Washington to even some on Main Street.”