By Shailagh Murray and Paul Kane
washingtonpost.com
?TOLEDO, Ohio – Determined to keep the campaign spotlight on the economy, Sen. Barack Obama has added $60 billion in new tax breaks and other benefits to his economic stimulus plan, and will urge Congress to act quickly after the election to provide middle-class relief.
While his opponent, Sen. John McCain, has reportedly considered but not yet spelled out additional economic recovery steps, the Democratic nominee is expected to outline several new proposals at a speech here this afternoon. They include:
A temporary tax credit for firms that create jobs in the U.S.
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.
A 90-day foreclosure moratorium for homeowners making “good-faith efforts” to keep up with their mortgage payments.
Creating a new entity 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.
Obama also will raise the prospect of government aid to the automobile industry and more aggressive government action to help banks and free up consumer credit. He has already outlined benefits such as a middle-class tax break — delivered immediately in the form of a check — and small-business incentives that total about $115 billion over two years.
The Toledo speech coincides with a meeting of House Democratic leaders this morning to discuss action on a stimulus bill when the chamber reconvenes, as planned, after the election.
Exiting what she billed an economic summit, House Speaker Nancy Pelosi (D-Calif.) told reporters the nation is in “survival mode.” Pelosi, declining to outline a specific plan, appeared with a group of liberal economists who endorsed a massive federal government investment in infrastructure and cash transfers to state and local governments that are facing shortfalls and layoffs. They also endorsed another 13-week extension of unemployment benefits.
Pelosi said she was coordinating her emerging plan with Obama.
“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,” said Obama. “We need to pass an economic rescue plan for the middle-class and we need to do it now.”??He also gave a nod to McCain for urging changes to 401(k) and IRA withdrawal rules for seniors. “I think that’s a good idea, but I think we need to do even more,” said Obama, outlining his proposal to waive early-withdrawal fees for all households. “This will help families get through this crisis without being forced to make painful choices like selling their homes or not sending their kids to college.”
