Democratic presidential candidate Barack Obama unveiled his economic rescue plan for the middle class in Toledo, Ohio today, and as Obama himself put it, “It’s a plan that begins with one word that’s on everyone’s mind, and it’s spelled J-O-B-S.”
The Obama plan has three goals, stabilizing the financial system, helping homeowners, and to provide relief to families and communities, but centerpiece of his plan is job creation. Obama proposed offering businesses a tax credit for each new employee that they hire, “We’ve already lost three-quarters of a million jobs this year, and some experts say that unemployment may rise to 8% by the end of next year. We can’t wait until then to start creating new jobs. That’s why I’m proposing to give our businesses a new American jobs tax credit for each new employee they hire here in the United States over the next two years.”
He repeated his proposal to eliminate capital gains taxes on investments in all small businesses and startup companies, “To fuel the real engine of job creation in this country, I’ve also proposed eliminating all capital gains taxes on investments in small businesses and start-up companies, and I’ve proposed an additional tax incentive through next year to encourage new small business investment.”
The Democrat continued, “We will also save one million jobs by creating a Jobs and Growth Fund that will provide money to states and local communities so that they can move forward with projects to rebuild and repair our roads, our bridges, and our schools. A lot of these projects and these jobs are at risk right now because of budget shortfalls, but this fund will make sure they continue.”
He also proposed that the IRS mail out his tax cut for 95% of families immediately, expand unemployment benefits, and that the unemployed stop paying taxes on their unemployment benefits. Obama wants Americans to be able to withdraw 15% of their 401k or IRA up to a maximum of $10,000 penalty free, and a 3 moratorium on home foreclosures.
Obama expressed confidence in the American people, “We can do this. Americans have done this before. Some of us had grandparents or parents who said maybe I can’t go to college but my child can; maybe I can’t have my own business but my child can. I may have to rent, but maybe my children will have a home they can call their own. I may not have a lot of money but maybe my child will run for Senate. I might live in a small village but maybe someday my son can be president of the United States of America.“
He continued with his theme of doing this together, “Now it falls to us. Together, we cannot fail. Together, we can overcome the broken policies and divided politics of the last eight years. Together, we can renew an economy that rewards work and rebuilds the middle class. Together, we can create millions of new jobs, and deliver on the promise of health care you can afford and education that helps your kids compete. We can do this if we come together; if we have confidence in ourselves and each other; if we look beyond the darkness of the day to the bright light of hope that lies ahead. Together, we can change this country and change this world. Thank you, God bless you, and may God bless America.”
Here is the difference between Obama and McCain. McCain gave a speech today which was still focused on tax cuts. On the other hand, Obama is discussing the things that people care about, their homes, their jobs, their retirement. It is also difficult for McCain to claim that Obama will raise taxes, when he keeps putting out tax cut proposals. Barack Obama looks ready to handle this economy, while John McCain is unwilling to act. In a nutshell, this is why Obama is poised to win this election.