Obama proposes new economic measures
14 Oct 2008, 1514 Hrs

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Washington, Oct.14 Democratic presidential candidate Barack Obama has proposed new measures to put the American economy back on track, including adding 60 billion dollars in new tax breaks and other benefits to his economic stimulus plan.

According to The Telegraph, the other costly new proposals 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 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 raised the prospect of government aid to the automobile industry and more aggressive federal 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 dollars over two years.

Meanwhile, House Speaker Nancy Pelosi has told reporters the nation is in "survival mode."

Declining to outline a specific plan, she 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, who urged Congress to act immediately. (ANI)