MercoPress. South Atlantic News Agency

Obama proposes new jobs tax credit and foreclosure relief

Obama has a double-digit poll lead over his Republican rival John McCain,

Democratic US presidential candidate Barack Obama unveiled on Monday an “economic rescue plan for the middle class” at a campaign event in Toledo, Ohio.

Senator Obama outlined a series of measures, including tax credits for job-creating firms and a moratorium on some home foreclosures. Obama has a double-digit poll lead over his Republican rival John McCain, a new ABC/Washington Post poll suggests. Senator McCain dismissed the polls at a rally in the key state of Virginia. "We're six points down," he told supporters. "The national media has written us off... But they forgot to let you decide. My friends, we've got them just where we want them." Mr Obama's economic rescue plan consisted of four main proposals. He said he would suspend home foreclosures by some banks for 90 days and give firms a 3.000 US dollars tax credit for every job they create. He also pledged to let people withdraw up to 15% of their pension plans (or 10.000 US dollars) without tax penalties and to create a federal fund that would lend to city and state governments. "It's a plan that begins with one word that's on everyone's mind and it is spelled J-O-B-S," he told the crowd. Since the recent economic turmoil began Obama has seen his poll ratings surge. According to the ABC News/Washington Post poll, of those voters who rate the economy as their most important issue, 62% favour Mr Obama, while 33% prefer Mr McCain. The four main points according to the candidate's site are: Job Creation: A New American Jobs Tax Credit. Obama is calling for a temporary tax credit for firms that create new jobs in the United States over the next two years. Relief to Families: Penalty-Free Withdrawals from IRAs and 401(k)s in 2008 and 2009. Obama is calling for new legislation to allow families to withdraw 15% of their retirement savings – up to a maximum of $10,000 – without facing a tax-penalty this year (including retroactively) and next year. Relief to Homeowners: 90 day foreclosure moratorium for homeowners that are acting in good faith. Financial institutions that participate in the Treasury's financial rescue plan should be required to adhere to a home owners code of conduct, including a 90-day foreclosure moratorium for any homeowners living in their homes that are making good faith efforts pay their mortgages. Responding to the Financial Crisis: A Lending Facility to Address the Credit Crisis for States and Localities. Obama is calling on the Federal Reserve and the Treasury to work to establish a facility to lend to state and municipal governments, similar to the steps the Fed recently took to provide liquidity to the commercial paper market.