Obama Speaks Up For Foreclosure Moratoriums

Posted in Foreclosure, October 16th, 2008 |

Democrat Senator Obama spoke up strongly fore enforcing foreclosure moratoriums. On Monday 13th October, he suggested immediate measures to be put into force to heal the foreclosure wounds. One of these was the proposal for 90-day moratorium on house foreclosures and two-year tax holidays for those businesses that generate new jobs.

Obama said that his plans involving $60 billion stretched across two years, could be put into effect immediately either by putting into force the regulatory powers of the government or by enacting laws during special session after the completion of elections. He also suggested that Americans could withdraw from their retirement accounts (limit being $10,000) without being penalized during this and the following year. Obama said, “I’m proposing a number of steps that we should take immediately to stabilize our financials 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.” There was a 3,000 strong crowd listening to him in Toledo. The city is of critical importance for deciding Obama’s presidential aspirations.

The foreclosure crisis has not been going down well for McCain, the Republican presidential candidate, who has recently been sending mixed signals on foreclosure remedial measures. Speaking on behalf of the Republican candidate, Senator Lindsey Graham said that McCain was mulling over reduction of taxes related to investment. Possibly there would be a cut on capital gains. McCain however had no positive new proposals but last Monday he spoke vaguely about changes in the direction of the present policies of Bush. Tucker Bounds speaking on behalf of McCain warned that Obama would be increasing taxes if he came to power. It would have a crippling effect on the devastated economy.

Obama had talked about raising taxes to the tune of 5% for those whose annual income was above $250,000. Further he was suggesting tax cuts for persons with an annual income less than $200,000. According to the finding of a non-partisan group, (Tax Policy Center) by following Obama’s proposals, 1% of the wealthiest people would see their taxes on an average increase by $93,709 in 2009. But according to McCain’s plans this same group of rich people would see a yearly reduction in taxes to the tune of $48,860.

Against the background of the raging foreclosure crisis the proposals of the two contending parties are of vital importance to the voters – foreclosure being the dominating issue.