Obama Anounces Tax Cuts And Mortage Bailout Plan

Saturday, February 21, 2009 | Tag Cloud

By Joseph DeCaro, Worthy News Correspondent

WASHINGTON DC, USA (Worthy News) -- United States President Barack Obama ordered the U.S. Treasury Saturday, February 21, to implement tax cuts for 95 percent of Americans, shortly after  unveiling a multi-billion plan to prevent foreclosures for millions of home owners.

The tax cuts announced Saturday, February 21, are part of a $787 billion stimulus plan passed by the Democratic-controlled Congress over Republican opposition.

Obama said the aim is to put more money in the pockets of Americans facing the worst crisis since the Great Depression and stimulate the economy by increasing consumer spending, as he promised during his election campaign.

"I'm pleased to announce that this morning the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks, meaning that by April 1st, a typical family will begin taking home at least $65 more every month," Obama said in his weekly radio address.

"Never before in our history has a tax cut taken effect faster or gone to so many hard-working Americans," he added.


It came after he unveiled a $75 billion lending plan, a full $25 billion bigger than the administration had been suggesting, to prevent as many as 9 million homeowners from being evicted and to stabilize housing markets that are at the center of the ever-worsening U.S. recession.

Of nearly 52 million American homeowners with mortgages, about 13.8 million, or nearly 27 percent, owe more than their homes are worth after many months of declining prices, according to Moody's Economy.com, a major financial Website.

Obama says his plan, known as the Homeowner Stability Initiative, will help families facing foreclosure by restructuring or refinancing their mortgages.

In addition, the Obama administration has pledged to double support for mortgage giants Fannie Mae and Freddie Mac to $400 billion, as part of an effort to encourage them to refinance bad loans, by removing restrictions on both institutions.

So far Fannie Mae and Freddie Mac were prohibited from refinancing mortgages when more money is owed on a home than it is actually worth.


However, Obama said the Initiative will not aid rhose who took "bets" buying homes in order to resell them, or lenders who deliberately misled buyers, or buyers who knowingly signed on for loans they couldn’t afford.

"This plan will not save every home," the president warned, a day after signing into law the economic stimulus plan, which he said would "revitalize" the economy and save or create "3.5 million jobs."

Not everyone is impressed. In the weekly Republican radio response, Representative David Camp of Michigan said his party wants to work with  Obama to rescue the nation's economy, but only in what he called "a responsible way" that does not "burden future generations with a mountain of debt."

Republicans in the Democratic-controlled Congress largely opposed the stimulus bill, complaining it has too much federal spending and too few tax cuts.

The president warned Saturday, February 21, that the stimulus measure is only a first step toward turning around the economy, which has been hit hard by problems in the banking and housing sectors. He is due to discuss the economy at his first major speech to Congress on Tuesday, February 24. (With reporting by Stefan J. Bos).

Copyright 1999-2018 Worthy News. All rights reserved.
Fair Use Notice:This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

3 thoughts on “Obama Anounces Tax Cuts And Mortage Bailout Plan”

  1. Unlike many other countries including Mexico that does not allow a foreign national, from owning a property outright. In America we have given title to anybody who can afford the price of a home. This has come under extreme scrutiny, because millions of illegal aliens have been allowed to buy properties. The media have been closed-lipped but in the serious downturn of our economy thousands have walked away from their obligations. We now know that many used fraudulent documents including bogus social security numbers to buy homes, in collusion with criminal brokers. No foreigner, unless proven legitimate should be allowed to purchase any home, land or any property.

    If Americans and legal residents voice their objections and demand that E-Verify is reinstalled permanently. It will halt, once and for all illegal immigrants getting work, instead of American workers. All businesses nationwide would comply, or look forward to heavy fines or a term of imprisonment. We shouldn't let powerful Senators such as Harry Reid (Dem-NV) kill e-verify, as he did in the Stimulus bill. This gives full rein for illegal aliens to steal American jobs. E-Verify is the only tool we have that has a 99.6 percent success rate, to remove illegal immigrants from the workforce.

    Deluge the Washington Switchboard before March 6 at (202) 224-3121 In addition you can call President Obama at 202-456-1111. Switchboard: 202-456-1414 Sitting back and doing nothing is what politicians expect.!

  2. Trust In The LORD


    Change ONE

    "But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you." Matthew 6:33

    Leads To Change Done

    "But as it is written, Eye hath not seen, nor ear heard, neither have entered into the heart of man, the things which God hath prepared for them that love him." 1 Corinthians 2:9

    And To Credit Given To The Lamb

    "Saying with a loud voice, Worthy is the Lamb that was slain to receive power, and riches, and wisdom, and strength, and honour, and glory, and blessing." Revelation 5:12

    Praising His Name All The Day Long, Hallelujah!

    "I am the LORD: that is my name: and my glory will I not give to another, neither my praise to graven images." Isaiah 42:8

  3. I'm impressed by what the the president is doing. My family needs our mortgage payments reduced so we can stay in our home of 24 years. My husband's pay was lowered and we can't hardly get by. I think the president is working hard to help people like us. I applaud him.

Leave a Comment