Obama kicks off economic tour in Raleigh

Democratic presidential contender Barack Obama told a Raleigh audience today that Republican John McCain's economic policies would echo those of President Bush, and he pledged to restore prosperity from the bottom up.

Obama outlined a series of economic proposals before an invitation-only audience of about 500 at the State Fairgrounds as he began a two-week series of speeches on economic issues.

"Instead of spending $12 billion a month to rebuild Iraq, I think it's time we invested in our roads and schools and bridges and started to rebuild America," Obama said. "Instead of handing out giveaways to corporations that don't need them and didn't ask for them, it's time we started giving a hand-up to families who are trying pay their medical bills and send their children to college. We can't afford four more years of skewed priorities that give us nothing but record debt - we need change that works for the American people."

Obama says his economic plan involves both a short-term plan to help working families and a long-term agenda to make America competitive in the global economy.

He said he will unveil details about his long-term plan in a few weeks. It will include placing a greater emphasis on science and technology and create jobs in this country, he said. He also plans to create jobs "by rebuilding our schools, roads, bridges, and other critical infrastructure that needs repair."

In the short-term, he wants to help the working class and "restore a sense of fairness and balance to our economy," he said.

Obama said he's called for another round of fiscal stimulus, including $50 billion to help those who've been affected by the economic downturn.

He also wants to expand unemployment benefits and extend them for those who can't find another job right away.

Obama called for the immediate creation of a $10 billion Foreclosure Prevention Fund to provide direct relief to victims of the housing crisis. He said he'll also help those who are facing foreclosure refinance their mortgages so they can stay in their homes at rates they can afford. And he pledged a tax credit to low- and middle-income Americans that would cover 10 percent of their mortgage interest payment every year.

"The principle is simple - if the government can bail out investment banks on Wall Street, we can extend a hand to folks who are struggling on Main Street," he said.

He also pledged to:

--Raise the penalties on lenders who break the rules and implement a new "Home Score" system that will allow consumers to learn more about mortgage offers and whether they'll be able to make payments.

--Bring down health insurance premiums by $2,500 for families, and prevent insurance companies from discriminating against those who need care.

--Reform the tax code. He said he would close corporate loopholes and tax havens and use the money to help pay for a middle-class tax cut that will provide $1,000 of relief to 95 percent of workers and their families.

--Make oil companies pay a tax on their profits

--Eliminate income taxes for any retiree making less than $50,000 per year. He said he will not privatize Social Security.

--Give every student $4,000 a year of tuition if the student offers the community or national service after graduation.

--Institute a five-star rating system to inform consumers about the level of risk involved in every credit card.

--Reform bankruptcy laws to help those in debt and make sure CEOs can't "dump your pension with one hand while they collect a bonus with the other."