Second stimulus plan in the works

Well, it’s obvious that Sen. Barack Obama doesn’t pay any attention to me.

In announcing his new economic policy plan today, the Democratic presidential nominee called on Congress "to pass a plan so that the IRS will mail
out the first round of [Obama’s proposed] tax cuts as soon as possible."

Yep, that’s the second rebate, which I argued against just this morning.

Other tax proposals that Obama mentioned today in discussing his economic plan include:

• Eliminating capital gains taxes on investments in small businesses and start-up companies.
• Allowing families to withdraw penalty-free up to 15 percent from IRA or 401(k) plans, up to a maximum
  of $10,000, through 2009.
• Creating a 10 percent mortgage interest tax credit. This proposal, which would be in addition to the existing mortgage interest deduction and other housing subsidies, is part of his previously announced tax plans.

Agreeing with the opposition: Obama also reiterated his support of a proposal offered last week by his opponent, Sen.John McCain.

The Republican candidate for president suggested waiving required minimum distribution (RMD) rules that force older retirement account holders to withdraw money from their plans or face stiff tax penalties. (You can read how RMDs work in this tax tip and accompanying table.)

McCain said that enforcing RMDs would be unfair right now in light of the dramatic declines in value that most retirement accounts have suffered during the market’s meltdown.

You can be sure that you’ll hear more about these and other economic issues when Obama and McCain face off Wednesday for their final formal debate.