Thursday, November 08, 2007

Obama Addresses Income Inequality

from the Washington Post

A FADING AMERICAN DREAM?

Obama Addresses Income Inequality

BETTENDORF, Iowa -- Barack Obama, bidding to strengthen his appeal among working families, outlined new proposals Wednesday designed to make college more affordable, encourage retirement savings, and help people balance the competing demands of work and family.

In a speech here, Obama said the cost of the American dream is rising faster than ever. "While some have prospered beyond imagination in this global economy, middle-class Americans -- as well as those working hard to become middle-class -- are seeing the American dream slip further and further away," he said.

The senator from Illinois said that President Bush's tax cuts have helped increase income inequality and that the administration's policies have favored corporate and special interests over ordinary families. But he argued that it will take more than replacing Bush with a Democrat next year to bring about the changes needed.

Obama repackaged some of the proposals he has already outlined in the campaign with several new ones in an effort to offer an updated economic message two months before the Iowa caucuses. Through much of the year, Hillary Clinton has demonstrated much more appeal to middle-class and blue-collar voters than Obama, a critical weakness in his campaign that he is seeking to overcome.

Campaign officials said the new proposals would cost $26 billion a year. That does not include the cost of his health-care proposal or his previously announced middle-class tax cut. Among the proposals offered Wednesday was a refundable tax credit to cover the first $4,000 in tuition for any student. Obama said that would cover two-thirds of the tuition at the average public college or university. He also pledged to simplify the financial aid application process to make it easer for all students to apply for assistance.

To make saving for retirement easier, Obama said he would require employers to enroll workers in direct-deposit accounts. He also proposed expanding an existing program that would have the federal government match half of the first $1,000 in savings for families earning $75,000 or less.

To help families cope with the burdens of raising children or caring for elderly parents, Obama pledged to double the amount of money spent on after-school programs and to expand provisions of the Family and Medical Leave Act.

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