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Obama Proposes $300 Billion Tax Cuts to Help Ease Foreclosure

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By : Leticia Carvalho    99 or more times read
President-elect Barack Obama started a campaign addressed to the Congress involving $300 billion tax cuts for many struggling individuals and business. With the worsening economy side by side with increasing foreclosure cases, his hopes are high that the proposal would come in handy.

Since the Great Depression, many investors have lost capital as well as their people with the many cutbacks they had to make from laborers. In effect, a lot of people are left jobless, hence, unable to create income to cover their needs. Even worse, many of the jobless ends up falling behind their mortgages and eventually lose their homes to foreclosures. With more foreclosed homes on the market, home prices decline making the housing market unstable.

There are several tax breaks under consideration. One of which is the middle-class tax cut where an individual can get up to $500 cut annually. For couples, tax cuts could reach up to $1000. Moreover, with the credit working as a tax credit payroll, the money could be easily delivered, not to mention faster.

However, there will be strict implementation of the tax breaks. Those who will be granted shall belong to a certain income level. There was no mention of the exact grantees. But they will definitely be those who are struggling to keep up with their loans and usually at high risk of losing their homes to foreclosures.

Not only are individuals benefiting but also businesses. Obama is also aiming to establish credits for businesses which are providing jobs to people. Even small businesses would be allowed certain increase in their expenses amounting up to $250,000 from the usual $125,000. The move aims to encourage businesses to provide jobs and bring more individuals to a self-supporting state.

Hopes are high that the foreclosure crisis as well as the economy may be saved from further downfall with such proposals. Obama adds that if people act one on this, challenges will be met as it has been in the past.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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