Las Vegas: Democrat Barack Obama has unveiled an economic stimulus package costing up to US $ 120 billion that his campaign said would put money in the hands of American workers and seniors, stem the country's housing foreclosure crisis and cover state budget shortfalls.

"Obama believes we cannot wait until he becomes president to give workers the tax relief they need," according to a policy paper.

The plan would have to be approved by Congress and President George W Bush to go forward, which is not likely. But Obama's campaign said it represented the kind of relief he would pursue if he was president now.

The immediate relief would cost US $ 75 billion, plus another US $ 45 billion if the economy weakened.

Obama yesterday called on the government to make available a US $ 250 tax credit to 150 million workers to offset the payroll tax paid on the first US $ 8,100 of earnings. He urged a further US $ 250 tax credit per worker if employment declines three months in a row.

Obama pledged US $ 10 billion to increase pre-foreclosure counseling and help "responsible homeowners" refinance their mortgages or sell their homes.

The plan also calls for US $ 10 billion to help states and local governments facing budget problems as a result of the US housing crisis, caused by falling property values and sales tax revenue.

Obama also wants US $ 10 billion to extend unemployment insurance while loosening the eligibility criteria to include many part-time and nontraditional workers.
Source : PTI