Obama Supports Tax Rebates to Help Energy Crisis

Last week, Presidential hopeful Sen. Barack Obama proposed a new energy plan, that includes measures to fight rising costs, and a $1,000 tax rebate for middle and low income families.

"Do you think you can afford another four years of the same failed economic policies?" argued Obama. He was later quoted at a town hall meeting in Florida as saying, "with job losses mounting, prices rising, increased turbulence in our financial system, a growing credit crunch, we need to do more."

Obama hopes to pay for the $65 billion rebate package by levying a 5-year tax on the profits of major oil companies.

According to Reuters, “the proposals came as the government announced the U.S. unemployment rate hit its highest level in four years with another 51,000 non-farm jobs lost in July, bringing job losses for the year to 463,000.”

The tax rebates, which would be phased out for those making more than $150,000 a year, are an accelerated version of Obama's earlier proposal for permanent tax reductions of up to $1,000 for working families, aides said.