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"WASHINGTON -- President Obama, determined to show he understands middle-class struggles, is offering new initiatives meant to help people pay bills and save for retirement. Obama was ready to announce the new steps Monday in a partial preview of his State of the Union address. The proposals to be unveiled by Obama and Vice President Joe Biden at the White House include a doubling of the child care tax credit for families earning under $85,000; a $1.6 billion increase in federal funding for child care programs and a program to cap student loan payments at 10 percent of income above "a basic living allowance." His initiatives also include expanding tax credits to match retirement savings and increasing aid for families taking care of elderly relatives. That program would also require all employers to provide the option of a workplace-based retirement savings plan. Obama is seeking to offer some attractive options to taxpayers, mindful of recent setbacks including the loss of a traditionally Democratic Senate seat in Massachusetts to Republican Scott Brown. Monday's rollout is designed to show sympathy with a frustrated public. "We are fighting every single day to put Americans back to work," Obama said in a statement released by the White House. The proposals are the result of the work of a middle class task force that Biden had headed. The White House says the proposals are aimed at the "sandwich generation" -- Americans struggling to care for both their children and their parents. The proposals fit into the economic message of his prime-time address to the nation on Wednesday, one that is likely to cover financial regulations, energy, education, immigration and a push to change the political tone in Washington. White House advisers see Wednesday's State of the Union speech as a key opportunity for Obama to recalibrate his message to better connect with the public and to reset his presidency after stinging setbacks. Obama has promised a sharper focus o

Republican presidential candidate Donald Trump will propose one of the largest tax cuts since Ronald Reagan in a new economic blueprint he plans to announce next week. Trump will reiterate his plan to cut the corporate tax rate to 15 percent, Heritage Foundation chief economist Stephen Moore told Bloomberg Television. The nominee's plan also expects to lower the cost of this tax cut in terms of lost tax revenue by about two-thirds, to $3 trillion, Moore said, though he did not specify a timeline for this to occur. "If you're a working-class American, there's no question that an agenda that cuts taxes, that gets rids of regulations, redoes some of these trade deals in ways that are pro-America, is going to help," he told Bloomberg. Trump plans to unveil his plan for "revitalizing the American economy" in a speech Monday at the Detroit Economic Club.

In the introduction Zawahiri stated that he had always heard from Pakistani scholars that the Pakistani constitution is indeed based on "true Islamic foundations," but that "the ruling class" is corrupt. Challenging the claims, Zawahiri said he studied the Pakistan constitution to determine why the country is "the biggest U.S. ally." He condemns those who do not make Islamic law the foundation for ruling society, and notes that in Pakistan the president can "pardon anyone he wishes," whereas the Muhammad, according to an Islamic saying, was not immune to punishment. He concluded "Pakistan is an un-Islamic country," and that "its constitution is un-Islamic" due to its "many grave contradictions with the Islamic shariah." Pakistan's 23 million people are believed to include about 2.3 million or 10 percent who are viewed as sympathetic to Al Qaida's Islamist creeds.

Federal regulators seized Charter Bank in New Mexico this week as its capitalization fell below requirements, making it the latest of scores of banks to have failed in the economic crisis. However, the Albuquerque Journal reports that Charter faced a very low default rate on residential loans and no commercial failures, either - until the Office of Thrift Supervision, its regulator, demanded that Charter increase its declared risk fivefold (hat tip HA reader Super5): Federal authorities on Friday closed Charter Bank, a closely held, family-run financial institution known for its financing of low-income housing in New Mexico and for the philanthropy of its owners. … Last fall, Office of Thrift Supervision examiners, responding to the national collapse of real estate development, ordered Charter to increase its allowance for loan losses from $10.8 million to $55.4 million, even though Charter had no delinquent commercial construction loans and only [0].34 percent of the loans in its commercial real estate portfolio were behind on their payments. That order reduced the level of capital Charter had on its books. Last Wednesday, OTS ordered Charter to find new capital as a buffer against insolvency or face closure. Charter had hoped to find a buyer, but none appeared. The owners' stake in the company was wiped out by the forced closure. How involved were they in low-income lending? The head of New Mexico's MFA makes it clear: Charter became a major real estate lender and was especially active in underwriting and servicing mortgages for low-income housing. It worked closely with the Mortgage Finance Authority, which was established by the State Legislature to help finance low-income housing construction. According to MFA executive director Jay Czar, Charter services about 95 percent of the mortgages issued through the agency. "They are just class bankers," Czar said. "These are guys who quite frankly really look out for the s

"Dubai: The government of Dubai on Thursday announced that it is fully prepared to host the headquarters of the United Nations if its officials decide to move from New York where the organisation is currently located. According to an official source in the Dubai government, the announcement was made in light of the UAE's - and Dubai's - appreciation of the vital role the United Nations plays in all areas, and in the protection of international peace and security and economic development in particular. The source said Dubai welcomes dialogue with UN officials to provide them with full information on the capabilities which the emirate can provide and which could make it the optimal choice as the new seat of the UN headquarters if a final decision is taken to move out of New York. Among the capabilities which Dubai possesses are suitable geographical location and world-class infrastructure and air, land and sea transport systems which make the emirate an easily accessible meeting point in the middle of the world, noted the source. Dubai's offer is part of efforts the UAE is making to assume its full role as a responsible and effective member of the international community and to find alternatives to contribute to stronger international joint actions."