CNN iReport

Obama offers up new steps to fight crisis

TOLEDO, Ohio: Barack Obama proposed new steps to address the economic crisis, calling for temporary but costly new programs to help employers, automakers, homeowners, the unemployed, and state and local governments.

In an address here Monday, Obama, the Democratic presidential nominee, proposed giving employers a $3,000 tax credit for each new hire to encourage job creation. He said he would seek to allow Americans of all ages to borrow from retirement savings without a tax penalty; to eliminate income taxes on unemployment benefits; and to double, to $50 billion, the government's loan guarantees for automakers.

The Illinois senator also called on the Treasury and the Federal Reserve to create a mechanism to lend money to cities and states with fiscal problems, and to expand the government guarantees for financial institutions to encourage a return to more normal lending.

He also proposed a 90-day moratorium on most home foreclosures; it would require financial institutions that take government help to agree not to act against homeowners who are trying to make payments. "We need to give people the breathing room they need to get back on their feet," Obama told 3,000 people in a speech at the SeaGate Convention Centre in downtown Toledo.

"I won't pretend this will be easy," he added. "George Bush has dug a deep hole for us. It's going to take a while for us to dig our way out. We're going to have to set priorities as never before."

The package of new proposals was the most detailed and ambitious offered by Obama since the financial crisis became acute last month and transformed the campaign. Obama's Republican rival, John McCain, will make proposals for the economy on Tuesday, his advisers said. They did not provide any details.

Late Sunday, after McCain and his team looked at a variety of policy options over the weekend, a campaign spokesman said McCain, who has been losing ground to Obama in the polls, would have no new proposals unless events warranted. McCain has been emphasizing his plan to help people with financial difficulties get more affordable mortgages, with taxpayers picking up the tab.

By Jackie Calmes and Jeff Zeleny