Obama proposes sweeping economic plan

Democratic U.S. presidential nominee Barack Obama Monday proposed a sweeping series of actions to boost the economy and provide relief for homeowners.

In a Toledo, Ohio, campaign appearance, the Illinois senator chastised his Republican opponent, Sen. John McCain of Arizona, for seeking to turn attention away from the dire economic situation to focus on personal attacks in the last weeks of the campaign.

Obama proposed a tax credit for each new employee hired in the next two years, elimination of capital gains on investments in small businesses and start-ups, fast implementation of tax relief for the middle class, allowing people to withdraw as much as 15 percent of their retirement savings -- up to $10,000 -- to pay bills in the next year, a mortgage tax credit worth 10 percent of the interest paid and a moratorium on foreclosures.

We cannot allow homeowners and small towns to suffer because of the mess made by Wall Street and Washington, Obama said.

Congress should pass this emergency rescue plan as soon as possible. If Washington can move quickly to pass a rescue plan for our financial system, there's no reason we can't move just as quickly to pass a rescue plan for our middle-class that will create jobs, provide relief and help homeowners.

If Congress doesn't act, he said he would as president.

Obama also said both government and the public must stop living beyond their means.

Once we get past the present emergency, which requires immediate new investments, we have to break that cycle of debt, he said.