Jan. 5--WASHINGTON -- With Michigan and the nation struggling to find a bottom to the economic crisis, President-elect Barack Obama returned to the nation's capital today two weeks ahead of his inauguration carrying a proposed program of tax cuts for individuals and businesses built off his campaign promises.

They are expected to make up a sizable portion of Obama's economic stimulus package -- along with shovel-ready infrastructure projects and help from cash-strapped states like Michigan -- and could help defuse the president-elect's political opponents on Capitol Hill, since they might have a hard time arguing against tax cuts. In all, the program is expected to be worth as much as $750 billion.

Still on the drawing board as Obama met with Democratic and Republican leaders from both chambers of Congress are many details, including whether a sweeping economic stimulus plan would include an expansion of unemployment benefits and COBRA, the federal program which allows workers to hold onto their health insurance for a time after losing their jobs.

But as proposed, Obama's transition team is talking about including the president-elect's campaign promise to provide an immediate tax cut for almost all working-class families, with a refundable tax cut of up to $500 for individuals and $1,000 for couples. It is expected the tax cut -- which would be refundable -- would begin to be phased out at about $200,000 annualized income for couples.

The cut could result in lower paycheck withholding, which could put money in people's pockets quickly.

Other tax cuts would help businesses. According to a transition team aide, the proposal includes allowing businesses to use operating losses to count against taxable income over the last five years, rather than the last two -- meaning they could be eligible for refunds and making it easier for them to raise capital by improving their bottom line -- and a tax credit to help employers who retain or hire more employees to help slow the growth in unemployment.

At a photo op with House Speaker Nancy Pelosi, Obama said time is off the essence.

"The reason we are here today is because the people can't wait," Obama said. "We have an extraordinary economic challenge ahead of us."

But congressional leaders and members of Obama's team say it is increasingly unlikely that Congress will be able to pass a sweeping economic stimulus plan by the time of Obama's inauguration -- even though the House and Senate return to work on Tuesday. The legislation is considered too intricate and Republicans -- particularly in the Senate -- have begun carping that Obama's stimulus plan spends too much without enough assurance that it will get the economy going again.

A tax cut package, however, could help the package's chances, seeing as how it may be difficult for Republicans to line up against legislation that reduces the tax burden on businesses and the middle-class -- a move many of them have argued is the best way to revitalize the economy.

"We're working with Congress to develop a tax cut package based on a simple principle -- what will have the biggest and most immediate impact on creating private sector jobs and strengthening the middle class," Nick Shapiro, a spokesman for Obama's transition team, said today. "We're guided by what works, not by any ideology or special interests."

Bruce Josten, chief lobbyist for the U.S. Chamber of Commerce, said he was encouraged to hear that tax cuts would be part of the stimulus plan -- though he was quick to add, "the devil is always in the details."

"The tax cuts are large enough to make a difference and will benefit individuals and businesses, both of which are hurting," Josten said. "Significant tax relief will spur consumer spending, business investment and help jump-start the economy."

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