The net result, however, would be more cash in the pockets of millions of Americans.

Obama seemed intent on keeping to his campaign pledge to give priority to middle-class Americans and small businesses. His plan reportedly contains a number of tax breaks that would allow small businesses to deduct the costs of their inventories and depreciation of equipment more quickly from their taxes.

Significantly, it doesn't include a tax break sought by the U.S. Chamber of Commerce and other big employers that would encourage larger American corporations to bring back their foreign earnings and invest them in the United States.

Still, the fact that Obama is adding a number of tax provisions pleased big business and Republicans. For example, in a bid to attack rising joblessness, Obama and Democratic lawmakers are exploring the possibility of a one-year tax credit to businesses for hiring new workers, at a cost of about $40 billion to $50 billion.

"I'm a little more encouraged that 40 percent of the package is going to be tax cuts, or tax reductions, or tax incentives," said Bruce Josten, the vice president of government affairs for the U.S. Chamber of Commerce.

Congressional officials, who spoke only on the condition of anonymity because they weren't authorized to discuss the legislation that's being drafted, said that any plan was sure to change as more congressional members weighed in. Many of the tax ideas bouncing around could change dramatically, they cautioned.

In one scenario widely discussed Monday, the middle-class tax credit would apply to the first $8,100 of wage income. It was unclear whether this credit would apply to all Americans but disproportionately benefit poorer workers or whether there'd be some sort of wage cap that determines eligibility.

One idea that's circulating is capping eligibility at around $102,000 per worker, the cutoff point for paying Social Security taxes. That would allow a two-earner family to make up to $204,000 and still receive the tax credit.

Traditionally, Congress has capped tax credits at $75,000 per individual tax filer and $150,000 for joint tax filers, but during the presidential campaign Obama suggested that his tax plan would benefit anyone who makes less than $200,000.

"I have a hard time believing that that will be the level," said Pete Sepp, the vice president of the National Taxpayers Union, a group that advocates less taxation. Given the high levels of spending being proposed in the economic stimulus plan, Congress is likely to limit tax credits to those who most need them, Sepp said.

(William Douglas and Margaret Talev contributed to this report.)

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