WASHINGTON — President-elect Barack Obama plunged into rare pre-inaugural crisis talks with congressional leaders yesterday, declaring the national economy was "bad and getting worse" and embracing tax cuts now expected to reach $300 billion. He predicted lawmakers would approve a mammoth revitalization package within two weeks of his taking office.

If the two-year plan is enacted, workers would see larger paychecks almost immediately because taxes withheld by the government would drop. The break would be retroactive to Jan. 1, and couples receiving a $1,000 tax cut would begin receiving an extra $40 in twice-monthly paychecks as the government tries to spark more consumer spending.

"The economy is very sick," said Obama, who met privately with leaders of both parties at the Capitol. "The situation is getting worse. ... We have to act and act now to break the momentum of this recession."

Obama, who takes office two weeks from today, has said there can be only one president at a time — and he repeated that principle yesterday "when it comes to foreign affairs." But when it comes to the floundering economy, he clearly feels he cannot sit by until the swearing-in.

"The reason we are here today is because the people's business cannot wait," Obama said as he arrived on Capitol Hill.

"I expect to be able to sign a bill shortly after taking office," he said. Pressed on the timing, he said, "By the end of January or the first of February."

Obama's proposal to stimulate the economy includes tax cuts of up to $300 billion — including $500 for most individuals and $1,000 for couples if one spouse is employed — as well as more than $100 billion for businesses, an Obama transition official said.

New spending, also aimed at boosting the economy, could push the overall package to the range of $800 billion or so.

Obama met with Democratic and Republican lawmakers yesterday in an effort to build broad support for quick action. GOP lawmakers expressed a desire for more details and concern over the plan's cost.

Also yesterday, two Democratic officials said Obama has tapped former Clinton White House Chief of Staff Leon Panetta, an eight-term congressional veteran and administrative expert, to head the CIA.

Retired Adm. Dennis Blair is Obama's choice to be director of national intelligence, according to the officials, who spoke on condition of anonymity because Obama has not officially announced the choices.