President-elect Barack Obama's economic stimulus plan will include an immediate tax cut for middle-class families, and the incoming administration hopes to enact permanent tax cuts soon thereafter, a senior adviser to Obama said yesterday.

Faced with a worsening economy, Obama will include the tax relief in his economic stimulus package, which senior adviser David Axelrod said would be implemented soon and could cost $675 billion to $775 billion. The massive recovery plan will seek to create or save 3 million new jobs, Axelrod said in appearances yesterday on NBC's "Meet the Press" and CBS' "Face the Nation."

"Look, we feel it's important that middle-class people get some relief now," Axelrod said on "Meet the Press." Obama has "promised a middle-class tax cut. This package will include a portion of that tax cut that will become part of the permanent tax cut he'll have in his upcoming budget."

Obama, in his second week of a holiday vacation in Hawai'i, continues to work on his economic plan, aides said. He is considering immediate tax cuts of $1,000 for couples and $500 for individuals, which would reduce the amount of taxes withheld from paychecks, a transition aide said. That plan could cost about $140 billion over the next two years, the aide said.

Giving people more spending money will "help get our economy going again," Axelrod said. He said he is hopeful the economic recovery plan is ready to be signed by Obama soon after his Jan. 20 inauguration.

"Obviously, the sooner the better," Axelrod said on "Face the Nation." "I don't think Americans can wait. People are suffering, our economy is sliding and we need to act. And so our message to Congress is to work on it with all deliberate speed."

PERMANENT CUTS

Axelrod said the incoming administration plans to propose permanent tax cuts in its next budget, but officials have not determined the form of permanent cuts. They likely would be based on Obama's campaign proposal, which said that families earning less than $250,000 would see their taxes remain the same or decrease.

Asked by NBC's David Gregory whether Obama would raise taxes on the wealthiest Americans by reversing President Bush's tax cut plan, Axelrod said Bush's plan is "something that we plainly can't afford moving forward."

"Whether it expires or whether we repeal it a little bit early, we'll determine later, but it's going to go," Axelrod said. "It has to go."

Obama's economic stimulus plan is expected to include billions in new spending on infrastructure projects, aid to beleaguered state governments and programs to create new jobs. Axelrod said creating 3 million new jobs is an essential part of the recovery plan.

Eliminating Bush's tax cuts while adding in new middle-class tax cuts doesn't mean that Obama is raising taxes, Axelrod argued. "It'll just restore some balance," said Axelrod, saying the two moves will equal a "net tax cut for the American people."

"We want to do it in a way that leaves a lasting footprint, by investing in energy and healthcare projects and refurbishing the nation's classrooms and labs and libraries so our kids can compete, and rebuilding our crumbling roads and bridges and waterways," Axelrod said on "Face the Nation." "And in this way, we're not only just — we're not only creating work, but we're laying the foundation for the future of our economy."

Sen. Bob Corker, R-Tenn., said in an interview yesterday that he expected the stimulus would pass, but that a more urgent need is easing the flow of credit.

"Regardless of whether I support it or not, a stimulus package is coming," Corker said. "There's too much momentum right now to envision that something isn't going to happen. We can only hope that whatever does happen is something that advances the country's interests."

He added: "The issue we have to solve is the credit issue — the problems in accessing credit. That to me is 90 percent of what we need to be focused on."

The Associated Press and Los Angeles Times contributed to this report.