Nov. 7 (Bloomberg) -- House Speaker Nancy Pelosi will seek to add a tax cut to an economic stimulus measure Congress will consider early next year, her spokesman said.

``In terms of a tax cut, yes, we want it to happen,'' Nadeam Elshami, her spokesman, said yesterday. Details would have to be worked out with President-elect Barack Obama and committee chairmen including House Ways and Means Committee Chairman Charles Rangel of New York.

Democrats are considering passing two stimulus measures, one during a so-called lame duck session this month and another after Obama and the larger Democratic majority in the House and Senate take office in January. Previously, Democrats have said stimulus measures would focus on expanding public-works projects and aiding states.

Matthew Beck, a spokesman for the House Ways and Means Committee, also said tax provisions were part of discussions between congressional leaders and Obama.

``There is no question that we will hit the ground running in January with hearings and legislation to restore economic security for American families, and tax policy will be central to that discussion,'' he said.

Pelosi yesterday said she would try to negotiate with the Senate and outgoing President George W. Bush to win passage of a $61 billion stimulus measure approved by the House in September. The new Congress may tackle a second measure after Obama takes office Jan. 20.

Direct Tax Cuts

Pelosi discussed the possibility of including a tax cut in the stimulus in an interview with the Wall Street Journal. She told the Journal she favored direct tax cuts rather than a new round of tax rebates like the lump-sum checks sent to taxpayers last year. The effect of direct tax cuts would be faster as employers withhold less from paychecks.

Clinton Stretch, tax principal at the accounting firm Deloitte & Touche LLP, said two of Obama's tax proposals may be good candidates for inclusion in such a package.

The first, he said, is Obama's ``Make Work Pay'' tax credit, which would in effect provide a partial Social Security payroll tax holiday for most wage-earners, worth up to $500 for individuals and $1,000 for married couples. Obama also wants to expand the Earned Income Tax Credit, which favors low-income workers.

Chamber of Commerce

The U.S. Chamber of Commerce sent lawmakers a list of 13 recommendations, including tax breaks to help businesses with losses, repeal of a 3 percent withholding tax on government payments such as those made to defense contractors, and flexibility for companies facing unexpectedly large required contributions to pension plans.

``Congress again needs to take action to provide additional stimulus not only to the economy as a whole, but also to address the severe negative effects that the economic downturn has had on specific sectors and industries, such as housing, automakers, infrastructure and travel,'' the chamber said in the memo.

The chamber urged lawmakers to let companies apply current losses to any of the previous five years to get a tax refund; losses can currently be carried back only two years. The chamber also sought incentives to encourage companies to buy equipment, such as faster depreciation tax write-offs.

It also proposed reduced borrowing and lending fees for Small Business Administration programs, more spending on infrastructure such as roads, bridges and sewer systems, and provisions ``to restore liquidity'' to U.S. auto industry financing ``so that the industry can continue to operate and satisfy consumer demand.''

To contact the reporter on this story: Ryan J. Donmoyer in Washington at rdonmoyer@bloomberg.net

Last Updated: November 7, 2008 11:41 EST