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WASHINGTON – Pushed by fellow Democrats, President-elect Barack Obama agreed to modest changes in his proposed tax cuts on Friday after inviting lawmakers to "just show me" ideas for fixing an economy shedding jobs at an alarming rate. Democratic congressional officials said that Obama aides came under pressure in closed-door talks to jettison or significantly alter a proposed tax credit for creating jobs.

President-elect Barack Obama speaks about the economy, Thursday, Jan. 8, 2009, at George Mason University

Further, Democrats sought inclusion of relief for upper middle-class families hit by the alternative minimum tax. The so-called AMT was originally designed to make sure the very wealthy did not escape taxes, but it now hits many more people because of inflation, despite measures by Congress every year to prevent it from reaching tens of millions of middle-income families.

Congressional officials said aides to the president-elect had agreed to increase the $10 billion originally ticketed for energy tax breaks, although the final total remained unclear. Two officials said at least $20 billion would be reserved, but others indicated it could go higher.

Details were not available, but Obama has spoken in the past about increasing tax breaks for production of alternative energy sources such as wind power. The energy tax provisions make up a small part of a massive economic stimulus bill — expected to reach over $800 billion over two years — that congressional leaders hope to pass before mid-February.

With more than 11 million Americans out of work, Obama pressed Congress for urgent action and said the U.S. is undergoing "a devastating economic crisis that will become more difficult to contain with time." His warning was underscored by a government report showing that unemployment hit a 16-year high of 7.2 percent in December.

But congressional Democrats are making it clear they want to put their own stamp on the revival plan, despite the inevitable delays. Some Obama ideas, like a $3,000 job creation tax credit, might get scrapped.

Many Democrats aren't thrilled with Obama's business tax cut plans and are griping that there's not enough money in the measure for traditional infrastructure projects like road construction and water projects or for tax credits to promote renewable energy.

Beyond the emerging rifts — and the openness with which Democrats are pushing back against some of Obama's ideas — is the sheer enormity of crafting such a complex, controversial measure in just weeks. Lawmakers' insistence on making changes could delay the recovery plan beyond a mid-February deadline declared by House Speaker Nancy Pelosi, D-Calif.

Obama, at a news conference, sought to play down the differences. "There's no disagreement that the economy is in dire straits," he said. "There's no disagreement that we need to create jobs."

Top Democrats affirmed there is far more agreement than disagreement on the major parts of the recovery plan: aid to cash-strapped state governments, $500-$1,000 tax cuts for most workers and working couples, and a huge spending package blending old fashioned public works projects with aid to the poor and unemployed and a variety of other initiatives.

Obama said he welcomed input from lawmakers in both parties.

"If members of Congress have good ideas, if they can identify a project for me that will create jobs in an efficient way that does not hamper our ability over the long term to get control of our deficit, that is good for the economy, then I'm going to accept it," the president-elect said.

"What we can't do is drag this out when we just saw a half-million jobs lost," Obama said.

"If you can show me that something is going to work, I will welcome it," he said.

A squadron of Obama officials came to the Capitol on Friday to brief House Democrats on the measure, and they again heard criticism of some of Obama's proposed tax cuts, particularly a $3,000 credit for job creation. Lawmakers pressed for more infrastructure spending and tax credits to promote renewable energy and said that more needs to be done to address the housing crisis.

"There's considerable expertise running around the halls of Congress, and this week represents the first, most significant opportunity to have good, constructive dialogue on how we build the best package," said Rep. Earl Pomeroy, D-N.D.

Obama is promising to ride herd.

"It is my job to make sure that Congress stays focused in the weeks to come and gets this done," he said.

The top Democrat in Congress is a cheerleader for the Obama plan.

"All of their priorities are ones that we share," Pelosi said. "We just want to make sure that those (ideas), when they're written in the bill, are ones that can be used immediately and can create jobs."

Sen. Barbara Boxer, D-Calif., emphasized areas of broad agreement and the universal sentiment of a need to act.

"Please don't get the idea there was some sort of breakdown here," Boxer told reporters.

The details are closely held and subject to change — and the cost of various components seems to be bouncing around daily in the push and pull between the Obama transition team and congressional leaders.

"Spend more on infrastructure. That was a recommendation made in the caucus," Rep. Pomeroy said. Financial Services Committee Chairman Barney Frank, D-Mass., said money will be added to have state and local governments buy up foreclosed homes.

Boxer said about 20 percent of the bill would provide aid to the cash-strapped states, with 40 percent, or about $300 billion for tax cuts for individuals and businesses. The remaining 40 percent would go to spending programs such as infrastructure, help for the unemployed and renewable energy.

One tax provision would provide a $500 tax cut for most workers and $1,000 for couples, at a cost of about $140 billion to $150 billion over two years. The individual tax cuts may be awarded by withholding less from worker paychecks, effectively making checks about $10 to $20 larger each week.

WASHINGTON – President-elect Barack Obama's decision to fill the nation's top intelligence jobs with two men short on direct experience in intelligence gathering surprised the spy community and signaled the Democrat's intention for a clean break from Bush administration policies.

AP – In this Sept. 27, 1996 file photo, then-White House Chief of Staff Leon Panetta talks to reporters on

Former Clinton White House Chief of Staff Leon Panetta, an eight-term congressional veteran and administrative expert, is being tapped to head the CIA. Retired Adm. Dennis Blair is Obama's choice to be director of national intelligence, a selection expected for weeks, according to two Democrats who spoke on condition of anonymity because Obama has not officially announced the choices.

The Obama transition team's long delay in selecting CIA and national intelligence directors is a reflection of the complicated demands of the jobs and Obama's own policies and priorities.

Obama is sending an unequivocal message that controversial administration policies approving harsh interrogations, waterboarding and extraordinary renditions — the secret transfer of prisoners to other governments with a history of torture — and warrantless wiretapping are over, said several officials.

The search for Obama's new CIA chief had been stalled since November, when John Brennan, Obama's transition intelligence adviser, abruptly withdrew his name from consideration. Brennan said his potential nomination had sparked outrage among civil rights and human rights groups, who argued that he had not been outspoken enough in his condemnation of President George W. Bush's policies.

And despite an internal list of former and current CIA officials who had impressive administrative credentials, all either worked in intelligence during the Bush administration's development of controversial policies on interrogation and torture or earlier, during the months leading up to the Sept. 11 terror attacks.

Neither Panetta nor Blair are tainted by associations with Bush administration policies, in large part because they both come from outside the intelligence world. Blair was posted at the CIA for about a year.

Panetta could face tough questions at his nomination hearing about his background in intelligence. California Sen. Dianne Feinstein, who will chair the Senate Intelligence Committee, said Monday she was surprised by the pick, and neither was informed nor consulted.

"I know nothing about this, other than what I've read," she said. "My position has consistently been that I believe the agency is best served by having an intelligence professional in charge at this time."

A former senior CIA official who advises Obama defended the surprise choice of Panetta, who has no direct intelligence experience beyond a two-year stint in the mid-1960s as a U.S. Army lieutenant. The official said Panetta had been a consumer of CIA intelligence when he was at the White House. He said he was selected for his administrative, management and political skills which will allow him both to control and advocate for the agency.

He said Panetta will rely on the expertise of CIA officers to balance his lack of personal intelligence experience.

Veterans of the CIA were caught off guard by the selection.

"I'm at a loss," said Robert Grenier, a former director of the CIA's counterterrorism center and 27-year veteran of the agency who now is managing director of Kroll, a security consulting company.

The lack of intelligence experience puts Panetta at "a tremendous disadvantage," Grenier told The Associated Press in an interview.

"Intelligence by its very nature is an esoteric world. And right now the agency is confronted with numerous pressing challenges overseas, and to have no background is a serious deficit. I don't say that he can't succeed. It may that he can compensate for the obvious deficit."

John Hamre, the president of the Center for Strategic and International Studies, served with Panetta during the Clinton administration. He said Panetta's experience as a former Cabinet member will help elevate the CIA's status inside the White House. The CIA director was once the president's main intelligence adviser. That role shifted in 2004 to the newly created national intelligence director.

Obama "has drawn a former Cabinet-level official to take a sub-Cabinet position, which means for a much more powerful CIA in the constellation of intelligence agencies," Hamre said.

Panetta was director of the Office of Management and Budget and a longtime congressman from California. As White House Chief of Staff during the Clinton administration, he spearheaded the internal effort to find a new CIA chief that led to the selection of John Deutsch in 1995. Deutsch served for 18 months. After he resigned, CIA security officers found classified material on his home computer, a violation of security procedures.

Panetta also served on the Iraq Study Group, a bipartisan panel that released a report at the end of 2006 with dozens of recommendations for reversing course in the war.

With his wife, Sylvia, Panetta directs the Leon & Sylvia Panetta Institute for Public Policy, based at California State University, Monterey Bay. The university that he helped establish is on the site of the former U.S. Army base at Fort Ord. Panetta also served for two years on a review board that helped oversee two major reports on the history of sex abuse in U.S. Catholic dioceses.

Obama's selection of Blair, a former U.S. Pacific Command chief, had been expected.

Blair served in the Navy for 34 years and was chief of the U.S. Pacific Command during the Sept. 11 attacks. Blair also is a China expert, and he was an associate director for military support at the CIA.

Blair and Panetta would replace retired Adm. Mike McConnell and former Air Force Gen. Michael Hayden, respectively. Both men had said they would stay in their positions if asked.