America’s largest business association is calling for more tax breaks to be included in President-elect Obama’s stimulus package to help the ailing economy.

In a proposal unveiled Wednesday, the U.S. Chamber of Commerce laid out a series of tax incentives and credits that it said would help boost business as the economy stumbles. The Chamber also expressed support for more infrastructure spending and assistance to a variety of industries, including the housing and travel sectors.

“We must give businesses, large and small, the breathing room they need to keep people employed and to maintain the best possible level of benefits,” Donohue said.

The Chamber “is very encouraged by the direction the president-elect is taking with his recovery package,” Donohue said, noting the tax cuts for workers and businesses and the new spending on infrastructure that are expected to be part of the measure.

According to transition aides, Obama’s economic team is discussing tax breaks of more than $300 billion to be included in the stimulus — potentially 40 percent of a $675 billion-to-$775 billion package.

That would include a campaign pledge to provide a $500 tax credit for individuals and a $1,000 tax credit for families that are making less than $200,000 per year, costing roughly $150 billion. Another $100 billion could be slated for business tax incentives.

The Chamber wants Obama and lawmakers to go further on the tax front. In a letter sent to members of Congress on Tuesday, the business group offered a number of short-term recommendations to help bring the economy back into action.

Among the recommendations:

• Issue tax rebate checks that would boost consumer spending
• Reduce the tax rate on the earnings of U.S. companies’ foreign subsidiaries, a move that could funnel investment back into the United States
• Slash the corporate capital gains tax to 15 percent and extend the reduced tax rate on dividends and capital gains, which could lead to more savings and investment nationwide
• Provide temporary tax relief for one or two years to companies that are buying back their own debt at a discount.

In a separate letter sent to lawmakers Tuesday, the Chamber and 27 other trade groups, such as the National Association of Home Builders and the National Association of Manufacturers, supported that tax break alone.

The Chamber also recommends enacting housing tax credits to buy up vacant homes and using funds from the Wall Street bailout to provide equity for unsecured commercial real estate loans, helping to free up the credit market. Fully funding travel promotion and Internet broadband programs could lead to more jobs and revenue as well, according to the business group.

While generally supportive of Obama’s stimulus, Donohue warned not to create new bureaucracies that could become entrenched in Washington for the long term in order to administer the stimulus money. “We don’t need and can’t afford another New Deal,” he said.

Donohue pledged to fight tooth and nail against several union-backed measures that he considers detrimental to economic growth. Chief among them is the Employee Free Choice Act, also known as “card-check” legislation, which would allow workers to organize without a secret-ballot election. Labor officials have argued the bills will help rebuild the middle class by raising wages and benefits for workers.

“I think you could add a significant number to the unemployment rate in this country,” Donohue predicted, if card-check becomes law.

Battles are also expected on trade and the regulation of greenhouse gases.

Donohue said he hopes Capitol Hill will take the lead in authoring legislation on how best to regulate carbon dioxide instead of leaving that task to the Environmental Protection Agency. Harsh new restrictions could stunt economic growth, Donohue warned.

The Chamber also encouraged Obama to push for a global trade agreement through the Doha talks and to sign off on several stalled trade deals, such as those with Colombia and Panama.

Donohue and Josten both expected campaign rhetoric against free trade, fueled by union opposition, to cool as the new administration settles into power.

“The sooner we move on those trade agreements, the better the country will be,” Josten said.