REV-06 ELIMINATE OR LIMIT DEDUCTIONS OF STATE AND LOCAL TAXES

                                Annual Added Revenues
                                (Billions of dollars)             Cumulative
Addition to          -----------------------------------------    Five-Year
CBO Baseline         1994     1995      1996     1997     1998     Addition
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Eliminate Deduction of
State and Local Taxes 15.8     39.4      41.2     44.5     47.2      188.1

Limit Deductions
to the Excess Over
1 Percent of Adjusted
Gross Income           1.8      6.0       6.5      6.9      7.3       28.4

Prohibit Deductibility of
Taxes Above a Ceiling of
9 Percent of Adjusted
Gross Income           1.7      5.7       6.2      6.5      7.2       27.4
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SOURCE:  Joint Committee on Taxation.

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