REV-13 INCREASE TAXATION OF SOCIAL SECURITY AND RAILROAD RETIREMENT
       BENEFITS

                                Annual Added Revenues
                                (Billions of dollars)             Cumulative
Addition to          -----------------------------------------    Five-Year
CBO Baseline         1994     1995      1996     1997     1998     Addition
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                     Retain the Current Income Thresholds

Increase the Fraction of
Benefits Included in
Adjusted Gross Income
to Tax up to 85
Percent of Benefits  2.8     6.0      6.8      7.5      8.3     31.5

                        Eliminate the Income Thresholds

Tax 50 Percent
of Benefits         3.9      9.8      9.9     10.0     10.0     43.6

Tax 85 Percent
of Benefits        10.6     24.1     25.0     25.9     26.9    112.5
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SOURCE:  Joint Committee on Taxation.

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