REV-16 TAX EMPLOYER-PAID HEALTH INSURANCE

                                Annual Added Revenues
                                (Billions of dollars)             Cumulative
Addition to          -----------------------------------------    Five-Year
CBO Baseline         1994     1995      1996     1997     1998     Addition
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                    Tax Some Employer-Paid Health Insurance

Income Tax             6.2     10.7      13.5     16.7     20.4       67.4

Payroll Tax            4.2      7.3       9.2     11.3     13.8       45.8

   Total              10.5     17.9      22.6     28.0     34.2      113.2

          Tax All Employer-Paid Health Insurance, but Allow a Credit
                for Some Employer and Individual Contributions

Income Tax            11.5      6.8       9.6     12.8     16.5       57.1

Payroll Tax           21.9     33.6      37.1     40.8     44.9      178.3

   Total              33.4     40.4      46.7     53.6     61.4      235.4
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SOURCE:  Joint Committee on Taxation.

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