REV-17 TAX A PORTION OF THE INSURANCE VALUE OF MEDICARE BENEFITS

                                Annual Added Revenues
                                (Billions of dollars)             Cumulative
Addition to          -----------------------------------------    Five-Year
CBO Baseline         1994     1995      1996     1997     1998     Addition
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                           Without Income Threshold

Hospital Insurance
 Only                  1.3      4.5       5.0      5.6      6.2       22.6

Supplementary Medical
  Insurance Only       1.5      5.3       6.1      7.2      8.5       28.6

Both                   3.0     10.5      11.9     13.6     15.6       54.6

                             With Income Threshold

Hospital Insurance
 Only                  0.9      2.4       2.9      3.3      3.8       13.3

Supplementary Medical
  Insurance Only       1.0      2.8       3.5      4.2      5.1       16.7

Both                   2.0      5.3       6.4      7.7      9.1       30.6
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SOURCE:  Joint Committee on Taxation.

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