TAX RISES PART OF EMERGING CLINTON PLAN

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 3, 1993                   TAG: 9302030100
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium
TAX RISES PART OF EMERGING CLINTON PLAN
Tax increases of $20 billion to $50 billion now seem sure to be part of President Clinton's economic plan alongside business tax cuts designed to spur the economy.
Aides assert Clinton has yet to make some of the most basic decisions on the package he will unveil two weeks from today, but those close to the process have given plenty of hints that many of the decisions have been made, at least in broad terms.
For instance, Democratic officials said Tuesday that Clinton aides had told lawmakers his short-term stimulus package could reach $31 billion - $16 billion in spending increases and $15 billion in tax breaks for businesses.
With Clinton's talk about "sacrifice" for all, it is clear the middle class as well as the wealthy are bound to be confronted with higher taxes.
Here's how his economic blueprint seems to be shaping up:

A $31 billion package to prod the economy and create jobs. The White House will put priority on projects that can be started within 60 days, including about $7 billion in highway projects.

An increase in the top tax rate from 31 percent to 36 percent for families with incomes above $200,000, and a surtax - most likely 10 percent - on incomes above $1 million. Clinton promised this during his campaign.

Higher taxes on foreign companies doing business in the United States. Another campaign promise.

Energy tax. Apparently, both a gasoline-only tax and an oil-import tax have been ruled out. But sources say a proposed tax on all forms of energy - either on sales or on heat content - is a live option.

Social Security changes. A proposal to suspend cost of living increases encountered stiff opposition in Congress. More likely: a tax boost - possibly on 85 percent of benefits instead of the current 50 percent - on the benefits paid to couples with incomes above $32,000 and individuals with incomes above $25,000.

by Archana Subramaniam by CNB