---

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

DATE: TUESDAY, February 9, 1993                   TAG: 9302090237
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Knight-Ridder/Tribune
DATELINE: WASHINGTON                                LENGTH: Short

---

CLINTON DROPS SOCIAL SECURITY FREEZE PROPOSAL

In the face of widespread opposition, the White House backed away from a plan Monday to make all Social Security recipients - rich and poor alike - give up benefit increases for one year to help reduce the staggering budget deficit.

Instead, White House officials said President Clinton may propose that upper- and middle-income recipients pay taxes on more of their Social Security benefits, while exempting those who make less money.

The proposal to tax more benefits was not immediately ruled out by elderly advocates, who said Monday they might go along with it if the taxes were part of a comprehensive and fair deficit reduction plan.

The idea of freezing benefits for one year was floated 10 days ago by administration officials. It immediately was denounced by leading Senate Democrats and powerful lobbying groups representing the elderly.

Now under consideration is a proposal to tax 85 percent of Social Security benefits for individuals with adjusted gross incomes above $25,000 a year and couples with annual incomes above $32,000. Now, Social Security recipients at those income levels pay taxes on 50 percent of their benefits.

While still controversial, the tax plan is considered less onerous because it would not affect recipients with lower incomes. About one in five Social Security recipients now pay taxes on their benefits, which average nearly $600 a month per beneficiary.

---