The Nation : Panel Clears Tax Changes

The Senate Finance Committee voted to raise about $11 billion in taxes but postponed efforts to pick up another $4.9 billion by keeping the cigarette tax at current levels. The committee would raise $5 billion by putting all state and local government employees under Medicare, $1.2 billion by eliminating income averaging for students coming out of school, $3.2 billion by improving tax collections and $1.7 billion would come from changes in the Superfund toxic waste program. The $11 billion increase would be realized in 1986-88 and is part of overall deficit reduction efforts. But even Chairman Bob Packwood (R-Ore.) conceded the figures for increased tax collections were highly speculative.