WATCH YOUR WALLET: YOU MIGHT BE RICH

"The tax increases included in the plan fall disproportionately on the wealthiest." That's what President Clinton claims in his "A Vision of Change for America" tax plan. Unfortunately, in dissecting the details of his proposal, one might discover you've suddenly become rich.

It's all a matter of semantics. The p resident has contended over and over again that those with incomes of $100,000 or more would bear 70 percent of the tax burden of his new plan. However, the way Mr. Clinton measures your income is entirely different than the way the IRS does on "taxable income." The difference in calculations is confusing and unnecessary.

The president is running his numbers on a broad-based concept known as "Family Economic Income," which adds income from such things as pension plans, life insurance, presumed rental value of a mortgaged home (known as "imputed rent" on owner-occupied housing), other investments, and earnings/wages lumped together from all members of the family husband, wife, and children.

Congressional analysts have found that with as little as $40,000 of "taxable income," it is possible that a hard-working family of four could exceed $100,000 in "Family Economic Income."

Another illustration shows that a retired couple with an Adjusted Gross Income of $12,300 (from pension) and a "taxable income" of zero (with the standard deduction for the elderly) could add up to $35,100 when their pension, Social Security benefits, imputed rent, and appreciation in home value are piled on top of each other in the "FEI" formula.

The president should quit measuring his tax plan in terms with which most Americans are unfamiliar. It's like he wants us to step on the bathroom scales in heavy boots after Thanksgiving dinner (an untrue measurement), instead of first thing Monday morning before we take a shower (more accurate).

Although you might not see your individual income tax rate directly increase, you will be paying more through the associated taxes under the plan, chiefly the inflationary energy tax.

So watch out, you just might be one of the "wealthiest" after all.

Bill Emerson, R-Cape Girardeau, is serving his seventh term as a member of the U.S. House of Representatives.