One way to increase all workers' take-home pay would be to make their Social Security payroll taxes deductible -- an idea supported by many congressional Republicans.

• Since the 6.2 percent taken out of workers' paychecks for Social Security is not excluded from total income at tax time, they end up paying taxes on money they've already shelled out.

• It is estimated that roughly 100 million workers' would reap some $60 billion in tax savings under the plan.

• The median two-earner family would save $500 each year, while the average two-earner family would benefit by $1,770.

• Fiscal Associates Inc. estimates the loss of government revenue at $250 billion over five years, if no account is taken of the cut's economically stimulative effects -- one-third less than that if these effects are factored in.

Of course, the loss in government revenue would have to be made up through spending cuts elsewhere in the budget; but payroll tax deductibility would also stimulate the economy:

• The extra cash pumping through the economy would create 400,000 to 500,000 jobs and boost GDP growth by half a percentage point.
• About two million workers would earn on average an extra $1,872 a year, according to expert estimates.

Some tax analysts see such a plan as far superior to an increase in the minimum wage when it comes to helping workers.

Source: Perspective, "Tax-Free Social Security?" Investor's Business Daily, May 8, 1996.