The commission would identify the transition costs associated with any change to the present federal tax code.

Mr. Fraser said the rent was less than the market rate of $3,600 and would help pay some of the transition costs.

This transition cost would be met through a combination of increased tax revenues and additional borrowing from the public.

This is the so-called transition cost, estimated at $1 trillion to $5 trillion.

The Kerry campaign says the transition costs would total $2 trillion over 10 years.

Congress had funded Nixon's transition costs, including some salary expenses, though reducing the appropriation from $850,000 to $200,000.

Senator Graham said this week that he would consider raising the ceiling on payroll taxes to pay for some of the transition costs.

To fully recognize the transition costs, in fact, Congress should consider appropriating for them separately.

The rest went back into the Social Security system and would be used, he said, to help pay off the transition costs.

"The biggest Achilles' heel we face as reformers is transition costs."