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benefits in an amount equal to a prescribed formula therein
provided. Petitioners have not challenged the computation by
respondent under this formula.
The Court rejects petitioners' contention that disability
Social Security benefits constitute accident or health insurance
under section 104(a)(3). The repeal by Congress of former
section 105(d), which specifically provided for the exclusion
from income of certain disability benefits and the enactment of
section 86, with the section 86(d)(1)(A) provision that the term
"Social Security benefits" includes benefits received under title
II of the Social Security Act (which includes disability Social
Security benefits), indicates quite clearly to the Court that
Congress did not intend that disability Social Security benefits
could be construed as an accident or health plan under section
104(a)(3), or that disability Social Security benefits are
otherwise excludable from gross income. The Court, therefore,
rejects petitioners' contention on this issue.
Petitioners' final argument is leveled at the
constitutionality of section 86. Petitioners argue that, if
employees of a State or territory of the United States, including
the District of Columbia, are entitled to exclude from income
sickness or disability benefits under accident and health plans
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Last modified: May 25, 2011