Portsmouth Herald
RAN 2/11/96 Pg. B1
By Shirley Jacques 
Herald Staff
   EXETER - The senator from Indiana was the only presidential hopeful in New
Hampshire yesterday.
   Richard Lugar was also on time to present his alternative to the flat tax
at a forum hosted by the non-partisan Exeter Political Union. Students and
senior citizens spilled beyond the confines of the Phillips Exeter Student
Center as they listened to Lugar talk for 45 minutes about prosperity,
security and integrity before he took dozens of questions.
   Lugar said he was in New Hampshire when everyone else was in Iowa because
both are extremely important. ``Given the miracle of air travel it is
possible to campaign in both,'' he said.
   Elizabeth Richards, a student from Rye and still too young to vote, came
to hear what his views are. ``I haven't seen much of the candidates,'' she
said.
   After the hour-long forum, she said she'd learned a lot. ``I'm not sure I
agree with his sales tax, but it's an interesting concept.''
   Her classmate, Brianna Nadeau from Durham, wanted to hear all the
candidates who might become president.
   Sherril and Steve Driscoll were among the non-students in the back rows. A
Democrat from Hampton, Sherril said Lugar is the only Republican ``who stands
out in such a wasteland of negative advertising.''
   ``I appreciate his views on integrity and his views on the environment. I
hope every Democrat will write him in on the Democratic ballot,'' she said.
   Lugar introduced himself as a Rhodes scholar, the ``Boy Scout'' mayor of
Indianapolis at 35 and a senator since 1976.
   Launching into his opposition to a flat tax, Lugar said, ``Taxes on
income, savings and interest kill hopes and dreams. I propose to end taxes on
income.
   ``The American family income is the same in 1994 as in 1976 when adjusted
for inflation. It is the American dream that each generation does better than
the one before it. Many young people feel it will be a stretch just to do as
well,'' he said.
   Lugar also said he hears from couples, ages 25 to 40, who say they are
both working but can't save, and don't know how they can pay for the kids'
education, their retirement and health care for their parents.
   ``Wages are flat because productivity is flat. Social Security and
Medicare are in trouble because of lack of growth. It's not demographics,''
he says.
   His cure is a national sales tax to replace the income tax. It would bring
the prosperity necessary to provide savings and investment, he says.
   ``You would see your whole pay check and could save or invest as you wish.
With a sales tax, you don't have a taxable event until you spend and the
whole focus is on savings and investment.
   His national sales tax would be collected by the states and would
completely replace the income tax collected by the federal government.
   ``Even with food and medicine exempted and generous deductions for
clothing and shelter, a 17 percent sales tax would bring in more money by far
than the income tax,'' Lugar claimed.
   Speaking from long experience on the Senate Foreign Relations Committee,
Lugar said the world is dangerous. He supports Clinton's choice in Bosnia,
but says ``it comes too late after three years of denial.
   ``Any person who wants to be commander-in-chief should explain to the
American people his changes in foreign policy,'' he continued.
   Moving on to integrity, Lugar said people have to trust their leader.
``This campaign is being driven by negative TV advertising including right
here in New Hampshire. This quantum leap in advertising is poisoning the well
of American political dialogue.''
   Lugar called the Republican caucus procedure ``a demolition derby,'' and
said he is not and will not be involved in negative politics. ``It diminishes
the respect of people in the political process.''
   Questions concerned the flat tax (``doesn't get to the growth problem''),
education (``Pell grants should remain the same'') and abortion (``only in
rape, incest or to save the life of the woman'').