RAN 9/26
Lugar short on deficit details
By KEVIN LANDRIGAN
Telegraph Staff


  CONCORD -- Republican Dick Lugar was short on specifics but embraced the
"zero deficit" goal of the Concord Coalition during the group's first
forum for presidential candidates on Monday. 
  The Indiana senator used the forum to tout his proposed 17 percent
national sales tax, which would replace the federal income tax. He said
this would do more to encourage economic growth and savings than the
current tax system. 
  But Lugar said he could not offer complete details on his concept
because it will be subject to changes as Congress debates several tax
reform proposals, including a single-rate or "flat" income tax. 
  "I won't promise more than I can deliver," Lugar said. 
  State Rep. Randall Shaw, R-Pembroke, had asked for more details and was
disappointed with the response. 
  "The guy we have in the White House now had all kinds of wonderful
concepts like the middle-class tax cut, but he was never forced to give
specifics," Shaw said. "This guy could hire someone to put more of a
detailed plan together . I don't think the voters will accept simple
concepts in 1996." 
  Lugar acknowledged he was not familiar with all the details of the
proposal to cut $270 billion from federal Medicare increases over the next
seven years. 
  But he said he supports the thrust of the effort, which backers say
would allow the elderly to either keep existing health insurance benefits
in return for higher premiums, or shift into less expensive, managed-care
systems. 
  "I would admit that giving the full details of the (Medicare cut)
information is not part of my repertoire today, but it will be by the end
of the week," Lugar said. 
  Congressional debate on House and Senate plans is scheduled to begin
later this week. 
  Lugar said Congress will have to tackle future shortfalls in Social
Security soon. He expects this to include raising the age for retirement,
which is scheduled to go from 65 to 66 years old early in the 21st
century, and to 67 by the year 2022. 
  "There isn't going to be the money in the Social Security trust fund no
matter how you rig it if you don't have growth in the economy," Lugar
said. 
  Last May, the Concord Coalition had estimated it would take $1.2
trillion to fix Social Security, and require $67 billion in higher taxes
by 2002. These would include increases to federal taxes on gasoline,
tobacco and alcohol, and cutting the tax ded uction on interest paid on
home mortgages. 
  But Lugar disagreed with the need for higher taxes. 
  "I will not advocate any tax increase. It is a non sequitur in the tough
times we are in," he said. 
  On Wednesday, the Senate Agriculture Committee, which Lugar chairs, will
set about making one of the largest contributions to the spending-cut
goals -- $47 billion in cuts to farm programs. 
  Lugar, the only active farmer on the panel, said he has been calling for
a reduction in federal farm subsidies for the past three years. 
  Lugar is in good standing on Capitol Hill when it comes to cutting
spending, having won honors from such organizations as the National
Taxpayers Union, Citizens Against Government Waste and the Chambers of
Commerce. 
  But the Concord Coalition gave Lugar a lackluster score in 1994. Based
on 15 select votes, he received a score of 47, which tied him for 47th in
the 100-person Senate. 
  The three Republican senators opposing Lugar for the nomination all had
much better scores, topped by Phil Gramm, R-Texas, (93), Arlen Specter,
R-Pa., (88) and Majority Leader Bob Dole, R-Kan. (82). 
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