Forbes signs N.H. antitax pledge

Flat-tax proposal protested as elitist by Boston group

By Jill Zuckman, Globe Staff, March 17, 1999

CONCORD, N.H. -- After launching his presidential campaign on the Internet yesterday, Steve Forbes became the first candidate to sign the state's antitax pledge, promising not to raise taxes for individuals or businesses.

But as he stood with his back to the state capitol and promoted his proposal to eliminate the current federal tax code and institute a 17 percent flat tax, protesters from Boston began chanting "billionaires for Forbes" and waving banners that said "Tax cuts for me, not my maid," and "Because inequality isn't growing fast enough."

Aides to Forbes ripped some of the posters out of the demonstrators' hands and tried to hustle them away from the television cameras. The candidate himself acknowledged "those who are skeptical" by saying they needed remedial education.

The subject of taxes has always inspired great passion in New Hampshire, where there is no income tax and no sales tax. Most state and local politicians here have felt compelled to sign the well-known pledge, popularized by the late publisher of the Manchester Union-Leader, William Loeb. Yesterday, Forbes said he hoped all candidates for elective office would follow his lead.

"There will always be pressure, always be excuses, for imposing more burdens on the people of New Hampshire," he said. "In Washington, they always have excuses on why they must impose more burdens on all of the American people."

Chuck Collins, codirector of United for a Fair Economy, an economic research group based in Boston, said he and his protesters are concerned that Forbes's proposals would lead to greater economic disparities in the nation. Collins said the protest would be repeated when Forbes arrives in Iowa later this week, and in other cities around the country.

Forbes's second run for the Republican nomination will be just as heavily focused on taxes as the first. But as he continues to push for a 17 percent flat federal income tax, the Granite State's typical resolve against taxes is no longer quite so solid.

An income tax bill was recently approved in the House with the support of many Republicans who represent poor school districts in need of state dollars. The Senate could pass the measure, too, but Governor Jeanne Shaheen, a Democrat, has promised to veto it, saying she preferred a voter referendum on any new tax system.

The issue seems to have galvanized Forbes, who plans to demonstrate his disdain for taxes come April 15, when tax returns are due. His campaign will stage a reenactment of the "stamp tax revolt of 1765" in Portsmouth, replete with fife and drums, as well as a casket in which to bury the federal tax code, which Forbes calls "corruptingly complex."

In 1996, Forbes placed fourth in New Hampshire, behind Patrick J. Buchanan, Bob Dole, and Lamar Alexander. His television ads, however, nearly sank Dole's campaign here, and he drew great interest for his conservative, economic themes.

The multimillionaire publisher has tried to broaden his appeal during the past three years, also focusing on social issues, such as a strong antiabortion stance. And in this first-in-the-nation primary state, he has courted activists and put together a seasoned group of political strategists.