Over the last few years Americans have watched as home foreclosures and mortgage defaults resulting from the subprime lending craze become an ever-increasing drag on our economy. Recently, these foreclosures and defaults have begun to threaten the stability of our nation's entire financial system. While some advocate and support increased government control and spending, I do not believe bigger government is the answer.
I believe there is a better solution. We must act to bring long-term stability to the financial markets. I believe in personal responsibility and the free market, not government bailouts. As a short-term measure to increase economic activity and growth, I believe we need to suspend taxes on capital gains for at least two years. This one change in the tax code would unleash a flood of new capital into our economy. As a long-term solution, however, I believe we must scrap our current income tax code and replace it will the FairTax, a national sales tax. The FairTax will eliminate our current system that taxes your work and productivity. With the FairTax, you are only taxed on the items you consume; therefore, you control how much you are taxed each year.