Wallace believes that a free market economy is the best way to improve our economy and create wealth. He therefore is for creating an environment in which small businesses can thrive and job creation can flourish. He supports sweeping tax reform such as a flat tax or the FairTax/National sales tax. The FairTax Act (HR 25, S 296) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.