My answer to the crisis

So I have been asked by some what Republicans would do if they were to fix the problem themselves. I will be happy to share my opinion. =) I am going to phrase my answer by explaning what I would personally try to do.

The first thing I would do would change our tax code. It has been suggested in the past, but I would overhaul the system where we had a complete fair tax system. I would only have a sales tax. This would cause the loop hole that currently exists for so many business owners. You want to buy a million dollar property? That is great!!! But you will be paying a higher sales tax for that property. You want to buy a Lamborghini? Great!! But you will be paying higher taxes than if you just bought a KIA.

A HUGE MANSION

A NICE LAMBORGHINI
A TOP OF THE LINE KIA

There would no longer be complaints by the middle or lower class that the rich ALWAYS gets tax breaks. One great thing behind this is that even illegal immigrants would be required to pay taxes on everything they bought.

Of course there is an equation that would have to be worked out to determine what the sales tax should be to make sure there is a steady flow of tax revenue coming in. Obviously there are other holes in the system that would have to be worked out, but I don't have enough time to write about all of them.

To help fix the current problem, I would not give a dime to the auto manufacturers or to any other company to bail them out. We are a complete free market system, so you should fail if you weren't wise with your decisions. Here is what I am having a problem with right now... The Senate is asking for the 3 big auto makers to provide a explanation how they would fix their companies and use the money before they get any money. Why weren't banks given the same stipulation? Why didn't they have to show a new plan on how they were going to change their business? Instead... the government wrote them a blank check. Did you know that Bank of America told the government they were just fine and didn't need any money? The government gave them the money anyways and basically said it was mandatory. How ridiculous is that?

Here are some of my suggestions:

1. Tax incentives need to be given to companies to keep jobs here in the U.S. How many times do I call my help desk at work and I get someone in India who places me on hold for 10 minutes because they get paid the minute? Jobs need to be stimulated over here in the U.S.

2. Banks that are going to fail shouldn't receive any government intervention until they have completely failed. The government shouldn't seize a bank because they are concerned that it will fail if they don't intervene. Let the company fail first! Then guarantee the deposits of the customers.

3. Give tax breaks to banks or hedge funds to lend money or invest in the banking system. Example: Wamu received $7 billion from a hedge fund in Fort Worth in April.

4. Give tax breaks to small businesses and business start ups.

I understand that many people will be hurting if banks or auto makers fail. But the system needs to be allowed to correct itself on its own. More government intervention and more government debt will not fix anything long term. At what price are we willing to fix this immediate problem? Once we see another recession in 5-10 years, what will the government do then? We will already be trillions of dollars in debt! Already an estimated $7.4 trillion!! Are they just going to do the same thing as they are doing now?