Stand for Something

But even a plan as deeply flawed as this, and used in Cuba and Canada, beats nothing. What about medical savings accounts, the longtime GOP throw-down response? MSAs are a kind of tax-code aspirin, beneficial in the short run while we actually reform the system. The core flaw in health care is that only employer plans are tax-deductible. All health insurance (and out-of-pocket health-care expenses for that matter), even if not purchased through an employer, must be made deductible. Companies must be allowed to sell plans nationally, making insurance truly portable and further reducing its cost. Imagine the high price and poor quality that would result from Detroit having to make 50 different cars, one for each state's specific rules ... and if you bought a car in Connecticut you could not use it in New York or any other state ... and if you changed jobs in the same state you had to buy a new car. Yet that is the current American health-care system.

Abusive litigation must also be eliminated to stop defensive medicine and lower insurance costs. And the FDA can't continue to require more than a decade and nearly a billion dollars per drug before approval. The resulting true marketplace for health care will give consumers maximum access, choices and control—the polar opposite of the Democratic solution.

Or let's consider that great core GOP issue: taxes. Will a majority of Republicans ever have the courage to move past the simplistic chants of "lower taxes?" Sure it worked great for Ronald Reagan, but the top rates were astronomical then (70 percent) and the tax debate was not as mature. The American public has a huge appetite for fundamental reform, not just for rate cuts and tinkering. Even for those with a rate obsession, a national sales tax is the far superior approach because it would make taxes much harder to raise in the future. With no deductions, exemptions and exclusions to hide rate increases, and no income-rate distinctions, everyone's rate would have to be raised at once. In this way taxpayers could finally get a permanent edge in the never-ending tax-rate fight. But the real pot of gold, both politically and economically, is the elimination of the regressive payroll tax, which is quite simply a tax on work. If the Democrats figure this out first and pass it, the GOP is going to be in a very deep hole for a very long time. Even the flat tax would be a vast improvement. Regardless of the new tax plan, advocating for ground-up reform is a surefire winner, and anything less is a losing strategy.

Another automatic winner is lawsuit reform. Litigation is a huge cost to society, and the plaintiff lawyers have bought and paid for the Democratic Party many times over. As governor, George W. Bush helped lead a hugely successful tort reform effort in Texas, but he couldn't do it in Washington in large part because of Republicans who have sold out to the trial bar, or are themselves connected to the profession in one way or another. Even Dan Quayle was able to score at least rhetorical points on litigation abuse when he was vice president. Plaintiff lawyers have very low approval ratings, and they are well-earned. This is an absolute slam dunk—so what are you waiting for? This issue has the added benefit of flushing out the party's philosophical double agents while highlighting the real puppet-masters of the Democratic Party—personal-injury lawyers.

As for immigration, stop the insanity! Latinos are now at a political tipping point in many parts of the south and west, and they comprise a culture of social conservatives, small businesspeople and entrepreneurs—natural conservative allies. They are essentially economic refugees, and as free-market advocates, Republicans should support the legal flow of capital and labor. The current flow of labor is largely illegal because our immigration system is badly broken. One need not be forced into an extreme at either end—amnesty or deportation—to address the immigration issue. The longer this is unresolved the more Democrats benefit politically, yet it has been conservatives blocking a resolution. Strong border enforcement and tough employer rules form the foundation of real reform, so there is no need for the GOP to sell out their law-and-order credentials. We also need an effective system for employers to check the status of workers and a penalty-based resolution for the 12 million who are here illegally. Just pass it. Now.

There are scores of other issues just waiting for leadership, and even more voters waiting for the same. It's time for Republicans to reacquaint themselves with that majority of Americans who will pick freedom over collectivism if given a real choice.

Calabrese is the former chief of staff to former House majority leader Dick Armey, and founder of the Patriot Group, a Texas-based consulting firm working to advance a conservative agenda in business and politics.

© 2009