So this is what I've come up with and I thought I'd get some feedback before I forwarded on to my elected officials.

I'm a free-market Republican. I don't believe in government intervention, but this is a unique time.

We all know we are in a very, very bad recession right now. We know that a lot of the banks we trusted have poorly capitalized balance sheets and greedy management. So here is my plan for cleansing the banking system and getting the economy going up again. It is a four prong plan that probably would cost around $2 trillion...but it is exactly what we need.

1) One year tax holiday:
The first thing we have to do off the bat is declare a one-year tax holiday for 2009. This will inject a significant amount into each working American's paycheck and give people some discretionary income. Additionally, businesses would use the additional cash to shore up their balance sheets and hire new workers.

Now I know you're asking...but isn't this the same as the government spending $1.5 trillion? This is the truth. But I would counter with two points: 1) Tax cuts allocate resources much better than the government can. 2) The best gains in gross domestic product and the driver of economic growth are tax cuts, not government spending. It is just the truth. Look at the growth in the 80s, 90s and earlier this decade.

2) 20/50:
This is probably the most controversial part of my plan, but its something that needs to be done.

The government needs to set up a bad bank to buy the bad mortgage assets in all banks and cleanse these banks of the bad assets on their balance sheets so they can start lending again. So how do we do this? It is quite simple.

The government buys these assets for 20 cents on the dollar. But how would the government make money on this? Simple. It would slash the original value of these assets (whatever this value was at initiation) in half to 50 cents of its original value. This serves three purposes: 1) It will keep people in their houses. They own half the amount they originally did. 2) The government can recoup its investment and even make a significant money. 3) It completely cleanses these assets off the balance sheet.

Now I bet you're wondering...don't the people that you helped keep in their homes still have a crappy adjustable rate mortgage, don't they? Yes...but here's the beauty. Because they are no longer upside down on that mortgage (i.e. they owe more on their house than it is worth), they can refinance what they owe with a 30-year fixed rate mortgage, saving a lot of money. The government gets refinanced out of the asset it owns and gets the different between the refinanced amount and its investment as profit.The 20/50 investment by the government is essentially a bridge loan that will be repaid very quickly.

Also, I'm sure you're wondering..but wouldn't the banks have to recognize the loss on the sale of these assets to the government, thereby killing its capital base. The simple fact is that most of these assets have already been written off to zero by the banks.

3) Infrastructure:

I would propose a limited infrastructure spending plan from about $100 billion to $250 billion for some of the things we really need repaired in this country: roads and bridges. Especially the bridges.

This is really a straightforward plan. Roads and bridges. Roads and bridges. We need it.

4) No Pork Please:

Finally, my plan eliminates some of the stupid proposals the President Obama has in his stimulus bill: 1) $150 Million for the Smithsonian...whaaaattt?, 2) The resodding of the National Mall. Why?, 3) Investment in new renewable energy (I'm in favor of this, but not to stimulate the economy)....and many other things in the current proposal.

The fact is that the current stimulus plan is very light on tax cuts and very heavy on pork. I don't know how well it would work.

I believe my plan is much clearer and would help almost everybody.

Just wanted to get your feedback...