Viewing the current political environment objectively, the outlook appears dim for free-market advocates. Democrats are pushing a massive new energy bill to the House floor this week that will effectively tax all carbon output in the United States and even regulate local building codes.

In addition, details were released on a new health care overhaul that will cost taxpayers upwards of $1.5 trillion over the next ten years and grant the federal government unprecedented control over the system. And to make matters worse, there appear to be few alternatives put forth by the minority party.

Where have Republicans gone wrong? Or, perhaps the better question might be: Where are conservatives hiding? According to a new Gallup poll, a surprising 40 percent of Americans define themselves as conservative, compared to just 21 percent who say they are liberal. Yet when party matchups are included, only 39 percent identify with the Republican Party, while 53 percent side with Democrats. The gap between conservative free-market proponents and Republicans is wide, but why?

With federal spending and regulation on overdrive, how do conservatives and libertarians in Congress remain relevant? Simple: Appeal to the broad consensus of Americans who favor reduced government spending, more health care options, and tax reform that lowers payments to Uncle Sam and promotes job growth.

Here are three ways Republicans can appeal to the 40 percent of Americans who identify themselves as conservative:

First, fight the new energy bill in Congress that will impose trillions of dollars in new energy costs and give Washington virtual control over all carbon emitted in the United States. Democrats brokered a deal this week to bring the energy bill to the floor in an attempt to seek yet another political victory for the administration.

But, according to the nonpartisan Congressional Budget Office (CBO), the bill, H.R. 2454, could cost some families upwards of $1,380 per year. Others have estimated the annual costs significantly higher. What’s worse, despite the Administration’s promise not to impose taxes on middle-class families, the energy bill would burden the poor the most, at 2.5 percent of their after-tax income. Simply put, that is a tax the nation can ill-afford.

Second, propose real solutions to increase access to health care, rather than adopt a government-run option that will crowd-out private insurers and do little to reduce the number of uninsured.

On the health care issue, conservatives once again have the facts on their side. The CBO estimates that the number of people with employer-provided health care would actually decline by about 15 million under the government-run option currently being considered by Congress. Despite the President’s claim that his plan would leave most of the insured unaffected, Congress’s own budget office disagrees and states that the plan’s $1.5 trillion price tag would still leave about 70 percent of the nation’s uninsured without health care.

Instead of massive new spending with few results, conservatives on Capitol Hill should allow individuals to shop across state lines for health care. Rather than be mired in the morass of one state’s regulatory regime, government should allow consumers to search a national market for the best deal, thus increasing competition and reducing health insurance rates.

Capping medical malpractice liability would lower the cost of practicing medicine for America’s 815,000 licensed physicians. Placing limits on outrageous lawsuits could also end the practice of “defensive medicine,” which seeks to avoid liability by ordering more tests and driving up costs.

Finally, Republicans should push for real budget cuts, not the 0.0001 percent that has been proposed by President Obama and ignored by the Democrat-controlled Congress. Most Americans disapprove of President Obama’s handling of the federal budget and the deficit. Rather than acquiesce to more spending, Republicans should advocate for cost-savings in the largest sectors: Medicare, Medicaid and Social Security. Cutting around the corners on non-defense discretionary spending (roughly only 17 percent of the budget) won’t even put a dent in the federal budget. Without a sustainable path to balanced budgets in the near future, the total federal debt could easily double to $20 trillion in the coming years.

Once real budget cuts are in place and the U.S. is no longer running trillion-dollar deficits, Republicans and Democrats can focus once again on tax reform. In this economy, lowering taxes on the cost of labor (income and payroll taxes) would significantly increase the demand for workers, reducing the nation’s rising unemployment rate.

While there are a host of free-market options that conservative Republicans and Democrats could embrace, these three would provide the most immediate impact to America’s ailing economy. Of course, three legislative proposals won’t put the conservative back in Republican, but it could put some money back in the wallets of taxpayers.