The Estonian Tax Authority is recognized as THE most efficient (taxes collected per employee) and effective (most percentage of taxes collected) tax authority in the world.
Now, imagine this….what if a country that did a terrible job of tax collection (say Greece or any one of a 100 other countries) essentially outsourced their tax collection to the Estonians?
It would be revenue to the Estonians, yes, but it would result in far higher and better tax collection at a lower cost for the Greeks.
Politically, would it work?
Maybe….probably not. But imagine the DMV or the IRS or any one of 100 other agencies doing a better job for you for less money.
Do the math…let’s say 500 civil servants in your state lose their jobs. But let’s say the government saves $20 million dollars. And, let’s say that happens 10 times.
That’s $200million dollars that the state just gave back to its taxpayers.
The idea of “government as a service” is pretty revolutionary, but in an era of huge government debt at federal, state, local level….wouldn’t it make sense to explore it?