Friday, April 10, 2009

Financing A Proper Government - Service Fees

The LFC state will have certain legal functions for which it must provide services. I’m talking about things like issuing passports, registering ownership of real estate, registering business names, copyrights and patents and so on. Now being that the state as a paid servant is the ideal of LFC then individuals would pay up front for these services.

However, instead of the government growing a bureaucracy of its own to provide these services what if it licensed private administration companies to act as agents on the its behalf? So rather than going to the government run and operated Passport Office you went to “Al’s Administration” and paid the good folks at Al’s for your passport.

To you the change is seamless; you fill out your forms, pay your money and get your passport just like normal. “Al’s Administration” on the other hand has to operate in compliance with the applicable government regulations and procedures and pay a fee in order to be licensed to issue passports for the Government of Laissezfaireland. This system could be applied to Passports, Real Estate registration, drivers licences, marriage certificates and other similar consumer services*.

How much money could be generated through service fees? Obviously that would depend on the system the government decides to use (one flat fee for a yearly license to the “administration business” or a percentage per transaction) and how much that fee is.

Well since I began talking about Passports in 2008 the US government issued 16,208,003 passports. If the Government asked for a set fee of one dollar per transaction that is over 16 million dollars from a single legal and necessary function of government. Imagine how much revenue there would be if all necessary transactions between government and the citizen earned a dollar toward providing the funding for a proper government.

The beauty of it all is that it would create a competitive marketplace, generate jobs and that competition would lead invariably to streamlined processes and all of this is done without creating a bureaucracy, as a matter of fact it is done BECAUSE there is no bureaucracy. Ignore the monetary aspect for a moment and think of it… Transparent, accountable, reasonable and accessible government services provided by private business…

*Registering a patent and or a copyright could be done the same way as buying a passport but protecting those things is a responsibility of law and I believe would fall under the next revenue stream… contract insurance.

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