What if the individual taxpayer could choose how she wants to allocate her taxes?
To prevent everyone funding the same thing, there could be some kind of cap on every possible project. Once the cap on her 1st preference is reached, the individual taxpayer’s remaining taxes go to her 2nd preference. Once the cap on the 2nd project is reached, the remaining taxes go to the 3rd preference, and so on.
Potential for giant imbalances? Absolutely. Say rich people pay most of the taxes. Rich people use private vehicles more than average. So they may not want to pay for buses. Instead, they want to pay for parking. Well, then keep the cap on parking very low.
I’m not saying whether it’s a good or bad idea – it popped into my head literally five minutes ago – but it is pretty wicked.
Has anyone written on this yet?! SOMEONE TAKE IT AND MODEL IT. If I didn’t already have a thesis topic this would be my baby. IT CAN BE YOURS. Unless, of course, this model already exists in a paper somewhere…