Nick Frank wrote:
 I briefly looked at the Citizens League report and it doesn't appear it
includes fees (ie taxes by another name). Does anyone have an idea on what
happens to St.Paul's ranking when you add in the fees, which they rely on to
a greater extent than Minneapolis?  

Mark Anderson replies:
Fees are not the same as taxes.  Not all payments to the government are
created equal.

One pays a fee to the government when one desires a service from the
government, and is willing to pay to have this service performed.  Hopefully
the fees paid for the service cover the cost of the government to provide
those services.

On the other hand, taxes go to the general fund and pays for whatever some
governmental person decides is important.  This is a whole different kind of
payment.

I believe the purpose of government is twofold: 1) To provide those public
goods and services that cannot be efficiently provided by the private
market, and 2) To provide for those who cannot provide for themselves, i.e.,
charity.  These are both worthwhile goals, but should be managed completely
differently.

I think we should charge fees for government goods and services provided
under the first purpose, whenever it is practical.  Free goods and services
are usually over-consumed, and otherwise misallocated to the public.  I
celebrate St. Paul's effort to escalate the use of fees in government.
Admittedly, just because the government calls something a fee doesn't mean
that it is one.  But I haven't heard that St. Paul is abusing the use of the
word.  Just another indication of the more effective government across the
river.

Many times it isn't practical to charge a fee for services.  The entire
public benefits when the government enforces laws against polluting the air.
We all benefit when the police reduce the level of crime on the streets.  In
both those cases, it would be very hard to charge a fee.  But I remember
when someone complained on this List about having to pay for using a public
ambulance.  I thoroughly disagree; I think it makes more sense for those who
use the services to pay for them, than for everyone to cover the costs.  If
the recipient of the services can't pay; well, that's what charity is for.

Mark V Anderson
Bancroft


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