Local government services are under-financed because people will not pay as much in taxes as they will in prices linked to the services they receive. Charges would draw revenue into some local government services. The largest, education, and possibly health and housing, could draw revenue through the device of the voucher.

Charging would create the knowledge of alternative costs to stimulate local authorities in increasing efficiency and responsiveness to consumers. Without charging, local government is largely blind.

Hobart Paper 71

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