Governments should become more efficient with tax revenue instead of increasing it unnecessarily. The main reason is that current technological advancements and capability for data analysis enable the given institutions to find the most effective solutions for the underlying issues. Increasing tax revenue is plausible only if the government is already at maximum efficiency and requires more money for spending. For example, Boston’s mayor and his team were able to improve the overall public service quality by gathering data and utilizing it through other private companies to interact and cooperate with the local citizens (TEDx Talks, 2015). In other words, proactive and innovative actions by the city’s government led to major improvements in the quality of life. The team was able to remove traffic congestion in the central regions and remove graffiti reported by citizens (TEDx Talks, 2015). In addition, the use of scoring methods to track the overall performance is an outstanding move in terms of being reciprocal with the local communities and monitoring the betterment.
Government regulations are necessary to make the economy less chaotic and controllable, which is essential to reduce the impact or even eliminate market failures. However, the interventions require the highest level of effectiveness, which can only be obtained through the use of modern technology and extensive data analytics. Observing historical patterns and finding efficient routes can be massively useful in designing strong and error-free policies, which can remove the weaknesses of the regulated area. By achieving such a level of optimized utilization of the tax revenue, governments will be able to become the template for organizational performance (Gadenne, 2017). Therefore, they need to prove that they are efficient with the money they have. After the government has shown an outstanding level of functionality, people will be more willing to give up their money for taxes.
Gadenne, L. (2017). Tax me, but spend wisely? Sources of public finance and government accountability. American Economic Journal: Applied Economics, 9(1), 274-314. Web.
TED. (2013). What will future jobs look like? | Andrew McAfee [Video]. YouTube. Web.
TEDx Talks. (2015). What government can learn from baseball | Daniel Koh | TEDxCambridge [Video]. YouTube. Web.