Government 2.0: Crowdfunding Federal Agencies

What if you had the ability to designate where a small portion of your tax dollars were spent instead of giving 100 percent of your income tax to incompetent politicians?  What if government agencies could compete directly for a small piece of your federal income tax returns for special initiatives? The crowdfunding model that is being tested in journalism could also help spur innovation and transparency in government by making agencies compete for money using social media and a good, old-fashioned charm offensive. Let's call this new tax regime 'Flex Filing.'

Part of the democratic process is electing leaders who are responsible for spending public money, but in many ways, it's like throwing your money into a black box.  In 2008 the U.S. Government spent over $3.16 trillion on the military, forests, education, health care, roads, bridges, tunnels and a million other things. Some of the government's priorities I agree with, such as investing money in scientific research, while others I oppose, such as two wars and domestic spying. 'Flex Filing' would enable you track your tax dollars and follow the results from start to finish.

The reality of politics is that a lot of horsetrading occurs in order to ensure the passage of even the best pieces of legislation. It was Otto von Bismark who famously quipped, "to retain respect for laws and sausages, one must not watch them in the making." Politicians all get earmarks and money for pet projects worth tens or even millions of dollars that help ensure their re-election. Unfortunately, this is nothing new, but there are very few times when we are made to care about it. Remember the so-called "Bridge to Nowhere?"

The crowdfunding of journalism is supposed to allow news consumers to pay reporters to cover stories they feel aren't getting enough attention. The idea that a general interest newspaper may be missing or ignoring important issues is rendered moot, when a concerned individual and his or her friends can pay a reporter to go hunt down the truth. The same could be true with government. Our Federal bureaucracy is a general interest organization that is supposed to serve the good of the people. While it's an oversimplification, the editorial policy of our government is debated at predictable intervals and a new editorial board is installed. However, just with the fragementation of the mainstream press, the government is missing a lot of important stories.

Our most recent election proved that the Internet is empowering democracy, making us more informed and involved citizens. Through social media traditional fundraising, presidential candidates John McCain and Barack Obama raised well over $1 billion, according to OpenSecrets.org. Small donations poured into candidates from around the Web, proving the power of social media to engage voters online. For all the money we spent, the most candidate Obama could promise was "Change."

I think a little market competition (albeit within the federal bureaucracy)  would spur innovation and make faceless government departments more responsive and more accessible to their constituents. Much like the TED Prize, where winners get $100,000 to make their dreams come true, if individual government agencies can make a compelling appeal to taxpayers and not lawmakers, their ideas should be funded by the public.

Currently, when Americans fill out their income tax paperwork they are asked whether they would like to donate $3 to the president's re-election fund. In the past I was all too happy to say no to this request.The 'Flex Filing' program  would allow individuals and families filing their taxes online to appropriate 1 percent of  total to the agency or project of their choosing. That still leaves 99 percent for politicians to fight over.

Originally posted on www.TechTrotter.org