“That re-defining of ‘exempt’ organizations is a terrific idea. It should go for gov’ts as well. :”
No, we should not charge ourselves taxes. The better “correction” for what you are referring to is greater privatization of some things the government now does.
I’m thinking of all the federal land held in the western states. The tax base is really constricted as a result. If the Federal Gov’t insists on holding those lands, there should be some kind of payment to those states for keeping them locked up. Then the eastern states, which already got the feds to release THEIR land, would have an incentive to do the same for the west.