What if a large part of the government was a publicly owned corporation? So instead of a government-owned corporation, normally 20% of government ownership(in the U.S), and 80% private shareholder ownership, the corporation is publicly owned equally by everyone. Everyone gets an equal share of the profit and everyone gets an equal vote in choosing the directors.
This corporation provides military research, development, and production, the profits from which maintains the military. It provides aerospace research, development, and production, the profits from which maintains the national aerospace program. It provides federal investigation and central intelligence. People pay for getting caught, ie they pay for the costs of the investigation since a consumer has to pay for the maintenance and expenses of providing a product or service. And the added fines are a bit of profit :).
Every so often, the directors might offset a vote onto the owners, ie every taxpayer. But normally, taxpayers just get a weekly check that is their share of the absolute bottom line from their government doing what they want it to do.
From here, the government can provide all manner of goods and services where the profit is shared and actions are predominantly public. I'm not suggesting removing the normal leaders. We could discuss that in the comments, but the idea is just to have the corporation as a part of the government or possibly the whole of the "government."(again discuss that in comments)
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Sounds like Communism to me. Doesn't work.
In Communism, like your system, the government provides all research. They provide an intelligence service and if they 'catch' people, they certainly pay, except since no-one has money, they pay with their soul.
There is no profit from government, it only costs. The only 'customers' are you and me, so if we're both paying and getting paid in your scheme, we could save a lot of money changing hands by eliminating one.
I know that you're suggesting that this corporation not actually BE the government, but I don't think that could happen. Look a the Federal Reserve--a private bank--most people think it's part of the US Government.