Seems logical to try a different method. The states are perfect for trying different methods (as determined by state and local governments). Getting big gov't out of the way for a bit and removing/reducing the burdensome taxes like payroll (essentially punishment for hiring), corporate income (just drives prices for the consumer up), capital gains (not punishing people for investing their money in business), and the overall cost - both monetary and in man hours - of regulatory compliance just might yield positive results. The current system of gov't subsistence isn't working for these folks. Grant these areas some latitude and they'll likely surprise you.