Incentive pay for policy-makers?

We study how to efficiently motivate policy-makers to solve political multitask problems. Political multitask problems typically have some outcomes that are difficult to measure. Moreover, there are conflicts among citizens about optimal policies and policy-makers have the power to tax the citizens to invest in better outcomes for some tasks. We develop a political agency model with two tasks and only one measurable outcome. In such an environment, policy-makers choose socially inefficient public good levels and expropriate minorities. A judicious combination of constitutional limits on taxation and incentive pay for policy-makers is second-best. Incentive pay is conditional on the public good level.