That's an ideological perspective which numerous empirical studies have proven to be false.
The biggest creators or red tape and compliance are the private sector not governments.
Joe Hockey found this out the hard way when he commissioned a report into productivity in Australia using Deloitte [Chris Richardson and friends].
The report was released at the end of October 2014 and anyone wanting to register at
http://www2.deloitte.com/au/en/pages...r-own-way.html can have a good laugh at neo-liberal ideology chocking itself to death.
Estimates suggest that reducing this self imposed compliance would add around 1.6% to GDP.
The biggest problem with neo-liberals in general is that they build models based on ideological assumptions rather than facts and then wonder why they tie themselves in knots.