Development Fund supervisory board chairman Raivo Vare, an economist who has called for administrative reform, argued in an opinion editorial that other regions should receive preferential treatment over the capital.
"Tallinn is so strong that it should get by on its own, and thus it should be discriminated against compared to the rest of Estonia - honestly but intelligently, not out of political spite as can often be seen," said Vare, a former transport minister, in Postimees.
He said income tax should be reapportioned so that Tallinn receives a lower percentage and the northeast receives more.
People move to where the jobs are, said Vare, which will cause Estonia to split in two down the middle, with Tallinn on one side and Tartu on the other.
Local decision-makers tend to make irrational decisions as their energy is spent on competing with neighbouring municipalities; but the state should see the bigger picture, and distribute subsidies and regional tax breaks, Vare said.