Primary Funding and the Two-Party State

Tim Higgins at Just Blowin' Smoke asks: why do we pay for primaries? He writes:
as a registered Independent (and card carrying Libertarian) I have to ask myself why any government money (you know, my money) is being used by the Democratic and Republican Parties to hold these primaries, especially since I don't get to vote in either.
Third party candidates do not get to utilize such government resources in challenging this two party monetary monopoly.
This is a topic with which I am not very familiar, but it stands to reason that the organization and political economy of the primary system would serve to reinforce the two-party state and undermine efforts aimed at breaking open the duopoly system of government. Anyone know of good resources for information pertaining to this issue?

On a related note, Roll Call calls out Republicans for using public funds to subsidize their "rebranding campaign." Intoxination wonders: "How does this sit with conservatives? Should people have to pay taxes to help fix the Republican brand? Couldn’t this start the slippery slope to socialism?"

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