Wednesday, March 21, 2018

Different Fines Different Incomes

Why should the rich and poor pay the same in fines?
Flat fines also fail to meet basic goals of punishment, like retribution and deterrence. Punishment is partly an expression of a society’s desire to inflict pain on those who break the law. But giving wealthy offenders a mere slap on the wrist makes a mockery of that objective. And while punishment is supposed to prevent undesirable conduct from happening in the first place, flat fines deter the wealthy less than everyone else. Some evidence shows the rich are more likely to break the law while driving.
An example solution:
Finland and Argentina, for example, have tailored fines to income for almost 100 years. The most common model, the “day fine,” scales sanctions to a person’s daily wage. A small offense like littering might cost a fraction of a day’s pay. A serious crime might swallow a month’s paycheck. Everyone pays the same proportion of their income.
I guess you could say that the rich and poor pay the same for the same groceries and clothes, why not fines? But market prices emerge from supply and demand (controlled by nobody), and serve the function of transmitting proper incentives and information. Legal fines are designed explicitly by lawmakers as deterrents. They're not serving that function by charging the rich and poor the same.