If You Double-Park and You’re Rich, Should You Pay a Higher Fine?
nytimes.com
nytimes.com
Simple penalties create classes of crime; wealthy folks just ignore the penalty on double parking some poor schmuck because who cares about a $100 fine when you're making $1M?
These regulations are written to discourage unfair acts or behavior that exploites the social contract. It tells folks that the municipality thinks it's right for less-wealthy people to be burdened with providing comforts for more-wealthy people.
Means-tested fines actually get to the point of it: dissuade all people from doing something dangerous, indefensibly rude, et cetera, and not just poor folks.
For some additional discussion: https://www.theatlantic.com/business/archive/2015/03/finland...
Should a person with more children get less jail time because more children will be left without a parent as compared to a childless person.
Jepodizing a business that employees people might will be taken into account.
FWIW, both the country where I was born and the one where I live have chosen a simple approximation: Fines are set at "x typical daily earnings" and the court will estimate the equivalent in legal tender, jail time is set in days.
Regarding jail time for the wealthy, you're still thinking in simple numbers instead of means-tested comparisons. A more-wealthy person and a less-wealthy person that go to jail for 30 days both are physically restricted for 8% of a year. If you pretend that wealthy people earn the same way that less-wealthy people do (they don't), then both are naievely losing 8% of their income-earning time for that year.
It's still not fair, mind you—the wealthy person likely makes much or most of their money from diversified income streams that are less succeptable to temporary incarceration than the more-likely single salary-based income of a less-wealthy person.
Regarding the question of using children as leverage, this is addressed more intricately than I'll summarize here in contemporary cases e.g. with Elizabeth Holmes and the allegation that she, her partner and legal team have tried to lean on her having children as a way to attempt avoiding incarceration.
Since the financial impact is not the main consideration of jail time, it shouldn't be major factor.
With respect to children, children whose parents are imprisoned are more at risk of future problems, and so irrespective of other considerations it may well be preferable to society to take it into account.
Elizabeth Holmes seems to be counting on this one.
I was thinking of this in context of wars. Where people with children should be first to be send in front lines. With those with most offspring being higher priority. And those with none the lowest.
No. The point is that fines should be based on per-day income or some kind of similar measure of wealth. Which actually makes it consistent with the hypothetical economic punishments of being thrown in jail.
[1]: https://www.weforum.org/agenda/2018/06/in-finland-speeding-t...
So unless you spend money you got from selling stuff year or two back you still have to pay.
That's how we have it in Finland and it works. Fines are supposed to hurt you financially, not be a cost of doing business that hurts poorer people disproportionally.
Just curious how this works in practice
Every European country (even Finland) has harmonized rules about "tax residency". The rules are simple: If you actually and honestly live there at least half a year and one day of a calendar year, that place becomes your tax residency for that year.
The rich person buys a property in Monaco and goes there for half a year + 1 day. That year Monaco is their tax residency. They take out dividends from their off-shore (or Netherlands) holding companies. Boom, perfectly legal personal income taxed at super-low (or 0) rate that Finland has no idea about.
Then the person returns back to Finland and again accumulates their income into the holding company for a few years until they run out of whatever they got as a dividend.
Repeat until...
But that's how it goes and there are other countries you can use to evade taxes too.
Not sure what's the distinction between rich and wealthy, sounds the same to me.
Rich people have high incomes, wealthy people own a lot of valuable things (properties, land, art, stuff that keeps its value).
New money vs old money/generational wealth pretty much.
I have a good enough tax regime where I live in Central Europe - for 2022 I paid 8% including income tax, health and social insurance. But I'd definitely consider doing this if it was over 20%.
But if Switzerland can do day fines, I think other countries can as well, it's the will that's missing and nothing else.
Would probably need to leverage something like the interstate drivers license compact to synchronize that data across all states, and there'd need to be solutions for edge cases e.g for people who rent cars and homes rather than own them.
You think Montana is (or should) expose a complete picture of a citizen’s financial situation so that New York City can issue tickets a bit more fairly in the event that citizen visits NYC?
Won’t happen.
The point is not to punish every single violator exactly fairly, it’s to more effectively deter violations among everyone
And most jurisdictions have laws promoting snitching on your neighbor for tax evasion anyway. You don't even really need the compact; just pour some of the fine revenue into enforcing property tax evasion. That simplifies it to just enforcing the fine against a percentage of registered wealth wherever you live, and the reciprocity challenge can be deferred to later. But then you're likely to score wherever the driver has their multitude of cars garaged.
Billionaires will still escape, but people definitively in the upper class will be more effectively deterred.
The goal is to tag the people for whom a few hundred dollars means nothing, and you're not going to get there with a percentage fine unless you're factoring in all their assets registered to the state and incentivizing the state to enforce tax evasion statutes. CHP, for instance, has at most two officers enforcing Montana plate dodging in SoCal.
That's the problem with "simple" statutes; they're easy to dodge and thus hurt the people who can't.
Why are you choosing to die on this hill lol, I'm trying to help your point.
https://www.yahoo.com/now/much-middle-class-6-us-130110380.h...
How many SF, NYC, DC folk do you know pulling 150-250 a year driving cars that are 50% of their income? It's frequent; anecdata, I can think of a dozen.
And that's my point.
Put another way: For the tiny proportion of people who are wealthy enough to obscure their income or get most of it from capital gains, the fines don't currently matter financially, so if they end up getting off more easily it has minimal effect. They get unfair advantages now and still would if you indexed by taxable income. But the much larger portion who earn well above median yet not enough to obscure their income would get a fairer/stricter treatment.
When poor people talk about "taking from the rich", they typically mean (well) salaried people. Their bosses, managers, higher up employees… folks they personally know, just with more income.
The truly wealthy you describe are of course unaffected. But they're also off the radar for most – too far removed from their daily experience. And difficult to fleece for the state. So the sacrificial goat always ends up being the middle class.
Rich people have high income and are affected by percentage-of-income based fines.
Wealthy people don't necessarily have a big yearly income, but they own a LOT of stuff and don't directly handle money in their own name -> not affected as much.
Actually wealthy people are also a lot more likely to have a chauffeur, why bother driving yourself when you can just rest in the back of a Rolls Royce or an S-Class Mercedes. You can just hire a new driver if the old one loses their license for speeding =)
Fines are not payment for services rendered, but a deterrent for behavior we don't want anyone to engage in. If it doesn't scale, then it's only a deterrent for those who can't afford it.
Parking fines, is bit more complicated. Maybe the tax rate of the car or some current price... Then again rich could get cheap car and just use that.
Why not parking fines? They can be set in day fines as well.
Minimum day fine for someone without income is 6€. Now parking fine is I think depending locations is 20-80€.
So you tell that this incomeless person parked the car. And we have set it at 5 day fines so 30€ at low end. On other hand day fine for median earner is around 35 €. Which would mean 180€ parkin fine.
Most would think that to be excessive.
But is it?
Alternatively, provide two values and select whichever is higher e.g. "30€ or 1 day", this method is common with corporate crimes (e.g. "1 million or 1.5% global revenue", that sort of things). Even if you're on the low end of incomes a day in jail would hurt a lot for a parking fine.
Then Jeff Bezos, who has billions, can pay $0 fines since AMZN produces no dividend income. Even if you count capital gains income, he could just take a big tax hit one year and then be in the clear for life.
Not to mention, he'll also qualify for welfare because of his $0 income.
or better: net worth.
Quick sanity check - Any time you see/hear "rich people will do X" or "rich people should do X", just replace "rich people" with "I" to see if it makes sense. Just because someone has more than you does not make them any better or worse of a person than you. Same goes for the contrary, just because someone has less than you...
* https://www.scientificamerican.com/article/how-wealth-reduce...
* https://www.telegraph.co.uk/news/2016/09/13/1-in-5-ceos-are-...
(Sure, call these pop sci if you want, but I'm not going to seek out primary sources for the sake of an internet comment.)
> just replace "rich people" with "I" to see if it makes sense
Would I become more of an asshole if I had orders of magnitude more money than the average person? It certainly wouldn't surprise me. At the very least, my ego would get quite inflated.
And thank you for confirming my suspicion that your argument was more projection than reality.
> Would I become more of an asshole if I had orders of magnitude more money than the average person? It certainly wouldn't surprise me. At the very least, my ego would get quite inflated.
Steve Jobs did effectively that: https://conceptdrop.com/blog/43-10-shocking-facts-about-stev...
Jobs was infamous for parking in the handicapped slot in the parking lot and for driving a silver Mercedes SL55 AMG with a blank license plate. But how?As for your "banana republic" quip, Finland does this and I'd place them very much as the "not banana republic" end of the spectrum. Famously, this https://www.weforum.org/agenda/2018/06/in-finland-speeding-t... :
In 2002, Anssi Vanjoki, a former Nokia director, was ordered to pay a fine of 116,000 euros ($103,600) after being caught driving 75km/h in a 50km/h zone on his motorbike.
All that said, I doubt the $103,000 had much effect on Anssi as say $1000 would have on me. I need want to spend that $1000 one day on food or housing. Anssi was making so much, my guess it's sole effect would be on how much his kids inherited. - Networth?
- Income?
- Net Taxable Income?
Instead, it can be an escalating penalty that is based on repeat offences; increasing fines for repeat offences, culiminating in something like losing driving privileges, impounding of the vehicle, permanent loss of driving privileges etc.,Fixed.
For one, this would mean if you gave someone a 50% discount on their parking fine because they were poor, but it turned out they actually only had 25% of the assets of the rich person, you are still unfairly punishing the poor person more than the rich person. It can’t be correct that an observer has to know the financial status of every citizen to judge whether their government is being fair or not.
A $50 fine will punish someone with $20 in their bank account a lot more than someone with $20 million.
People should just stop thinking about global policies, because it's a road to hell.
Lets make a imaginary extrapolation to see it in other light, lets say that there where a second human like species here on earth, but they live until around 1000 years instead of 100 but they experience time 10 times quicker, so for them 10 years feel like 1 year to us. Would it be fair to do the same time in prison for them than us for the same crime? what feels psychologically like 10 years and 10% of our lives would feel to them like 1 year psychologically and will be only 1% of their lives, and if we started to put harsher penalties to account for them, they still will end up with kinda light sentences and normal humans would end up with absurdly high sentences.
If the idea is to punish so it is not done again, sentences have to be proportional to the one receiving the sentence to be effective if not you are over-punishing some are under-punishing others.
OFC this is with the idea that fines are punishments and not just paying for what you broke kind of deal, for example if it is a fine for parking in a place with a parking meter without paying, the fine should be what you did not pay plus a little bit extra.
You're not punishing them more, you're punishing them similarly: the marginal value of money diminishes as you have more of it, a $20 fine to someone who earns $5000 a week is a lot less punishing than to someone who earns $500. By scaling fines to income / wealth, you're preserving the fact that this is supposed to be a punishment deterring from the act.
> so, perhaps a system of increasingly punishing repeat offenders maybe?
That's... already common? But if you have enough money, it would have to scale up quickly and drastically to have any deterrent effect, and it would still disproportionally affect lower-income individuals.
An alternative (or complement) is to create a flat resource, that's what points systems do (although they tend to still disproportionally affect lower-income individual: they're harder hit by the loss of mobility, and they may not have the time or money to attend to recovery courses when those are available).
Any fair punishment will disproportionally impact lower-income individuals, since resources confer resilience and resilience resists punishment. If your goal is equal impact, you have to have unfair punishments, because you have to scale your punishment to the target’s resources.
I'm not swimming in money but I earn well above average, and because I do my disposable income is a higher multiple of the average persons disposable income than my income is. To be fined even, say, a few days income for me is at most a minor nuisance. Maybe I'll feel bad enough to eat out at restaurants less that month. Maybe. To be fined 1 days income for someone low paid might mean they'll struggle to cover their bills or eat.
There's nothing equal about even a fixed proportion of income for that reasn. But it's significantly better than a fixed amount that doesn't take income into account at all.
If you truly want to punish people financially the same in the sense of making it hurt the same for the same transgression, you'd have to fine people earning above average not just a higher amount, but a significantly higher percentage of their earnings and wealth.
EDIT: I'm reminded of Marx discussion in Critique of the Gotha Program of the first proposed program for what became the German SPD of the use of the term "equal rights" which, after tearing the term aparts ends with "To avoid all these defects, right, instead of being equal, would have to be unequal." That is, if you want equal outcomes, you can't treat people the same, because their situations are not the same.
So while richer people may not be hurt as much by the fines, they are more at risk of being suspended from driving if they repeat the offending behaviour within a certain time period.
[1] https://www.motorist.sg/article/534/traffic-offences-in-sing...
For rich people it's trivial to hide their income: https://en.wikipedia.org/wiki/One-dollar_salary -- it would only make things worse for the middle class, which is the worst class of all: too rich to get any help from the government, too poor to hire lawyers.
So, you guys try to hit the rich guy, but you hit the middle class guy instead, who pays all the taxes. Good job!
Nobody thinks about the middle class, only IRS.
(I'm ready for downvotes)
This would have minimal impact on the poor, but would probably motivate the rich to avoid these civil fines.
Nevertheless, I genuinely think that modern governments need to shift taxation from earnings to wealth (especially regarding natural monopolies)
Parking costs a lot. It should not be subsidized.
That would be favoring rich people, though.
That’s why I object to these policies:
They’re middle class and up people advocating that other people bear the burden for what they want done — often times, burdening the more productive members of society who perform critical jobs. If you actually thought it was important, you’d take unilateral action… instead of making “tragedy of the commons” excuses and demanding authoritarian impositions on lower classes.
That kind of entitlement by the bourgeoise is how we ended up with the worst governments in human history — and I’m sad to see us repeating it.
Reducing car dependence is a good thing for the poor.