But why? The true cost of an action is usually independent of personal wealth.
If I keep my car parked in a space and the street sweep needs to miss that spot, the trash that remains has the same negative societal impact whether I'm rich or poor.
If that trash "cost" society $100, why would society subsidize a poor person to park illegally who could only afford to pay $20?
Maybe the average amount of the fine needs to be more than the value of the societal impact.
The purpose of a fine can be seen in at least two ways:
1. Provide recompense to society for the production of a negative externality.
2. Create a disincentive against the production of a negative externality.
If fines could be levied perfectly, automatically and without administration cost, then perhaps you can see the fine as #1, and set the fine at the societal cost.
But, because it costs money to enforce regulations, there's usually some sampling done: if you park illegally, you might not be caught. Because the chance of getting caught is not 100%, and because those who are not caught do not contribute their share of enforcement costs, the fines for a single infraction must be a multiple of the actual harm caused. (Assuming that can even be measured.)
Let's say the harm caused is $20 per infraction, and this is normally enough to disincentive a poor person from parking illegally. If they make a mistake and are subsequently caught, is it better for them to pay $100 (for the harm caused, plus paying for those who weren't caught), even though this may be equivalent to their family's monthly food budget?
As long as $20 fine is enough to:
- provide a strong disincentive, and
- provide recompense
... then that should be enough, no?
The rich person, for whom a $20 fine is not enough of a disincentive, should pay more ($200?). And the money raised can be used to cover negative externalities for those who weren't caught, and overall enforcement costs.
Taken seriously, this would be a very complex system and it would fail to realize its claimed potential.
It only sounds good in low resolution.
Depending on a bunch of hard questions, devils in the details, you’ll end up with dilemmae where neither option is good:
Is parking income net worth, or taxable income? Previous year or trailing? Can you deduct your charity donations before deciding what you’ll pay for parking? What about a company car; is it the company’s income or the driver’s?
We are techies, we can always build a more complicated system; it is our nature:)
A more simple system off the top of my head: you have fine modifier based on your previous year taxes. Your accountant now tells you you have a fine multiplier of 6. When the ticket comes in, it is always addressable to a given entity. Can it be gamed? Of course, just use a car registered to your broke ass cousin. Progressive fines could work just like progressive tax.
You said it wasn't clear from the context that a fine is punitive. I pointed out that context isn't necessary to determine that, as it's clear from the definition of fine.
Do you now agree that fines are punitive?
If so, do you agree that fines need to be set high enough to provide a disincentive, even if that is higher than the average negative externality created by an infraction?
astrea said "Because the fine is punitive, not cost-based.", and I said it is not clear that the fine is not cost based due to lack of context. I don't think any reasonable reading of my comments would lead anyone to believe that I ever thought fines were not punitive, and I feel like you're arguing in bad faith, so cheers.
I thought you were saying it wasn't clear that the fine is punitive. I quoted the comments I read that led me to believe that. If you think I was arguing in bad faith and/or that my reading wasn't reasonable, then that's of course your prerogative, even though I don't agree.
If I keep my car parked in a space and the street sweep needs to miss that spot, the trash that remains has the same negative societal impact whether I'm rich or poor.
If that trash "cost" society $100, why would society subsidize a poor person to park illegally who could only afford to pay $20?