Assuming that the only point of a fine is to deter future episodes from
occuring, this is probably not a bad idea. (Of course, by the same token,
one could assume that a progressive tax deters people from making more
money. Perhaps the US has it backward.)
The US employs a sliding-scale "fine" system when setting bond amounts. As
bond is not intended to be punative whatsoever, but rather insurance that
the accused will appear in court for trial/sentencing/whatnot, a sliding
scale is clearly needed.
The problem I see with the Finn fine system is a profiling one. Given that
all speeders are equal in regards to the harm they cause, Finnish cops have
incentive to pull over cars that the upper-class are more likely to drive.
More money in the judicial system's coffers will (maybe) lead to higher
wages for officers; higher-salaried drivers become targets.
This leads to another problem: As US sitcoms are glad to point out, it is
better to have your car hit by a BMW than by a Yugo. I'd expand on that,
but I do not want to suggest that profiling of the driving poor be adopted.
Dan Lewis
>From: Alex Tabarrok <[EMAIL PROTECTED]>
>Reply-To: [EMAIL PROTECTED]
>To: "[EMAIL PROTECTED]" <[EMAIL PROTECTED]>
>Subject: Fines Proportional To Income
>Date: Tue, 02 Jan 2001 10:02:21 -0800
>
>Raises a number of interesting questions.
>
>Alex
>
>---------
>
>FINLAND'S PROGRESSIVE FINES
>
>Like most other countries, Finland has progressive tax rates.
>But unlike other countries, Finland has extended the concept of
>progressivity -- under which the wealthy pay more than those of
>modest income -- to traffic fines. Indeed, the wealthy are also
>hit harder when convicted of such diverse crimes as shoplifting
>or securities-law violations.
>
>But it is the traffic fines that are particularly irksome to
>well-off Finns.
>
> o In one recent case police issued a $71,400 speeding ticket
> to a motorist who was clocked at 43 miles an hour in a 25
> miles-an-hour zone.
>
> o With traffic fines based on a combination of the severity
> of the offense and the driver's income, police until
> recently had been satisfied to accept whatever violators
> claimed as their current monthly gross income -- until
> they found that the figures were routinely being
> understated.
>
> o But then motorists complained that fines should be based on
> take-home pay -- which is considerably less, given
> Finland's high tax rates, than gross income.
>
> o So late in 1999 the government began basing fines on net
> income -- and police have begun using cellular phones to
> access official tax records to verify incomes.
>
>While middle-income Finns seem to find the system fair, some of
>their wealthier countrymen wonder if they should even risk hefty
>fines by getting behind the wheel of a car in the first place.
>
>Source: Steve Stecklow, "Helsinki on Wheels: Fast Finns Find
>Fines Fit Their Finances," Wall Street Journal, January 2, 2001.
>--
>Dr. Alexander Tabarrok
>Vice President and Director of Research
>The Independent Institute
>100 Swan Way
>Oakland, CA, 94621-1428
>Tel. 510-632-1366, FAX: 510-568-6040
>Email: [EMAIL PROTECTED]
>
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