A case for income-based fines

A €170 fine can ruin someone’s month or barely register at all. If punishment depends on income, can flat fines ever be fair? And who do they actually deter?

About a year ago, the Dutch government increased fines for minor traffic violations by about 10 per cent. Although the decision was met with a lot of criticism, the Minister of Justice and Security, Dilan Yeşilgöz, defended it staunchly. Yeşilgöz, who was also the party leader of the VVD, a party that can be characterised as a centre-right, conservative, free-market party, told the press that as long as people adhered to the rules, there was nothing to worry about.

This rebuttal, while seemingly true, has consequences. By this logic, one could argue that fines should not be raised by 10 per cent, but by 100 per cent. After all, if you do not commit the violation in the first place, you have nothing to worry about. Of course, this would create far too much of a fuss. For reference, a fine for using your phone while riding your bicycle currently sits at around 170 euros, something I became painfully aware of in the months after the new fines were introduced.

That being said, I would argue there actually is a way to justify higher fines: by determining the amount of the fine based on someone’s income or wealth. In 2023, a Finnish businessman was fined 121,000 euros for speeding. If your reaction is anything like mine, thinking that this must be an insane amount of money, it is worth realising that in Finland, fines are proportional to a person’s income.

On the surface, income-based fines may seem unfair. One of the most common responses I have heard, both online and in person, goes something like: “So you’re punishing rich people more harshly? What’s next? Raising supermarket prices?” But this criticism actually gets to the core of the issue and, if you ask me, proves the usefulness of income-based fines.

It would indeed be unfair if someone earning more money were unable to enjoy that money because all prices of every commodity were adjusted accordingly. But here’s the thing: a hefty fine is not the same as an expensive commodity. The purpose of a fine is to deter people from violating a rule. And let’s be honest—if the fine is little more than pocket change, why would anyone care? A friend of mine once told me he was in the car with a wealthy family acquaintance who decided to park where it was not allowed. Since he could easily afford the fine, it ceased to function as a deterrent and instead became the price of parking illegally, one he was perfectly willing to pay.

On the flip side, consider this: if the fine for riding your bicycle through a red light were a measly 10 euros, would you be as cautious as you are now? I know I wouldn’t be.

Finally, another faulty counterargument I have come across – one that actually strengthens my case – is what I would call the prison sentence argument. It usually goes something like this: “If you want to punish people proportionally to their wealth or income, should rich people also serve longer prison sentences?”

This comes close to the heart of my argument. While people can differ enormously in wealth, differences in life expectancy, though real, are relatively limited. Prison sentences, aside from serving purposes such as rehabilitation, are set with an implicit assumption about the length of a human life. A year in prison takes roughly the same share of anyone’s lifespan, regardless of income. Fines, however, do not. For some, they represent a serious sacrifice; for others, a mild inconvenience. If certain people were to live a thousand years, longer prison sentences might not sound so unreasonable, but they don’t, and so prison time remains broadly proportional in a way fines are not.

Whether income- or wealth-based fines will ever be introduced in the Netherlands remains to be seen. If it is up to Yeşilgöz, now the leader of the VVD, a party known for defending the interests of the wealthy, I wouldn’t hold my breath. Still, it is hard to deny that such a system would be fairer. Not just to those with less, but, perhaps surprisingly, even to those with more.

Disclaimer: This article was entirely human-written without the use of Artificial Intelligence.

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