So, i got a speeding fine the other day… $660, it got me thinking.
I like the points system as far as driving offences go, very sensible, and there has to be a financial component to the penalty or people wouldnt take the points system seriously in some circumstances.
But the $660 fine is a lot of money, that might be what some people get to live off for a fortnight (eg welfare), the points arent an much of an issue for them, its all about the money. For an average income the financial penalty might be 2 or 3 days pay, they care more about the points than the money.
For the fine to be effective it should “penalise” people more evenly, making people who earn more pay bigger fines could do that.
I think the idea of progressive tax could be applied to fines and penalties as well, just keep the same “sticker price” for the fines, but require them to be added to your tax as income.
It would mean in effect the person would have to pay tax on fines at their top rate.