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$56,000 Speeding Ticket Issued Under Finland's System of Fines Based On Income

HughPickens.com writes Joe Pinsker writes at The Atlantic that Finish businessman Reima Kuisla was recently caught going 65 miles per hour in a 50 zone in his home country and ended up paying a fine of $56,000. The fine was so extreme because in Finland, some traffic fines, as well as fines for shoplifting and violating securities-exchange laws, are assessed based on earnings—and Kuisla's declared income was €6.5 million per year. Several years ago another executive was fined the equivalent of $103,000 for going 45 in a 30 zone on his motorcycle. Finland's system for calculating fines is relatively simple: It starts with an estimate of the amount of spending money a Finn has for one day, and then divides that by two—the resulting number is considered a reasonable amount of spending money to deprive the offender of. Then, based on the severity of the crime, the system has rules for how many days the offender must go without that money. Going about 15 mph over the speed limit gets you a multiplier of 12 days, and going 25 mph over carries a 22-day multiplier. Sweden, Denmark, Germany, Austria, France, and Switzerland also have some sliding-scale fines, or "day-fines," in place, but in America, flat-rate fines are the norm. Since the late 80s, when day-fines were first seriously tested in the U.S., they have remained unusual and even exotic.

Should such a system be used in the United States? After all, wealthier people have been shown to drive more recklessly than those who make less money. For example Steve Jobs was known to park in handicapped spots and drive around without license plates. But more importantly, day-fines could introduce some fairness to a legal system that many have convincingly shown to be biased against the poor. Last week, the Department of Justice released a comprehensive report on how fines have been doled out in Ferguson, Missouri. "Ferguson's law enforcement practices are shaped by the City's focus on revenue rather than by public safety needs," it concluded. The first day-fine ever in the U.S. was given in 1988, and about 70 percent of Staten Island's fines in the following year were day-fines. A similar program was started in Milwaukee, and a few other cities implemented the day-fine idea and according to Judith Greene, who founded Justice Strategies, a nonprofit research organization, all of these initiatives were effective in making the justice system fairer for poor people. "When considering a proportion of their income,people are at least constantly risk-averse. This means that the worst that would happen is that the deterrent effect of fines would be the same across wealth or income levels," says Casey Mulligan. "We should start small—say, only speeding tickets—and see what happens."

22 of 760 comments (clear)

  1. well.. by MickyTheIdiot · · Score: 5, Insightful

    I fail to see why this is a problem.

    1. Re:well.. by Anonymous Coward · · Score: 5, Insightful

      Proportional fines are not a means of revenue, where did you get that stupid idea from? Fines are punishments. As such, if the punishment doesn't reach even 1% of the money you earn in a day, you can effectively ignore them always, and in the process possibly endanger others. The proportionality of the system is to level the playing field, but that is clearly communism and can't be had in the united states of money.

    2. Re:well.. by khellendros1984 · · Score: 5, Insightful

      It depends on how you measure "differently". Maybe for me, a $100 fine is no problem, but for my friend a $100 fine means that they aren't going to be able to make their rent payment on time this month. So, I get mildly inconvenienced (gotta transfer $100 into my checking account), but my friend gets evicted. I think there's something fundamentally wrong with that outcome.

      --
      It is pitch black. You are likely to be eaten by a grue.
    3. Re:well.. by Carnivore · · Score: 5, Insightful

      I think the point is not for the police departments to get Teh Phat Lootz, but to equalize the pain of violating the rules. The guy in the article makes €6.5 million a year, almost €18000 a day--do you think he gives a single shit about a €50 fine? €1000?

      We sort of cover this in the US with points; you can't just drive recklessly and pay for it out of petty cash forever because you'll lose your license. But the day fine concept seems like a decent way to instill the same kind of aversion in everyone, fairly. Points are ephemeral but your money is obvious.

    4. Re:well.. by pla · · Score: 4, Insightful

      Proportional fines are not a means of revenue, where did you get that stupid idea from? Fines are punishments.

      Bullshit. All fines generate revenue, and traffic enforcement counts as one of the worst offenders.

      "Gee, why does the speed suddenly drop from 45 to 25 for a tenth of a mile riiight at that otherwise-uninteresting spot where cops can easily hide?"
      "Safety."

    5. Re:well.. by portnoy · · Score: 5, Insightful

      It hurts revenue generation for the police force because a lot of the people pulled over are in poverty and get small fines.

      You're making the assumption that this would continue. Instead, it's more likely the police would target more expensive cars for smaller infractions, since a BMW going 6mph over the limit is likely to be more lucrative than a rusted-out Dodge Dart going 15mph over.

    6. Re:well.. by kuzb · · Score: 4, Insightful

      The point of the law shouldn't be that its a cash machine. It's that it should discourage illegal activities. Part of the problem is that police forces proceed from the faulty premise that their job it to fund the department. It shouldn't be. It should first and foremost be to serve the public trust by upholding and enforcing the law.

      Presently speeding tickets aren't a deterrent to rich people because they're absurdly low. I think a sliding scale based on income isn't just a good idea, it's the only logical idea that works fairly to discourage the act.

      --
      BeauHD. Worst editor since kdawson.
    7. Re:well.. by Anonymous Coward · · Score: 5, Insightful

      In Finland the money from speeding tickets goes to the state, not the local county/city. To my knowledge (correct me if I'm wrong), the money from tickets issued by the police goes at least partially to the local county and state. If there was equally only a federal police force in the US, I don't think there would be an issue with it.

    8. Re:well.. by cayenne8 · · Score: 5, Insightful

      As for your third point, the cops would have to start overenforcing and creating crime against the rich instead of the poor in order to bolster their budgets. Frankly, I think this would be a good change. The rich can fight back better, and we might actually see some meaningful change in the policies of police departments this way.

      Wait, wait wait....

      Isn't the point of the fine, to enforce the concept of SAFETY?

      Let's take revenue generation for the city/police/state OUT of the equation. It is a HUGE conflict of interest for those enforcing this fine to be also the beneficiaries of it.

      Why not take all the money that is collected in fines for speeding, jay walking, etc.....and at the end of the year, redistribute it to all the citizens that have NOT gotten a fine that year?

      The motto of the police force should not be "To Collect and Serve" after all, but yet it seems to be their primary motivating force these days. I'd venture to guess the high enthusiasm we currently see to enforce speeding laws would drop drastically if the cops didn't directly benefit from it monetarily.

      But here's the way it works in most cases I see. They just want the money. In my city and I think in many others, if you are SMART, you do not automatically pay the fine and plea guilty. You take your day in court. I found out how it works at least in New Orleans. If you go to court, just before the judge comes for that day, the asst. DA takes you into his office and gives you a plea deal. Pretty much the same fine, BUT...the charge is reduced to a non-moving violation so that it doesn't go on your driving record.

      So, check in your state, it may be VERY much worth your time to go to court rather than pay that fine. Me? I need to get an upgraded detector to catch the one asshole I found out there with a modern LIDAR.

      That being said...lets take the direct collection of $$ away from the govt and back to the people, if this is for safety, then lets reward those that drive safely.

      Overall...no, I'm not for outrageous fines for folks that are rich. It seems lately, for some reason, so many out there are treating wealth as something evil and bad. Frankly, the only reason I work is to increase my net worth. Money is the thing that allows me to live and have fun on a standard that makes my life fun. Why is everyone so inclined to try to just take as much as possible from others? Ok..maybe that's a whole new thread, but really....let's at least take the direct benefit of pulling people over out of the hands of those enforcing the law and then look at fine "balance".

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    9. Re:well.. by TwoEyedJack · · Score: 5, Insightful

      Nobody is under any obligation to share their financial details on net worth with any government official. Income, yes. Net worth, no. Net worth changes every single day depending on markets for real estate, equities, bonds, equipment etc. The overhead associated with appraising everything would be enormous. Then you have classes of people who have lots of paper wealth, but little income. Say a farmer. He may be worth millions on paper, but have little cash flow, and lots of that is committed to paying off bills for seed, chemicals, diesel fuel, etc.

    10. Re:well.. by Phantom+of+the+Opera · · Score: 4, Insightful

      I think the idea is that is supposed to be more an incentive to not get a ticket, so that the sting hurts everyone equally. It would have to be carefully implemented to not be abusive.

      It is probably an emotional response to seeing some rich **** flaunt the law with zero consequence to themselves, where a ticket like that could destroy someone scraping by : see http://www.slate.com/articles/.... I have sympathy for the idea and when I was in Germany, there were similar laws.

    11. Re:well.. by haruchai · · Score: 5, Insightful

      The point of a fine is supposed to be a deterrent. A below-average Joe may have trouble paying a fine of several hundred dollars while a rich guy has options.
      The fine may be trivial, impounding his car may not work as he may have more than one or renting one long term isn't financially onerous - or he can just buy another new out of pocket. Or he can hire a chauffeur or even risk driving without a license.

      It's not about taking from "the makers", it's about not allowing rich assholes to flout the law just because they have more money.

      --
      Pain is merely failure leaving the body
    12. Re:well.. by Opportunist · · Score: 4, Insightful

      This ain't the US. Finland does have a justice system that deserves the name.

      Money doesn't buy you a get out of jail card there.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    13. Re:well.. by sexconker · · Score: 5, Insightful

      Supply and demand don't exist in a post-industrial economy.
      Once the manufacturing power is concentrated into the hands of a few people / corporations, collusion is easy, competition is pointless, and getting fucked is the norm. Anything sufficiently complicated (building cars, running a telecommunications network, running a taxi service, practicing law or medicine or any other enshrined "profession", etc.) is run by an established group of people with the investments, equipment, rights, and powers necessary. They then actively seek regulation, attack new players, and buyout / sue to death anyone who dares to compete in order to protect their established death grip on the sector.

      Once China/Taiwan/Malaysia finish their transition, it's game over for supply/demand until someone can stabilize Africa to the point of industrializing it and exploiting it for cheap labor.

  2. Sounds good by Fwipp · · Score: 5, Insightful

    Whether you view the fines as a deterrent or a punishment, it makes sense that under a flat-fine structure, rich people will be unaffected by fines that are crippling for poor people to pay.

    If a class of people can simply ignore the penalties doled out for breaking a law, that system needs reworking.

    There are probably some devils lurking in the details (some very rich people have little income; is spending money a good proxy, some people live just within their means and others save quite a bit, etc etc), but the basic idea seems very sound.

    1. Re:Sounds good by OhPlz · · Score: 4, Insightful

      Changing it to a percent of wealth or income would encourage more rich people to hide their assets overseas. It wouldn't fix the problem. They have plenty of money to hire fancy lawyers and accountants to make sure their wealth remains in tact. Meanwhile, the middle class would probably get hosed because they have enough to be hurt by higher fines, but not enough to defend against it or hide their assets. And what happens to the poor? They'd get zero fine because they have nothing and earn nothing? That doesn't sound like it helps anything. The best thing for speeding, IMO, is to set better limits. If 90% of the traffic on a road travels higher than the limit, the limit isn't set right.

  3. Re:Why use income? Why not total wealth? by Anonymous Coward · · Score: 5, Insightful

    I actually prefer they use the book value of the car.

  4. Re:Time is money by LMariachi · · Score: 5, Insightful

    Lower-income people can lose their jobs if they have to be away from work for even a few days, especially if it’s due to incarceration. Even if they don’t get fired, hourly workers will lose income, whereas salaried employees and people who live off of investment income won’t. And someone like Martha Stewart can go away for five months and have her media empire (which has been running profitably the whole time) waiting for her when she gets out.

    So no, not equal at all. (This is also why a flat tax is unequal despite being equally applied.)

  5. Re:Sounds Horrible by ledow · · Score: 5, Insightful

    No amount of money should be able to excuse you for being a pillock.

    If a millionaire gets fined $10, it's quite literally a joke not a deterrent. If a poor homeless guy gets fined $10, it's more than he can afford. Thus the treatment of the same crime for two people is unfair.

    The alternative? You lose your licence at the same speed as everyone else. I guarantee you that in a choice between more points on your licence and a fine proportional to your income, you'll pick the fine. Because once you fill that licence, you're fucked unless you want to face the humiliation of sitting your test again.

    The fine is a portion of your income. So it hurts all fairly. If you're worried about where the money goes, put it into a victim surcharge to pay towards reparations for victims of all crime.

    But fuck your idea of "we should be thanking these people". I don't want a fucking idiot driving down my street too fast whether he has no money or is a millionaire. And I certainly don't want millionaires DELIBERATELY breaking the law because the consequences are so fucking pathetic to them that it will never matter.

  6. Re:Time is money by gurps_npc · · Score: 4, Insightful
    I agree with this. Except jail costs the state money, while fines bring it in.

    So make one change - replace 'jail' with community service,

    One speeding ticket = 4 hours spent picking up garbage on the side of the road.

    --
    excitingthingstodo.blogspot.com
  7. Re:Kinda 50 50 on this one. by jandrese · · Score: 5, Insightful

    If the cops start abusing the rich and powerful we might see some actual changes in the system. Of course the first change I would expect would be for the old flat rate tickets to be reinstated.

    --

    I read the internet for the articles.
  8. Get rid of the financial incentive... by superdave80 · · Score: 5, Insightful

    If you thought it was bad how cops were targeting/ticketing poor people, wait until the police realize they can fund their whole budget if they can ticket a guy like Zuckerberg once or twice!

    Before a system like this is in place, the financial incentive for cops to ticket people needs to be removed. Any fines need to be given back to the community via some type of property/income/sales tax rebate, rather than back to the city (which in essence goes back to the cops that are handing out the fines). For example, if $1,000,000 in fines were collected for a town with 10,000 property tax assessments, they could knock $100 off of each tax bill.

    The same needs to be done with civil asset forfeitures. If there was ever a clearer case of conflict of interest, I haven't seen it.