Laffer’s day in court: The revenue effects of criminal justice fees and fines

Samuel Norris and Evan K. Rose

Journal of Public Economics, 2024, vol. 240, issue C

Abstract: Many jurisdictions levy sizable fines and fees (legal financial obligations, or LFOs) on criminal defendants. Proponents argue LFOs are a “tax on crime” that funds courts and provides deterrence; opponents argue they do neither. We examine the fiscal implications of lowering LFOs. Incentives to default generate a “Laffer” curve with revenue eventually decreasing in LFOs. Using detailed administrative data, however, we find few defendants demonstrably on the right-hand side of the curve. Those who are tend to be poor, Black, and charged with felonies. As a result, decreasing LFOs for the average defendant would come at substantial cost to governments.

Keywords: Fines and fees; Criminal justice system; Local government funding (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:240:y:2024:i:c:s0047272724001853

DOI: 10.1016/j.jpubeco.2024.105249

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