If Crime Didn't Pay

A box full of syringes with a cigarette nearby

March 10th: Corrective Tax

I had a dream about what I am calling “corrective taxes.” In the dream, they were being implemented by the government to deter prostitution by applying a tax to the act of prostitution to make it increasingly unaffordable. This tax would be extended beyond prostitution and into the realm of pornography as well, without outright outlawing it. In the dream, this was an economic principle of corrective taxes that the government used to move the people toward society’s desired outcome.

What could a real world application of these types of taxes look like? Well, first of all, I think it would be better expressed as a type of fine. These on-the-spot penalties, or fines, would be attached to certain illegal activities in place of immediate incarceration.

The fine could be calculated at how much you risked at the time you were committing the crime. If you have over $100k in cash/assets and partake in a crime to gain a $50k profit, you directly risk the $100k. If you choose to commit the crime, when you get caught, the fine will be $100k, and you can keep the $50k. So the crime garners a $50k loss. If you try to use illegal means to restore a portion of your wealth, maybe $30k, when you get caught, the fine will be $50k, and you can keep the $30k. If you spend the money and can't pay the fine, personal property will be confiscated to cover the cost. Therefore, crime won't pay out effectively under these policies.

This fine will be used to take the place of the war on drugs. This would not be a war on demand; it would be a war on supply. The goal of these fines would be to ensure that crime does not pay well - this being an extreme example, of course.

These activities will include selling an illegal drug, hiring prostitutes (pimping), identity theft, public indecency, smuggling, illegal possession of firearms, tax fraud, those employing illegal workers, benefit fraud, forgery, etc. These would not include things like an assault of any kind, as these should be dealt with directly and immediately.

Totally theoretical.

This post was edited by my friend, Midnight Philosopher.

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