“Laffer’s Day in Court: The Revenue Effects of Criminal Justice Fees and Fines”

The title of this post is the title of this new article now available via SSRN authored by Samuel Norris and Evan Rose. Here is its 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.