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

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  • Norris, Samuel
  • Rose, Evan K.

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.

Suggested Citation

  • Norris, Samuel & Rose, Evan K., 2024. "Laffer’s day in court: The revenue effects of criminal justice fees and fines," Journal of Public Economics, Elsevier, vol. 240(C).
    • Handle: RePEc:eee:pubeco:v:240:y:2024:i:c:s0047272724001853
    DOI: 10.1016/j.jpubeco.2024.105249
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    References listed on IDEAS

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    1. Carl Lieberman & Elizabeth Luh & Michael Mueller-Smith, 2023. "Criminal court fees, earnings, and expenditures: A multi-state RD analysis of survey and administrative data," Working Papers 23-06, Center for Economic Studies, U.S. Census Bureau.
    2. Thai V Le & Matthew M Young, 2023. "Regressive revenue sourcing by local governments," Urban Studies, Urban Studies Journal Limited, vol. 60(5), pages 811-828, April.
    3. Felipe M. Gonçalves & Steven Mello, 2023. "Police Discretion and Public Safety," NBER Working Papers 31678, National Bureau of Economic Research, Inc.
    4. Devah Pager & Rebecca Goldstein & Helen Ho & Bruce Western, 2022. "Criminalizing Poverty: The Consequences of Court Fees in a Randomized Experiment," American Sociological Review, , vol. 87(3), pages 529-553, June.
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