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Comment by thejosh | Hacker News Reader

A $22 million fine would have been a great lesson.

Doubtful. The dude has a net worth of $1.5 billion. He would have made back the $22 million as interest from his investments within a matter of weeks.

In Iceland they have an interesting idea. Many fines are assessed as a percentage of your income rather than being a fixed amount.

The debate around doing that in the US would be incredible. Some people would see it as being unequal treatment under law. In one way it is; in another way it isn't.

If your net worth is $1.5 billion, what % of your annual income would serve as a deterrent?

You're right. It should be tied to net worth rather than income.

Net worth is difficult to calculate, which is why schemes like wealth (vs. income) taxes are likely impossible to implement.

Prince Alwaleed accused Forbes of underestimating his wealth - imagine how difficult it must be when people are trying to get the lowball figure.

Basically the same in Sweden. Many fines are defines in days wages rather than in fixed amounts. So the judge will simply fine someone 30 days wages and not worry about what that amounts to for that particular person

That sounds like that could cost a poor person more than a rich person. If a poor person pays 30 days wages he won't be able to pay rent. If a rich person pays that then it could not impact them at all.

That sounds like that could cost a poor person more than a rich person.

Well obviously, but that is true of all fines. And you cannot argue that a system where the poor person pays $1000 and the rich person $4000 is harder on the the poor person than a system where everybody pays $2500.

Do you have a citation/link to anything describing this system in Iceland? I have heard of similar systems in Finland and maybe Norway or Sweden but never Iceland. It would be interesting to know if the banking collapse has changed anything.

I believe the golemotron is incorrect. For example, http://autos.aol.com/article/highest-speeding-fines/ points out that Finland's fines are a percentage of income, while Iceland's is merely expensive. "In Iceland, higher fines are justified by their supporters by the danger of driving on roads that can turn quickly from tarmac to gravel, often leading to unintended consequences for fast drivers."

You're right. It was Finland I was thinking of.

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