Megan McArdle, Columnist

Cities Dig for Profit by Penalizing the Poor

Using the court system as a revenue source is a terrible way for a town to make money. But it's not surprising that towns turn there when they are out of all the good ways to do so.

Running out of good ideas.

Photographer: Justin Sullivan/Getty Images
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During last summer's riots in Ferguson, Missouri, reporters began to highlight one reason that relations between the town's police and its citizens are so fraught: heavy reliance on tickets and fines to cover the town's budget. The city gets more than $3 million of its $20 million budget from "fines and public safety," with almost $2 million more coming from various other user fees.

The problem with using your police force as a stealth tax-collection agency is that this functions as a highly regressive tax on people who are already having a hard time of things. Financially marginal people who can't afford to, say, renew their auto registration get caught up in a cascading nightmare of fees piled upon fees that often ends in bench warrants and nights spent in jail ... not for posing a threat to the public order, but for lacking the ready funds to legally operate a motor vehicle in our car-dependent society.