[j_w]

Governments should not operate fiscally like corporations. A financial institution will budget around fees because it's in their benefit for their customers to incur fees. A government should not budget around fines because they want the behavior which was fined to not occur at all.

[thayne]

I think one way to prevent bad incentives is to ensure that the organizational units that create and enforce policies are not the ones that benefit from any fines collected.

[j_w]

On the surface this sounds great, but governmental organizational units are still able to pressure one another, or have third parties apply pressure.