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So if you have $25,000 paid into a car loan but no liquid assets the government forces the sale of your car to collect their $1,250. Maybe they sell it fast for less than it's worth. Now you have no car and lost a great deal of money.
Maybe your wealth is in your home.
You think camping without a permit warrants taking 5% of everything you have? That's insanity. What if you do it twice? What other offences might you also want to collect 5% for? Littering or jaywalking? Smoking?
Let's say you have $1000 in the bank and nothing else. The government wants their $50 but you don't pay because you need that money. Now you have to pay a late fee or something, probably get arrested and put in front of a judge, spend time in jail for not paying?
That's not the way
https://en.wikipedia.org/wiki/Day-fine
1/365 of your yearly income makes sense, it's like missing a day of work. 1/20 of your "total wealth" for camping is insane though.
Well 5% really doesn't match this crime, I just selected the number randomly as an example.
I also could have worded it better, but I was trying to get at having a limit, $100 for example, where if the fine is below that number, you round down to zero. It could maybe just be paperwork or something