California to Publicly Shame Tax Deadbeats

California is set to become the latest state in the U.S. to use the threat – and reality – of public shame to compel citizens to pay their late tax bills.

California’s Franchise Tax Board will soon send letters to about 250 of the most egregious tax-dodgers telling them they risk public outing if they don’t pay up, according to The Wall Street Journal yesterday. The procrastinators will have until “late summer or early fall”, according to an agency spokesperson, to settle up, make payment arrangements, file bankruptcy, or formally dispute the debt. Otherwise the board will post the names and amounts owed on its web site.

California is following in the footsteps of at least a dozen other states that publicize their lists of residents in arrears on their taxes. Colorado, Connecticut, Delaware, Georgia, Maryland, New Jersey, North Carolina, Pennsylvania, Washington State and Washington, D.C. use the method, according to the Journal.  Last year, the proposal was also floated in Virginia.

According to California officials, it’s not just the shame involved in having your name on a public site that motivates folks to pay; it’s also the mere threat of that shame. 

"When we studied other states’ programs, we discovered it’s the notice indicating your name could appear on the Web that brings in the lion’s share of cash," said John Barrett, a board spokesman. "People are paying their delinquencies to avoid the embarrassment of having their name publicly listed. Obviously, we anticipate the same success."