I’ve heard the argument from those who want to legalize prostitution that the “industry” could produce quite a bit of revenue for government treasuries: if [tag]prostitution[/tag] were legal, it could be [tag]taxed[/tag].
Apparently, at least one Republican senator has heard this, too.
Republican Sen. Charles [tag]Grassley[/tag] of Iowa is hoping to stamp out the sex trade by taxing [tag]pimp[/tag]s and prostitutes, then jailing them when they don’t pay.
The Senate Finance Committee is expected to vote Wednesday morning on the pimp tax. The bill also calls for more jail time for sex workers.
If passed, the provision will authorize at least $2 million toward the establishment of an office in the Internal Revenue Service Criminal Investigation unit to [tag]prosecute[/tag] unlawful sex workers for violations of [tag]tax[/tag] laws.
So, if a pimp requires prostitutes to fill out W-2 forms and follows the requisite withholdings, will he or she be eligible for tax breaks for small businesses?