The IRS could soon make it harder out there for pimps

June 28, 2006

A key piece of business facing the Senate Finance Committee today is a proposal by its chairman to tax certain sex crimes.

Hustle_and_flow_poster_2
Yep, Sen. Charles Grassley (R-Iowa), wants the IRS to make it harder out
there for pimps
.

Grassley says he’s using the tax collector’s most famous criminal
take-down as a model: He wants the IRS to go after pimps and sex
traffickers with the same fervor it employed in arresting gangster Al
Capone
for tax evasion.

"The thugs who run these trafficking rings are exploiting society’s
poorest girls and women for personal gain," Grassley told the
Associated Press. "The IRS goes after drug traffickers. It can go after
sex traffickers."

Under current law, the tax agency has to prove a prostitute’s or pimp’s
income to pursue a tax law violation. But Grassley’s bill would allow
prison terms for simply not filing the proper employer tax paperwork
and withholding taxes. A pimp could get up to 10 years in prison for
each prostitute for whom the pimp hasn’t filed a W-2.

The measure also would make certain tax crimes a felony when the money
comes from a criminal activity. A one-year prison sentence and $25,000
fine would become a 10-year sentence and $50,000 fine for each
employment form that a pimp or sex trafficker fails to file.

I appreciate the effort to collect all the missing tax dollars. I agree that everyone should pay their fair tax share regardless of how they earn their income.

And
women and girls who are used and abused need any and all the help they can get.

But the cynical realistic part of me sees this falling squarely into the "heading
back to the District for the July 4th holiday break" category, where pious politicians can posture about the
"morality" of the bill, along with other popular
midterm election topics like immigration and flag burning and same-sex
marriage.

Here’s what other bloggers and news sites have to say about the Grassley pimp-tax bill:

Y’all out there on the streets, watch out now.

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The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

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