Opens in a new tab

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.

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
confused office worker
8 workplace benefits questions to ask this enrollment season

October 26, 2026

Millions of U.S. workers are now deciding what workplace benefits, some of which also offer…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment