I guess the next step is to require pimps to carry Workers' Compensation and Unemployment Insurance for all of their h0ez? What is this world coming to?
IANATA, but I do believe that if you receive $100,000 in income from "personal services" but don't report that on your taxes, you're already breaking the law. It's called "tax evasion." To spell it out for this scenario sounds like more election year "let's unite our conservative voter base."
Republican Sen. Charles Grassley of Iowa is hoping to stamp out the sex trade by taxing pimps 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 prosecute unlawful sex workers for violations of tax laws.
CNN.com - Senator seeks tax on pimps, prostitutes - Jun 27, 2006