Nevada Brothels Testify on Sex Tax

Posted by E!! on April 08, 2009
Balanced Budgets, Nevada, Taxation

Nevada Appeal has the details.

NV Senator Bob Coffin hoped to gain support for the bill (SB 369) but yesterday’s testimony by brothel owners and employees didn’t generate the needed votes from the Taxation Committee (four of seven votes are needed to move the bill forward).

Coffin argued that prostitution is a legal activity that should be subject to tax like any other service and says $2M in much-needed state revenue would be generated by the new tax of $5 per sex act.

A dissenting brothel owner said the tax would cause a further decline in the number of customers due to the economic downturn.

The fiscal and moral arguments against the tax are obvious, and I agree with them.

But – is it wrong of me to ask why the bill proposes a flat, per-act tax rather than a percentage of the total sale like most businesses?  Skimming $5 off a $100 service would result in a 5% tax, but $5 out of $1,000 is only one half of 1%.

Surely Senator Coffin can agree it wouldn’t be fair to have Nevada’s low-income, underpriveleged whores paying out a higher percentage of their wages than the high-dollar girls? 

Or are they so used to getting screwed that Coffin thinks they won’t mind?

UPDATE:  Two readers emailed in on SB 369 name-ology, suggesting we call it the “Flat On Your Back” Tax.  Good idea, but Chuck Muth beat them to it.

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3 Comments to Nevada Brothels Testify on Sex Tax

Ned Barnett
2009 April 8

What a hoot, E!!

Thanks for shedding some light on Coffin’s sordid assignation with prostitutes and brothels

Ned

Scott
2009 April 8

As the grandson of a distinguishedbrothel owner, I question the government’s ability to collect the tax. This is a cash business, and the only way is to estimate the number of customers “serviced” in a working day.

This would amount to a government quota.

Jon
2009 April 8

Poor Senator Coffin’s bill is not going to make it out of committee. Frankly I’m surprised he even tried, but I guess he thinks anything’s possible in the Legislature.

In an ED Vogel story in the RJ today Melissa Farley said it would make the state a pimp. That’s almost as good as the “Flat On Your Back” tax.

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