It doesn't matter whether the activity is legal or not, if it generates income then that income should be taxable. Hence the US Constitution's 16th Amendment which states quite clearly that income "from whatever source derived" is taxable. British tax law has a similar "howsoever derived".
Al Capone wasn't jailed because he was a gangster (it couldn't be proved beyond reasonable doubt) but because he evaded taxes on his activities even though those activities were illegal!
If prostitution was to be legalized and federally regulated, as I believe it should be, then the government has every right to collect taxes. However, as long as it is illegal, there should be no reason the government should collect anything. It would be no different from any other business or act of self-employment, otherwise.
If the government legalized prostitution, then it should collect taxes from the industry.There's a lot of money that could be made from taxing legal prostitution. However, doing so might not be the most ethical thing in the world. It remains to be seen whether the government attempts this odd proposal.
Yes, prostitution is a form of working and it should be taxed as such. Other forms of work are taxed according to the amount of money that is made. It should be legalized and a W9 should be utilized. I do not believe that because a person is selling their body they should not have to pay on their income just like everybody else.
The government should certainly collect taxes from prostitution. Prostitution is similar in debauchery to drinking and smoking. These things already are taxed due to their nature. Taxing prostitution would only help our economy, and since it is not a necessary good to survive, will not hurt anyone scraping by to survive.
Protitution is going to happen no matter what, so it makes moral and economic sense to legalize it and collect taxes off of it. Since prostitution is illegal, there is a high transfer of STDs and money through the black market. If it was legalized, prostitutes would be healthier and money would go the the government instead of the black market.
Prostitution is simply society-approved abuse of women. At the very least the government could regulate it and collect taxes on it so that fewer women would be forced to prostitute themselves and rates of trafficked women would decrease. Most women in prostitution do not want to be in it. Taxes could be used to get these women out.
With the government trillions of dollars in debt and always on the brink of a shutdown, now would be an ideal time to legalize prostitution. This would bring in a lot of revenue which the government could use in any way it sees fit. Also, prostitution would have to be legalized in order to tax it, which would make the streets safer for sex workers.