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Tax Revenue


Another benefit of legalizing prostitution resides in the ability to generate tax revenue. Once the applicant has successfully obtained licensing she may work at a brothel, enjoying legal income taxable at the appropriate rate. The average annual income of an employee at one Nevada brothel working only one week per month is at least $100,000 (Ayres). Based on this figure, each legally licensed sex worker would contribute more than $20,000 in federal income taxes per year.

Considering that current estimations show over one million prostituted women in America, the tax revenue generated by this industry becomes a staggering $20 billion per year (qtd. in Veronica's Voice). Of course, not all of the money changing hands in the business ends up in the worker's pocket. Brothels typically take a 50% cut of their employees' fees and are also taxed. Although currently this tax revenue contributes to the general fund in most Nevada counties, it could instead be earmarked for both homeless shelters and education (Kernshaw). Assisting with both teenage runaways and future job-skill training for those women who want out of the business presents a fail-safe for the system.