[Congressional Record Volume 152, Number 117 (Tuesday, September 19, 2006)]
[Extensions of Remarks]
[Pages E1766-E1767]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      INTRODUCTION OF LEGISLATION TO COMBAT HUMAN SEX TRAFFICKING

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                      Tuesday, September 19, 2006

  Mrs. MALONEY. Mr. Speaker, today, along with Representative Lynn 
Woolsey and Representative Jerrold Nadler, I am introducing legislation 
that would combat human sex trafficking by using the tax code to put 
traffickers in prison. Approximately 600,000 to 800,000

[[Page E1767]]

people are trafficked across international borders each year. Instead 
of dreams of better jobs and better lives, they are trapped into a 
nightmare of coercion, violence, and disease. However, trafficking is 
not just a problem in other countries. In addition to the men, women, 
and children from around the world who are brought into the United 
States for the sole purpose of being bought and sold by American 
citizens for commercial sex, in many communities, the victims 
themselves are Americans.
  The legislation, which is based on an amendment attached by Senator 
Grassley to S. 1321, the ``Telephone Excise Tax Repeal Act of 2005,'' 
would authorize $2 million toward the establishment of an office within 
the IRS Criminal Investigation division to prosecute sex traffickers 
for violations of tax laws. This office would coordinate closely with 
the existing task forces in the Department of Justice that are focused 
on sex trafficking offenders. The IRS would be directed to focus on the 
willful failure of traffickers to file returns, supply information, or 
pay tax where the taxpayer is an ``aggravated'' non-filer. 
Additionally, the provision establishes a new felony offense for an 
aggravated failure to file to include failure to file with respect to 
income or payments derived from activity which is criminal under 
Federal or State law. The aggravated failure shall carry a maximum 
sentence of ten years per failure and shall increase the penalty from 
$25,000 under current law to $50,000. The legislation also increases 
other penalties for underpayment or overpayment of tax due to fraud.
  The bill works to the benefit of the women and girls that are 
victimized by the traffickers not only by removing the traffickers from 
the streets but also by revising the IRS Whistleblower provisions that 
are currently in place so that the women and girls who choose to 
participate in the investigation of the trafficker will be eligible to 
participate in the whistleblower program and may ultimately receive 
some payment for their participation.
  It is important that we protect the victims of the sex trade 
industry, and punish the predators who exploit them.

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