Panhandling, otherwise known as urban begging, or anybody that begs for money or food, mostly done by homeless individuals, is a present issue. The question that remains is how it should be handled.
Yes, panhandling should be illegal
Panhandling can become problematic as panhandlers can become violent if they do not get their way. They also become dependent on the money they obtain without the donator knowing where or on what it was spent.
Panhandlers spend their money on drugs
Giving money to the panhandler freely does not garuantee that they will spend it on something that will benefit their current state overall. Panhandlers spend their money on drugs most of the time. Drugs are illegal, and they might become violent if they do not have access to drugs.