Politicians Discuss Mandatory Internet Sales Tax

WASHINGTON — Politicians are debating a mandatory sales tax be put on all out-of-state online purchases, an argument that now, with a Democrat-controlled Congress, is more likely than ever to become a reality.

A recent CNET article, reported that the Streamlined Sales Tax Agreement — created in 2002 by tax officials in the hopes of clarifying complicated state tax laws — could make it easier for Congress to mandate an online sales tax. Twenty-two states so far have signed onto the project.

Adult industry lawyer J.D. Obenberger told XBIZ that online taxation is inevitable and would play a vital role in the economy, and it would cause no problems for the adult industry as long as the regulation is uniform and non-discriminatory.

Current tax laws exempt certain products from taxation — such as the sale of information — and Obenberger said the government has a tradition of showing preference to some items over others. He said there is no way of knowing if the proposed set of uniform tax rules would include special taxes on adult purchases, but that it certainly invites speculation.

Obenberger's main concern with the proposed taxation is not the tax itself, but that the Internet is not yet ready for a mandatory sales tax — not until it has reached its highest potential, what he said some call "Web 2.0."

"The Internet is still growing and morphing," Obenberger said. "[An Internet sales tax] would be premature until the Internet is hooked up and wired with fiber optic cables in every home that signs up for it. Until that is in place, taxation is not appropriate."

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

AEBN Publishes Report on Fetish Trends

AEBN has published a report on fetish categories from its straight and gay theaters.

Online Child Protection Hearing to Include Federal AV Bill

A House subcommittee will hold a hearing next week on a slate of bills aimed at protecting minors online, including the SCREEN Act, which would make site-based age verification of users seeking to access adult content federal law.

Industry Photographer, 'Payout' Founder Mike B Passes Away

Longtime industry photographer and publisher Michael Bartholomey, known widely as Mike B, passed away Saturday.

FSC Announces 2025 Board of Directors Election Nominees

The Free Speech Coalition (FSC) has announced the nominees for its 2025 Board of Directors election.

AdultHTML Launches Black Friday Web Design, Development Promo

AdultHTML has launched its annual Black Friday/Cyber Monday promo for web design and development, running through Dec. 5.

Canada Exempts Online Adult Content From 'CanCon' Quotas

The Canadian Radio-television and Telecommunications Commission (CRTC) has updated its broadcasting regulatory policies, exempting streaming adult content from “made in Canada” requirements that apply to other online material.

Creator Law Firm 'OnlyFirm' Launches

Entertainment attorney Alex Lonstein has officially launched OnlyFirm.com for creators.

German Court Puts Pornhub, YouPorn 'Network Ban' on Hold

The Administrative Court of Düsseldorf has temporarily blocked the State Media Authority of North Rhine-Westphalia (LfM) from forcing telecom providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn.

FSC: NC Law Invalidating Model Contracts Takes Effect December 1

The Free Speech Coalition (FSC) has issued a notice that North Carolina's Prevent Exploitation of Women and Minors Act goes into effect on December 1.

NYC Adult Businesses Seek SCOTUS Appeal in Zoning Case

Attorneys representing a group of New York City adult businesses are asking the U.S. Supreme Court to hear an appeal of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

Show More