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 © 2026 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

Centrobill Names Len Garcia as Chief Sales Officer

Centrobill has named Len Garcia as its new chief sales officer.

Mistrezz.AI Joins ASACP as Corporate Sponsor

The UK-based adult AI companion platform Mistrezz.AI has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

Woodhull Freedom Foundation Debunks Pornography Myths in Latest Edition of 'Fact Checked' Series

Woodhull Freedom Foundation is hosting the latest edition of its virtual series “Fact Checked by Woodhull,” addressing myths about pornography.

Utah VPN Enforcement Pause Extended in Aylo Lawsuit

Provisions of a Utah law making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification, which were set to come into force in May, have again been put on hold temporarily.

Anti-Censorship Bill Could Shield US Sites From Foreign AV Laws

A Republican congressman has introduced legislation to bar U.S. courts from helping to enforce any foreign law restricting speech that would domestically be protected under the First Amendment, potentially including foreign age verification laws.

X3 Expo 2027 All-Stars Unveiled, Dates Set for Jan. 8-9

X3 Expo will make its L.A. LIVE debut at the JW Marriott on Jan. 8-9, bringing together fans and industry insiders for North America’s largest assembly of stars, alongside a dazzling lineup of attractions spotlighting the cutting edge of modern media and pleasure tech.

Romantix-Fargo Zoning Dispute Heads Back to District Court

A federal appeals court on Thursday ruled that zoning officials in Fargo, North Dakota, acted in an “arbitrary and capricious” manner when they prevented sex toy retailer Romantix from opening a planned retail store in that city.

BranditScan Rolls Out Real-Time Telegram Leak Scans, Takedowns

BranditScan has launched Telegram Bot, a new feature that lets creators scan Telegram in real time for leaked content.

Pineapple Support to Host 'Suicide Survivors' Support Group

Pineapple Support is hosting a free online support group for performers affected by suicide.

Studio Vanniall Signs Exclusive Partnership Deal With PAYSITE

Studio Vanniall has signed an exclusive partnership deal with PAYSITE.

Show More