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

OnlyFans Institutes Criminal Background Checks for US Creators

OnlyFans will screen creators in the United States for criminal convictions, CEO Keily Blair has announced in a post on LinkedIn.

Pineapple Support to Host 'Healthier Relationships' Support Group

Pineapple Support is hosting a free online support group on enhancing connection and personal growth.

Strike 3 Rejects Meta 'Personal Use' Defense in AI Suit

Vixen Media Group owner Strike 3 Holdings this week responded to Facebook parent company Meta’s motion to dismiss Strike 3’s suit accusing Meta of pirating VMG content to train its artificial intelligence models.

Pornhub, Stripchat: VLOP Designation Based on Flawed Data

In separate cases, attorneys for Pornhub and Stripchat this week told the EU’s General Court that the European Commission relied on unreliable data when it classified the sites as “very large online platforms” (VLOPs) under the EU’s Digital Services Act, news organization MLex reports.

New Age Verification Service 'AgeWallet' Launches

Tech company Brady Mills Agency has officially launched its subscription-based age verification solution, AgeWallet.

AEBN Publishes Popular Searches for September, October

AEBN has published the top search terms for the months of September and October from its straight and gay theaters in all 50 states and the District of Columbia.

Creator, Influencer YesKingzTV Passes Away at 47

Adult content creator and social media personality YesKingzTV, aka Micheal Willis Heard, has passed away at the age of 47.

Pre-Nominations Now Open for 2026 TEAs

The pre-nomination period for the 2026 Trans Erotica Awards (TEAs) is now open.

FSC Releases Updated Age Verification Toolkit

The Free Speech Coalition (FSC) has announced the release of its updated age verification toolkit.

Duke Tax Joins Pineapple Support as Supporter-Level Sponsor

Duke Tax has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Show More