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

Wisconsin AV Bill Moves Ahead, Minus Anti-VPN Provisions

The Wisconsin state Senate on Wednesday advanced a bill that would require adult websites to verify the ages of users, but approved an amendment striking proposed language that would have required sites to block virtual private network traffic.

Pineapple Support Introduces 'Wellbeing by PS' Service

Pineapple Support has debuted its new Wellbeing by PS service, providing mental health support packages for companies and agencies.

MyMember.site Integrates Bluesky Functionality

MyMember.site has added Bluesky features to its website management platform.

GirlsDoPorn Defendants Ordered to Pay Victims $75.5 Million

A federal court has ordered former GirlsDoPorn owner Michael Pratt and his co-defendants in the GDP sex trafficking case to pay restitution totaling $75,568,283.47 to 106 victims.

SWR Data Publishes 'Clip Trend' Report

Adult industry market research outfit SWR Data has published a report on the performance of clip platforms and sales.

Another German Court Rejects Blocking Orders Against Pornhub, YouPorn

A German court has blocked the Rhineland-Palatinate Media Authority (MA RLP) from forcing telecom providers based within the court’s jurisdiction to cut off access to Aylo-owned adult sites Pornhub and YouPorn.

Ofcom Fines Kick Online Entertainment $1 Million for AV Noncompliance

U.K. media regulator Ofcom on Thursday fined Kick Online Entertainment 800,000 pounds (more than $1 million) for failing to implement age checks as required for compliance with the Online Safety Act.

FSC Details Legislative Outlook for 2026

The Free Speech Coalition (FSC) has laid out the legislative outlook for the industry in 2026.

AEBN Publishes Popular Searches by Country for December, January

AEBN has released the list of popular searches from its straight and gay theaters, by country, for December and January.

Jim Austin Joins CrakRevenue Team

Online industry veteran and business strategist Jim Austin has been hired by CrakRevenue.

Show More