Plan to Tax Adult Internet Companies Revealed

WASHINGTON — Targeting those who are “profiting by exploiting children and promoting irresponsible and obscene behavior,” Sen. Blanche Lincoln, D-Ark., on Wednesday announced a regulatory assault on the online adult industry with legislation that would impose a 25 percent excise tax on all adult transactions.

Lincoln’s rally to support the new legislation is tied to a study by advocacy group Third Way, whose report exposes statistics linking children to online adult websites. The report’s release coincides with Lincoln’s announcement Wednesday morning in Washington.

Third Way’s report claims that children between the ages of 12-17 are the largest viewers of Internet pornography, and the average age at which children are first exposed to online pornography is 11 years of age.

“The Internet has become our new American Main Street, and it’s literally transforming the experience of growing up in America in a way much different from the way parents of today grew up,” Lincoln said.

“Many Internet service providers have taken significant steps to provide parents with tools to protect their children from inappropriate material online and they should be commended,” Lincoln said. “But sadly, many adult-oriented websites in today’s online world are not only failing to keep products unsuitable for children from view, but are also pushing those products in children’s faces. And it’s time that we stand up and say, 'enough is enough.'”

Lincoln’s legislation, called the Internet Safety and Child Protection Act of 2005, has three objectives:

Force Online Adult Companies to Pay the Costs of Child Protection
The Internet Safety and Child Protection Trust Fund would be financed by a 25 percent excise tax on all online adult transactions.

Requires Age Verification
Online adult websites would be required to use software to verify the age of users attempting to access their websites. Online merchants, banks and credit card companies could not process payment transactions that are not age verified. The FTC would issue and enforce those regulations.

Establish an Internet Safety and Child Protection Trust Fund
The fund would centralize and coordinate the allocation of federal resources in support of efforts on the part of law enforcement and others to combat Internet and pornography-related crimes against children.

Original cosponsors of Lincoln’s legislation include Sens. Tom Carper, D-Del.; Mark Pryor, D-Ark; Mary Landrieu, D-La.; Joe Lieberman, D-Conn.; Debbie Stabenow, D-Mich.; and Ken Salazar, D-Colo.

Companion legislation also was introduced Wednesday in the U.S. House of Representatives by Rep. Jim Matheson, D-Utah and Rep. Robert Menendez, D-N.J.

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

Dreamcam Joins Pineapple Support as Supporter-Level Sponsor

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

AEBN Publishes Popular Searches by Country for August, September

AEBN has released the list of popular searches from its straight and gay theaters by country in August and September.

AV in Focus: A Guide to Unlocking Compliance With Clarity

The age verification era isn’t coming — it’s here. Laws are already on the books in numerous U.S. states, as well as in the U.K., France and beyond.

Canadian Privacy Commissioner Endorses National AV Bill

Philippe Dufresne, privacy commissioner of Canada, has voiced support for a bill that would impose fines of up to $500,000 on adult sites that do not implement age verification for Canadian viewers.

Ricky Johnson Launches 'Ricky's Resort' Through YourPaysitePartner

Ricky's Room studio honcho Ricky Johnson has launched his latest site, RickysResort.com, through YourPaysitePartner (YPP).

Industry Attorney Paul Cambria Retires After 50 Years of Practicing Law

After more than a half-century in practice, during which he provided the defense in some of the adult industry's most notable legal cases, attorney Paul Cambria has retired.

2026 XMA Nominations Party Set for Nov. 19 in Hollywood

The 2026 XMA nominations reveal party will take place at Keys on the Sunset Strip on Wednesday, Nov. 19, with red-carpet arrivals starting at 8 p.m.

New VR Membership Site 'DeepInSex.com' Launches

The new 8K VR membership site DeepInSex has officially launched.

NATS Launches Integrated Content Management System

Too Much Media (TMM) has rolled out an integrated, no-charge Content Management System (CMS) to its NATS platform.

AEBN Reveals Avery Lust as Top Trans Star for Q3 of 2025

AEBN has published its top trans stars list for the third quarter of 2025, with Avery Lust landing atop the leaderboard.

Show More