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

FSC 2026/2027 Board Members Announced

The Free Speech Coalition (FSC) has announced the results of its 2026/2027 Board of Directors election.

Report: AVS Group Beefs Up AV After $1.3 Million Fine

Adult content provider AVS Group has begun to institute robust age checks on some of its websites after U.K. media regulator Ofcom last week imposed a penalty of approximately $1.3 million for noncompliance with Online Safety Act regulations, the BBC is reporting.

FSC: Federal Report Confirms Unfair Banking Discrimination Against Adult Industry

The Free Speech Coalition (FSC) today announced that a federal report on debanking has concluded that several U.S. banks engaged in discriminatory banking practices against members of the adult industry.

Pineapple Support Names Natalie Pereira Executive Assistant

Pineapple Support has appointed Natalie Pereira as its new executive assistant.

AEBN Publishes Popular Searches by Country for October, November

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

FSC Summit Event Schedule Announced

Free Speech Coalition (FSC) has revealed its slate of networking events and symposiums for its annual summit, set for January 15 during XBIZ 2026.

Pornhub Releases 2025 'Year in Review' Report

Pornhub has released its “Year in Review Insights” report for 2025, the 12th edition of the site’s annual statistics, data analysis, and infographic initiative.

Washington AV Bill Jumps on 'Health Warning' Bandwagon

A new age verification bill in the Washington state legislature would require adult sites to post notices warning users of alleged health risks, despite a previous federal court ruling against such requirements.

BranditScan Launches '25 Days of Christmas' Promo

BranditScan has launched its 25 Days of Christmas promotion.

MelRose Michaels Named Host of Online Industry Edition of XBIZ Honors

Performer and entrepreneur MelRose Michaels will MC the online industry edition of the 2026 XBIZ Honors, set for Wednesday, Jan. 14, at the Kimpton Everly Hotel in Hollywood.

Show More