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 © 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

Virginia Becomes Latest State to Weigh 'Porn Tax'

The Virginia House of Delegates is considering a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

Elizabeth Skylar Launches Production Banner on VRPorn.com

Elizabeth Skylar has launched her own virtual reality production banner on VRPorn.com.

CrakRevenue Introduces 'Trend Explorer' Feature for Affiliates

CrakRevenue has debuted the new Trend Explorer feature for its affiliates.

Tube Sites Submitter Introduces 'AI Video Description Generator' Feature

Tube Sites Submitter has introduced its new AI Video Description Generator feature for its platform.

Pineapple Support Releases End of Year Review for 2025

Pineapple Support has released its End of Year Review for 2025, detailing the organization's achievements, challenges, and new initiatives.

XBIZ Miami 2026 Lets the Good Times Roll at New South Beach Venue

Pack your favorite shades and sexiest poolside looks, because XBIZ Miami is splashing into a new hotspot — the chic Goodtime Hotel in the heart of Miami Beach — May 11–14.

UPDATED: Arcom Threatens to Block, Delist 2 Adult Sites Over AV Violation

French media regulator Arcom has sent enforcement notices to the operators of two adult websites that the agency says have failed to implement age verification as required under France’s Security and Regulation of the Digital Space (SREN) law.

Final Defendant Sentenced in GirlsDoPorn Case

Former adult producer Doug Wiederhold, previously a business partner of GirlsDoPorn owner Michael Pratt, was sentenced on Friday in federal court to four years in prison for conspiracy to commit sex trafficking.

FTC Takes Another Step Toward New 'Click to Cancel' Rule

The Federal Trade Commission (FTC) is negotiating the latest procedural hurdle in its effort to renew rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

Show More