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

CamModelDirectory Launches Platform Upgrade

CamModelDirectory has launched its CMD 3.0 platform upgrade.

AEBN Publishes Popular Searches by Country for June, July

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

Playboy to Move Global HQ to Miami Beach

Playboy announced today that it will be moving its global corporate headquarters from Los Angeles to Miami Beach.

Bellesa Plus Names Magalie Rheaut as Chief Growth Officer

Bellesa Plus has named Magalie Rheaut as its Chief Growth Officer.

PASS to Relaunch Performer Subsidy Fund

PASS has announced that it will relaunch the Performer Subsidy Fund (PSF) to cover sexually transmitted infection (STI) test panel costs for up to 10 people each month.

Pineapple Support Taps Austin Ponce as Brand Ambassador

Pineapple Support has named Austin Ponce as its newest brand ambassador.

Taylor Vixxen Stars in New DezyRed Interactive VR Game

Taylor Vixxen stars in an interactive VR game from DezyRed.

XBIZ Amsterdam's Jakarta Hotel Sold Out, Additional Hotels Announced

Guest rooms at XBIZ Amsterdam’s host conference venue, Jakarta Hotel, are now completely sold out.

X3 Expo Unveils 2026 All-Stars, Show Dates Set for Jan. 16-17

X3 Expo returns to the historic Hollywood Palladium on January 16–17, bringing together fans, creators and industry insiders for North America’s largest assembly of adult entertainment stars, alongside a dazzling lineup of attractions spotlighting the cutting edge of modern media and pleasure tech.

Trump Administration Issues Executive Order Against 'Debanking'

The White House on Thursday issued an executive order limiting financial institutions’ ability to restrict access to financial services for people or groups involved in lawful industries, a longtime goal of adult industry advocates and stakeholders.

Show More