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

Cherry Kiss, Derek Kage Cap AEBN's Top Stars for 4th Quarter of 2024

AEBN has revealed its most popular performers in gay and straight theaters for the fourth quarter of 2024.

A Golden Night in Hollywood: 2025 XMAs Shine on Adult Entertainment's Best

To paraphrase the unofficial U.S. Postal Service motto: Neither rain nor cold nor the chaos of natural disasters can stop members of the adult entertainment community from the completion of their appointed duty every January: to honor the artistic and commercial achievements of their peers.

What Changes in DC Could Mean for the Adult Industry

On November 5, 2024, American voters were called to the polls. The results of that election revealed an unquestionably uncomfortable truth for everyone, regardless of party or ideology: the “united” part of United States does not appear to be holding strong.

Byborg Acquires Gamma Entertainment

Luxembourg-based Byborg Enterprises SA has acquired 100% of Canadian adult conglomerate Gamma Entertainment.

Adult Creative Debuts 'Pornful' Website Management Platform

Web design and marketing firm Adult Creative has launched its new Pornful website management platform.

2025 XMA Winners Announced

Winners of the 2025 XMAs were revealed Sunday night during a ceremony hosted by Vanna Bardot and Ryan Reid at the world-famous Hollywood Palladium.

X3 Expo Day 2 Looks at the Industry's Past, and Ahead to Its Future

A gorgeous day in LA saw a massive procession making its way along Sunset Blvd., as hundreds of excited fans headed to the historic Hollywood Palladium for a rendezvous with the galaxy of A-list adult stars awaiting them on Day 2 of the 2025 X3 Expo.

X3 Expo Pops Off With All-Star Lineup

A wave of excited fans cascaded down Sunset Blvd., cresting and breaking with anticipation as they flowed into the historic Hollywood Palladium, where the A-list echelon of the adult world stood ready to greet them, pose with them, chat them up, and showcase the latest in spicy entertainment, as the 2025 X3 Expo popped off.

XBIZ Honors Uplifts Spirits Amid Challenging Times for LA and the Adult Industry

"A bunch of misfit toys." That’s how MojoHost founder Brad Mitchell described himself and his industry peers at the 2025 XBIZ Honors ceremony at Hollywood’s Kimpton Everly Hotel. Everyone cheered in agreement. Frankly, they wouldn’t have it any other way.

Kansas Sues Adult Website Operator Under AV Law

Kansas Attorney General Kris Kobach has filed suit against SARJ LLC, alleging that the company’s adult websites have failed to implement age verification as mandated by state law.

Show More