Porn Valley- Nowhere in all the talk about the new 2257 regulations was there anything about a Federal tax on porn sites. But there it is. The Government is ready to extract 25 percent on all Internet sales.

According to the story being reported, legislation seeking stringent age-verification and a 25 percent tax on all adult entertainment revenues on the Internet is likely to be introduced in the Senate within the next few weeks. The key figure behind this bill is Sen. Blanche Lincoln [D-Ark]

The proposed act is divided into two sections. Title I stipulates “an operator of a regulated pornographic website shall verify that any user attempting to access their site is 18 years of age or older using software certified for that purpose … prior to the display of any pornographic material, including free content that may be available prior to the purchase of a subscription or product”(emphasis added).

Title II attempts to fund enforcement of Title I and various other activities related to children and pornography by imposing a 25 percent tax on gross website receipts. The bill also would amend the Internal Revenue Code of 1986 to include a revenue category called “Internet Display or Distribution of Pornography.”

The draft bill also includes a provision mandating “a bank, credit card company, third-party merchant, Internet Payment Service Provider, or business that performs financial transactions for a regulated pornographic website shall only process age-verified Internet pornography credit card transactions for sales. …”

According to the draft, the bill, if passed, would take effect January 1.