TAXING PORN

_______ (2006) THE ECONOMIST/12/24/72

Italy is experimenting with its tax program. They need the money, but most taxes have hit their limit and so they now are looking at pornography. Porn is a rich untapped market. The head of the National Alliance party, a conservative party wants to tax a surcharge of 25% of profits for VHS movies, DVD’s and sex toys. At first, it appeared that it would not fly, but when the legislature discovered how much money (in the billions porn generates) they changed their minds. It could be millions of dollars.

A smaller tax would be assessed on violent and raunchy DVD’s. So what is porn and what is violent? That can come later in the courts, in the mean time; it can generate a great deal of revenue to a country that has exceeded its budget deficit of 3% GDP.

There is precedent in Italy, Rome used to charge a tax on prostitution. This goes back to two different popes in the 15 th century.

What is of controversy is the dividing line between porn/non-porn and violence/non-violence. As one knows it is really a tipping point, as an example does SEX AND THE CITY, DESPARATE HOUSEWIFES, AND REAL WORLD reruns generate more tax or any tax than say a soap opera? Or is tax applied to erotica on pay per view? Surely hard core pornography on the internet should make the most tax money. It is a difficult issue, but it is one that Congress could handle here in the states. They make judgments like that every day. The same applies to violence. Basketball is one of the most injury prone sports, but Caged Extreme Violence or Human Cockfights appear more violent, although the industry claims that major injuries or fatalities have yet to occur.

Let’s say that I watch Football all Saturday afternoon. At 10 cents a game or any part of a game, the entire afternoon costs 50 cents. On the other hand, if I watch Extreme Violence on the Spike channel, that costs me $1.50 in tax. Hard core pornography for one hour or any part of an hour costs $5.00. SEX IN THE CITY will cost me 15 cents.

Well that is not fair? I don’t know if it is fair rather I am trying to give examples of how the legislative body might deal with this. As it is, there is a growing controversy with the FCC right now about pornography. The American Chamber of Commerce and the Travel Lodge Association want to keep government out of the regulatory business on porn and various Evangelical groups want it regulated.

I think I see a wild card in the future. Other countries are watching Italy and thinking that if the tax becomes acceptable, commercial sex industry will have to pay a tax. We may have become rich in goods, but ragged in spirit. A sin tax may be in the making.