07-23-2005, 09:28 AM
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Nice Kitty
Industry Role:
Join Date: Sep 2002
Location: The good old USA!!!
Posts: 21,053
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Quote:
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Originally Posted by Rick Latona
Cigarettes, alchohol, gasoline, airlines and a host of other industries have specific taxes they have to deal with. The costs often get passed on to consumers. This would not be the case in adult porn because consumers could easily buy from offshore companies that didn't have this expense.
Lightspeed and others, you need to be aware that taxes like these get applied to gross revenue, not net revenue. They would take a percentage of your total sales. You would simply not be able to profit if your price point remained the same as your offshore competitors.
This is constitutional and probable. Governments often turn to taxes on unpopular products to raise revenue. The very first tax in the United States was on alchohol which led to the Whiskey Rebellion in the late 1700s. The term is called an excise tax and the governmet has used it as a fund raising vehicle since the beggining because they often get passed through congress.
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You are correct.
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