CA Porn Tax

Cicada · 05-23-2008, 01:39 AM

http://news.yahoo.com/s/nm/20080512/...pornography_dc

SACRAMENTO, California (Reuters) - A California bill proposing a 25 percent tax on revenues from adult entertainment would do little to ease the state's budget shortfall and would cost the state money by encouraging its pornography industry to move, opponents said on Monday as lawmakers reviewed the bill.

The legislation would especially hurt the economy of the San Fernando Valley, the Hollywood of pornographic filmmaking, said opponents, who included several dancers and other adult entertainment performers and employees at a hearing on the bill in the state capital, Sacramento.

"This will decimate the San Fernando Valley," Larry Kaplan, executive director of the California branch of the Association of Club Executives, a group representing adult entertainment clubs, told Reuters.

"We estimate it would take $3.5 billion out of California," Kaplan added, referring to the economic activity the state could lose if it were to tax strip-club performances, porn-shop sales and adult Web site revenues at a 25 percent rate.

Matt Gray, a lobbyist for the state's adult entertainment industry, echoed the familiar refrain of mainstream small and big businesses directed at lawmakers who propose raising business taxes: "It's an unfriendly business climate here."

If porn-film production costs are pushed up, California's adult movie-makers will have even more reason to shoot movies elsewhere, Gray said, adding that Budapest is giving the San Fernando Valley, north of Los Angeles, a run for porn-film production money.

"It's actually cheaper to fly everyone to Budapest to do their shoots there and to fly them back," Gray said.

FINANCIAL, SOCIAL FIX

Assemblyman Charles Calderon had proposed his bill to help raise revenues for the cash-strapped state. Gov. Arnold Schwarzenegger has forecast a $20 billion budget shortfall.

But additional tax revenues from the adult entertainment activity would also help defray social costs associated with it, including crime, drug abuse and sexually transmitted diseases, according to Calderon, the Democratic chairman of the chamber's committee on revenues and taxation.

"This tax would cover the gamut of adult entertainment," he told fellow lawmakers. His bill would tax production, distribution, retail sales, Internet downloads and performances of adult entertainment.

"Every second, $3,000 is being spent on adult entertainment," Calderon said. "Every 39 minutes, a new adult video is being made in the United States."

Former porn actress Shelley Lubben spoke in favor of Calderon's bill, detailing to lawmakers her history of prostitution, drug abuse and sexually transmitted disease while in the industry.

"I really don't think the state understands the problem," Lubben said. "It literally took me eight years to recover."

well that's nice... lets try and rape tax an entire industry because we know they wont get much sympathy. I have friends in the biz and times are tough as it is. They are in the same boat as the record biz....within 5 years the internet will have killed most of them off.

Narcissist · 05-23-2008, 05:23 AM

Quote:

But additional tax revenues from the adult entertainment activity would also help defray social costs associated with it, including crime, drug abuse and sexually transmitted diseases, according to Calderon, the Democratic chairman of the chamber's committee on revenues and taxation.

How does porn contribute to crime and STDs? Drug abuse possibly, if only because of the amount of money in the industry for the actresses.

Quote:

ell that's nice... lets try and rape tax an entire industry because we know they wont get much sympathy. I have friends in the biz and times are tough as it is. They are in the same boat as the record biz....within 5 years the internet will have killed most of them off.

With the sheer quantity of porn released, market saturation must be big contributor. Much of it is shitty so I'm not sure how my sympathy I have, though I do think it unfair to single out the industry for a tax hike.

Jewzilla · 05-23-2008, 08:24 AM

I don't think California has ever been accused of having an abundence of good ideas with regards to taxation.

Misanthrope · 05-23-2008, 08:42 AM

Wow. That's worse than the Texas Strip Club Tax.

Hmm · 05-23-2008, 11:18 AM

Just like with alcohol and cigarettes, it's a great way to collect taxes, because although these things are legal, it's generally frowned upon in general society to indulge in these things, but they know that people are still very addicted to them and will indulge in them anyway no matter the hike in the cost of it.

05-23-2008, 01:39 AM	#1
Cicada ///MBA Join Date: Feb 2007 Location: Indian Wells, CA Posts: 2,390 Rep: 517	CA Porn Tax http://news.yahoo.com/s/nm/20080512/...pornography_dc SACRAMENTO, California (Reuters) - A California bill proposing a 25 percent tax on revenues from adult entertainment would do little to ease the state's budget shortfall and would cost the state money by encouraging its pornography industry to move, opponents said on Monday as lawmakers reviewed the bill. The legislation would especially hurt the economy of the San Fernando Valley, the Hollywood of pornographic filmmaking, said opponents, who included several dancers and other adult entertainment performers and employees at a hearing on the bill in the state capital, Sacramento. "This will decimate the San Fernando Valley," Larry Kaplan, executive director of the California branch of the Association of Club Executives, a group representing adult entertainment clubs, told Reuters. "We estimate it would take $3.5 billion out of California," Kaplan added, referring to the economic activity the state could lose if it were to tax strip-club performances, porn-shop sales and adult Web site revenues at a 25 percent rate. Matt Gray, a lobbyist for the state's adult entertainment industry, echoed the familiar refrain of mainstream small and big businesses directed at lawmakers who propose raising business taxes: "It's an unfriendly business climate here." If porn-film production costs are pushed up, California's adult movie-makers will have even more reason to shoot movies elsewhere, Gray said, adding that Budapest is giving the San Fernando Valley, north of Los Angeles, a run for porn-film production money. "It's actually cheaper to fly everyone to Budapest to do their shoots there and to fly them back," Gray said. FINANCIAL, SOCIAL FIX Assemblyman Charles Calderon had proposed his bill to help raise revenues for the cash-strapped state. Gov. Arnold Schwarzenegger has forecast a $20 billion budget shortfall. But additional tax revenues from the adult entertainment activity would also help defray social costs associated with it, including crime, drug abuse and sexually transmitted diseases, according to Calderon, the Democratic chairman of the chamber's committee on revenues and taxation. "This tax would cover the gamut of adult entertainment," he told fellow lawmakers. His bill would tax production, distribution, retail sales, Internet downloads and performances of adult entertainment. "Every second, $3,000 is being spent on adult entertainment," Calderon said. "Every 39 minutes, a new adult video is being made in the United States." Former porn actress Shelley Lubben spoke in favor of Calderon's bill, detailing to lawmakers her history of prostitution, drug abuse and sexually transmitted disease while in the industry. "I really don't think the state understands the problem," Lubben said. "It literally took me eight years to recover." well that's nice... lets try and rape tax an entire industry because we know they wont get much sympathy. I have friends in the biz and times are tough as it is. They are in the same boat as the record biz....within 5 years the internet will have killed most of them off. __________________ "I have no idols - I admire work, dedication and competence" -Ayrton Senna Last edited by Cicada : 05-23-2008 at 01:46 AM.

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05-23-2008, 08:42 AM	#4
Misanthrope More Than A Whorefucker Join Date: Jan 2007 Location: 7th Circle of Hell, Down Escalator Posts: 12,833 Rep: 3206	Wow. That's worse than the Texas Strip Club Tax.

05-23-2008, 11:18 AM	#5
Hmm Senior Member Join Date: Feb 2008 Posts: 3,652 Rep: 1114	Just like with alcohol and cigarettes, it's a great way to collect taxes, because although these things are legal, it's generally frowned upon in general society to indulge in these things, but they know that people are still very addicted to them and will indulge in them anyway no matter the hike in the cost of it.