Arizona-Proposes-Porn-Tax

It appears that Arizona state legislators may have an odd obsession with pornography.  That’s fair. Nothing wrong with having hobbies. However, unlike most of us who spend a considerable amount of time thinking about porn, rather simply enjoying it, Arizona republicans have introduced 2 bills so far in 2019 seeking to further legislate it.

We recently reported about the resolution introduced by a state representative, Michelle Udall, which would declare pornography a “public health crisis” across the state.  That bill, however unscientific and misguided, is at the very least toothless. If it passes, it will be a symbolic victory for state republicans, without actually imposing any legal consequences.

However, it appears that this is actually the second porn-related bill to be introduced to the state legislature by an Arizona republican since the year began.  The first was introduced back in January by representative Gail Griffin. This bill, unlike Udalls resolution, would cause some major changes to the adult entertainment industry, tech manufacturers and their consumers in the “great” state of Arizona.

Griffin’s proposal seeks to levy a $20 excise tax on each and every consumer wishing to access pornographic material in the state of Arizona.  The purpose of this tax would be to pay for Trump’s controversial, and as of yet unfunded, the border wall. Proposed bill HB 2444 would require anyone who creates or distributes internet-connected devices, like phones, tablets, computers, and smart TVs, to block people in the state from viewing adult content unless they pay this $20 tax.   

This isn’t a 100% new idea for Arizona, as both South Carolina and Rhode Island have sought to issue a consumer tax on internet porn in the past, though without success. While no other state currently has an excise tax quite like the one Arizona is proposing, all states seek to profit from our vices in some way.  Other states issue excise taxes on cigarettes, booze, petroleum products, escort services, strip clubs, and even marijuana. Those obnoxiously high taxes attached to plane tickets? That’s an excise tax. The state with the highest excise taxes per capita is Vermont, who’s citizens pay a whopping average of $1068 per person annually for a state-sanctioned good time. In spite of Arizona’s recent kill-joy proposals, even if this bill passes, it won’t even come close to Vermont’s total.

According to the Tax Policy Center, so-called “vice” or excise taxes account for around 2.5% of all federal tax receipts in the US.  In 2017, the total came to a whopping $83.8 billion! That doesn’t even count the excise taxes levied by local municipalities or states.  Just how widespread are these state-imposed vice fees? All 50 states currently profit from the sales of cigarettes and beer. According to policy analyst, Katherine Loughead with the Center for State Tax Policy at the Tax Foundation,  "Alcohol taxes are levied at the wholesale level and hidden from the consumer." After all, considering all the deaths associated with alcohol and cigarettes, it would be rather unsightly for state governments to repeatedly remind consumers that they are profiting from your bad habits.  Visible or not, consumers are still paying the state for these taxes, though. Loughead says, "The brewers and distillers pay them, and they are passed onto the consumer in the form of higher prices.”

The recent movement across the US for states to end marijuana prohibition is adding to the controversy, as marijuana is still illegal at the federal level.  You have states profiting from marijuana sales, as manufacturers seek to make their operations legal under state laws, while the federal government still threatens prosecution for the sale and distribution of what they see as an illegal substance.  However, states like Colorado which have chosen to legalize and tax marijuana have seen substantial increases in their state coffers, causing other states to follow suit.

Nevada has a relatively high excise tax per capita because it is one of the few states with legal (and taxable) gambling.  This excise tax accounts for such a high percentage of their budget, that unlike many states, they don’t even impose state income taxes.

Some proponents of these vice taxes claim that levying a tax will reduce consumption of undesirable products, like cigarettes.  Given Arizona’s push to have porn declared a “public health crisis,” it’s not a stretch to assume they have similar hopes for the proposed porn tax. However, experts assert that these vice taxes don’t actually impact consumer behavior.  No matter how high states make taxes on gambling, alcohol, cigarettes and other products, people don’t actually cut back on these behaviors. They either simply find a way to pay for them, or they cross into another jurisdiction with a lower tax.  Given that vices are often considered “recession-proof,” i.e. constantly turn a profit even when people are poor and out of work, it’s not surprising that a simple tax isn’t going to deter people.

The major, proven upside of an excise tax is that it’s a reliable source of income for governments, that the poor could theoretically opt-out of. Excise taxes have been used to fund a variety of projects throughout the country. Federal excise taxes mostly go to help maintain our roads and airports, though some also go towards healthcare, and some go into the general budget.  State and local excise taxes have a similar purpose, but in addition, are often used to fund a specific project.

Additional controversy has been added to Arizona proposed porn tax, because of the intended purpose of the revenue.  The tax is intended to help pay for Trump’s proposed border wall that would separate the Southern United States from Mexico.  Arizona’s excise tax, if it passes, will specifically pay for a portion of the wall along the Arizona border. The wall has sparked massive controversy, as it would be hugely expensive. Trump is currently seeking 5.7 billion dollars from American taxpayers, despite his campaign promise that Mexico would pay for the wall. Opponents are quick to point out that most Illegal immigrants actually enter the US through its airports, and simply do not leave when their visas expire, which could not possibly be stopped by a wall. Trump supporters feel like the wall will help thwart human trafficking and drug cartels, and is therefore worth nearly any expense. Democrats in House of Representatives have refused to approve any budget which includes funding for the wall, and Trump has refused to sign any budget that does not include wall funding.  This resulted in a historic 35-day government shutdown, in which federal employees were not being paid, though many “essential workers,” such as the military, TSA, and air traffic controllers, were still required to go to work. The government finally came to an agreement to temporarily reopen the government while Trump considered his options. Finally, he chose to declare a national emergency, which allows him to direct funds to related projects at his discretion. Democrats vow to contest this unprecedented move, which means the funds are still not a guarantee.

Obviously, opponents of the wall will not be thrilled at paying an extra $20 to the state of Arizona in order to pursue their happiness through porn.  However, we here at Coupons.XXX would be interested to hear what supporters of the wall think. Would you be willing to pay an extra $20 to fund the wall?  Let us know in the comment section!