Please turn on JavaScript

Brooks Wilson's Economics Blog: New York State's Proposed Tax on Porn

Tuesday, February 17, 2009

New York State's Proposed Tax on Porn

I have written a couple of posts blasting nanny taxes coming from the city or state of New York. Drudge links to an article titled "Adult download tax proposal awaits climax in Albany" and written by Stephanie Gaskill for the Daily News that describes a new porn tax.

A state proposal to add a 4% tax for downloading movies and music will also apply to Internet porn.

Gov. Paterson recently suggested the so-called iPod tax to help close a $15 billion budget deficit, but few realized the levy would also apply to XXX-rated material.

Being a libertarian, and preferring spending cuts to tax increases. Let me suggest firing the state workers who came up with the sugary soda tax as a proper place to begin spending cuts. I still have to acknowledge that if you are taxing downloads, you might as well tax porn as well as music and movies. This puts me at odds with Conservative Party Chairman Michael Long who said,

By taxing it you're legitimizing it [porn]. If you're taxing it - how can it be wrong? I don't know how you can sink much deeper.

He also said that the government shouldn't profit by porn. His arguments are normative, and neither right nor wrong, but I would like to make a couple of points in favor of including porn in the tax. First, almost everybody does things that I don't like, and some of those things I consider immoral. My opinion about the value or morality of a good or service does not depend on its tax status or even its legality. Second, by not taxing porn while taxing other movies, the state is providing an implicit subsidy to the porn industry.

The state expresses its displeasure with a good (goods producing significant externalities excluded) by outlawing it or placing a tax above and beyond the tax paid by favored goods. It is the process of selectively picking proper goods for its citizens to consume that a state becomes a nanny state. I prefer getting my moral advice from great philosophers like Adam Smith and religious leaders.

9 comments:

  1. I think that porn should be taxed also. I feel that if I have to pay a tax on my music downloads then all downloads shoud be taxed. Maybe the tax on porn should be twice the price as other downloads.We pay taxes on gambling earnings and it is considered morally wrong by many.

    ReplyDelete
  2. This is rather strange because while the government thinks that smoking is really bad for your health but still incourages heavy taxation on legal drugs to encourage people to not use them. This is exactly the opposite of what the government is trying to say about porn here and by all means if downloads are taxed then its not fair to the industry if a product isnt taxed because it is "wrong," which is a matter of opinion anyways. This also will just cause the consumer and producer to pay extra for the tax as the demand. Furthermore, the demand will decrease slighly from the increase in the price and will also encourage piracy also.

    ReplyDelete
  3. Porn is nothing more than a "movie" in all simplicity, therefore it should be included in taxes of online movies. Although the demand for porn may drop as a result of this tax, it should still be implemented because the government should not be bias, and by simply avoid taxing porn because of "moral standings"...appears bias to me.

    ReplyDelete
  4. I do not think that what gets taxed and what does not get taxed should be based on morals. I think that porn should be taxed just like anything else because that's what is fair. If other downloads get taxed so should porn.

    ReplyDelete
  5. Porn is a type of film, so I don't see why it shouldn't be taxed. All it's gonna do is decrease the demand a little, and I bet alot of people think that's a good thing, based of personal morals, religion or whatever I really don't care either way..but yeah :)
    --Mariela CHS

    ReplyDelete
  6. If the government condemns the downloading of porn, I think it is hypocritical of them to profit from it. Also, according to almost every pop up ad on the internet, there are a ton of free pornography websites. This would cause the demand of payed downloads to decrease. I think the government should be focusing on the more pressing economic matters going on in our country at this time, instead of deciding whether to price porn.

    ReplyDelete
  7. I believe that porn should get taxed just like music and movie downloads do. They should not be excused weather the government can make a profit or not.

    m.g.

    ReplyDelete
  8. I have enjoyed reading your blog and have gained a better understanding of the economic crisis this country is in. The broad range of topics from steroid use in sports, sin tax to the Obama tax plan is very insightful. What a great tool for your students and others like me who want to expand their knowledge of economics!

    Thanks.
    Brad Hoff

    ReplyDelete
  9. Mary Beth G4/11/10 5:31 PM

    If movies are taxed then porn should be also because some movies have porn in it so it's almost the same thing. In my opinion it shouldn't even be allowed, but I have no say in what people do. I think it's wrong and immoral but not everyone in the world believes the same way I do. Even though I have no part in anything to do with porn, I still don't like the fact that it's out there and all over the internet. But I am glad that they are making people pay for downloading it, so maybe it will reduce the amount of people that partake in it. But that's just my opinion. This is one thing that either people do or don't do and nobody really has a say in it.

    ReplyDelete