To solve the state’s huge budget shortfall, California wants tax on porn

California state lawmakers are considering an unusual idea to solve the state’s huge budget shortfall: pornography tax.

The idea to impose a 25 per cent tax on the production and sales of pornographic videos the vast majority of which are made in southern California was proposed by a state assemblyman.

It is unknown, however, how seriously lawmakers will take the idea or how the porn business will deal with the new tax.

It is likely, though, that porn-makers would simply pass the cost along to consumers by making pornographic materials more expensive or shift their business to other states.

However, many economists believe that pornography is an industry with inelastic demand meaning market conditions typically don’t affect consumers’ desire for the product.