The newspaper reports that the California legislature is considering a bill that would impose a 25% tax on gross proceeds for the entire sex industry -- porn producers and distributors, strip clubs, etc. The bill would probably have the effect of driving the porn industry out of the state (in case you did not know, California is the country's largest producer of porn). My guess (from reading the newspaper) is that the bill has little or no chance of passing.
Nonetheless, if you have access to the internet, you can see the live debate in the committee where the bill was introduced. Go to calchannel.com, and then go to their archives for May, 2008. Then click on the debate held before the tax and revenue committee (something like that) for May 12th.
The participants include not only the assemblyperson pushing the bill, but also opponents of the sex industry and defenders of the sex industry. I found the discussion about whether there were any reliable studies showing secondary harm (e.g., increased crime, decreased property values) caused by the sex industry to be particularly fascinating. It was also interesting to hear to what extent porn actresses are at risk for STDs. It's a long debate, so it would be tedious to watch the whole thing, but the media player makes it pretty easy to skip around and see the highlights.
Obviously if an idea like this ever became popular the sex industry would be driven underground.
Porn is a ten billion dollar a year industry. I don't know the employment figures, but it seems that Californians rejoice in electing people who are anti business. If California drives the porn industry out, some other state will gleefully take it in. Some other state will rejoice in employed taxable workers.
I'll have a huge laugh if California shoots itself in the foot like that. If they drive out porn, they'll probably go after Hollywood next.
California-land of nuts, fruits, and flakes.