Authored by Martin Armstrong via Armstrong Economics,

How desperate must a government become before it considers taxing pornography to purchase drones for a war it cannot win?

Ukraine is now reportedly considering legalizing parts of its adult entertainment industry to generate additional tax revenue for the war against Russia. Ukrainian lawmaker Yaroslav Zhelezniak estimates legalization could bring around $25 million annually into the government's coffers, enough, he claims, to purchase up to 30,000 drones. The legislation has already passed its first reading in parliament and awaits further consideration.

Zelensky has agreed that parliament should consider the proposal after a petition supporting reform attracted more than 25,000 signatures.

You cannot make this stuff up.

Ukraine requires around $120 billion annually for defense, according to reporting on the proposal, and the government is scrambling everywhere it can for money. Its budget deficit exceeds $32 billion as Kyiv simultaneously negotiates with the IMF over additional financial assistance and new taxes. Europe and the United States have poured hundreds of billions into keeping this war machine operating, yet five years into the conflict Kyiv remains financially dependent upon outsiders.

The situation is even more outrageous because the government created this absurdity itself. Producing and distributing pornography remains illegal in Ukraine and can carry years in prison, yet tax authorities began demanding money from Ukrainians earning income through adult platforms. Pay the taxes and you effectively provide the government with evidence that you participated in an activity it criminalized. Refuse to pay and they can prosecute you for tax evasion. Zhelezniak himself described it as a "tragicomic situation."

You cannot legislate human nature out of existence.

Prostitution has survived emperors, kings, dictators, democracies, communism, religious prohibitions, and every law politicians have invented. The Romans tried regulating how prostitutes could be paid and people simply devised ways around the restrictions. Make an activity illegal and government frequently creates an underground market with multiple exploiters.

That is government in its purest form.

First it declares something immoral and sends the police after you. Then it discovers you are making money, demands its percentage, and eventually considers changing the law because it desperately needs the revenue. Ukraine has simply added the insanity of war to the equation.

There is only desperation in reaching the point where politicians are calculating how many battlefield drones can be purchased from taxes on sex work. Every additional scheme to extract another dollar, euro, or hryvnia demonstrates the same underlying reality: this war has consumed Ukraine economically, financially, demographically, and socially. At some point, someone has to admit that destroying what remains of the country to finance an unwinnable war is not defending Ukraine.