Decision on Virtual Taxation Coming Soon 52
njkid1 writes with an article at GameDaily that once again tackles the thorny subject of taxing virtual goods. This month Congress is going to issue its report on the subject. What's in the report isn't certain as of yet, but their decision could have an enormous impact on the future of massively multiplayer games in the United States. From the article: "Economists estimate the sale of virtual goods grosses somewhere around $30 million in the United States alone, and up to $880 million worldwide, but no one knows for sure. With this economy's growth factor averaging about 10 to 15 percent every month, it's no wonder the government wants a piece of the action. Here's the bottom line: Any service or commodity bought or sold using real-world money is taxable. Therefore, transactions where players pay real money for in-game currency or virtual items are taxable events. It doesn't matter that the items don't exist in reality, since it doesn't take much creativity to argue that the sale is attached to a service, such as the act of acquiring the currency or item. This being the case, it was never a question of WOULD the U.S. government step in with taxes, but a question of WHEN and HOW."
