Rep. Jim Saxton, head of Joint Economic Committee, confirmed that they are now looking into tax issues in reference to online virtual worlds that include virtual economies.
The one good thing is that Saxton, a Republican, believes that it would be a mistake to do this:
"There is a concern that the IRS might step forward with regulations that start taxing transactions that occur within virtual economies. This, I believe, would be a mistake."
In the case of the popular virtual world of Second Life, they have what is called Linden Dollars, which can be exchanged for real currency.
This is probably something we need to let our representatives know we oppose right away. You let them try to sink their teeth into anything and it is almost impossible to get them to let go. To tax people in a v
irtual world being part of any discussion by lawmakers is the height of stupidity. Don't we have a few more pressing things that need to be taken care of?
What do you think of the IRS getting its hands into the virtual world economic pot?
Comment Preview