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RobertoOrtiz
10-16-2006, 12:43 PM
Quote:
"Users of online worlds such as Second Life and World of Warcraft transact millions of dollars worth of virtual goods and services every day, and these virtual economies are beginning to draw the attention of real-world authorities.

Right now we're at the preliminary stages of looking at the issue and what kind of public policy questions virtual economies raise -- taxes, barter exchanges, property and wealth," said Dan Miller, senior economist for the Joint Economic Committee of the U.S. Congress."

>>LINK<< (http://news.yahoo.com/s/nm/20061016/tc_nm/life_secondlife_tax_dc;_ylt=AoHLWkP6ezvFbGz_G6gvvUGs0NUE;_ylu=X3oDMTA3cjE0b2MwBHNlYwM3Mzg)

-R

PhantomDesign
10-16-2006, 02:02 PM
World of Warcraft pulls in millions of subscribers and billions of dollars (already taxed). How do you tax a virtual game economy which yeilds no results outside that virtual world? The terms of service prohibit selling actual in-game items/gold. I don't see how the US government could possibly use gold in World of Warcraft, so I assume we're talking actual dollars.

Are 12-year-olds who play WOW 24/7 suddently going to find the IRS knocking a their door asking for a few hundred/thousand dollars?

I see why it's an attractive target (all the subscribers), but this is ridiculous, at least in the current stages of videogaming. In 50 years this might be a more reasonable topic, when the machines take over and we all get stuck in the Matrix.

Dennik
10-16-2006, 02:32 PM
Its what they say about death and taxes, being the two things you can't avoid in life...
Hell, you even get taxed for dying.

RuinedMessiah
10-16-2006, 03:13 PM
When I played WOW, I already paid tax on the subcription charges. Damn state of Illinois...

EnlightenedPixel
10-16-2006, 03:32 PM
I can see how they would want to tax sales within Second Life because the content is user created, but why WoW?

PhantomDesign
10-16-2006, 04:43 PM
I can see how they would want to tax sales within Second Life because the content is user created, but why WoW?
Taxing cash that goes into or comes our of a video-game makes sense, and already exists. I'm still strying to figure out what, why, and how they could tax the WOW economy. What would this mean for other past/present/future MMOs? Will we have to start paying a monthly fee for guildwars to the IRS?

They're going to have to come up with a new system for every MMO on the market & who's going to do that? Some Congressman WoW addict who plays a female nighelf rogue & sucks so bad he can't get any decent items or Gold?

What about counterstrike? Argubly there's a sort of economy there . . . short lived, not easily or commonly exchanged, but it exists. I guess we could tax every dot that you consume while playing PacMan.

P.S. For the record, I have great personal distaste for pay-per-month MMOs, but regardless this idea is both stupid and goes against basic aspects of freedom.

P.S.S. What if in the process of trying to discover whether or not WoW should be taxed, the entire congress gets addicted to it?

ntmonkey
10-16-2006, 04:43 PM
I say if the government want to tax something like that, then they should at least give back to the industry. Taxing for the sake of taxing is stupid and greedy. How about some scholarships for the digital arts? Most are privately funded, and very few are eligible for public funding.

If they tax it, then there should be some allocation of those tax dollars towards something that benefit gamers, the developers, or students who are trying to get into the gaming industry.

Seeing how all off this is really too radical to consider, they should just drop the issue altogether. It defeats the purpose of games as that's a feature that wasn't intended by the developers, and kills the "escape" that people seek from the real world. Nerf it, I say.

peace,

Lu

Dennik
10-16-2006, 05:32 PM
...Taxing for the sake of taxing is stupid and greedy. - Lu

Well they sure are no stupid, and it sure is greedy.

I always think of myself as a cow being milked when i pay my taxes. With the exception that they don't use my milk to feed the kids, they just bathe in it....

EpShot
10-16-2006, 06:09 PM
actualy the taxes subsidies your farm.

RuinedMessiah
10-16-2006, 06:11 PM
Remember a couple years ago? When the USPS wanted to add a charge to email transactions?

toonman
10-16-2006, 06:26 PM
Well... if you think about it, it makes sense. I don't play WoW, but picture the scenario... you could have people working as "collectors" in the game, hunting for valuable items. Say, some guy gets to find the "Allmighty Sword of Divine Wrath", which is extremely hard to get. He goes to eBay, and makes some dough by auctioning it. He delivers the item online, and a wire or check next day. So, even though the property "does not exist", he made a very material and real income out of it. My guess is that this is exactly what the Gov wants to tax. I can imagine that some people would be able to make a semi-decent income by hunting-selling virtual property. And Uncle Sam wants his slice of the pie.

Titan
10-16-2006, 08:01 PM
THe EULA prohibits the resale of game items or gold for real world currency, the government would be breaking the law (not that THAT ever seems to stop them) and ruining an experience that is enjoyed by people the world over.

But say they did it, theyd have to do the same for EVERY game out there where you collect something.....hmmmmm...(super mario brothers...lol)...

So if my WOW shaman makes 100g do I have to pay the government 5? Gee, what a fun gaming experience that would be.:(

Probably some stupid senator somewhere who has a 12 year old addicted to WOW and decides he could kick up a campaign controversy by pissing people off.....reminds me of that lawyer guy thats always trying to blame games for stuff..

I could go off about this indefinately....( inhale.....<hold>......exhale slowly)

mdee
10-16-2006, 08:04 PM
Is this April 1st already? Or I went crazy...?

RuinedMessiah
10-16-2006, 08:06 PM
Well... if you think about it, it makes sense. I don't play WoW, but picture the scenario... you could have people working as "collectors" in the game, hunting for valuable items. Say, some guy gets to find the "Allmighty Sword of Divine Wrath", which is extremely hard to get. He goes to eBay, and makes some dough by auctioning it. He delivers the item online, and a wire or check next day. So, even though the property "does not exist", he made a very material and real income out of it. My guess is that this is exactly what the Gov wants to tax. I can imagine that some people would be able to make a semi-decent income by hunting-selling virtual property. And Uncle Sam wants his slice of the pie.

Any income made over the year in excess of $100 that is not claimed on a W-2 should be claimed on an I-1099 form. This is the reason why people aren't allowed to leave shows like The Price Is Right unless they pay the taxes on their winnings or freelance artist learn to hate this form quite well.

In other words, provided people are stating their taxes accurately, they are already seeing money from this.

Per-Anders
10-16-2006, 08:17 PM
Ah, money with menaces.

It would certainly be interesting to know how this money will be spent on bettering the virtual worlds that it comes from, it's strange that there are no bodies to oversee the legality of such moves of the taxation system in a country who's independent history was shaped by rebelion against greed and taxation in the first place. I wonder how they intend to implement this government condoned fraud on servers overseas, it wouldn't be surprising if such a move would result in serious diplomatic ramifications...

DonS
10-16-2006, 09:12 PM
Maybe we should think of this another way...if the gov't decides to somehow tax these virtual economies, then couldn't we use our virtual "assets" to pay our real world taxes?

"Here you go, Uncle Sam; my tax bill, in WoW gold. And I'll just hold onto these real dollars, thanks."

Soon after, we'll see the exchange rate of WoW gold versus the real thing posted in the Wall Street Journal...

D.

noisewar
10-16-2006, 09:47 PM
And I thought most of the people here were Democrats.... :p


Did you guys read the article? They aren't talking about taxing your subscriptions, they are talking about taxing in-game transactions you make that result in real world capital. If you make a living farming gold and selling it, under current tax principles you SHOULD be taxed for it. ANY income is taxable, it doesn't matter how you get it, with the exception of CASH which just isn't reported, and that is technically illegal.

Does the fact that it's a virtual good matter? Nope, service is a virtual and intangible goods too. Education, entertainment, and consulting all intangible, all taxed.

Does the fact that it happens in a system you've paid for, i.e. WoW? Nope, people still get taxed on money they make off electronic FOREX programs. However, to be fair, that would be that could write off your purchase of WoW as a business expense.

Does the EULA prohibiting virtual sales matter? Nope, the EULA is not law, even if it was the Government by definition can change the law, and regardless the income is STILL taxable even if gotten thru "illegal" means.


Being pro or against tax is not the same as being fair about what taxes affect.

Kabab
10-17-2006, 01:08 AM
This will make an interesting situation..

The law will say its legal to sell your virtual WoW goods as long as you pay tax but the EULA prohibits this...

So what wins?

toonman
10-17-2006, 03:00 AM
Ah, I wasn't aware about the EULA issue... it makes the subject just even more interesting... :deal:

EnlightenedPixel
10-17-2006, 03:19 AM
The thing about Wow is the gold itself is not limited, its an unlimited suply, making it essentialy fake, its not attached to an actual monitary ammount. The selling of items outside of WOW is illegal for that reason, they are not tangtable, and there is no limit to their creation, they are in no sense items meant to be 'owned', they are totaly generated in game. To tax something like that is an invasion of privacy and many other issues. Its like taxing someone who plays DND for petes sake.

Kabab
10-17-2006, 04:00 AM
The thing about Wow is the gold itself is not limited, its an unlimited suply, making it essentialy fake, its not attached to an actual monitary ammount. The selling of items outside of WOW is illegal for that reason, they are not tangtable, and there is no limit to their creation, they are in no sense items meant to be 'owned', they are totaly generated in game. To tax something like that is an invasion of privacy and many other issues. Its like taxing someone who plays DND for petes sake.

What about selling a piece of software there is an unlimited supply yet that is taxed.

There is nothing illegal about me selling my character or gold its just against the blizzard EULA but who knows how legal the EULA agreement is to start with..

PhilOsirus
10-17-2006, 04:16 AM
The WoW EULA cannot be illegal, it is an agreement between the user and Blizzard. You agree not to sell in-game assets by playing the game, doing otherwise prevents you from playing the game (or prevents you from doing so once Blizzard finds out). The idea of taxing virtual items that are not meant to be sold for real money is ridiculous. Can you tax saved games too?

Already, if you make money by selling something, you are supposed to declared it in your income tax report once it reaches a certain amount (or regardless of the amount in some countries). So there is no reason to create a law that would dig deeper than needed. If someone is not declaring the money they are making by selling virtual goods, it's up to the government to deal with the person himself and directly.

Would air be taxed if someone managed to sell some and did not declare it in his income tax report?:p

EnlightenedPixel
10-17-2006, 04:22 AM
What about selling a piece of software there is an unlimited supply yet that is taxed.

There is nothing illegal about me selling my character or gold its just against the blizzard EULA but who knows how legal the EULA agreement is to start with..

Quite legal actualy. And theres a difference in selling " SOFTWARE" and selling " Aquired Digital Items".

Also, one person cant legaly sell another lisenced software in most cases.

Kabab
10-17-2006, 04:48 AM
Quite legal actualy. And theres a difference in selling " SOFTWARE" and selling " Aquired Digital Items".

Also, one person cant legaly sell another lisenced software in most cases.
I think you missed the point i was trying to point out that there is stuff sold today which has unlimited supply... such as software.

DoubleSupercool
10-17-2006, 05:21 AM
I was reading an interview with Richard Garriot about Tabula Rasa, an upcoming MMO. Now Richard obviously has a bit of experience (Ultima series) and he was talking about the in-game economy, special items etc. He raised the point that he does not wish to have purchasable items in the game (that is, you buy them with real money) as it opens up very real legal issues with regards to warranties and consumer protection law.

What if you buy a +20 stamina sword and then two updates later it is nerfed down to +15 for gameplay balance. There is a good chance you could take the company to court RE: misleading conduct and not providing you with a good as advertised.

It can get very hairy very quickly with these kind of things.

ndat
10-17-2006, 05:32 AM
I don't think they really understand the concept of WoW, people don't or shouldn't sell in game items for real monies. If they do it's probally through legal channels though and it is taxed if it is subject to taxation.

I can see why you would want to tax second life, it's supposed to mirror real life after all lol.

noisewar
10-17-2006, 06:06 AM
The thing about Wow is the gold itself is not limited, its an unlimited suply, making it essentialy fake, its not attached to an actual monitary ammount. The selling of items outside of WOW is illegal for that reason, they are not tangtable, and there is no limit to their creation, they are in no sense items meant to be 'owned', they are totaly generated in game. To tax something like that is an invasion of privacy and many other issues. Its like taxing someone who plays DND for petes sake.


Wrong. By that definition, most of the world's currencies are an "invasion of privacy" to tax, as most of the money in the world is fiat. The gold in WOW has a very real value, it is approximately at a $/WOW conversion of 1/8. Sure Blizzard could "create" more, but like any currency, that results in inflation, and a consequent devaluation of their gold, which means it has a basis in real world currency. If it didn't then Blizzard would just give themselves a trillion gold and become rich.

EnlightenedPixel
10-17-2006, 04:40 PM
Gold is proceduraly generated based on items found and sold. If you sent Blizzard $20 they arent going to multiply that by 8 and give you WOW gold in return, and they sertainly arent going to reimburse you 1/8 of your funds and the 'worth' of your items in WOW as a trade in.
The Gold in WOW has no real wordly value, it isnt real. Those numbers arent attached to the ammount of gold and resources someone has in reality, its just time wasted online.

noisewar
10-17-2006, 06:53 PM
Gold is proceduraly generated based on items found and sold. If you sent Blizzard $20 they arent going to multiply that by 8 and give you WOW gold in return, and they sertainly arent going to reimburse you 1/8 of your funds and the 'worth' of your items in WOW as a trade in.
The Gold in WOW has no real wordly value, it isnt real. Those numbers arent attached to the ammount of gold and resources someone has in reality, its just time wasted online.

Blizzard won't, but gold farmers will, and that gives their virtual gold value. Supply and demand, if someone is willing to pay for it, it has a value. Its value is not tied to Blizzard, but to the player community. Hit up eBay and search for virgin mary toast and used underwear.

How about procedurally generated music, art, resumes, web pages, cryptography, financial reports, etc. that are being sold every single day? Believe what you want, but that's reality- ALL value is determined by supply and demand.

Lorecanth
10-17-2006, 06:57 PM
Gold is proceduraly generated based on items found and sold. If you sent Blizzard $20 they arent going to multiply that by 8 and give you WOW gold in return, and they sertainly arent going to reimburse you 1/8 of your funds and the 'worth' of your items in WOW as a trade in.
The Gold in WOW has no real wordly value, it isnt real. Those numbers arent attached to the ammount of gold and resources someone has in reality, its just time wasted online.

it's funny to me how the same arguments used for and against the gold standard, were used over 80 years ago. There's nothing real about the world economy, theres only a symbolic or virtual trading of perceived effort.

EnlightenedPixel
10-17-2006, 07:24 PM
it's funny to me how the same arguments used for and against the gold standard, were used over 80 years ago. There's nothing real about the world economy, theres only a symbolic or virtual trading of perceived effort.

Its not attached to materials, PERIOD. It literaly has no monitary value except to those who also waste time on WoW. A DOLLAR is attached to a specific ammount of money. You can trade it in for that ammount of gold, and you can trade the gold back in for that cash, it is LINKED. Dollars are produced in a limited ammount to keep things from inflating. WoW's gold isnt linked to an actual substance, it is created in unlimited ammounts. Its like printing your own money.

noisewar
10-18-2006, 01:08 AM
Its not attached to materials, PERIOD. It literaly has no monitary value except to those who also waste time on WoW. A DOLLAR is attached to a specific ammount of money. You can trade it in for that ammount of gold, and you can trade the gold back in for that cash, it is LINKED. Dollars are produced in a limited ammount to keep things from inflating. WoW's gold isnt linked to an actual substance, it is created in unlimited ammounts. Its like printing your own money.


You just failed real world economics. The Bretton-Woods agreement was thrown out in 1973, I'm sorry to burst your bubble but there is no Fort Knox filled with gold to back up the dollar, and yes we do print gobs of our own money in this and nearly every country.

EnlightenedPixel
10-18-2006, 02:01 AM
You just failed real world economics. The Bretton-Woods agreement was thrown out in 1973, I'm sorry to burst your bubble but there is no Fort Knox filled with gold to back up the dollar, and yes we do print gobs of our own money in this and nearly every country.

They rate physical LIMITED materials on their assumed 'worth in gold' weither that gold exists or not, it still is labeled with that 'worth' because it is a limited and physical substance.
Digital items can be created at will, with no need for materials or time, Again, PRINTING your own MONEY. Its completly dissproportionate in every aspect. No physical substance & no limit is why its not to be used in public trade. Software makers get to print up their software, spending time creating said software, and selling it to people who supposedly need said software, much like producing an album, a nice vase, a painting, a tool, etc. With WOW people are buying a piece of software, and wasting time within the software to aquire something that technicaly has no limit to its own recreation, thus, it isnt acceptable as having any monitary value. It was already part of an existing program, its got no limit, and it has no physical state of being, it is worth nothing, and the people who charge and pay for it should be removed from their computers and locked in a school for the 'gifted'.

You can TRY to argue that its like people mining for gold, but its not, because we know theres no unlimited supply of gold or any other material for that matter.

Things in Second Life may be different because its user created, its essentialy their own art, made within a program ex*photoshop*, and propegated through it. People who freelance get charged money, so I can see why they would think about going after SL. But WOW is strictly ingame items that re-spawn with no limit, and an ever increasing pot of gold that magicly appears. If we magicaly had gold appearing out of the yingyang every time someone shot a deer or cut their grass, gold wouldnt even be worth squat.

Wow = Printing Money and wasting time
SL = User created content/art

noisewar
10-18-2006, 02:34 AM
They rate physical LIMITED materials on their assumed 'worth in gold' weither that gold exists or not, it still is labeled with that 'worth' because it is a limited and physical substance.


:banghead:

I think I better retire from this thread.

EnlightenedPixel
10-18-2006, 04:40 AM
:banghead:

I think I better retire from this thread.

Do you not understant something so simple?
They base price on what it would be worth in gold, thats what they bottom line is. If you own diamonds, the question is going to be " what is it worth in gold?" If you grow corn " what is it worth as gold?" if you videotape porn " what is this worth in gold" its just that bottom line, all it means is theyre trying to compare everything else to one base material. Granted, its pretty messed up of a system if they ever find a lot more gold, but hey, thats capitolism. Its a rare substance, and people need it for many various things. Technicaly, diamonds arent as usefull as the gold within electronics, nore is gold and diamonds edible and nessisary to sustain life, but thats besides the point. Everything is just sort of "assumed as gold" weither its based on how much it takes to mine, or how much someone wants to charge for their effort. But its all based around something that is rather limited.
When you have something that is "UNLIMITED" "not real" and especialy "stock from pre-created content" it cant be used as logical trade.

Limited vs Unlimited
Stock vs Created
Real vs Virtual

Stock comes into play because its something from the game. Its like selling someone part of 3dsmax, it just isnt legal. I cant go off selling someone the textures out of max, just like someone cant go off selling an item out of WOW. None of us created it, and its very illegal. I can see them getting around SL because of the user created content however.

RocketBoy
10-18-2006, 06:32 AM
Its not based on Gold; that was kind of the entire point of ending the Gold Standard. The value of the dollar is now determined by infinitely more complex set of variables rather than the cost of one commodity.

EnlightenedPixel
10-18-2006, 02:29 PM
Screw gold, lets forget gold. Weither or not people compare all materials to their own supposed worth as gold is not the point. The point is and has been this :

Money = Limited = Linked to limited material supplies
WoWMoney and items = Proceduraly generated within a game = part of the game, = not user created = not linked to material worth = unlimited supply.

You cant tax money within a game because that money isnt real and it has no limit, thus, infinite taxing, and because its generated within the game, its illegal to sell it outside of the game in the first place, they dont technicaly even own it, they just own access to an account. Instead of taxing people, they should be suing and/or arresting them.

noisewar
10-18-2006, 09:43 PM
Screw gold, lets forget gold. Weither or not people compare all materials to their own supposed worth as gold is not the point. The point is and has been this :

Money = Limited = Linked to limited material supplies
WoWMoney and items = Proceduraly generated within a game = part of the game, = not user created = not linked to material worth = unlimited supply.

You cant tax money within a game because that money isnt real and it has no limit, thus, infinite taxing, and because its generated within the game, its illegal to sell it outside of the game in the first place, they dont technicaly even own it, they just own access to an account. Instead of taxing people, they should be suing and/or arresting them.


Excellent, yes, forget gold, a subject you have absolutely no idea what you are talking about on. Please refrain from discussing world finance ever again, I'm doing you a favor here.


Now, your contention that WoW money is procedurally generated by the game and therefore worthless is what we can talk about. Where you are wrong is the source DOESN'T MATTER when it comes to the worth of the virtual gold. As long as someone is willing to pay for it, it has worth.

Example:

-An internet service that procedurally generates resumes.
-A program that randomly generates music tracks.
-A program that procedurally generates 3D landscapes, pixels, physics, and textures (sound familiar?)

You were wrong again on an earlier point, that you can't sell procedurally generated art assets made by 3DSMAX. People CAN and DO sell them. For example, Bryce or Poser "artists" DO get paid by their generally tasteless contractors. No matter what your opinions on the legitimacy of the product is, someone out there is willing to exchange money for it. That willingness is known as demand, and that money is known as worth.

I'm not paying for the WOW gold, I am paying for the TIME and WORK and KNOWLEDGE of the gold farmer, which he is saving me the trouble of. Which is what that WOW gold represents. Which is what ALL currencies in the world represent- manpower. If I pay people for finding me funny jokes, those jokes have no inherent worth but the work my employees put into finding it does. Jokes can't be measured nor quantified. What I pay is determined by how much work I think they take to acquire, and how much work my employees think they take to acquire, and the quality thereof.

Likewise, people CAN and DO buy books filled with walkthrough and secrets of their favorite games. The paper and ink in those books isn't worth squat. I think you can figure out what hold worth in those books, right? If there is a demand for that, then why not just pay the book writer to send you the goodies he found in-game directly? And THERE IS!

You need to understand that your opinion on virtual gold does not affect the massive market of people willing to pay for it, which means someone out there is making income, and therefore should be taxed.

EnlightenedPixel
10-18-2006, 11:53 PM
Excellent, yes, forget gold, a subject you have absolutely no idea what you are talking about on. Please refrain from discussing world finance ever again, I'm doing you a favor here.


Now, your contention that WoW money is procedurally generated by the game and therefore worthless is what we can talk about. Where you are wrong is the source DOESN'T MATTER when it comes to the worth of the virtual gold. As long as someone is willing to pay for it, it has worth.

Example:

-An internet service that procedurally generates resumes.
-A program that randomly generates music tracks.
-A program that procedurally generates 3D landscapes, pixels, physics, and textures (sound familiar?)

You were wrong again on an earlier point, that you can't sell procedurally generated art assets made by 3DSMAX. People CAN and DO sell them. For example, Bryce or Poser "artists" DO get paid by their generally tasteless contractors. No matter what your opinions on the legitimacy of the product is, someone out there is willing to exchange money for it. That willingness is known as demand, and that money is known as worth.

I'm not paying for the WOW gold, I am paying for the TIME and WORK and KNOWLEDGE of the gold farmer, which he is saving me the trouble of. Which is what that WOW gold represents. Which is what ALL currencies in the world represent- manpower. If I pay people for finding me funny jokes, those jokes have no inherent worth but the work my employees put into finding it does. Jokes can't be measured nor quantified. What I pay is determined by how much work I think they take to acquire, and how much work my employees think they take to acquire, and the quality thereof.

Likewise, people CAN and DO buy books filled with walkthrough and secrets of their favorite games. The paper and ink in those books isn't worth squat. I think you can figure out what hold worth in those books, right? If there is a demand for that, then why not just pay the book writer to send you the goodies he found in-game directly? And THERE IS!

You need to understand that your opinion on virtual gold does not affect the massive market of people willing to pay for it, which means someone out there is making income, and therefore should be taxed.

You are possibly the most explicitly rude person on this forum by far.

And still incorrect.

-in response to Books/Resumes/Music/Bryce/Poser/(Terragen?)Etc-
Thank you for your examples of what ISNT like buying digital gold.

If a Company or Person CREATES something, that is their right to sell it. If they CREATE a program that CREATES proceduraly generated resume's, THEY CAN SELL THAT. If they write a walkthrough and have it published through either print or digital means, they can sell that *providing they are not infringing on graphics, other literature, etc*. If they Create a program that generates music proceduraly, youre paying them for the CREATION of that music. If you buy terragen, bryce, or poser, youre allowed to use it any way you want thanks to their EULA which gives you permission to do so, except copy and resell the program or anything that came within the package.

Unfortunately I have to concede that you can be taxed on illegal activities, not just fined. I was just linked to information on circumstances in which my government at least has taxed illegal sales, which I find redundant since theyre already fining someone anyway. By giving it a taxing allocation, thats like saying it is in fact legal to sell, theyll just fine you for it and put you in jail apparently...

noisewar
10-19-2006, 01:32 AM
OF COURSE you can't sell the PROGRAM that isn't yours, but if you use someone's resume/web-page/virtualgold generator to create/accumulate/composite stuff and then sell it, and someone is willing to buy it, illegal or not, those products have WORTH. Today's product is a Warcraft character with weapons, armor, a mount, and lots of gold. I can sell that, it's even my CREATION.

When WORTH is REALIZED as profit, it is taxable.

Seriously, I give up. Let's just agree to disagree.

Gentle Fury
10-21-2006, 11:38 PM
It really just depends how far they are willing to go with it....are they going to tax people for what they make in-game (which is ridiculous) or are they going to tax people on the real-world money they make illegally selling in-game assets (the WoW equivalent of a drug dealer). Sure they can audit you on what you've made off of the game...but I don't really think there are enough people making a living selling in-game assets to make a difference...and if there are....well thats just wierd.

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10-21-2006, 11:38 PM
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