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Reader Comments (4)

Posted: Nov 29th 2008 8:22PM (Unverified) said

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I actually support the taxation in an appropriate manner. Which is to say when virtual currency is converted into real world currency. Until that point, no real world agency has any more right to tax my in game gold than they do to tax my yahtzee score.

If I make and sell items in Second Life, but all the money I make stays in world, then real world agencies have no rights to tax that currency exchange. It is simply out of their jurisdiction, and should remain so.

However, if I were to sell my Linden Dollars and convert it into real world money, then it becomes income, and should be treated as such.

For worlds with closed economies, where there is no (official or legal) way to convert in game currency to real currency, then taxation is absurd and should never take place. To even consider it is simply an act of greedily grabbing for money that they have no right to.

Posted: Nov 29th 2008 10:13PM Nadril said

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That is the only way they could even feasably do it. The question too is, how large of a game does it have to be to become taxable? How would you tax an online game that spans over continents and countries?
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Posted: Nov 30th 2008 1:59AM Heraclea said

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I welcome the notion of taxation of profits made in game currency. It's only fair. There is, of course, no obvious and simple way to maintain game activities and game gains as a going concern while requiring players to liquidate some of their game profits into real world currencies. Individual accounts lack the resources to do this efficiently.

So if game profits are to be taxed, there is only one possible outcome: real world taxes will have to be payable in game gold. From a gamer's perspective, the advantages of such an approach seems obvious.

Posted: Dec 3rd 2008 7:48AM (Unverified) said

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I agree absolutely. Blizzard should take a suitable sum off all profits I earn in WoW (while increasing the amount of money that vendors pay, and mobs drop by the same), and automatically deposit it in a government account at the end of the financial year.
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