To Tax a Little, or Not Tax At All?

Adam Reuters reports 'Details emerge on U.S. virtual world tax probe - interesting stuff on many different levels.

...“The first thing to make clear is that, contrary to what you may have read, the JEC is not seeking to impose a new tax on virtual economies,” Miller added. “If you look at our body of published work, you’ll find a very clear track record of supporting lower taxes and free markets. We are planning to do a study on virtual worlds, and (we) hope to have something published in the first part of next year.”

The JEC study will specifically look at “factual technical questions … like what is a taxable event in a virtual world,” CNET’s Daniel Terdiman reported...

OK, a few things.

• 'Low taxes' and 'No Taxes' are different things: I have no problem with income from a virtual world being taxed on incomes that are - oh, let's say $20,000 a year, in that the amount of money which comes out of a virtual world in a year (by an individual, not legal entity) would not be taxed if it's lower than $20,000 a year.
• If someone makes me fill out tax forms in a virtual world, I may have a conniption.

Of course, that brings us to one of the next businesses that will show up in SecondLife:

H & R Prim

That said... I think if people are fiddling around and making a profit below $20K in a virtual world, they deserve some slack. That's less than $10 an hour for a full time job. That's basically skilled labor.

Now *businesses* with more than one person involved? Ahh. Well, if they make less than $20K *profit*, they deserve a break - it's more like a hobby. Above that? Yeah. Legal entities need love too.

Just my 0.02 Lindens. :-)

First, what is it you want us to pay taxes for? Tell me what I get and perhaps I'll buy it. -- Robert A. Heinlen, The Moon Is a Harsh Mistress