Oct 9

No New Taxes on Virtual World Earnings….Yet

Category: Doing Business in SL, Taxes by Stone Culdesac

In yesterdays Metanomics session with Dan Miller, Dan said that Congress is not looking to impose taxes on virtual earnings, and he said that they would thrive and develop without taxes, which echoed what Jim Saxton said last year when he said taxing virtual economies would be a mistake.

The senior economist for Congress’ Joint Economic Committee sent a few signals about the its long-awaited report on virtual world taxation in a Second Life appearance on Monday.

“We are not looking to impose taxes,” Miller told a packed house at the Metanomics session. “In my opinion the less government regulation you have on virtual worlds, the more they’ll thrive and develop.”

Miller’s statement echoed the position of committee’s then-chairman, Rep. Jim Saxton (R-NJ), who said last year that taxing virtual economies “would be a mistake.” Source: Congress to Second Life: No new taxes?

But, he did say, the final word on taxing virtual worlds like Second Life may not come from Congress, but from the IRS who could decide that even though the money may not be “real” it could be considered a barter exchange and taxable under IRS topic 420.

If you missed it, like me, you can view the archived video at Playing Metanomics :: US Congress Looks at the Metaverse on the Second Life Cable Network. The folks at metaversed will also be uploading to blip.tv here soon, so check there as well.

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