Governments bringing laws to the virtual world

My source article is here.

Basically, the Chinese have already begun by limiting playtime hours for games amongst all citizens. The article suggests though that otehr governments could begin treating online worlds as the real world. Namely, they could begin putting taxes on all in-game transactions. So for example, if you buy a mythical sword of awesomness from some guy who lives in California and pay for it in-game with in-game currency, you would have to pay a real life sales tax to the IRS in the form of a dollar.
So what does everyone think about this? Is this just a natural and logical next step in the progression of persistant online worlds, or is it a huge interference in a creation that was meant for fun and to be able to escape from the real world for a bit?

I don't play MMO's all that often, but I can say that if I did, this would be a slap in the face. You buy the software, then pay a monthly service fee, and now the government wants to come in and start taxing you on your game? It just seems really rediculous. Games are after all made to escape, if only for a brief time. Real world taxes don't fit all that harmoniously in that picture.

Jam it back in, in the dark.

Originally Posted by KrazyTaco

Namely, they could begin putting taxes on all in-game transactions. So for example, if you buy a mythical sword of awesomness from some guy who lives in California and pay for it in-game with in-game currency, you would have to pay a real life sales tax to the IRS in the form of a dollar.

This is ridiculous. That would be like taxing a game of Monopoly.

How ya doing, buddy?

This is really retarded. I can't see how any of that actually makes sense. The Chinese are crazy with laws so it's expected. But I can't imagine anybody anywhere else being taxed for a fucking Ultima Sword.

Won't happen. Sorry.

This thing is sticky, and I don't like it. I don't appreciate it.

In Soviet Russia, game 'pwn' you!

Though, with China, it's to be expected. All work and no play makes Johnny an unwavering servant of the Party.

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The only country that needs this law is Korea. I like how thousands die each day in net cafes.

The act will be called Get a Life.

I was speaking idiomatically.

To the extreme: Damn, I guess I'm charged for manslaughter after killing those Russian guards who really "live" in the US and Canada in Subsistence. Right. Also, mass virtual suicide, LOL.

What kind of toxic man-thing is happening now?

If it ever happens, i'm never playing an MMO.

FELIPE NO

I don't think the government (and by "the government" I'm speaking exclusively about the US government) could ever legally levy taxes on transactions that occur in a MMORPG. For starters, true sales tax (which is actually a function of the state and local governments) requires the exchange of a good or service of value. You can argue until you're blue in the face that selling a Sword of Fragtaculous Awesomeness is an exchange of goods, but nothing has really happened. A coding flag has been triggered to indicate that you have a weapon you didn't have before. However, it has to take place solely in this virtual world for nothing but the exchange of virtual currency.

Now here's the catch. If I open a store in your local mall and one of the goods I sell just happens to be that Sword of Fragtaculous Awesomeness and you pay me in American Dollars for the item and I go online and give it to you, expect to pay some sales tax on that transaction. It's not different than buying a collectible (baseball, Magic, Yu Gi Oh) card second hand at a hobby shop.

It does pose an interesting if not semi-unreleated question: Is opening a store, be it a virtual one over the internet or a brick and mortar one in the "real" world, whose only purpose is for the second hand sale of MMORPG items a viable, long-term business model? Or are you limiting yourself by hitching your fortune to something with a limited shelf life?

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Originally Posted by Chronciler

Now here's the catch. If I open a store in your local mall and one of the goods I sell just happens to be that Sword of Fragtaculous Awesomeness and you pay me in American Dollars for the item and I go online and give it to you, expect to pay some sales tax on that transaction. It's not different than buying a collectible (baseball, Magic, Yu Gi Oh) card second hand at a hobby shop.

It does pose an interesting if not semi-unreleated question: Is opening a store, be it a virtual one over the internet or a brick and mortar one in the "real" world, whose only purpose is for the second hand sale of MMORPG items a viable, long-term business model? Or are you limiting yourself by hitching your fortune to something with a limited shelf life?

Correct me if I'm wrong, but isn't stuff like that illegal anyway? I was under the impression that, for example, doing that for Diablo 2 was a violation of the Battle.Net terms and conditions? I would imagine other MMOs have a fairly similar policy.

But obviously, illegal or not, people do it anyway.

Jam it back in, in the dark.

Originally Posted by KrazyTaco

So for example, if you buy a mythical sword of awesomness from some guy who lives in California and pay for it in-game with in-game currency, you would have to pay a real life sales tax to the IRS in the form of a dollar.

err, i think you (and everyone that picked up your tremors) got the wrong end of the stick there

Originally Posted by THE NEWS

In the near future, the IRS could require game developers to keep records of all the transactions that take place in virtual economies and tax players on their gains before any game currency is converted into dollars.

This shadow of a law pertains to cases where in game currency crosses over with real world money. In which case I wouldn't have a problem with such a law; for a start it wouldn't apply to me. I play MMORPGS for 'fun' and 'escape' as you mention, and such a law doesn't remove from that. It's the dollar traders that started breaking down that wall of the artificial world, that would feel it; now they can play by the rules of other real world elements like the IRS too.

As for that other law and those crazy chinese

Originally Posted by The article linked to, what do you mean you didn't read it?

In January, in the aftermath of the public outcry (and virtual die-ins), the Chinese government announced that adults could play MMORPGs for as long as they like.

This thread is just a lot of smoke.

There's nowhere I can't reach.

Lol, this would never happen in america. People don't care enough.

It's quite apparent that people play MMORPGs for so long without self control, that they die due to lack of food or sleep, or whatever. That's their fault, and their families fault for not caring enough to see the problem here. It's basically up to the family to do what's right for their sons/daughters, not the government.

This thing is sticky, and I don't like it. I don't appreciate it.

Oh the irony of "China farmers."

They want your gold, they want your actual money, they want your EPICZ!

I can see it, one turn passes on Civilization and you owe the IRS $10,000.

I am a dolphin, do you want me on your body?