While the flurry of activity and monetary spending can attract the attention of businesses, it can also attract the government. The Joint Economic Committee of the U.S. Congress is taking a hard look at the possibility of taxing income derived from virtual online worlds. But the general consensus is against any taxation at this time. The blogging community immediately condemned the committee's announcement last year, and Dan Miller, senior economist on the committee, agrees.

He believes that a realistic attempt at taxing virtual transactions could prove very difficult. It would place too much pressure on virtual administrators, such as Linden Lab, to keep tabs on the millions of transactions and player activities that occur every day. This, Miller believes, could slow down the impressive innovation taking place. It is not surprising to learn that the 64 year-old Miller is an avid World of Warcraft fan, and player!

Via SeekingAlpha