It appears that US Taxation is on tis way to virtual worlds. Between the article on C-Net and the conversations at State of Play reported by 3.d, I think it is an inevitable development. I am not opposed to the concept of taxation in a virtual community, I am suspect of the execution though.
Within these communities you have a collection of international participants buying, selling and even bartering virtual goods and services. The execution of determining who is who could be the real unraveling of this concept. Who pays what taxes and to whom? Will the virtual world owners be assessed based on the value created on their platform? Will only American be taxed, or will anyone buying merchandise from, or selling to Americans be taxed? It seems like an amazing way to completely alienate huge sections of the creative force behind these virtual worlds.