Sex and the IRS  

CantonOhCouple 60M/59F
370 posts
2/10/2006 6:06 pm

Last Read:
9/16/2011 7:38 pm

Sex and the IRS

Heard on Morning Edition, February 10, 2006 • “Some players of online role-playing games are so determined that they will pay real money to get ahead. Steve Inskeep talks with Julian Dibbell, who wrote about the tax implications of this practice in a recent issue of Legal Affairs.”

Interesting program on NPR this morning. Seems that online role play has spawned a cottage industry, where players accumulate goodies (swords, shields, etc.) on on-line gamed. Seems that it takes a lot of work and effort to earn/find/secure aforesaid virtual articles. Seems that folks can give or trade this stuff with their fellow gamer. Seems that some folks take this stuff seriously. Faster than you can it’s the American way, seems folks have recognized the opportunity to make a few bucks.

It works like this, I earn/find/secure something really good. Go to E-Bay, list the virtual goodie, and faster than you can say capitalism, let the bidding begin. And lest you think this is penny ante, we’re talking about real money here. Julian Dibbell claims he earned $11,000 dollars turning his imaginary loot into capital gains, and asserts during his interview that others have run up six figure incomes thru gaming.

In the gaming world, everyone knows this. In fact, there’s some suspicion that there are child sweat shops overseas forcing kids to play the game 24x7 in order to accumulate virtual geld, which their heartless overseers turn into real world cash. The true gamers recognize these folks by the fact that they endlessly toil in mines or endlessly slay and collect the skins of virtual animals (which can be turned in for gaming geld), but never seem to have time to actually play the game. Plus, their gaming “names” pretty much translate into mandarin. Odd.

Now here’s the rub. If something has value and you sell it, the seller is responsible for paying income taxes. Simple. No matter how virtual, you made money, you pay Uncle Sam. But, since the market has made this stuff “valuable”, then even when two gamers trade something (no cash), they have essentially bartered. And according to the IRS, that’s taxable income too. Further, if you stumble across a diamond and pick it up in the real world, no shit … taxable income. Thus, even the act of earning virtual goodies or finding virtual goodies online is taxable income.

Now, we started thinking. This stuff is only taxable because it has value. Somebody is willing to pay for it, thus, when you earn it, or trade it, its taxable income. Actually, there’s a certain kind of sense to it. What’s more “virtual” than “intellectual property rights”, right? Or even song lyrics?

Are you following this?

Now let’s apply the same logic to sex. People pay for sex all the time. Oldest profession and all that. Big money in sex! So, since it’s worth money when sold (say $100 a head), then it’s worth money on a straight swap with your spouse, or even when given away. No question about it, Uncle Sam should be getting a piece of that action.

This is GREAT news. There are trillions of dollars of unpaid tax liability on the table here. We can pay down the debt, save Social Security, fully fund Head Start, implement universal HealthCare, and fund a few more wars here and there across the globe. Sex fucking pays!

And lest you forget, we thought of it first. There’s a finders fee when you rat out tax dodgers to Uncle Sam. As soon as our new very good friends in Washington do the math … we’re expecting a check.

PS. We thinking of moving to the Cayman Islands. Sex is still free there.


2/10/2006 11:01 pm

I read several of your posts and I really enjoyed your writing style and choice of topics. Thanks!

just a squirrel trying to get a nut

NatchuralGuy 63M

2/10/2006 11:41 pm

Can I meet you in the Caymans and play "boy toy" for a night? Or more?

CantonOhCouple 60M/59F
553 posts
2/11/2006 10:59 am


Whew, what a handle! There's got to be a story there. Is it "Missouri" fun, now, wow? Thanks so much for stopping by. By the why, your recent post Assicons is funny!


Oh boy, with that pic, we'd have to say maybe! That's some nice looking equipment you got there. (grins).

angelofmercy5 58F
17881 posts
2/11/2006 1:51 pm

Geez....I hope the IRS isn't reading this! You guys come up with some good stuff! Have a great weekend.

CantonOhCouple 60M/59F
553 posts
2/12/2006 10:17 am


Actually, we're more worried about the NSA.

rm_FreeLove999 46F
16127 posts
2/12/2006 12:56 pm

that gave me a good giggle; thank you!

[blog freelove999]

CantonOhCouple 60M/59F
553 posts
2/12/2006 6:30 pm


Thanks for stopping by. Hope to see you back again. We LOVE the picture. And your blog.

Hugs from us ...

BullsTardeMeant 56M
837 posts
2/13/2006 7:24 am

So who will head up the lobby?? Larry Flint? Al Goldstein?? BILL CLINTON???!


CantonOhCouple 60M/59F
553 posts
2/13/2006 5:49 pm


Lobby? We're not sure what you meant here.

Confused looks from us ...

BullsTardeMeant 56M
837 posts
2/14/2006 1:03 am

Taxation without representation?? The sex industry WOULD have an influential lobby. *w*

I know, I know. That's not quite what the founding fathers had in mind. Yet 'power to the people' has lost alot of it's clout to the 'power to the special interests' group. *getting off my soapbox*


CantonOhCouple 60M/59F
553 posts
2/14/2006 7:22 pm


Excellent point! We have seem to have lost the whole "of the people, for the people, and by the people" thing, haven't we? What has happened though is that we've replaced it with "of the corporation, by the corporation, for the corporation", because, frankly, that's where the money is.

Thanks for stopping by.

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