A Tax on My Dragon Shield?

Taxation of virtual goods has been making the news again now that there are reports of people making massive amounts of money off of land inside the virtual world of Second Life. The idea of taxing virtual goods without physical realization sounds crazy to me.


Original Post 1/23/2006:

As some of my friends know, I enjoy playing online role-playing games every now and then (Runescape is my current favorite). A recent article on ZDNET has me concerned. Would the government actually consider a tax on virtual goods? What do you think?