The U.S congress are getting ready to release a report that could have huge consequences for the the gaming industry, namely whether virtual items should be taxed or not.

Understandably publishers and gamers alike are waiting with baited breath to see what will happen. The ramifications for a finding in favour of taxation are massive.

Apart from the obvious hike in prices which would invariably be passed on to the consumer, it would also create a nightmare for the publishers which would have to figure out a way to track all the transactions.

Speaking with CNET News.com Dan Miller, a senior economist with the Congress' Joint Economic Committee said, "Given growth rates of 10 to 15 percent a month, the question is when, not if, Congress and IRS start paying attention to these issues,"

"So it is incumbent on us to set the terms and the debate so we have a shaped tax policy toward virtual worlds and virtual economies in a favourable way."