With so many people making part or all of their living through eBay, the government wants its cut. This isn't an issue of any new taxes, but an attempt to collect the income tax that is already required. Because eBay does not report information about its sellers to the government, income reporting is left up to individuals, and the temptation not to list eBay revenue as income can be a strong one—and in some cases, it's not always clear when one has to do so.

eBay isn't the only Internet business that has been feeling the heat in recent months. The government is also considering how to apply tax laws to virtual worlds and goods, and it faces some of the same problems that it does with eBay. While some sellers can make a good living out of hawking such items, few report the profits as taxable income, and Uncle Sam wants its cut.

In a widely-heralded and very long-sought victory for CAGW and all taxpayers, the Treasury Department announced last May that it would stop collecting the excise tax on long distance telephone service. Known as the Spanish-American War Tax, this "temporary" tax on phone service, considered a luxury at the time, has survived for 108 years, far surpassing its raison d’etre, which lasted just four months. You can apply for a refund of the payment of that tax from 2003-2006 when you file your 2006 tax return next year.