Eliminate the Native American Tax Loophole

[Andy9o8 3]

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Does this loophole exist due to congressional action alone (and therefore closeable by them alone) or is it due to treaty? People bitch about "freebies" natives get around here, but they are all due to treaty rights and not reversible by the legislature.
I work for a native company on native land in the winter. I pay all my taxes just the same; the treaty natives do not. The non-treaty natives pay their taxes the same as the rest of us.

In the US, it's partly by statute, and party by treaty. Some are generally-applicable, while others are tribe-specific. It's also less inclusive than most people presume. Here is the IRS's legal position on taxation of Native Americans:

http://www.irs.gov/irb/2006-15_IRB/ar09.html

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Native Americans are subject to the same income tax laws as other U.S. citizens unless there is an exemption explicitly created by treaty or statute. Squire v. Capoeman, 351 U.S. 1, 6 (1956); Estate of Poletti v. Commissioner, 99 T.C. 554, 557-58 (1992), aff’d, 34 F.3d 742 (9th Cir. 1994); Doxtator v. Commissioner, T.C. Memo. 2005-113. Any exemption must be based on clear and unambiguous treaty or statutory language. Squire, 351 U.S. at 6; Ramsey v. United States, 302 F.3d 1074 (9th Cir. 2002); Cook v. United States, 86 F.3d 1095 (Fed. Cir. 1996); Estate of Peterson v. Commissioner, 90 T.C. 249, 250 (1988). Under the Internal Revenue Code, all individuals, including Native Americans, are subject to federal income tax. Section 1 imposes a tax on all taxable income. Section 61 provides that gross income includes all income from whatever source derived. Adjustments to income, deductions, and credits must be claimed in accordance with the provisions of the Internal Revenue Code and accompanying Treasury regulations. Although there are certain exemptions and other provisions throughout the Internal Revenue Code that apply to Native Americans, none of these exempt individual Native American taxpayers from federal tax. Moreover, under the Indian Gaming Regulatory Act, any distribution of casino gaming proceeds to individual tribe members is also subject to federal income tax.

(I realize the above is mainly re: income tax and not re: other types of taxes, but the same analysis generally applies across the board.)

[popsjumper 2]

Ain't it wonderful how the U.S. upholds the provisions of treaties with Native Americans when it benefits them and ignores them when it doesn't?

Trail of Tears anyone?

My reality and yours are quite different.
I think we're all Bozos on this bus.
Falcon5232, SCS8170, SCSA353, POPS9398, DS239

[masterrig 1]

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Ain't it wonderful how the U.S. upholds the provisions of treaties with NativeAmericans when it benefits them and ignores them when it doesn't? Trail of Tears anyone?

"Trail of Broken Treaties" 1972 AIM


Chuck