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Media Myths |
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Misrepresentation #1
Myth: The Indian Gaming Regulatory Act (IGRA) is "a bill that allows select Indian tribes to create businesses that reap millions of dollars in profits and pay no federal income tax – at the same time that the tribes collect millions in aid from America taxpayers." Reality: This statement reflects the media’s misunderstanding of Indian Tribes as governments. The U. S. Constitution, Congress, and countless Supreme Court decisions recognize Tribes as governments, and like State government lotteries, tribal government operations are not subject to taxation by another government. Nevertheless, the over 300,000 individual Indian and non-Indian employees, those doing business with Tribes, and Tribes themselves – through compacting agreements – generate over $6 BILLION in Federal and State payroll, income, sales and other taxes and fees each year. In addition, Indian gaming revenues are fully taxes by Tribal governments. Federal law requires that the majority of tribal gaming revenues be used to fund tribal government programs, community infrastructure, charity, and aid to local governments. Just like revenues from State lotteries go to State programs – tribal gaming revenues must first fund essential tribal government services. Per capita payments from gaming revenues to individuals are also subject to the full federal income tax rate. |
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