A Case for Super Powers

Reservation Blues

So, here in California there are some ballot measures, 94 through 97, the purpose of which is to get state revenue from Native American tribal casinos. Now, it's my understanding that the state will allow the tribes in question to build casinos off-reservation, on the condition that the state receives a certain percentage of the revenue. This way, the tribes get revenue that they couldn't get if they did not share the profits. The main arguments against these measures is that they are designed to give money to the "four richest tribes" (which is a little bit like being the strongest paraplegic) in the state. MY problem with these measures is actually in the basic premise of it: I honestly do not think they should share. And that brings me to the topic of tonight's blog.

One of the most common arguments I hear against Indian casinos in general is that they rake in a lot of tax-free money. I've heard this argument from many people...from friends...from otherwise liberal people. Let me tell you what's wrong with this argument.

I'll start with the tax issue. Yes, the money from casinos is completely tax-free. The casino doesn't pay taxes on it. The tribe doesn't pay taxes on it. Nobody pays taxes on it. That is because the casinos are not in the United States. Thus far, all Indian casinos have been built either on reservations, or at the very least, on land owned by the respective tribes. All (federally-recognized) Native American tribes are sovereign governmental entities. To put simply, every Native American tribe is a sovereign nation. They are under the semi-colonial rule of the United States, but for all intents and purposes, they are their own nations. The concept is similar to Puerto Rico, but with actually MORE autonomy. So that is why they don't pay taxes to the United States. Why should they pay tax to a foreign nation?

The tax issue actually really touches the heart of the second issue. You see, the argument that "Indian casinos rake in tons of tax-free money" is misleading. Yes, it is tax-free, and yes, the casinos do technically bring in a lot of money, but what you have to realize is that many tribes--my own included--do not require their citizens to pay any taxes. Those tribes that do have considerably lower taxes than the U.S. Bear in mind, these are sovereign governments. The only U.S. law enforcement with jurisdiction on the reservations are the Bureau of Indian Affairs police and the FBI. That means that every tribe must maintain its own police force. Reservation residents cannot make the commute to off-reservation schools, so every tribe has its own on-reservation school system, which must be maintained by the tribe. The government itself must have a place, some kind of capital, at which to convene. Housing, waste, energy, water, all must be maintained by the particular tribal government. That all requires government revenue. If the citizens do not pay taxes, where do they get the revenue to maintain police (and other public services)?

Correct. From the casinos (and other revenue-building ventures, but the casinos are most focused-on). The casinos really only take the place of taxes in other governments. Some tribes, my own included, even allocate a certain percentage of the revenue to divide up among the tribal members. That does NOT mean that we tribal members are up to our ears in money. On the first of every August I get a check from my tribe. Last August the check was for just over a thousand dollars (every tribal member gets an identical amount). I think you'll agree that that is hardly a lot of money.

So the casinos provide revenue for the government that in other governments is acquired through taxes. That must mean that we have all our needs covered, right? Well...

If you are interested in seeing just how financially secure we really are, I would urge you to take a trip to the nearest Indian reservation and see how the people live. It's third-world conditions. When I mention this, the most common response is "well if it's so bad on reservations, why do the people live on them?" This sounds to me exactly like why people continue to live in ghettos. They have no other option. The people are poor. They can't AFFORD to live anywhere else. It's the reservation, or the streets. Some people actually choose the streets.

Seriously, find the reservation nearest you, and go check it out. And while you're there, visit the casino. And try to lose. It's pretty cheap rent, in the long run.

I'm Silver, and that's news to me.