Leaving Money on the Table(s): An Examination of Federal Income Tax Policy Towards Indian Tribes

“When asked by an anthropologist what the Indians called America before thewhite man came, an Indian said simply, ‘Ours’”“[G]overnment’s view of the economy could be summed up in a few shortphrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving,subsidize it.”Indian tribes are on the move. At least those that have opened casinos. Following decades of abject poverty, the advent and rapid expansion of Indian gaming has finally provided tribes with a viable economic development opportunity. Approximately 201 tribes run 321 gaming facilities that employ over 300,000 people. In 2001, tribal gaming operations generated revenue of $12.7 billion. This income goes untaxed at the tribal level since, for nearly forty years, the Internal Revenue Service (“IRS”) has taken the position that the income of Indian tribes is not subject to federal income taxation.