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July 22, 2006
The Use
and Abuse of Indians
by Barb Lindsay and David Yeagley,
Ph.D.
We
would like to believe Congress did not intend for
non-Indians to be the principal beneficiaries of
the Indian Gaming Regulatory Act of 1988, or IGRA.
Yet the fact is non-Indian investors, lobbyists,
politicians and casino management companies have
left behind the poverty-stricken Native American
families Congress intended to help. Non-Indians are
enriching themselves through IGRA's $22.6 billion a
year Indian casino business. Jack Abramoff was the
perfect example.
We would like to believe Congress did not intend
off-reservation communities to suddenly become
convenient casino locations. But, abuse of IGRA
provisions has allowed tribes to go "reservation
shopping" anywhere they want -- anywhere prime
gambling facility locations can be found.
The damage being inflicted on small-town America
is very real. Communities neighboring the new
Indian casino expansions all face devastating
effects. The problems are similar in dozens of
states across the nation. Major national news
investigations have been published, ranging from
Time and Forbes to the New York Times and the Wall
Street Journal. These reports describe how tribal
government actions have caused soil erosion, water
shortages, snarled traffic and increased crime.
Tribal policies have bankrupted neighboring
businesses and forced evictions of elderly
homeowners for the sole purpose of casino
parking-lot expansion. These effects have
dramatically reduced property values in communities
that host tribal casinos.
We would like to believe Congress did not intend
federal "trust" status of tribally purchased land
to enable autonomous (often syndicated) gambling
operations to dominate the economy and social
character of surrounding communities. But,
"sovereign immunity" shelters tribal trust land
from taxation and virtually all state laws and
local regulation. Tribal leaders and their
coercive, out-of-state casino investors are, thus,
responsible only to themselves for their
actions.
We would like to believe Congress did not intend
Indian casinos to adversely affect their
surrounding communities. But, tax- and
regulation-free casinos destroy local, taxpaying,
non-tribal businesses. The lower prices offered by
Indian businesses attract non-Indian clientele,
thus shrinking state and local tax receipts, and
contributing to an addictive behavior that severely
strains local social services. (This is especially
true when tribes allow 18-year-olds to gamble, as
they currently do in California, Washington and a
number of other states across America.)
Tribal businesses typically refuse to collect or
remit state and local sales taxes (even though the
U.S. Supreme Court has ruled four times that tribal
businesses are lawfully required to both collect
and remit taxes on purchases made by their
non-tribal customers). Tribal businesses can
therefore significantly undercut the regular price
of gasoline, cigarettes and many other retail
items. This Indian "tax evasion" is why there is
only one non-Indian gas station left in all of
upstate New York and the state is facing a $1
billion budget deficit. It's due in large part to
the refusal of Indian smoke shops and gas stations
to collect New York state sales taxes on cigarettes
and gasoline. The same thing is happening in
Oklahoma, Wisconsin, Minnesota, Idaho, Nebraska and
Washington state. California faces the same threat
to its future.
We would like to believe Congress did not intend
tribal governments to make political contributions
from tax-exempt casino profits and federal
taxpayer-funded grants without regard to
contribution limits that apply to every other
for-profit enterprise. In fact, other sovereign
governments (foreign and domestic) cannot
contribute to election campaigns. Nor can
corporations make federal campaign donations. But,
the Federal Election Commission has given a free
pass to tribal "nations" (and, indirectly, their
non-Indian corporate backers) to influence the
policy decisions upon which their gambling
monopolies depend.
According to the Federal Election Commission,
Indian tribes are now the largest contributors to
our election campaigns nationwide, exceeding even
the largest labor and teachers' unions. Last year,
tribes contributed more to federal election
campaigns than the manufacturing and defense
industries. And Indian tribes are far and away the
largest campaign contributor group in dozens of
states, including Washington, Oregon and
California. Tribes even use their "government
allotment" funds to make federal campaign
contributions, in addition to making campaign
donations from their tax-exempt tribal casino
"corporate" accounts. None of the rest of us can
make government or corporate donations to federal
races! In California's gubernatorial recall race
several years ago, the Agua Caliente gave $2
million and the Santa Rosa Tribe $1 million to Cruz
Bustamante, far in excess of the state's $49,500
limit on campaign contributions to a single
candidate in a single race.
We would like to believe Congress recognizes
that these non-Indian communities aversely affected
by Indian operations in fact comprise American
citizens -- with all civil rights inherent. But
Congress appears to have given "tribal sovereignty"
a primacy that supersedes American citizenship.
This privilege has grown in direct proportion to
the growth of casino revenues. The rights of
American citizens who are not enrolled members of a
casino-owning Indian tribe have shrunk accordingly.
Politicians, enticed (and intimidated) by tribal
campaign contributions, have allowed a vast
expansion of tribal "sovereignty," and the
extension of immunities on tax, land-use laws and
business regulations. Congress never intended this
result.
The lure of a tax-free casino has created a
flurry of self-defined tribes, all suddenly
rediscovering themselves -- with the help of
outside billionaires anxious to cash in on the
tax-free "Indian" casino. This is the era of the
"pop-up" Indian tribe, which doesn't even have to
be Indian. A "reservation shopping" industry has
blossomed, with well-financed "rainmakers" lined up
at the Interior Department's door. They also lurk
outside congressional offices, influencing federal
policies to expedite tribal recognition and
fee-to-trust land conversion decisions. The
Abramoff scandal is just one famous, monstrous
example of the deceit, fraud and greed recently
investigated by the Senate Indian Affairs Committee
in a 373-page report written by Republican and
Democratic staff.
The result of misconceived sovereignty laws is a
"gold rush" of off-reservation Indian casinos
across the country, especially in California. There
are now 420 tribal casinos up and running in 30
states, with dozens more awaiting approval by
federal bureaucrats. This well-intentioned
jump-start of the Native American economy has
outraged many non-Indian residents in local
communities where casinos have already opened.
Citizens are greatly alarmed as they see tribes
flouting the laws of the land.
Allowing more and more land to be removed from
the tax rolls and put into trust status for the
purpose of building tribal casinos and other
development projects causes hardship to all
entities dependent upon taxes derived from property
values. The state, county, city, fire districts,
law enforcement and school districts are all
impoverished. The remaining property owners must,
of course, make up the difference through increased
taxation to support needed public services. The
tribes are acquiring tens of thousands of acres in
states across America, and the fee-to-trust process
is adversely affecting local citizens as tax rolls
diminish with each tribal parcel that is removed
and given tax-exempt status.
Yet fault does not lie entirely with the
fee-to-trust process or even tribal sovereign
immunity. To fault Indians for benefiting from
gambling and other dubious propensities of the
greater population is simply blaming Indians for
the white man's weaknesses.
The blame really lies with politicians who
promote gambling and lottery profits as beneficial
to the state. They ignore the social costs and
instead offer under-funded, ineffective palliatives
to gambling addicts. Too few community leaders
demand legislative solutions. The traditional
American work ethic has been replaced by the
fantasy of wealth without labor, without
responsibility and without any effort to save
money. And buying from Indian businesses has become
an irresistible temptation to millions of Americans
-- all of whom are breaking the law by not paying
taxes that are lawfully due.
Meanwhile, state and federal politicians are
often too willing to deal with casino promoters for
a piece of the action. "Sovereign" tribal gambling
operations and their ancillary commercial
enterprises remain accountable only to themselves.
They too often disdain meaningful responsibility
toward surrounding communities, and due to these
complicit and unfaithful politicians, our
democratic process is lost in a tidal wave of
casino cash.
In 2005, tribal casino revenue was $22.6
billion, twice the take of Nevada gaming. Yet, the
vast majority of Native Americans do not benefit
from IGRA riches. Many Indians have even been
dis-enrolled from their tribes by greedy tribal
leaders who know that fewer members means a bigger
piece of the pie for each. Thus, Indians are also
the victims of a well-intentioned congressional act
that has been superseded by the Law of Unintended
Consequences. Thankfully, Congress is set to vote
on long overdue reforms.
Sen. John McCain, R-Ariz., and Rep. Richard
Pombo, R-Calif., are currently sponsoring
legislation to address some of these critical
problems. Before Congress adjourns this year, it is
set to vote on S.2078 and H.R. 4893. These two
vitally important bills deserve the support of all
concerned U.S. citizens. Please contact your two
U.S. senators and congressional representative
today and urge them to co-sponsor and vote yes on
these bills to reform the Indian Gaming Regulatory
Act and the flawed fee-to-trust process.
The future of our nation and its democratic
process depends upon the action we take now. Our
children and grandchildren will live with our
decisions. We must support legal reform of our
federal government's terribly misguided Indian
policies. Shall America be "one nation,
indivisible" with equality under the law for all
U.S. citizens, as intended by our Founding Fathers,
or will we instead allow a greedy American
aristocracy to use Indians tribes to crush other
Americans, thus degrading the whole country and
destroying all respect for Indian people? Shall we
allow wealthy American elites to abuse the American
people the same way King George III did in 1776,
when he incited Indians against the colonists?
Yeagley
Archive
Dr. David A. Yeagley is a published scholar,
professionally recorded composer, and an adjunct
professor at the University of Oklahoma College of
Liberal Studies. He's on the speakers list of
Young America's
Foundation. E-mail him at badeagle2000@yahoo.com.
View his website at http://www.badeagle.com.
Barb Lindsay is national director and spokeswoman
for One Nation United, a nonpartisan, nonprofit
umbrella group dedicated to the comprehensive
reform of flawed federal Indian policy for the
benefit of Indians and non-Indians alike. She is an
enrolled member of Western Cherokee Nation of
Arkansas and Missouri.
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