White House: Don’t Tax Indian Gambling

The Clinton administration has told Congress it should not tax Native American tribes that run gambling operations.

In a letter to the House Ways and Means Committee, Attorney General Janet Reno and Interior Secretary Bruce Babbitt said the effort to tax Indian gaming operations are “contrary to the United States’ long-standing protection of tribal self-government” and the federal government’s trust responsibilities for the tribes.

Running gaming operations has gained popularity among Native American groups as a way of raising funds. But Bureau of Indian Affairs officials say relatively few tribes are making a lot of money from gambling. In their letter to Ways and Means Chairman Bill Archer, R-Texas, Reno and Babbitt said “most reservation Indians continue to live in conditions of extreme poverty” and that gambling monies must be used for tribal improvements, such as water, roads and hospitals.

Bills before Archer’s committee would subject the gambling to taxes of up to 34 percent.