House Panel Rejects Proposed Tax On Indian Casinos

In a surprise move, the House tax-writing committee early today defeated an effort to tax Indian casinos and other businesses.

By a 22-16 vote, the House Ways and Means Committee rejected a proposed $1.9 billion tax over five years on the fast-growing Indian gaming industry. The vote was a stinging rebuke to the panel’s chairman, Rep. Bill Archer, R-Texas, who wanted the levy to help finance the GOP’s $85 billion tax cut proposal.

An unusual alliance of Democrats and Republicans formed behind an amendment sponsored by Rep. J.D. Hayworth, R-Ariz., to strike the Indian gaming tax. Both sides complained the proposal was included without any public hearings and said the idea of the federal government taxing sovereign tribal governments created serious constitutional questions.

“Do not think about revenue. Think about history, think about fairness,” Rep. Barbara Kennelly, D-Conn., said. Debate on the bill continued into the early morning.