Taxation in Indian Country: An Overview of the Causes of Tax Inequity in Indian Country and Modern Reform Efforts

Abstract

Taxation is the primary mechanism state and local governments use to fund their operations and provide essential public goods—from police and fire protection to transportation infrastructure. In contrast, tribal governments face constraints to exercising taxation authority, forcing them to rely on federal programs and tribal enterprises for needed revenue. Legal impediments to tribal taxation authority undermine long-term economic development in Indian Country. As background for forthcoming work from the Center for Indian Country Development, this paper provides an overview of the causes of tax inequity in Indian Country and modern tax-reform efforts.

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