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Five myths about Indians and Indian tribes
By Henry Flood
,
governance advisor in Indian Country for more than 20 years
Talking about Indians or Native Americans is nearly always a good conversation starter. Many people have a genuine interest in the wellbeing of Native Americans and many, but not all are sympathetic to Indian issues and rights.
However, there are some myths and stereotypes that come up regularly. Most of these misperceptions arise largely from ignorance rather than malice. Here are some frequently encountered.
Myth #1
Indians don’t pay taxes. All citizens must pay taxes on earned income. The Supreme Court addressed this issue for Indians in 19561. What is true is that certain income earned from trust land by individuals is exempt from taxation2 and Indian tribal governments are tax exempt in a similar manner as states under the Indian Tax Status Act3. And, there are some special tax benefits to Indian tribal governments based on their sovereign political status with the United States4.
Myth #2
Indians are rich now because of casinos. The reality is that casinos are businesses subject to risk, profit and loss like any other business. About 20 percent do well, some are marginally profitable; a few break even and others lose money or go under. Many Indian casinos are operated by independent investors who run the casinos on behalf of tribal owners under management agreements. Some of these agreements are disadvantageous to tribal governments—a complex problem that is little understood by the public.5
Some casinos distribute little support to the tribal governments that own them. In many instances, few Indians are actually employed in the casinos. Some tribal governments that do well with their casino operations do invest in their people and community. Some do not and a few abuse the federal restrictions on distributions of casino revenue to individual Indians.
Myth #3
You can’t really do business with Indian tribes. You can if you know how to:
1. Assess business and political risk
2. Understand Native American culture
3. Are patient
Doing business with many tribes is not a fast process. It takes time to know, understand and trust each other. Few if any tribes will fully waive sovereign immunity to enter into a non-Indian business relationship. Partial waivers of sovereign immunity are possible, but require great care to craft. Remember, you are dealing with a sovereign nation within a larger nation. Indian tribal governments are not under the U.S. Constitution. They are separate sovereigns. Finally, it is a general truism that most Indian tribal governments look at business in terms of employment to be created rather than profits made. Describing benefits and opportunities are critical to doing business in Indian Country.
Myth #4
Native Americans are in a permanent state of poverty and federal support. While there is truth in this overstated assertion, the actual demographics6 describe a more complex reality. Year 2000 Census data show that Indians comprise about 1.57 percent of the total U.S. population. Just 32 percent now live in 336 reservation areas and 64 percent live in urban areas. Taken as a whole, Indians endure the highest poverty rate, the highest unemployment rate and the largest health disparities compared with any other population group. Graduation rates from high school and college are lower compared to all other groups.
However, group statistics can be misleading when you consider that the Native American population is simultaneously both highly dispersed and concentrated. Half of the Indian population resides in just 10 states. Conditions within the urban and reservation Indian populations vary widely. Some reservations are thriving communities with excellent social and economic characteristics. The picture on other reservations is one of endemic poverty, high unemployment, substance abuse and generally poor health. Urban Indians fare better than reservation Indians, but they too face unique challenges as American Indians.
Myth #5
Indian preference laws and treaties provide an unfair racial advantage to Indians versus other racial groups. Federally recognized Indian tribes are distinct sovereign political communities. The treaties, and special laws enacted on their behalf arise from the political relationship between the U.S. and each federally recognized sovereign tribal government. Such treaties and laws derive from a long standing political, rather than a racial classification.7
Myths about Native Americans will likely persist long into the future; however, five major ones have been discussed and given more perspective here. We can all commit to avoid perpetuating false myths about Native Americans.
1
Squire v. Capoeman, 351 U.S. 1, 5-6 (1956). See also 26 U.S.C. § 61. The topic of Indian taxation is complex and cogently discussed for laypersons by Stephen L. Pevar in Chapter X of his Rights of Indians and Tribes, (3rd ed. 2002).
4
Taxation and non-taxation of tribal governments is discussed by Pevar, Chapter X, page 193.
5
Data on the success, performance and failure of Native American casinos is difficult to acquire. Few tribes disclose this data. See Pevar, Chapter XVI at pp. 326-329 and the accompanying footnotes.
6
The census 2010 detailed data for Native America is not yet available. The social and economic data relied on for this story comes from Stella U. Ogunwole, We the People: American Indians and Alaska Natives in the United States, Special Population Reports, Bureau of the Census, (2006).
7
The Supreme Court in Morton v. Mancari, 417 U.S. 535 (1974) upheld the Indian Preference Act of 1934, (25 U.S.C. §472) finding that Indian preference laws are not prohibited racial classifications but arise from the constitutional sovereign political relationship between separate sovereigns.