[Congressional Record Volume 145, Number 77 (Wednesday, May 26, 1999)]
[Extensions of Remarks]
[Pages E1098-E1099]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        INTRODUCTION OF INDIAN ECONOMIC DEVELOPMENT LEGISLATION

                                 ______
                                 

                          HON. JOHN B. SHADEGG

                               of arizona

                    in the house of representatives

                        Wednesday, May 26, 1999

  Mr. SHADEGG. Mr. Speaker, I rise today to introduce three bills which 
will assist Indian tribes in their efforts to develop their economies. 
The federal government has an important obligation to the Indian 
community; however, simply increasing federal funding for various 
programs will not solve the long-term economic and social needs of all 
Native Americans. While the federal government has spent billions of 
dollars to aid Native Americans, thousands still live in substandard 
conditions with no real opportunity to overcome the cycle of poverty. 
Funds earmarked for Native Americans are in many cases being wasted by 
the federal bureaucracy.
  I believe there is a better approach. Rather than spending ever-
increasing amounts of money on wasteful programs, Congress should 
promote real, long-term economic development for Native Americans.
  Let me be clear about what I believe is real economic development. I 
do not believe that gambling on reservations will provide lasting 
economic stability for Indians. While a small number of tribes have 
enjoyed huge windfalls of economic prosperity, the majority of Native 
Americans live in areas that do not facilitate profitable gambling 
operations. This is aside from the fact that we have yet to determine

[[Page E1099]]

the true cost of increased gambling to Indian communities and 
neighborhoods surrounding the reservations with casinos.
  Because of my concern for the long-term negative impacts of wasted 
federal dollars and increased gambling operations, I am introducing the 
following three bills to help tribes with economic development by 
providing various tax and investment incentives.
  The first of these bills is the Indian Reservation Jobs and 
Investment Act of 1999. This bill provides tax credits to otherwise 
taxable business enterprises if they locate certain kinds of income-
producing property on Indian reservations. Eligible types of property 
include new personal property, new construction property, and 
infrastructure investment property.
  The second bill is the Indian Tribal Government Unemployment 
Compensation Act Tax Relief Amendments of 1999. This bill clarifies 
existing law so that tribal governments are treated identically to 
State and local units of government for unemployment tax purposes.
  The third piece of legislation is the Tribal Government Tax-Exempt 
Bond Authority Amendments Act of 1999. This bill provides additional 
tax-exempt bond authority to tribal governments to fund infrastructure 
and capital formation. Currently, reservations are restricted to issue 
tax-exempt bonds only for ``essential government functions'' and 
certain, narrowly defined, tribally-owned manufacturing. By providing 
additional tax-exempt bond authority, new sources of capital can be 
attracted to reservations and may provide additional economic 
development. Incidentally, the bond authority would not be extended for 
the construction of gaming-related operations.

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