[Congressional Record Volume 160, Number 132 (Tuesday, September 16, 2014)]
[House]
[Pages H7599-H7603]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TRIBAL GENERAL WELFARE EXCLUSION ACT OF 2013
Mr. NUNES. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 3043) to amend the Internal Revenue Code of 1986 to clarify the
treatment of general welfare benefits provided by Indian tribes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3043
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
[[Page H7600]]
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Tribal General Welfare
Exclusion Act of 2013''.
SEC. 2. INDIAN GENERAL WELFARE BENEFITS.
(a) In General.--Part III of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by inserting
before section 140 the following new section:
``SEC. 139E. INDIAN GENERAL WELFARE BENEFITS.
``(a) In General.--Gross income does not include the value
of any Indian general welfare benefit.
``(b) Indian General Welfare Benefit.--For purposes of this
section, the term `Indian general welfare benefit' includes
any payment made or services provided to or on behalf of a
member of an Indian tribe (or any spouse or dependent of such
a member) pursuant to an Indian tribal government program,
but only if--
``(1) the program is administered under specified
guidelines and does not discriminate in favor of members of
the governing body of the tribe, and
``(2) the benefits provided under such program--
``(A) are available to any tribal member who meets such
guidelines,
``(B) are for the promotion of general welfare,
``(C) are not lavish or extravagant, and
``(D) are not compensation for services.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Indian tribal government.--For purposes of this
section, the term `Indian tribal government' includes any
agencies or instrumentalities of an Indian tribal government
and any Alaska Native regional or village corporation, as
defined in, or established pursuant to, the Alaska Native
Claims Settlement Act (43 U.S.C. 1601, et seq.).
``(2) Dependent.--The term `dependent' has the meaning
given such term by section 152, determined without regard to
subsections (b)(1), (b)(2), and (d)(1)(B).
``(3) Lavish or extravagant.--The Secretary shall, in
consultation with the Tribal Advisory Committee (as
established under section 3(a) of the Tribal General Welfare
Exclusion Act of 2013), establish guidelines for what
constitutes lavish or extravagant benefits with respect to
Indian tribal government programs.
``(4) Establishment of tribal government program.--A
program shall not fail to be treated as an Indian tribal
government program solely by reason of the program being
established by tribal custom or government practice.
``(5) Ceremonial activities.--Any items of cultural
significance, reimbursement of costs, or cash honorarium for
participation in cultural or ceremonial activities for the
transmission of tribal culture shall not be treated as
compensation for services.''.
(b) Conforming Amendment.--The table of sections for part
III of subchapter B of chapter 1 of such Code is amended by
inserting before the item relating to section 140 the
following new item:
``Sec. 139E. Indian general welfare benefits.''.
(c) Statutory Construction.--Ambiguities in section 139E of
such Code, as added by this Act, shall be resolved in favor
of Indian tribal governments and deference shall be given to
Indian tribal governments for the programs administered and
authorized by the tribe to benefit the general welfare of the
tribal community.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years for which the period of limitation on
refund or credit under section 6511 of the Internal Revenue
Code of 1986 has not expired.
(2) One-year waiver of statute of limitations.--If the
period of limitation on a credit or refund resulting from the
amendments made by subsection (a) expires before the end of
the 1-year period beginning on the date of the enactment of
this Act, refund or credit of such overpayment (to the extent
attributable to such amendments) may, nevertheless, be made
or allowed if claim therefor is filed before the close of
such 1-year period.
SEC. 3. TRIBAL ADVISORY COMMITTEE.
(a) Establishment.--The Secretary of the Treasury shall
establish a Tribal Advisory Committee (hereinafter in this
subsection referred to as the ``Committee'').
(b) Duties.--
(1) Implementation.--The Committee shall advise the
Secretary on matters relating to the taxation of Indians.
(2) Education and training.--The Secretary shall, in
consultation with the Committee, establish and require--
(A) training and education for internal revenue field
agents who administer and enforce internal revenue laws with
respect to Indian tribes on Federal Indian law and the
Federal Government's unique legal treaty and trust
relationship with Indian tribal governments, and
(B) training of such internal revenue field agents, and
provision of training and technical assistance to tribal
financial officers, about implementation of this Act and the
amendments made thereby.
(c) Membership.--
(1) In general.--The Committee shall be composed of 7
members appointed as follows:
(A) Three members appointed by the Secretary of the
Treasury.
(B) One member appointed by the Chairman, and one member
appointed by the Ranking Member, of the Committee on Ways and
Means of the House of Representatives.
(C) One member appointed by the Chairman, and one member
appointed by the Ranking Member, of the Committee on Finance
of the Senate.
(2) Term.--
(A) In general.--Except as provided in subparagraph (B),
each member's term shall be 4 years.
(B) Initial staggering.--The first appointments made by the
Secretary under paragraph (1)(A) shall be for a term of 2
years.
SEC. 4. OTHER RELIEF FOR INDIAN TRIBES.
(a) Temporary Suspension of Examinations.--The Secretary of
the Treasury shall suspend all audits and examinations of
Indian tribal governments and members of Indian tribes (or
any spouse or dependent of such a member), to the extent such
an audit or examination relates to the exclusion of a payment
or benefit from an Indian tribal government under the general
welfare exclusion, until the education and training
prescribed by section 3(b)(2) of this Act is completed. The
running of any period of limitations under section 6501 of
the Internal Revenue Code of 1986 with respect to Indian
tribal governments and members of Indian tribes shall be
suspended during the period during which audits and
examinations are suspended under the preceding sentence.
(b) Waiver of Penalties and Interest.--The Secretary of the
Treasury may waive any interest and penalties imposed under
such Code on any Indian tribal government or member of an
Indian tribe (or any spouse or dependent of such a member) to
the extent such interest and penalties relate to excluding a
payment or benefit from gross income under the general
welfare exclusion.
(c) Definitions.--For purposes of this subsection--
(1) Indian tribal government.--The term ``Indian tribal
government'' shall have the meaning given such term by
section 139E of such Code, as added by this Act.
(2) Indian tribe.--The term ``Indian tribe'' shall have the
meaning given such term by section 45A(c)(6) of such Code.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Nunes) and the gentleman from Michigan (Mr. Levin) each
will control 20 minutes.
The Chair recognizes the gentleman from California.
General Leave
Mr. NUNES. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
to include extraneous material on the subject of the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. NUNES. Mr. Speaker, I yield myself such time as I may consume.
I rise today in support of the Tribal General Welfare Exclusion Act.
This bill would clarify the Tax Code so that spending by Native
American tribes on health care, housing, education, care for the
elderly and disabled, and other programs for the good of the tribe will
be excluded from taxes.
These programs were traditionally tax-exempt, but in recent years the
IRS has informally reinterpreted the rules in order to tax more and
more of these programs. Simultaneously, the agency has subjected tribes
to expensive and intrusive audits.
With their unique history of tribal sovereignty, Native Americans
should not be subjected to arbitrary tax enforcement. This bill would
put tribes on par with State and local governments and would end
unwarranted intrusions into tribal self-government. It is broadly
supported across the country and was actually given a zero score by the
Joint Tax Committee.
Thus, I urge my colleagues to support the Tribal General Welfare
Exclusion Act, and I will be submitting a more detailed statement for
the Record that will provide clarity, context, and congressional intent
for this legislation.
Mr. Speaker, considering a committee report will not accompany H.R.
3043, which is being considered by the House today, I take this
opportunity as the author of the legislation to provide some context
and congressional intent.
Under current law, taxpayers must generally include all items of
income in computing gross income. Internal Revenue Service (IRS)
guidance has established a general welfare exclusion under which
payments made to individuals by governmental entities pursuant to
legislatively provided social benefit programs for the promotion of the
general welfare are not included in the recipient's gross income. To
qualify under the general welfare exclusion, payment (1) must be made
under a government program; (2) must be made for the promotion of
general welfare; and (3) must not be made as compensation for services.
In evaluating Indian tribal government programs under the general
welfare exclusion, including the second prong of this test (``for the
[[Page H7601]]
promotion of general welfare''), the IRS has frequently insisted that
tribal benefits be based on individualized determinations of financial
need. This stipulation prevents the general welfare exclusion from
covering programs designed to provide substantially equal benefits to
all qualifying members of a tribe or to provide benefits based on
determinations of needs that are not financial in nature. These needs
would include health coverage programs, education and cultural
programs, elder programs, and housing programs.
Under IRS guidance released in June 2014, however, the IRS will
conclusively presume that payments from Indian tribes to tribal members
and their spouses and dependents will qualify under the general welfare
exclusion without a determination of need if certain requirements are
met. Under Revenue Procedure 2014-35, the payments (1) must be made
pursuant to a specific Indian tribal government program with written
guidelines; (2) must not discriminate in favor of the tribe's governing
body and be made available to all qualifying members of the tribe; (3)
must not be compensation for services; and (4) must not be lavish or
extravagant. In addition, only certain types of programs that meet the
procedural requirements will qualify for the conclusive presumption.
The Revenue Procedure lists 23 such non-exclusive qualifying programs
covering housing, education, elder care, health care, culture, and
other welfare projects. Taxpayers may apply the rules retroactively to
file for refunds for any open tax years.
The provisions in H.R. 3043 would codify this IRS guidance,
specifically applying the general welfare exclusion to Indian tribes
and payments received by tribal members, their spouses and children.
The bill mandates that tribal government benefits would qualify for
exclusion under the general welfare doctrine so long as the benefits
(1) are provided pursuant to a specific Indian tribal government
program; (2) are available to all tribal members (including spouses and
dependents) who meet the government program's guidelines; (3) are not
lavish or extravagant; and (4) are not compensation for services.
The provisions in H.R. 3043 also require that the tribal program be
``for the promotion of general welfare,'' but would not limit its
application through conclusive presumption to specific types or
examples of tribal programs. I expect that the IRS will apply this
requirement in a manner that is no less favorable than the safe harbor
approach in Revenue Procedure 2014-35, and that the IRS will not
interpret the statute as requiring individualized determinations of
financial need where a tribal government has established a program
consistent with the statute. In construing the individual statutory
requirements, including a determination of whether a program is ``for
the promotion of general welfare'', it is expected that the IRS will
develop regulations that are no less favorable to tribes than Revenue
Procedure 2014-35, including no limitation of a tribe's ability to
address community needs and to make benefits available to all eligible
tribal members. This is based on the legislative purpose of the bill as
well as the specific statutory construction provision in Section 2 (c)
of the bill, which states that ``deference shall be given to Indian
tribal governments for the programs administered and authorized by the
tribe to benefit the general welfare of the tribal community.''
Provisions in H.R. 3043 also would require the Treasury Department to
(1) establish a Tribal Advisory Committee to advise the IRS and
Treasury on matters relating to taxation of Indians; (2) establish and
provide training and education for IRS agents and tribal financial
officers about the new provisions; and (3) suspend audits and
examinations of Indian tribal governments and tribal members related to
the general welfare exclusion until this education has been provided.
Concerns linger that the IRS may not fully understand the role that
general welfare programs play in maintaining tribal culture and
tradition, and that these issues should be addressed through
government-to-government consultation rather than through tribal or
member audits that may deter tribes from preserving culture and
tradition or pursuing self-determination. It is intended that the
Tribal Advisory Committee address these concerns and work with tribes
on a government-to-government basis. This would be accomplished by
appointing qualified tribal leaders and in the alternative, qualified
tribal financial officers to the Tribal Advisory Committee. Such
qualified individuals would have intimate knowledge of federal Indian
law and policy, as well as the financial and community needs of Indian
tribes. These qualifications would enhance the Department's
administration of federal tax policies affecting tribal governments
while ensuring that treaty rights and principles of tribal self-
governance are properly balanced with federal tax policy.
The provisions in H.R. 3043 codifying the IRS guidance concerning the
general welfare exclusion would be effective for tax years for which
the period of limitations is open as of the date of enactment.
Taxpayers would have one additional year from the date of enactment to
file for a refund with respect to any such open tax year. And, the bill
would provide the IRS with discretion to waive any interest and
penalties under the Code for any tribe or tribal member in connection
with the general welfare exclusion.
Mr. Speaker, I appreciate the opportunity to provide clarity,
context, and congressional intent for this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I ask unanimous consent that my time be
controlled by the gentleman from Wisconsin (Mr. Kind).
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. KIND. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of H.R. 3043.
I was an original cosponsor of this legislation.
I commend my friend and colleague from California, a member of the
Ways and Means Committee, for his leadership on this issue.
We are trying to correct a wrong interpretation with the IRS that
will treat Native Americans like we do other sovereign entities in this
country. That is why this legislation would codify existing IRS
practice and bring crucial permanence and clarity to tribes across the
country. It levels the playing field for tribal governments, treating
them more like State governments, and it also respects tribal culture,
traditions, and practices.
The bill excludes from taxation income received on tribal general
welfare programs, many of which are identical to the tax-exempt Federal
and State programs in the areas of health care, education, housing,
eldercare, emergency assistance, cultural programs, burial assistance,
and legal aid, and provides necessary deference and flexibility to
these tribal governments so that they can develop programs and
determine priorities that promote the general welfare in their own
communities.
According to the Joint Committee on Taxation, this legislation
doesn't cost taxpayers a cent--it has no budgetary impact--so we are
not adding to the deficit.
This bill is supported by numerous national organizations, including
business and tribal organizations, regional tribal and intertribal
organizations, and a multitude of State-based tribal governments.
I want to just take a moment to thank the Ho-Chunk Nation of
Wisconsin, the Oneida Tribe of Wisconsin, and the National Congress of
American Indians for working tirelessly on this issue. My staff and I
greatly appreciate their assistance in getting this in order for
tonight.
I encourage my colleagues to support this legislation.
I, again, thank my friend for his leadership, and I reserve the
balance of my time.
Mr. NUNES. Mr. Speaker, I too would like to thank the gentleman for
making this truly one of the few bipartisan bills that has no
opposition, where we come together for the right reasons to get
something done for the benefit of all of our communities, especially
our tribal communities.
Mr. Speaker, I yield 2 minutes to the gentleman from New York (Mr.
Reed).
Mr. REED. Mr. Speaker, I would like to thank the gentleman for
yielding.
Mr. Speaker, I rise tonight in support of H.R. 3043, the Tribal
General Welfare Exclusion Act of 2013.
First, I would like to thank Congressman Nunes for his hard work on
this legislation. Without his leadership, this bill would not have made
it as far as it has today.
I would also like to thank the Ways and Means chairman, Dave Camp,
for his support throughout this process, and all my colleagues on the
other side of the aisle that have joined in the effort to get this
legislation passed and considered this evening.
This legislation codifies, Mr. Speaker, the proper tax treatment of
certain services provided by the tribe for education, public safety, to
promote its culture, and to provide for the general welfare of the
tribe. This is an issue of fair treatment of taxpayers--in this case,
Native American taxpayers, such as those who live in the sovereign
Seneca Nation in western New York, in my
[[Page H7602]]
home district, the 23rd Congressional District of New York.
This legislation will ensure that the unique legal relationship and
tax issues with regard to members of the Indian Nations and tribal
governments are recognized and respected by the IRS going forward.
I urge my colleagues to join us and pass this legislation tonight. It
is only fair that we do the right thing by these Native American
taxpayers.
Mr. KIND. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I don't have any further requests for time on this, but
I would like, at this time, to have the following documents inserted
into the Record: a letter of support for H.R. 3043 from the Ho-Chunk
Nation, which is in my congressional district in western Wisconsin; a
letter of support from the Oneida Tribe of Indians of Wisconsin in
Oneida, Wisconsin; and a letter of support from the Midwest Alliance of
Sovereign Tribes, which is headquartered in Gresham, Wisconsin.
Ho-Chunk Nation Legislature,
September 9, 2014.
Re Tribal Welfare General Exclusion Act (H.R. 3043).
Hon. Ron Kind,
House of Representatives,
Washington, DC.
Dear Representative Kind: I am writing on behalf of the Ho
Chunk Nation (Nation) to thank you for your co-sponsorship of
the Tribal Welfare General Exclusion Act (H.R. 3043), a bi-
partisan bill introduced by Representative Nunes and 54 other
Members of the House. The Nation is reliably informed that
House leadership is interested in bringing this bill to the
floor during the very short September 2014 session.
As you know, tribal members across the country have been
harassed by the IRS seeking to force them to include in
calculations of gross income the value of tribally-provided
programs and services. This legislation is necessary to
clarify that various programs and services provided by Indian
tribal governments to their tribal members are not
characterized as income for purposes of computing taxable
income by the federal Internal Revenue Service (IRS).
To be excluded under H.R. 3043, tribally-provided welfare
benefits must be available to any tribal member under
established guidelines, are for the promotion of general
welfare, are not lavish or extravagant, and are not
compensation for services. The bill would also establish a
Tribal Advisory Committee to provide education and training
to IRS officials and staff and to help enforce internal
revenue laws in Indian country.
H.R. 3043 is strongly supported by the National Congress of
American Indians, the Native American Finance Officers
Association, Indian tribes across the country, and the U.S.
Chamber of Commerce. The Joint Committee on Taxation has
determined that, if enacted, H.R. 3043 ``would have a
negligible effect on Federal fiscal revenues.''
For all of these reasons, we respectfully urge you to
communicate your support for H.R. 3043 to Chairman Camp and
Ranking Member Levin as well as with Republican and Democrat
leadership. Thank you for your longstanding support for the
Nation and, indeed, for tribal communities across the
country, and your kind consideration of this request.
Sincerely,
Jon Greendeer,
President.
Heather Cloud,
Vice President.
____
Oneida Tribe of Indians of
Wisconsin, Business Committee,
September 4, 2014.
Hon. Ron Kind,
House of Representatives,
Washington, DC.
Dear Congressman Kind: I hope this letter finds you doing
well. First, I commend you for your support and thank you for
your co-sponsorship of H.R. 3043 (the Tribal General Welfare
Exclusion Act), a bill to address certain inequities in the
tax code relative to the delivery of basic general welfare
programs to our members. Second, we have been made aware of
an effort by the bill's primary sponsor, Congressman Devin
Nunes, that he is working with the Majority's leadership and
Chairman Camp to consider H.R. 3043 on the Suspension
Calendar sometime this month. Your support of such an effort
would be critical to securing the votes necessary for the
passage of this bill. I am asking that you do what you can to
help in this effort.
While the Obama Administration has done an outstanding job
in addressing many of the concerns of Indian Country by
releasing Revenue Procedure 2014-35 earlier this year, that
determination is not a permanent solution to our GWE
concerns. Additionally, the Procedure provides no reforms to
the way the IRS does business on Indian lands, does not
require IRS agents to receive training or education in
federal Indian law or the U.S. trust obligations to Tribes
and individual Indians, and does not give Tribal leaders a
voice in the Administrative process at the Department of
Treasury. Only with the adoption of statutory changes will
Indian Country find a full level of assurance that the
benefits we extend to our Tribal members will not be met with
invasive audits and potential financial ruin. The bill you
have co-sponsored brings us that level of assurance.
Again, thank you for all of your efforts to help Indian
Country achieve basic fairness under our nation's tax code.
Your continued support on this issue is greatly appreciated.
Sincerely,
Melinda J. Danforth,
Vice Chairwoman.
____
Midwest Alliance of
Sovereign Tribes,
September 16, 2014.
Re Reform the IRS in Indian Country--Vote YES on H.R. 3043.
Hon. Ron Kind,
House of Representatives,
Washington, DC.
Dear Representative Kind: We write on behalf of the Midwest
Alliance of Sovereign Tribes to thank you and ask that you
please educate others on why the should vote ``YES'' on H.R.
3043, the Tribal General Welfare Exclusion Act, when the bill
comes to the House floor for a vote. And we thank you in
advance for co-sponsoring this bill!
Federal Indian affairs policy is grounded in the history
and course of dealings between the U.S. and Indian tribes.
Tribes ceded or had taken hundreds of millions of acres of
our homelands to help build this Nation. In return, the U.S.
made solemn promises to provide for the health, education,
and general welfare of Indian people. Sadly, federal programs
and services designed to meet these promises have been
unfunded or under-funded for decades. As a result, tribal
governments are stepping in to meet these shortfalls by
directly providing programs and services to our tribal
citizens. Instead of fostering these acts of Indian self-
determination, the IRS has targeted Indian tribes for audits,
seeking to impose federal income taxes on tribal government
programs and services.
Tribal leaders nationwide raised concerns with these
targeted IRS intrusions of Indian self-determination. H.R.
3043 will implement long-needed reforms of the work of the
Internal Revenue Service (IRS) in Indian Country and clarify
that federally recognized tribal government programs and
services provided to our citizens are not subject to federal
income taxation. Passage of this bill will help align federal
tax laws with federal Indian law and policy, strengthen
Indian self-determination, and respect the local decisions of
tribal governments to improve our communities. On September
17, 2013, the Joint Committee on Taxation (JCT) ruled that
H.R. 3043 ``would have a negligible effect on federal fiscal
revenues.''
For these reasons, we again urge you to ask others to vote
``YES'' on H.R. 3043 as introduced when the bill comes to the
House floor for a vote. We appreciate your consideration of
this important request.
Sincerely,
Scott R. Vele,
Executive Director.
Mr. KIND. Mr. Speaker, since I have no further speakers, I ask my
colleagues to support this bipartisan piece of legislation tonight, and
I yield back the balance of my time.
Mr. NUNES. Mr. Speaker, I would like to thank the gentleman from
Wisconsin.
At this time, Mr. Speaker, we have one final speaker left. I yield 2
minutes to the gentleman from Arizona (Mr. Schweikert).
Mr. SCHWEIKERT. Mr. Speaker, I thank Mr. Nunes for doing this. Thank
you for the bipartisan support from everyone, and particularly in the
Ways and Means Committee.
This is one of those sort of semijoyous moments where we actually get
to do something that is good legislation and good policy, and sometimes
you desperately wish around here we had more of this.
Being from Arizona, I have 22 tribes in my State. As a much younger
man in the legislature, I actually chaired the Indian Affairs Committee
in my State legislature, and we spent years working with our
communities to become self-sufficient, to maximum their sovereignty and
respect it. So many of my tribes in Arizona now are actually engaging
in activities to bolster their population, to provide them the basic
benefits that you and I would receive from our city council, from our
county, from our State. The clarification this provides just puts them
on equal footings with what happens in our other communities and for
those who live off reservation. That is why this is such good
legislation. It is rational, it makes sense, and continues to
incentivize the right direction, the right sovereignty, the right
approach for our Native American people in this country.
With that, Mr. Nunes, thank you for doing this.
Mr. NUNES. Mr. Speaker, I yield myself such time as I may consume.
I would like to thank the gentleman from Arizona for his kind words.
[[Page H7603]]
Mr. Speaker, in closing, I want to say a special thanks to Chairman
Dave Camp, Ranking Member Levin, all the Ways and Means staff that
worked on this legislation. This is legislation that has been around
for several years. And especially I would like to thank Damon Nelson
from my staff, who has been on this doggedly since he found out the
injustice that was being done to tribes across America. So I would like
to thank him for his special support for doing the important work that
our staff does to get something like this across the finish line.
With that, Mr. Speaker, I yield back the balance of my time.
Mr. COLE. Mr. Speaker, I rise to support H.R. 3043, the Tribal
General Welfare Exclusion Act. H.R. 3043 would align federal Indian
affairs policy with federal tax policy. H.R. 3043 would require field
agents to receive training and education on federal Indian law and the
government's treaty and trust obligations to Native Americans to ensure
that their actions in the field follow the law and IRS policy. It would
do so by clarifying that tribal government programs and services that
aid the general welfare of the tribe are not subject to federal income
taxation. It also establishes a Tribal Advisory Committee within the
Treasury Department. Additionally, the Joint Committee on Taxation has
determined the bill would do this at little to no cost to the federal
government.
The Constitution clearly states that the federal government shall
provide for the general welfare of the people. The IRS excludes a broad
array of government services including, but not limited to, education,
public safety, court system, social services, public works, health
services, housing authority, parks and recreation, cultural resources,
and museums. Through treaties and executive order, Indian tribes ceded
hundreds of million of acres of their homelands to the United States.
In return, the U.S. made promises to provide for the health, education
and general welfare of Native communities. Sadly, we have fallen short
in meeting these solemn obligations. In recent years, Indian tribal
governments have stepped in to cover these shortfalls in federal
obligations by offering tribal government programs and services to meet
the needs of their communities. To be clear, these are governments
providing government services for their citizens.
Instead of fostering these acts of tribal government self-
determination, over the past decade, some IRS field agents have
targeted tribes for audits and investigations seeking to tax tribal
citizens for benefits derived from these programs and services. Field
agent decision-making has been at best inconsistent and arbitrary.
Activities allowed in one audit have been challenged in another. Field
agents have conversely given wide deference to federal and state
government programs that provide for the general welfare of their
citizens. In doing so, they have exempted general welfare programs from
taxation, an exception known as a ``general welfare exclusion.''
H.R. 3043 will codify and better align federal tax policy with Indian
affairs policy and ensure that IRS policies that recognize appropriate
tribal government actions are actually being implemented in the field.
Mr. Speaker, with that, I urge passage of H.R. 3043, the Tribal
General Welfare Exclusion Act.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California (Mr. Nunes) that the House suspend the rules
and pass the bill, H.R. 3043.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________