United States Senate Committee on Finance Hearing on Indian Governments and the Tax Code: Maximizing Tax Incentives for Economic Development (July 22, 2008) - Statement of Erik M. Jensen

S. Hrg. 110-1075 (starting at page 66)

Case Legal Studies Research Paper No. 08-30

9 Pages Posted: 13 Oct 2008 Last revised: 10 Oct 2010

See all articles by Erik M. Jensen

Erik M. Jensen

Case Western Reserve University School of Law

Date Written: October 1, 2008

Abstract

In this statement presented to the Senate Committee on Finance, the author makes several points: (1) potential investors in Indian country are deterred by the uncertain tax situation they would face; (2) Congress has it within its power to rationalize the taxing structure in Indian country - to lessen the extreme uncertainty attributable to multiple taxing jurisdictions and the overlay of American Indian law principles that must be applied to resolve jurisdictional disputes; (3) some special tax benefits intended to further investment in Indian country, like accelerated depreciation and the Indian employment credit, have not been fully effective because their status has been redetermined on an annual, or almost annual, basis; and, (4) given the statutory structure that now exists, the Internal Revenue Service has been justified, when deciding whether financing undertaken by American Indian nations will be eligible for tax-exempt status, in interpreting the term essential governmental function narrowly.

Keywords: Indian Country, Taxation, Investment, Multiple Tax Jurisdictions, Essential Governmental Function, American Indian law, Accelerated depreciation, Indian employment credit, Economic development

JEL Classification: K20, K34, K40

Suggested Citation

Jensen, Erik M., United States Senate Committee on Finance Hearing on Indian Governments and the Tax Code: Maximizing Tax Incentives for Economic Development (July 22, 2008) - Statement of Erik M. Jensen (October 1, 2008). S. Hrg. 110-1075 (starting at page 66); Case Legal Studies Research Paper No. 08-30. Available at SSRN: https://ssrn.com/abstract=1282322 or http://dx.doi.org/10.2139/ssrn.1282322

Erik M. Jensen (Contact Author)

Case Western Reserve University School of Law ( email )

11075 East Boulevard
Cleveland, OH 44106-7148
United States
216-368-3613 (Phone)
216-368-2086 (Fax)

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