The Importance of Being Interest: Why a State Cannot Impose its Income Tax on Tribal Bonds
Akron Tax Journal, Vol. 25, p. 123, 2010)
58 Pages Posted: 8 May 2009 Last revised: 15 Oct 2010
Date Written: May 7, 2009
The exercise of a state power in a way that adversely impacts the sovereignty of a federally recognized Indian tribe has been a matter of serious concern to the United States Supreme Court since the early 19th century. The limit of a state’s power to tax tribes is very often the subject of this judicial concern. In this article, I examine the reasons why states cannot impose their income taxes on interest that investors earn on tribal bonds.
Keywords: tax, income tax, tax and interest, Indian law, Native American sovereignty, Indian tax law
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