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> I'm not seeing how they benefit even in the short term. The businesses would all be owned by people outside the tribe, the entire point is to have low/no taxe
by xyzzyz 5y ago
> I'm not seeing how they benefit even in the short term. The businesses would all be owned by people outside the tribe, the entire point is to have low/no taxes, and the infrastructure built is unlikely to be useful after the business is gone.
For Tesla at least, taxes are not so much an issue as the regulatory regime prohibiting them from operating outside of reservation altogether. They are happy to pay higher tax, if the alternative is inability to sell cars at all.
But, in general, even if the tax rates on tribal lands are lower than on regular state lands, the tribes still benefit, because it is them who collect the tax, rather than the State. Many polities would rather have a smaller bite of a cake rather than no cake at all. Look at Ireland, for example, which is greatly benefiting exactly from being a EU tax haven: sure, it collects less from Google or Apple than, say, France or Italy would, but they still benefit from their low tax policy.
> and the infrastructure built is unlikely to be useful after the business is gone
If you read the casino, you’ll find that Tesla is actually renovating and using a former casino facility.
> Besides, it's entirely possible the way the state fixes this "loophole" puts them in a worse position than currently. The history of renegotiating often doesn't end well for the Natives.
Yeah, that’s sadly correct: the governments tend to screw small people over when it sees its power and revenues diminished.
- boomboomsubban 5y agoI was replying to someone saying the tribes should "Establish free trade zones, not subject to the anti-business, heavily taxed rest of the states," not really talking about Tesla's store in particular. Other than that, tax havens have more independence than reservations do. They have theoretical sovereignty, but the federal government largely controls things like police and education. Like when one tried to legalize recreational marijuana the feds immediately threatened a raid.
- WalterBright 5y agoThe tribes have their own police forces.
- sterlind 5y agoTribal police have power over their enrolled members (arrest, jail etc.) some power over outsiders (they can arrest but not hold or sentence people? I think? but maybe they're fighting about this?) and they, like all police forces, can't interfere with Federal agents (though they aren't obligated to enforce federal laws.)
- boomboomsubban 5y agoWhile I'm sure there are some with a local police force, they are all overseen by the Bureau of Indian Affairs Police.
- sterlind 5y agoWeed is legal on many (but not all) of the reservations in my state. It's legal in the state too though, which probably smoothed things out.