Comprehensive Tax Reform

Governance and Economic Opportunities

Where Things Stand

Tax reform remains a high priority for this Administration and Congress. While it is believed that tax reform will not be addressed until the Affordable Care Act is repealed or amended, NAFOA has been active in putting forward proposals in both the House and Senate.

NAFOA Tax Policy Agenda

NAFOA has organized the tribal government tax reform proposals into three main categories as follows:


-

Parity with state and local governments means eliminating the essential government function test and ensuring tribes have the same opportunities. Conversely, given the vital role Indian Country plays in both employment and contributing to revenues in state and local economies, all governments have an equally strong stake in ensuring that tribes are included in tax reform.

 

-

Tax incentives entice businesses to hire tribal members, contributes to diversifying the workforce, and improving business operations. NAFOA is supporting existing, enhanced, and new tax incentives, such as the New Markets Tax Credits, Indian Employment Tax Credit, and Accelerated Depreciation for Business Property.

 

-

Technical fixes are needed in some areas that were overlooked in the Internal Revenue Code. NAFOA supports these corrections as taxation impacts many of the governance and administrative functions at a tribe.