JOHN WALSH

(U.S. SENATE) – Senators Jon Tester and John Walsh are applauding passage of a bill that reforms the tax code by preventing some tribal benefits for Native Americans from being taxed.

The Tribal General Welfare Exclusion Actamends the federal tax code to exclude some benefits provided by a tribe to its members from gross income, lowering the overall tax burden on tribal members.  Tester and Walsh co-sponsored the measure.

“Tribal communities are some of the most economically disadvantaged in the nation and yet the federal government levies unfair tax burdens on them,” Tester said.  “Support for this bill was overwhelming, and it demonstrates that even in partisan times, we can come together to support Indian Country.”

“The federal government must partner with Montana’s tribes to promote success and prosperity,” Walsh said. “This bipartisan bill will release Indian Country from an unnecessary tax burden and create greater opportunities for economic growth across our tribal communities.”

Many tribes provide basic services such as food, shelter, electricity, healthcare, and education to their tribal members, and this bill prevents those services from being taxed by the federal government.  In addition, the bill directs the Secretary of the Treasury to establish a Tribal Advisory Committee to advise the Secretary on the taxation of Indians, and to require training and education for Internal Revenue Service field agents on federal Indian law.

The bill now goes to White House, where the President is expected to sign it into law.