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(With
Sources for Information Underlined)
Facts
are stubborn things; and whatever may be our wishes, our inclinations,
or the dictates of our passion, they cannot alter the state of facts
and evidence. (John
Adams: December, 1770)
On August 24, 2004 in the Village of Lynwood, Illinois
the Mayor, Clerk and Board of Trustees approved, made available and
distributed a document entitled, The Ho-Chunk Nation Family
Entertainment Complex: Frequently Asked Questions. These
officials state quite clearly in a preceding cover letter attached to
the document, that the information was created "to dispel some of the
myths and lies about what is actually planned and what impact it will
have on the Village of Lynwood and its neighbors."
In this document that you are currently reading,
Citizens for Our Community, Inc. will continue to do what we were
created to do, provide South Suburban residents in general and Lynwood
residents in particular with the facts. Our goal is to educate and
heighten the awareness of the Southland residents/taxpayers to the
negative impacts a reservation casino, or any type of casino for that
matter, would have on the entire area.
While Citizens for Our Community, Inc. is well aware of
the need for increased employment opportunities in the South Suburban
Region, we stand in unanimous opposition to having a reservation
casino, or any other type of casino, placed here to attempt to fill
that need. The types of jobs this area always needs are the kind that
stimulates personal and social strength and stability, where the means
always justifies the end. It is certainly not Citizens for Our
Community, Inc.’s indirect or direct intention to frighten or scare
anyone who wishes to enlighten him or herself through factual
information we distribute or articulate.
As for Citizens for Our Community, Inc., we "prefer to
be true to ourselves, even at the hazard of incurring the ridicule of
others, rather than to be false and to incur our own abhorrence,"
(Douglass, 1857). As such, the document that you now hold is a
complete, robust and substantiated rebuttal to the Lynwood Village
Board document distributed on August 24, 2004.
Native American/Ho-Chunk Nation Business Operations
Frequently Asked Questions
1. Is it true that as a
sovereign nation the Ho-Chunk Indians would be exempt from state laws;
federal taxes; all state income, sales, and excise taxes?
As
a sovereign nation, the Nation itself is exempt or immune from any
lawsuits from the state or local governments (Felix Cohen's
Handbook of Federal Indian Law, Ch 6 Sec. A 4c). This means
that should there be any law broken, the State of Illinois would not
be able to sue the Ho-Chunk Nation or do anything about it. State
governments have no role with regards to Indian tribes and have no
authority over tribes or Indians within Indian Country (Holland
& Hart-Indian law attorneys). The only exception to this is
the extent to which the tribe agrees to give up part of its
sovereignty in the Tribal-State Compact.
As a federally recognized tribe, the Ho-Chunk Nation
as an entity and any unincorporated business owned by the tribe does
not pay any federal income taxes (IRC section 1). From
Felix Cohen's Handbook of Federal Indian Law (Ch 7 Sec B2),
"Indian tribes are not taxable entities under the income tax
provisions of the Internal Revenue Code". Under the Indian
Reorganization Act of 1934, a corporation formed under Section
17 of the Act is not subject to federal income tax. Whether a tribe
operates its business on or off reservation, it is not subject to
federal income tax regardless of the location of the activities that
produced the income (IRS Publication).
As individuals and U.S. citizens, the Ho-Chunk Indians
are required to pay state income taxes (Holland & Hart-Indian
law attorneys.) Indian businesses, however, do not pay state
income tax. This should also never be confused with the exemption of
the tribe or nation from paying any federal income taxes. Companies
owning non-Indian casinos pay federal income taxes. Indian tribes and
nations do not.
As individuals, the Ho-Chunk Indians are not required
to pay sales tax on items purchased outside the reservation which are
used within a reservation (Holland & Hart-Indian law attorneys).
Under the Bradley -Burns Uniform Local Tax Law 7204, all
local sales or use taxes collected within the boundaries of an Indian
reservation are given back to the reservation, NOT to the state.
Finally, and most importantly, the Ho-Chunk Nation
does not pay tax on their gaming revenue. A licensed casino of this
size with this projected gross income would pay over $177 million in
gaming revenue tax; in lieu of the tax, the Ho-Chunk Nation is
offering $87 million in revenue sharing.
Illinois Gaming Act.
2.
Does the Ho-Chunk Nation pay property taxes?
The
Ho-Chunk Nation does pay property tax on those lands owned by the
Ho-Chunk Nation which are not in trust; this is called "fee-simple".
One of the many taxes the Nation DOES NOT pay is
property taxes on land owned by the Nation which is held in
trust by the federal government for the Ho-Chunk Nation. The
United States government and the State of Illinois are not permitted
to collect property tax on this land-in-trust under Title 25
Chapter 6 of the United States Code. This is the same as the
United States government not being allowed to collect property tax
from England or France on land in the U.S. on which they have their
embassies and consulates, which are also held in trust. All Indian
casinos must be located on trust land, so the
casinos will not pay property tax.
3. Can you explain sovereign
nation status as it applies to Native Americans?
Sovereign
nation status refers to the recognition by the United States
government of Native American tribes as “distinct, independent
political communities” qualified to exercise powers of
self-government, not by virtue of any delegation of powers, but rather
by reason of their tribal sovereignty" (Felix Cohen's Handbook
of Federal Indian Law Ch 4, Sec A1). This means that the U.S.
government does not grant Indian tribes power, but instead simply
recognizes their tribal sovereignty. In matters of self-governance
within tribal territory, tribal powers are exclusive, and federal and
state powers do not apply, unless such tribal powers have been limited
by federal treaties, agreements, or statutes. Without a limiting
treaty or federal law, tribal powers may be exercised without any
federal or state authority (Cohen Chap 4 Sec A2). It is
crucial to note that in its compact with the State of Wisconsin, the
Ho-Chunk Nation (Winnebago Tribe) did not give up their right to
sovereignty. Compact Between
Winnebago Tribe and The State of Wisconsin.
4. Is it true that Native
American casinos cannot be regulated by the State and there is no way
to control or monitor them?
In
1988, Congress passed the Indian Gaming Regulatory Act (IGRA), which
established three classes of gaming, each with its own type of
regulation.
Class I gaming consists of "social games" with prizes
of nominal value and is regulated by the tribe itself.
(IGRA)
Class II gaming consists of bingo, lotto, and all
manual card games allowed by the state and not played against the
house, and is regulated by the tribe and the National Indian
Gaming Commission. (IGRA)
Class III gaming consists of all card games played
against the house, slot machines, dog and horse racing, and all other
types of casino gaming and is regulated by compacts
negotiated between the state governor and the tribe. (IGRA)
If a Tribal-State Compact is violated, the only remedy
the State has is to try to block all Class III gaming through the
jurisdiction of the Federal District Courts until the compact is
satisfied. (IGRA Section 2710(d)(7). Even this
remedy only applies if it is not negotiated out of the
compact. In addition, any payment to the state or any other unit of
government must also be approved by the Bureau of Indian Affairs (BIA)
to become effective. If the BIA finds the state’s percentage is too
high, the tribe need not pay the higher amount. Nothing is as
simple or straight forward as the tribe would like the public to
believe.
The state does not have jurisdiction over a tribe or
over Native Americans in Indian Country. Sovereign immunity prohibits
a lawsuit against a tribe or tribal business organization (Cohen,
Wisconsin Legislator Briefing Book 2003-2004). Should a
problem arise, there is very little a state can do about it.
5. Is it true that a
casino will overwhelm local law and social services and ultimately
cost us $3.00 for every $1.00 that it brings in?
Although
a tribe may hold the local governments harmless and they may contract
with the local fire departments for service, not every town where
there is a Ho-Chunk casino benefits from the casino's presence.
According to Sauk County, Wisconsin Chief Deputy Joe Pratner,
and Wood County, Wisconsin Chief Deputy Randy Rapp,
neither Sheriff's office receives anything for law enforcement from
the Ho-Chunk Nation, even though there has been an increase in theft,
traffic accidents and policing services due to the casinos. In Wood
County they have had to take on the extra burden without hiring more
personnel. Neither County has ever received any police cars ($80,000
each). Neither County’s fire departments has received any fire trucks
($200,000 to $700,000 each) or fire retardant uniforms ($1,500 each)
from the Ho-Chunk Nation. Delton, Wisconsin Fire & Ambulance
Commission, Nekoosa, Wisconsin Clerk's Office, Black River Falls,
Wisconsin Fire Department.
As far as social costs are concerned, the figure of
$3.00 of social costs for every $1.00 generated, is a conservative
number backed up by University of Illinois Professor John Warren
Kindt, The Anderson Economic Group, The
University of Nevada at Las Vegas, and many others. A 2003
report by the University of Illinois economist Earl L. Grinols
calculates the social cost at $289 for every $46 of revenue. That is
over $6.00 in social cost for every $1.00 generated! (LANS
News)
6.
Is it true that the Ho-Chunk Nation owes the state of Wisconsin $30
million in taxes?
Since the Ho-Chunk Nation is exempt from paying tax on
its gaming revenue, it does not owe $30 million in taxes;
however under that Compact that the Ho-Chunk Nation signed with the
State of Wisconsin the Nation does owe the state over $30 million in
revenue sharing. To date the Ho-Chunk Nation has not
paid what it owes (over $30 million) to the state of Wisconsin. It is
also the only tribe in Wisconsin NOT to pay what it owes (Hocak
Worak, August 4, 2004).
The Ho-Chunk Nation says that, because the Compact
with the State of Wisconsin was voided by the Wisconsin Supreme Court
and would need to be renegotiated to satisfy that Court, it does not
owe any money under the Compact. However, the Compact that the Nation
negotiated and signed with the State of Wisconsin, and under which it
conducted Class III gaming, required the $30 million payment that has
not been made.
7.
Why are the groups opposing the Ho-Chunk
Nation and the Economic Development Plan intentionally misrepresenting
the truth?
As
an organization, Citizens for our Community, Inc. is concerned about
the Southland communities and the citizens who live here; we are not
intentionally or unintentionally misrepresenting the truth. Other
than protecting our community, our homes and our way of life, we have
nothing to gain from fighting this proposed reservation casino, and
are not using this as a way to oust "all elected officials". We are
not in any way associated with any gambling interests in Illinois,
Indiana, or anywhere else. We are based on principles of ethical
conduct that are generally accepted in our society, and we expect our
elected officials to act according to these principles as well. When
major decisions are to be made by our elected officials, we expect
them to thoroughly research the issue, obtain independent studies,
seek full public input, and make educated decisions in full public
view. We are not expecting our elected officials to take this
document and our statements as truth; we expect them to research the
underlined references themselves and reach their own conclusions.
Remember, the truth remains the truth regardless of what anyone wants
to believe.
8.
How has the Ho-Chunk Nation performed in the
past?
The
chart that the Village provided in answer to this question, HCN
at a Glance, is not a “performance” sheet. There is no
information on gross income earned at these casinos. It does not give
the percentage of gross income that was negotiated as revenue sharing
with the State of Wisconsin. It cannot be determined from the
information given how the Ho-Chunk Nation has performed in the past.
From our projection based solely on the information given by the
Lynwood Village Board, the Ho-Chunk Nation is verbally offering the
State of Illinois 25% of gross revenue, which would be $87 million
based on $350 million projected gross revenue. It is significant to
note that, based on that same gross revenue under the present tax
structure of the Illinois Gaming Act, a licensed
casino with the same revenue would generate over $177 million,
or 50% of the gross revenue! In addition, to obtain a license for a
casino much smaller than this one, the owner would have to pay the
state over $500 million for the license. The Ho-Chunk
nation will pay NOTHING for the right to open a
casino. This is certainly a very poor deal for the State of
Illinois! However, as far as Citizens for our Community, Inc. is
concerned, this does not matter to us. WE
DO NOT WANT THIS OR ANY OTHER CASINO IN LYNWOOD OR ANYWHERE ELSE IN
THE SOUTHLAND!
The Lynwood Village Board, in its Frequently Asked
Questions booklet, stated that "we cannot afford to be wrong." If
that is the case, there should be full disclosure of all financial
information. A better glimpse of the Ho-Chunk situation comes from
the Ho-Chunk Nation's own president, George R. Lewis, in a
letter dated 8-18-04. In this letter he states that the
“Southland project” is an incredible opportunity for the Ho-Chunk
Nation and would allow the Ho-Chunks to tap into the Chicago market.
However, he believes the Ho-Chunk Nation Legislature has been very
aggressive, and has ignored the Ho-Chunk Nation Executive Branch's
counsel. Purchases were made when the Nation's finances were already
strained. “The Executive Branch is concerned that the Legislature is
running wild and blind with this project. A feasibility plan has yet
to be developed; the strategic plan to put the land in trust is naïve,
behind schedule and cannot be measured. The political strategy for
negotiating a compact with the State of Illinois has yet to be
developed and an exit strategy (if the land isn't put into trust) has
not been formulated. The legislature is borrowing tens (and
potentially, hundreds) of millions of dollars on a project that the
Executive Branch feels is very risky. The legislature is speculating
with monies the Nation does not have and ultimately the money will
have to come from the tribal members pockets,” says Mr. Lewis.
If this is
what the Ho-Chunk Nation’s own President is saying about this project,
does it sound like the Ho-Chunk Nation is performing well, and that
our leaders have done all the necessary research to determine all the
facts that our community deserves to hear? Based on the research
Citizens for our Community, Inc. has done, how can we conclude that
the Ho-Chunk Nation has performed well in the past?
Citizens
for our Community, Inc. is committed to educating the citizens of the
Southland and giving them the truth about this proposed reservation
casino in Lynwood, Illinois. We would encourage anyone who reads this
to look up the underlined references, go to a library, or do research
on the web. We would also encourage everyone to visit us on the web
at www.citizens4community.org.
Click here to
download a ready-to-print copy of the above information. Please
feel free to distribute to family, friends, and neighbors.
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