Tribal General Welfare Exclusion Act of 2013

Floor Speech

Mr. COLE. Mr. Speaker, I rise to support H.R. 3043, the Tribal General Welfare Exclusion Act. H.R. 3043 would align federal Indian affairs policy with federal tax policy. H.R. 3043 would require field agents to receive training and education on federal Indian law and the government's treaty and trust obligations to Native Americans to ensure that their actions in the field follow the law and IRS policy. It would do so by clarifying that tribal government programs and services that aid the general welfare of the tribe are not subject to federal income taxation. It also establishes a Tribal Advisory Committee within the Treasury Department. Additionally, the Joint Committee on Taxation has determined the bill would do this at little to no cost to the federal government.

The Constitution clearly states that the federal government shall provide for the general welfare of the people. The IRS excludes a broad array of government services including, but not limited to, education, public safety, court system, social services, public works, health services, housing authority, parks and recreation, cultural resources, and museums. Through treaties and executive order, Indian tribes ceded hundreds of million of acres of their homelands to the United States. In return, the U.S. made promises to provide for the health, education and general welfare of Native communities. Sadly, we have fallen short in meeting these solemn obligations. In recent years, Indian tribal governments have stepped in to cover these shortfalls in federal obligations by offering tribal government programs and services to meet the needs of their communities. To be clear, these are governments providing government services for their citizens.

Instead of fostering these acts of tribal government self-determination, over the past decade, some IRS field agents have targeted tribes for audits and investigations seeking to tax tribal citizens for benefits derived from these programs and services. Field agent decision-making has been at best inconsistent and arbitrary. Activities allowed in one audit have been challenged in another. Field agents have conversely given wide deference to federal and state government programs that provide for the general welfare of their citizens. In doing so, they have exempted general welfare programs from taxation, an exception known as a ``general welfare exclusion.''

H.R. 3043 will codify and better align federal tax policy with Indian affairs policy and ensure that IRS policies that recognize appropriate tribal government actions are actually being implemented in the field.

Mr. Speaker, with that, I urge passage of H.R. 3043, the Tribal General Welfare Exclusion Act.

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