Feds Close Meskawki Casino

KCCI-TV Des Moines, IA ^ | 5/23/03

[hawkeye101]

Feds Close Meskawki

Judge Orders Casino Closed

POSTED: 7:38 a.m. CDT May 23, 2003 UPDATED: 7:43 a.m. CDT May 23, 2003

DES MOINES, Iowa -- A federal judge in Cedar Rapids has ordered federal marshals into Tama to close the Meskwaki casino. This action comes after weeks of squabbling between two fighting factions over control of the casino.

Witnesses at the casino say the marshals are escorting gamblers out of the facility.

Earlier this month, the National Indian Gaming Commission ordered a council appointed by the hereditary chief to turn over control of the Meskwaki government and casino to the council elected in 1999.

The agency said the appointed council was operating the casino in violation of federal gaming rules, but that council said it would not comply with the order.

The dispute began in March when the appointed council took control after the elected leaders ignored two petitions for recall elections submitted last fall.

The Meskwaki casino is one of Iowa's largest, with gross revenues reportedly more than $100 million a year.

[been called a cynic]

ahhh, tribal bickering...that old song

[w1andsodidwe]

Well well. My brother worked there for a while, but was let go when management changed. He was denied his vacation pay. Don't have to follow Federal regulations, you know.

[Calpernia]

I've recently started working on leads with the Native Americans. Hence started doing research on these entities. I was really surprised to learn of this groups governing structure and the no tax setups at the SEC.

Anyone familiar with Tribal Governing bodies?

http://www.cherokee.org/TribalGovernment/EnablingPage.asp?ID=Finance

These groups really mirror our government. Govs within govs. The money flows are amazing. No wonder other countries accuse us of having corrupt systems. The further in I look, the bigger the spider web.

[been called a cynic]

i worked for a tribe for three years--not a casino, but the actual 'government'. it was the most dysfunctional, unproductive, half-bass-ackwards organization i have ever seen in my life. no one was there for the betterment of the tribe, the community or the local economy. the council was only interested in what they could put in their pockets or those of their families.

i quit when i started having paranoid visions of testifying before a federal grand jury.

federal grants are a wonderful thing.

[Eric in the Ozarks]

Surrender every one of your constitutional rights when you enter an Indian casino.

[estarwitch]

Indian casinos do not pay state or federal taxes. What an absolute ripoff of the American taxpayer.

[been called a cynic]

they don't have to...they are a sovereign nation, remember?

[VRWC_minion]

Indian casinos do not pay state or federal taxes. What an absolute ripoff of the American taxpayer

The winners pay taxes on their winings. The employees (many are tribal members) pay taxes on their salaries. The lenders to build the facilities pay taxes on thier interest income.

In addition, the tribe uses the funds to provide for services to its members. Services that have been previously provided by federal aid.

So, its anything but a ripoff.

[estarwitch]

They don't build these places because people win. Ever been to Las Vegas?

[been called a cynic]

"The employees (many are tribal members) pay taxes on their salaries."

If the tribal members are enrolled tribal members and live within reservation boundaries, they DO NOT pay ANY state taxes...that includes payroll and personal property.

[estarwitch]

Nor federal taxes.

[VRWC_minion]

Employee costs are the major expense for a casino. They provide jobs and income taxes and SS taxes.

[been called a cynic]

...and it is debatable whether these funds provide services for tribal members.

By the way, many of these services are STILL provided by federal aid. Just because a tribe opens a casino does not mean they no longer receive federal grant money. In fact, because they make more revenue, they are more likely to be able to afford the grant writers to secure more federal grant monies.

[VRWC_minion]

If the tribal members are enrolled tribal members and live within reservation boundaries, they DO NOT pay ANY state taxes...that includes payroll and personal property.

Do you understand how few people actually belong to these tribes and live within the borders ?

[been called a cynic]

Tribal members residing within reservation boundaries DO NOT pay state income tax.

[been called a cynic]

I live in close geographic relationship to three tribes. My ex-husband is an enrolled tribal member. My daughter is of indian heritage, but ineligible for enrollment under her tribe's constitution. I have worked for one casino and one tribal government. I am aware of the ratio of employees who are tribal members living on-reservation who work in the casinos in my area. I am also aware of approximately how many members are enrolled in each tribe in my surrounding area.

The answer to your question is--yes--I do understand how many of these people actually belong to these tribes and live within the borders.

[VRWC_minion]

Why are you so jealous that they have a busisness of their own within their own borders ? They are a sovereign nation and it shouldn't be any of your concern.

The fact that you think it puts some unfair burden on the US taxpayer is silly. What other country do we get any tax dollars from when a business is conducted without the US borders ? We get income from wages taxes on their employees, we get income from income the vendors make, we get income from the banks and lenders.

All in all, your objections to allowing a soverign nation to conduct a business of its own seem like pure jealousy. Its our choice as a nation to impose an income tax on our citizens. Its their choice as a nation to run their finances as they see fit.

[Laur]

Think of the "winners" as corporate employees. They pay taxes on their incomes, too. AS DO the corporations, who might be considered, in this case, to be the casinos. So there is most definitely a "ripoff" in terms of the govt's tax collections, if "ripoff" means a huge non-taxed entity.

As for all the services the profits provide: Oh, yeah. Some, of course, but nothing like what they should be, given the receipts. After all this time, tribal schools, hospitals, homes, and all services should be the best in the nation. Instead..... well, just ask anyone who has dealings inside.

[VRWC_minion]

FYI

Gaming profits paid to a member of an Indian tribe are subject to income tax withholding if total payments to the tribe member during the year exceed a threshold amount. For the year 2001, the threshold amount is $7,450. <34> Withholding applies only to profits from Class II or Class III gaming activities. Code Section 3402(r)(1). Class II gaming activities include bingo, pull tabs, punch boards, tip jars, lotto, instant bingo, and card games. Class III gaming activities include horse racing, dog racing, jai alai, casino gaming, and slot machines. Any distributed profits from social games solely for prizes of minimal value or traditional forms of Indian gaming engaged in as part of tribal ceremonies or celebrations are not subject to withholding. <35>