Public Policy Sources #38:
Important Other Matters

[Previous] [Contents] [Next]

Contrary to the view many hold, freedom from taxation is not a constitutionally recognized aboriginal right. Where it exists, it normally flows from Section 87 of the Indian Act, which obscure provision itself has been stretched beyond recognition by the courts.21

Indeed, the taxation exemption in the Indian Act had two intellectual justifications. The first was to insulate Indian lands from local tax seizure. The second was to recognize that since Indians did not have the vote, they should not pay tax. However, when the right of the franchise was restored 40 years ago, the mirror responsibility of paying taxes was ignored. Just as "taxation without representation" is wrong, so is representation without taxation. Responsibility and entitlement are two sides of the same coin.

Modern treaties such as Nisga'a will increasingly pretend that Indians will pay ordinary tax like anyone else. A careful reading of the Nisga'a Treaty will reveal that Indian government (i.e., non-taxable) ownership of almost all assets, and the ability to gift the fruits of these assets to tribal members, will mean that the taxation claim is more political and cosmetic than real. Free or deeply discounted housing and services will end up as tax-free benefits for which ordinary Canadians would have to pay in after-tax dollars.

As a second miscellaneous but important matter, the role of the BC Treaty Commission needs to be re-examined. This supposedly neutral facilitator has clearly had its thumb on one side of the scales. When assessed by its results, the Commission should simply be ended.

[Previous] [Contents] [Next]

info@fraserinstitute.ca You can contact us at the above email address for any comments or information requests. Please report any dead links or technical problems.

If you know someone who would be interested in this web page, please enter their email address below, and we will forward this URL to them: Email Address:

Last Modified: Thursday, August 5, 1999.