Taxpayer organization pushes for taxing on-reserve purchases

The Canadian Taxpayers Federation's (CTF) claim that First Nations tax exemptions give their businesses an unfair advantage clearly proves that they are poorly educated, says the Federation of Saskatchewan Indian Nations (FSIN) vice-Chief Morley Watson.
Saskatchewan CTF director Lee Harding caught the attention of many when he told reporters at a Regina gas station that "a
raced-based tax exemption is not something that should exist in 21st-century Canada."
"I don't really take the comments of Mr. Harding all too seriously," said Watson. "I think he hasn't done his homework."
Watson added that Harding is certainly entitled to his own opinions and he explained that most First Nations communities have bigger fish to fry than striking back at the criticisms of a lobby group, such as the CTF.
"We're not too worried when people from
CTF talk about 'race-based taxes.' We have real issues to deal with," said Watson.
Widely publicized issues surrounding, health, education and employment are some of the concerns Watson listed off as serious priorities that legitimately need attention.
"I think if Mr. Harding is so concerned that he wants a level playing field, he should speak to these public school systems that
take all this money but don't educate our children," said Watson, who is angered
that many on-reserve schools are under-funded and neglected when compared to
public schools that are off-reserve.
At the beginning of November, Harding
said the CTF was determined to push for change in the Indian Act that allows
on-reserve businesses to offer band members tax-free prices.
The owner of Sonshine Car Wash and Gas, where Harding spoke to the media, told CBC that his business has suffered a 75 per cent drop in cigarette sales since the
neighboring Piapot First Nation opened Cree Land Mini-Mart.
The new on-reserve convenience store sells items tax-exempt to status Indians.
The manager of Cree Land Mini-Mart responded to the accusation and said the First Nation business benefits from tax-free status, he pointed out how his business
has created 43 jobs for community members.
Watson agreed that focusing on the
employment opportunities that come with on-reserve businesses should be the primary focus.
As a member of Ochapowace-Chacahas First Nation, Watson referenced First Nations treaty rights that were created in the 1870s as a way for Indians to receive compensation for their land and resources.
"We've supported them for many decades and we're trying to do something for ourselves," said Watson. "Rather than condemn us for it, they should be looking at more ways they can create more employment and wealth for our people."
As an associate professor of Indian Education at the First Nations University of Canada, Dr. Linda Goulet strongly believes the accusations from Harding and the CTF don't stand up against the history of Canada.
Goulet explained that the tax exemption is a big part of the treaty agreement. She likened it to First Nations collecting rent for their land.
"First Nations people have that advantage
given to them through the treaty rights, non-Aboriginal people (also) have all sorts of advantages given to them through their treaty rights," said Goulet.
"They got access to the land, to the resources, to the wealth of the country."
Harding, who purposely mentioned that he had taken some Indian studies courses, doesn't agree that century old history is as relevant today.
He said with all the taxes non-status individuals are forced to pay in the 21st-century, First Nations should be "responsible" and pay their share.
When asked if the CTF had received any support for their goal to change the Indian Act and create a new law that doesn't include a tax-exemption, Harding's response was not promising.
"Not really," said Harding reluctantly.
"Politicians are weary of creating political firestorms where they don't need
to."
Harding admitted that he did receive a letter from the FSIN expressing
their "disappointment" in his initiatives.
FSIN Chief Guy Lonechild was
quoted as calling Harding's language "hurtful" when he referred to the tax
exemption as "race-based."
Harding is unapologetic.
"Whether it hurts or not, is not as relevant as if it is true," said Harding. "It is a race-based tax exemption."
Harding, who is a former journalist, strikes down any accusations that his rhetoric is discriminatory.
"I have lots of Aboriginal friends," he said. In fact, Harding said, the advantage First Nations receive of not paying taxes is encouraging racism.
"We would argue that in the long-term this
actually feeds racist attitudes because there is an unfair environment."
According to Watson, First Nations supporting the CTF's vision of changing the Indian Act is unlikely. However, he did agree that slight changes were necessary in order to make the act ­ which was enacted in 1876 ­more effective with modern issues, like health and education on First Nations reserves.
The CTF was founded in Saskatchewan in 1990 when the Association of Saskatchewan Taxpayers and the Resolution One Association of Alberta joined forces to create a national taxpayers organization.
The CTF has a federal office in Ottawa and provincial offices in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.