July 10, 2007
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Analysis of:
GAMBLING EXPERT SHEDS DOUBT ON CALIFORNIA SLOT PLAN | news.bloodhorse.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Dealing with a sovereign nation is different from dealing with a corporation however a compromise is available
Analysis: The first question that people must ask themselves is what is a sovereign nation which many native american tribes are recognized as. Basically, they are recognized government to government, much like say, Canada and the US. Now can you imagine the US government saying to Canada, "hey, we want to tax you" and most of your business is American so we feel we deserve the tax. How far do you think that would fly? Now, I realize that the sovereign nations that we are speaking about reside within states across the country, so I propose that california look at what other states have done with the tribes signing off on the deal. Most of the deals are all over the map so one could get a headache trying to ascertain what the correct deal is. I would then offer an easier solution, look at the 3 largest and, in my mind the most progressive markets (Nv, NJ, MS) and say the range of tax should be between 8-12%, this provides the state with a boatload of money and the tribes believe that maybe they get some value out of the Tax. If you don't like that proposal, then build a tax table with a progressive tax which rises percentagewise as the tribes revenues escalate. There is a solution here that should make all the parties concerned happy. Please remember, a successful casino, taxed properly, makes the state/casino a valued partnership.
Analysis: The first question that people must ask themselves is what is a sovereign nation which many native american tribes are recognized as. Basically, they are recognized government to government, much like say, Canada and the US. Now can you imagine the US government saying to Canada, "hey, we want to tax you" and most of your business is American so we feel we deserve the tax. How far do you think that would fly? Now, I realize that the sovereign nations that we are speaking about reside within states across the country, so I propose that california look at what other states have done with the tribes signing off on the deal. Most of the deals are all over the map so one could get a headache trying to ascertain what the correct deal is. I would then offer an easier solution, look at the 3 largest and, in my mind the most progressive markets (Nv, NJ, MS) and say the range of tax should be between 8-12%, this provides the state with a boatload of money and the tribes believe that maybe they get some value out of the Tax. If you don't like that proposal, then build a tax table with a progressive tax which rises percentagewise as the tribes revenues escalate. There is a solution here that should make all the parties concerned happy. Please remember, a successful casino, taxed properly, makes the state/casino a valued partnership.
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