Sliammon Treaty Society

Governance

Tax and Fiscal

The Tax and Fiscal Modelling project is being used to calculate the cost of Sliammon government and to assess if the various revenue streams available to the Nation (Nation generated revenue, fiscal transfers, tax regime, and resource revenue sharing) will be enough to meet Sliammon needs.

Fiscal relationship means the way money comes into Sliammon and the way it is spent. Currently, federal funding transfers pay for almost all of Sliammon's programs and services, including health, social assistance, and education. Under treaty, a new fiscal relationship will diversify Sliammon revenues, and give Sliammon more flexibility in how these revenues are allocated.

Because Sliammon currently depends almost totally on INAC dollars, our entire government-all of our programs and services-are at the whim of the government. If they reduced or pulled out of transfer payments, our government would collapse, and there would be no services for Sliammon people.

Under a treaty, we will still receive funding transfers from INAC, but over time, will also have monies flowing from: revenue sharing with the governments (public sector resource royalties); Nation Generated Revenue (from logging, tourism, fishing, etc. opportunities); tax revenues (commodity, income, and property tax); and the capital transfer. With all these sources of funding, our fiscal situation will become more stable and will allow Sliammon to offer better and more programs and services to citizens and residents.

What is Taxation?:

Taxation is a charge against a citizen's person or property or activity for the support of government. The point of a tax system is to redistribute wealth among the people of a nation. The wealthier a person is, the more taxes they pay; the less money a person makes, the less taxes they pay. This tax monies go to the government, who then uses the tax money to pay for EQUAL services (i.e. healthcare, community maintenance, soccer fields, fundraisers, etc.).

What is the Tax Exemption?

When the Indian Act was written, the federal government gave First Nations people the tax exemption. The federal government has the power to change the Indian Act whenever they want to, and take away the tax exemption anytime. Sliammon will not consider giving up the tax exemption unless it is in exchange for a viable and sustainable fiscal relationship, and until it is proven that an undue tax burden will not be created for Sliammon people.

How would paying tax affect Sliammon citizens?

Below are some facts about how individual people would be affected if we all had to pay tax tomorrow (we do not).

People on Social Assistance do not pay income taxes
Income taxes are largely paid by people who make over $30,000 per year; as wages increase, taxes increase.
Everyone would pay goods and services taxes, which would go to the Sliammon government to pay for services. Non-Native people on Sliammon lands would pay tax to theSliammon government
Property taxation to be controlled by Sliammon.

What are the benefits of taxation for Sliammon community and citizens?

Governments collect tax to help pay for the services that they provide to its citizens. In Sliammon, the revenues from taxation could be used to cover a wide variety of services and needs, including:

" A tax "pool" to help cover community costs such as funerals, sports teams, topping up of programs and services, etc.
" Community infrastructure, such as soccer field, library, community buildings,etc.
" Maintenance of roads, community buildings, garbage services, etc.
" Any police and/or fire services that Sliammon may administer
" Continuing operations of parks or public areas
" Any other needed activities, public services and/or infrastructure that Sliammon may need

	Sliammon Treaty Society
	Governance Tax and Fiscal The Tax and Fiscal Modelling project is being used to calculate the cost of Sliammon government and to assess if the various revenue streams available to the Nation (Nation generated revenue, fiscal transfers, tax regime, and resource revenue sharing) will be enough to meet Sliammon needs. Fiscal relationship means the way money comes into Sliammon and the way it is spent. Currently, federal funding transfers pay for almost all of Sliammon's programs and services, including health, social assistance, and education. Under treaty, a new fiscal relationship will diversify Sliammon revenues, and give Sliammon more flexibility in how these revenues are allocated. *Because Sliammon currently depends almost totally on INAC dollars, our entire government-all of our programs and services-are at the whim of the government.* If they reduced or pulled out of transfer payments, our government would collapse, and there would be no services for Sliammon people. Under a treaty, we will still receive funding transfers from INAC, but over time, will also have monies flowing from: revenue sharing with the governments (public sector resource royalties); Nation Generated Revenue (from logging, tourism, fishing, etc. opportunities); tax revenues (commodity, income, and property tax); and the capital transfer. With all these sources of funding, our fiscal situation will become more stable and will allow Sliammon to offer better and more programs and services to citizens and residents. What is Taxation?: Taxation is a charge against a citizen's person or property or activity for the support of government. The point of a tax system is to redistribute wealth among the people of a nation. The wealthier a person is, the more taxes they pay; the less money a person makes, the less taxes they pay. This tax monies go to the government, who then uses the tax money to pay for EQUAL services (i.e. healthcare, community maintenance, soccer fields, fundraisers, etc.). What is the Tax Exemption? When the Indian Act was written, the federal government gave First Nations people the tax exemption. The federal government has the power to change the Indian Act whenever they want to, and take away the tax exemption anytime. Sliammon will not consider giving up the tax exemption unless it is in exchange for a viable and sustainable fiscal relationship, and until it is proven that an undue tax burden will not be created for Sliammon people. How would paying tax affect Sliammon citizens? Below are some facts about how individual people would be affected if we all had to pay tax tomorrow (we do not). People on Social Assistance do not pay income taxes Income taxes are largely paid by people who make over $30,000 per year; as wages increase, taxes increase. Everyone would pay goods and services taxes, which would go to the Sliammon government to pay for services. Non-Native people on Sliammon lands would pay tax to theSliammon government Property taxation to be controlled by Sliammon. What are the benefits of taxation for Sliammon community and citizens? Governments collect tax to help pay for the services that they provide to its citizens. In Sliammon, the revenues from taxation could be used to cover a wide variety of services and needs, including: " A tax "pool" to help cover community costs such as funerals, sports teams, topping up of programs and services, etc. " Community infrastructure, such as soccer field, library, community buildings,etc. " Maintenance of roads, community buildings, garbage services, etc. " Any police and/or fire services that Sliammon may administer " Continuing operations of parks or public areas " Any other needed activities, public services and/or infrastructure that Sliammon may need	Governance First Nations Summit Fiscal Relations site Intergovernmental Programs and Services Traditional Teachings Toolbox For further information about Tax and Fiscal please contact: Grace Adams Negotiations Manager Sliammon Treaty Society P: 604.483.4427 information@sliammontreaty.com

	All Information copyright: The Sliammon Treaty Society 2006