Glory Allen - Page 5

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               The Supreme Court in Squire v. Capoeman, 351 U.S. 1, 6                 
          (1956), has stated that “to be valid, exemptions to tax laws                
          should be clearly expressed.”                                               
               On the theory that the tribe qualifies as a sovereign                  
          government and that petitioner has the status of a “public                  
          official” of such government, petitioner argues that the entire             
          $57,845 she received from the tribe in 2001 should not be subject           
          to Federal income tax.  According to petitioner, her performance            
          for the tribe of “essential government functions” precludes the             
          taxability of the income she received from the tribe.                       
               Because no explicit statutory exemption exists with regard             
          thereto, respondent contends that the entire $57,845 petitioner             
          received from the tribe constituted taxable income to petitioner.           
          Respondent relies on Squire v. Capoeman, supra at 6, in which the           
          Supreme Court stated that American Indians are citizens, and “in            
          ordinary affairs of life, not governed by treaties or remedial              
          legislation, they are subject to the payment of income taxes as             
          are other citizens.”  In that case, the taxpayers were American             
          Indians and the beneficial owners of lands allotted to them and             
          held in trust by the Federal Government under the General                   
          Allotment Act of 1887, ch. 119, 24 Stat. 388, currently codified            
          at 25 U.S.C. sec. 331 (2000), and because of an explicit                    
          exemption in the General Allotment Act of 1887, the Supreme Court           

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