Barack on the Issues
Sovereignty & Federal Relations | Education | Economic Development | Law Enforcement & JusticeECONOMIC DEVELOPMENT
American Indians experience some of the most severe socioeconomic conditions in the United States. Poverty and its effects are pervasive, with more than a quarter of all American Indians living in poverty and unemployment rates reaching 80 percent on some reservations. Obama’s experience as a community organizer working in poor neighborhoods plagued by high unemployment has taught him that there is no single solution to community poverty. Therefore, he supports using a comprehensive approach that includes investment in physical, human and institutional infrastructure, increased access to capital, the removal of barriers to development, and above all, authentic government-to-government relationships between the federal government and tribes.Infrastructure
Housing: American Indians suffer from some of the most deplorable housing conditions in the nation. Some 14 percent of all reservation homes have no electricity, and on some reservations, as many as 20 people are forced to live in a single-family home. Barack Obama supports providing adequate levels of funding for the Indian Housing Block Grant and other Indian housing programs as well as working to increase the effectiveness of these programs.
Roads: Safe, reliable roads are a basic component of economic development. Unfortunately, the federal government is failing in its commitment to help tribes maintain tribal road systems. Many reservation roads are unsafe and under-maintained, impacting not only economic development but health and safety as well. Motor vehicle fatality rates for American Indians are nearly twice as high other races. As president Barack Obama would support increased resources for tribes to maintain their road systems, like the Indian Roads Reservation Program and the BIA Indian Road Maintenance program.
Energy:Tribal nations have joined in America’s quest for alternative, renewable energy. Because of their rural land bases and access to natural resources, many tribes have made great strides in economic development in the energy sector. Tribes have successful operations producing gas, solar, and wind energy. In addition to harnessing and producing energy, tribes have an interest in energy rights-of-way across tribal lands. Obama supports the production and mobility of sustainable energy in all communities, and recognizes the potential for energy development in Indian country. He also encourages energy companies and Indian tribes to negotiate in good faith to ensure tribes receive just compensation.
Additionally, tribes are effectively unable to use the renewable energy Production Tax Credit, which provides tax incentives for the operation of renewable energy facilities. Obama supports creation of a Joint Venture Production Tax Credit that allows tribes to partner with private companies and fully utilize vast tribal energy resources.
Access to Capital
Earned Income Tax Credit: In both the Illinois State Senate and the U.S. Senate, Obama has championed efforts to expand the Earned Income Tax Credit (EITC), which is one of the most successful anti-poverty programs to date. Unfortunately, many Native families and individuals do not claim the EITC because they simply do not know about it. As president, Obama would support a Native EITC awareness campaigns and tax preparation programs.
As president, Obama will reward work by increasing the number of working parents eligible for EITC benefits, increasing the benefit available to parents who support their children through child support payments, increasing the benefit for families with three or more children and reducing the EITC marriage penalty which hurts low-income families. Under the Obama plan, full-time workers making minimum wage would get an EITC benefit up to $555, more than three times greater than the $175 benefit they get today. If the workers are responsibly supporting their children on child support, the Obama plan would give those workers a benefit of $1,110. The Obama plan would also increase the EITC benefit for those families that are most likely to be in poverty – families with three or more children.
Minimum Wage: Barack Obama believes that people who work full time should not live in poverty. Before the Democrats took back Congress, the minimum wage had not changed in 10 years. Even though the minimum wage will rise to $7.25 an hour by 2009, the minimum wage’s real purchasing power will still be below what it was in 1968. As president, Obama would further raise the minimum wage, index it to inflation and increase the Earned Income Tax Credit to make sure that full-time workers can earn a living wage that allows them to raise their families and pay for basic needs such as food, transportation, and housing -- things so many people take for granted.
Tax Exempt Bonding:Currently, tribal governments cannot issue tax-exempt bonds in the same manner as state and municipal governments. Tribes can issue bonds only for a narrowly defined set of essential government functions. The distinction, unique to tribes as defined by the Internal Revenue Service, creates barriers for tribes wishing to issue bonds to finance economic development projects and build infrastructure like schools and hospitals. Barack Obama supports treating tribal governments as sovereigns and recognizing their right to issue tax exempt bonds.
