0
lawrocket

Eliminate the Native American Tax Loophole

Recommended Posts

http://www.ca9.uscourts.gov/datastore/opinions/2011/08/11/10-15519.pdf

Short synopsis: Blue Lake Rancheria is an Indian Tribe in Humboldt with 52 members. They employ 39,000 people through Mainstay Business Solutions, which provides staffing to employers. got a business? Well, Mainstay will hire them and then lease them to you.

The IRS took out unemployment taxes on the employees. Mainstay said "We're Indians. Can't do that. We want a refund." Then they sued and lost because the tribe was just a front to avoid unemployment taxes. The relevant tax code section is that tribes don't have to pay the unemployment taxes if they are "common law employees."

The Ninth Circuit reversed.

This is a helluva money making scheme by these Indians - sticking it to the US government again because they made their money off of the unemployment taxes. The tribe is a strawman.

Some thing just leave me thinking, "Dayum! I gotta give them credit."


My wife is hotter than your wife.

Share this post


Link to post
Share on other sites
"They employ 39,000 people through Mainstay Business Solutions, which provides staffing to employers. got a business? Well, Mainstay will hire them and then lease them to you."

Sounds like a legitimate business to me.
How many temp agencies are there in the U.S.?

I'm all for the Native Americans. Go get 'em, tribe!

OTOH, what does "common law employees" mean?
My reality and yours are quite different.
I think we're all Bozos on this bus.
Falcon5232, SCS8170, SCSA353, POPS9398, DS239

Share this post


Link to post
Share on other sites
Quote

So, would we be dealing with International or Domestic law? If I work for an employer out of Finland but I work here in the US what laws apply?
Good business model, though.



I'm waiting for an answer to this to find out if I somehow got screwed all those years I was employed by a Canadian company but worked here in the U.S.
:D:D
My reality and yours are quite different.
I think we're all Bozos on this bus.
Falcon5232, SCS8170, SCSA353, POPS9398, DS239

Share this post


Link to post
Share on other sites
[Reply] what does "common law employees" mean?



Read it yourself. I'm tired of carrying your sorry ass.


[Hr]

There seems to be a general lack of appreciation for what is really going on. Company X employs 20 people. The Indians say, "We'll hire all of your employees and lease them to you. You pay the payroll to us. We'll pay the employees. That FUTA tax? It's six percent. Since we don't owe that tax, cut six percent. Pay us 3% as our leasing fee and pocket the other 3%."

The Indians got away with it because they had their own rules to abide by, provided employee benefits, etc.

Apparently everybody was happy with the arrangement except the IRS.


My wife is hotter than your wife.

Share this post


Link to post
Share on other sites
As a staffing/leasing company, are they not required to collect unemployment "taxes" from their client companies? Aren't their (presumably non-Indian) clients required to pay? If so, then isn't the leasing company fraudulently collecting this money from them? I assumed that the company using these employees must pay the unemployment insurance whether they are paid to the staffing company or directly to the government.

Share this post


Link to post
Share on other sites
Quote

***Apparently everybody was happy with the arrangement except the IRS.



What Freeman gives a damn about the IRS?

Are we a country of Freemen or are my country men slaves to a government?

Will we fight as lions or lay down and die as sheep?



Well that's...dramatic.

Share this post


Link to post
Share on other sites
[Reply]As a staffing/leasing company, are they not required to collect unemployment "taxes" from their client companies?



No. As a sovereign nation they are not required to collect unemployment taxes on their employees even if they are leased to other companies.


My wife is hotter than your wife.

Share this post


Link to post
Share on other sites
Quote

Quote

What Freeman gives a damn about the IRS?

Are we a country of Freemen or are my country men slaves to a government?

Will we fight as lions or lay down and die as sheep?



Well that's...dramatic.



Dramatic ? Really young man?

Obviously your ignorance of history is now apparent.

Share this post


Link to post
Share on other sites
Quote

Quote

Quote

What Freeman gives a damn about the IRS?

Are we a country of Freemen or are my country men slaves to a government?

Will we fight as lions or lay down and die as sheep?



Well that's...dramatic.



Dramatic ? Really young man?

Obviously your ignorance of history is now apparent.



Yes, dramatic bullshit, seeing as you've already said you pay income taxes.
Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706

Share this post


Link to post
Share on other sites