Basic News: Background: The Indian Act
Q: What is First nation?
A: According to the definition from the Government of Canada, “First Nations people” refers to status and non-status “Indian” people in Canada. (Government of Canada, accessed Oct. 04)
Q: Where is the First Nation?
A: Refer to the map provided by the Government of Canada; the communities’ locations are shown below:
Q: What is the Indian Act?
A: The Indian Act allows the government to control most aspects of aboriginal life: Indian status, land, resources, wills, education, band administration and so on.(CBC News, Isabelle Montpetit, May 30, 2011)
Q: How does the Indian Act benefit Indians?
A: One of these is tax exemption for Indians. For example, “When at least 90% of the duties of an employment are performed on a reserve, all of the income of an Indian from that employment will usually be exempt from income tax.”( Government of Canada, accessed Oct. 04)
This law may encourage the reserve residents to work to some extent. It could be an opportunity for a manufacturing industry on Indian reserves as the manufacturing market is always labour intensive. The tax exemption may lead to an increase in labor population in that the PPF may shift out. And in the meanwhile the manufacturing industry can apply economics of scale more easily by division of labour and specialization, which might help the industry to growth and to develop the reserves’ economy.
They also enjoy other benefits on loans and investment. They are encouraged to expand their markets on reserves and outside their regions. These polices are their opportunities to grow their economy.
The government wants to protect the aboriginal people and reserved land. Aiming for equality, the government has also published a series of policies meeting political and economical needs. But these polices basically benefit the residents. However, some aboriginal people prefer both independence and protection from the Canadian government.“They denounce its paternalism, but are at the same time reluctant to give up its protections(CBC News, Isabelle Montpetit, May 30, 2011).” It may increase uncertainty at a political level, which may influence the stability of the market environment.
Reference list:
1. “First Nations people” refers to Status and non-status “Indian” peoples in Canada.
https://www.aadnc-aandc.gc.ca/eng/1100100013791/1100100013795
2. location map
https://www.aadnc-aandc.gc.ca/eng/1100100021015/1100100021021
3. some aborigines denounce the paternalism, without giving up the protections
https://www.aadnc-aandc.gc.ca/eng/1100100013791/1100100013795
4. The Indian Act allows the government to control most aspects of aboriginal life: Indian status, land, resources, wills, education, band administration and so on.
http://www.cbc.ca/news/canada/background-the-indian-act-1.1056988
5. “When at least 90% of the duties of an employment are performed on a reserve, all of the income of an Indian from that employment will usually be exempt from income tax.”
http://www.cra-arc.gc.ca/brgnls/gdlns-eng.html