Will the Federal Court of Appeal overturn a court ruling which grants a tax exemption to 40,000 people on the basis of their racial ancestry Four months ago, Calgary-born Justice Douglas Campbell declared in Benoit v. Canada that descendants of the Cree and Dene Indians who signed Treaty 8 in 1899 are exempt from paying GST, income tax, fuel tax, tobacco tax, and all other federal taxes.

The federal government applied for a stay of the judgment pending a final decision from the Federal Court of Appeal, or the Supreme Court of Canada. Federal officials warn that chaos will result if the trial decision is not reversed. As commercial importers of gas, Treaty 8 Indians could avoid the 10 cents/litre federal fuel tax, easily undercutting the competition. They could sell cigarettes at $12.35 per carton less than competitors. Operating a business as a sole proprietor, a Treaty 8 Indian would not pay tax on his business profits, giving him a huge advantage over non-Indian businessmen.

Imagine the unnecessary tensions which will arise: your next-door neighbour benefits from schools, hospitals, roads, bridges, a sewage system, garbage collection, airports, national defense, universities, clean drinking water . . . but is not required to pay tax for these benefits. Shouldn't treaty rights be about preserving aspects of aboriginal culture What does a tax exemption in 2002 have to do with the right to hunt and fish in 1899

Ironically, Justice Campbell ruled that the federal commissioners in 1899 did not promise the Cree and Dene an all-inclusive and all-time tax exemption. But Indians testified in court that they heard from their fathers who heard from their fathers that the signatories sincerely believed in a tax exemption. So the "honour of the Crown" requires catering to a mistaken belief, ruled Campbell.

Not only is a tax exemption based on ancestry unfair, but it won't help Indians to succeed in the broader Canadian economy. Canada's federal and provincial governments already spend $10 billion per year on aboriginal programs, which seems to do little but perpetuate the corruption, poverty, patronage, nepotism, and abuse of power which are so prevalent on many reserves. Tax exemptions which already exist on Indian reserves have not solved these problems. Why would extending a tax exemption to Treaty 8 Indians off-reserve do anything but further segregate them from Canadian society

The only valid basis for a tax exemption is poverty. But the federal government exempts only the first $7,634 from income tax, after which Ottawa starts taking 16% of your earnings. Ottawa should follow Alberta's example and raise the basic personal income tax exemption to $13,339 per person. This should be done for all Canadians, regardless of ancestry.

Fortunately the court stayed this divisive and destructive judgment. But there is no guarantee that it will be reversed on appeal.