California Lawmaker’s Effort to Exempt Reparations from Taxation

A California lawmaker is working to ensure that reparations payments to Black residents remain untaxed. Assemblymember Tina McKinnor, a Democrat representing the Inglewood district, introduced a bill designed to achieve this goal, stating that reparations aim to repair past harm without being reduced through taxation.

Assembly Bill 2186, put forward by McKinnor, seeks to protect any future reparations payments or benefits from state personal income taxes, provided that federal, state, or local reparations programs receive approval.

The bill specifies that starting January 1, 2027, through January 1, 2032, gross income will not include any reparations payments or benefits received in the taxable year. The term “reparations benefit or payment” encompasses monetary payments, grants, trust distributions, debt forgiveness, and other financial compensation.

The measure has been sent to the California Senate for further consideration. Should it pass, Governor Gavin Newsom would review it. McKinnor aims to ensure recipients get the full benefits from these reparations efforts.

In Evanston, Illinois, Black residents have received $25,000 payments for housing expenses. On a federal level, Progressive Rep. Shri Thanedar from Michigan revived reparations discussions by proposing a bill to create a commission for studying and distributing land reparations to descendants of enslaved individuals in the U.S.

Other cities and states are exploring reparations initiatives, including direct cash payments or other forms of compensation to address historical injustices and discrimination. California was the first state to establish a commission to study and recommend reparations for Black Americans.

Governor Newsom has previously rejected several bills concerning reparations to avoid legal complications, and none of the current gubernatorial candidates strongly support reparations.

Lisa Holder, a civil rights attorney and former member of the California Reparations Task Force, remarked that advancing reparations is a lengthy process requiring comprehensive legal reforms. She emphasized the need to address systems that have disproportionately affected Black people over the years.