A new proposal in California aims to ensure that reparations payments to Black residents remain untaxed. Assemblymember Tina McKinnor is spearheading the effort to prevent taxation if reparations become a reality.
“For generations, descendants of formerly enslaved people have been denied both justice and economic opportunity,” said McKinnor, representing Inglewood district. The bill seeks to keep reparations untaxed, allowing recipients the full benefit of these payments.
Assembly Bill 2186, introduced by McKinnor, intends to secure future reparations payments or benefits from California’s personal income taxes. This would be applicable if federal, state, or local reparations programs gain approval.
“Reparations are meant to repair harm, not be partially taken back through taxation,” stated McKinnor.
The bill is designed for taxable years starting January 1, 2027, through December 31, 2031. It specifies that gross income won’t include reparations benefits received by taxpayers during this period. The benefits encompass monetary payments, grants, trust distributions, and debt forgiveness among other compensation forms.
The measure has moved to the California Senate for further examination. Should it pass, it will go before Governor Gavin Newsom for consideration. McKinnor emphasizes the need for recipients to receive undiminished benefits from reparations efforts.
In Evanston, Illinois, Black residents received $25,000 each to cover housing expenses as part of local reparations. On a federal level, Rep. Shri Thanedar from Michigan has revived the push for reparations, proposing a commission to study land reparations for descendants of enslaved individuals. Thanedar’s initiative follows a similar bill previously introduced by former Representative Cori Bush.
Various cities and states are developing reparation measures to address historical injustices. These efforts involve either direct cash payments or other forms of compensation. California set a precedent by creating a reparations commission to examine history and recommend compensatory measures for Black Americans.
The path to reparations in California faces uncertainty. Governor Newsom has rejected several related bills to sidestep legal complications. Additionally, none of his potential successors have openly supported reparations in upcoming elections. Civil rights attorney Lisa Holder, previously part of the state’s Reparations Task Force, has noted that the journey will be prolonged as advocates continue seeking support for the cause.
“You can’t legislate yourself out of 400 years of inequality and injustice. You have to do an entire body of laws to change the systems that have been disproportionately affecting Black folks for decades,” said Holder.
Lisa Holder highlights the difficulty of reversing centuries of inequality, emphasizing comprehensive legislative changes are needed.
The movement for reparations across the United States is ongoing. California’s commitment to exploring compensatory measures for historical injustices remains pivotal in these efforts.