A lawmaker from California is working to ensure that reparations payments to Black residents remain tax-free. Assemblymember Tina McKinnor, representing the Inglewood district, introduced a bill aimed at exempting these payments from state personal income taxes. The bill addresses the legacy of injustice and lack of economic opportunity faced by descendants of enslaved individuals.
“Reparations are meant to repair harm, not be partially taken back through taxation,” McKinnor stated in support of Assembly Bill 2186. This legislation would protect reparations payments or benefits, should federal, state, or local reparations programs be implemented.
The bill specifies that for taxable years starting January 1, 2027, and before January 1, 2032, gross income will not include reparations payments received by taxpayers. It defines reparations as any monetary payment, grant, trust distribution, debt forgiveness, or other financial compensation.
With the bill now sent to the California Senate for further consideration, Gov. Gavin Newsom will review it if the Senate passes it. McKinnor emphasized the need for recipients to receive full benefits from the reparations programs.
Other reparations efforts are taking place across the U.S. In Evanston, Illinois, Black residents received $25,000 payments to cover housing costs. On the federal level, Rep. Shri Thanedar, D-Mich, is pushing for a commission to explore land reparations for descendants of slaves. Although a similar bill by Rep. Cori Bush, D-Mo was introduced, it did not advance in the GOP-controlled House.
Several states and cities are exploring reparations options, either through direct cash payments or other compensations addressing historical injustices. California was the first state to establish a reparations commission to study the history and recommend compensation for Black Americans impacted by slavery. Nevertheless, the future of these efforts in California seems uncertain. Gov. Newsom has rejected several reparations-related bills to avoid legal complications, and potential successors do not appear to prioritize reparations.
Civil rights attorney Lisa Holder noted that achieving reparations would be a lengthy process, requiring a committed advocate. “You can’t legislate yourself out of 400 years of inequality and injustice,” she stated, indicating that comprehensive legal changes are needed to rectify systemic disparities affecting Black communities for decades.