Mr. President, today, I want to say a few words about the bill I am introducing, the Wrongful Convictions Tax Relief Act of 2007. My bill would provide much-needed assistance to individuals who have…
Mr. President, today, I want to say a few words about the bill I am introducing, the Wrongful Convictions Tax Relief Act of 2007. My bill would provide much-needed assistance to individuals who have been wrongfully convicted of a crime and subsequently exonerated by clarifiying that State compensation awards are tax-free; and stating that exonerees shall have their first $50,000 of earnings free of federal income and payroll taxes for each year that they were wrongfully imprisoned. The second benefit would only apply to those who have never been convicted of a felony for which they were not exonerated. If they had a conviction prior to their wrongful conviction, they would not be eligible. If they are subsequently convicted, they would lose their eligibility as well.
I want to thank Senator Brownback for offering to be the lead Republican cosponsor of my bill. He and I have worked together on a number of issues now, and I appreciate his willingness to support this legislation.
As my colleagues are surely aware, whatever their political leanings may be, this bill addresses an incredibly timely and important issue. Just 2 days ago, a Federal prosecutor in Jacksonville, Florida dismissed a murder case against a Florida man, based on DNA evidence, exonerating him in a 1994 murder. According to the Innocence Project, this man represents the 209th person nationwide exonerated by DNA testing.
More and more innocent people are regaining their freedom through post-conviction DNA testing. No matter what your view may be of the death penalty; no matter what your view may be of mandatory sentencing laws; no matter how ``tough on crime'' you want to be--surely everyone would agree that when innocent people spend time in prison for crimes that they did not commit, something of value has been taken from them.
In this country, everyone is entitled to a fair trial. Yet for those wrongfully convicted of a crime, our legal system has failed them. Some of the common causes of wrongful convictions include eyewitness misidentification, unreliable or limited evidence tests, and false information presented by informants. Even more sobering, more than a quarter of all prisoners exonerated by DNA evidence had falsely confessed or made incriminating statements, simply to end hours of aggressive interrogation.
Thankfully, advocacy groups such as the Innocence Project and the Justice Project have taken on the challenge of addressing what can only be described as a systemic problem. The Innocence Project at the Cardozo School of Law in New York City has been a tireless leader in overturning wrongful convictions, and has led the charge in using DNA evidence to prove, once and for all, a person's innocence. With new improvements in DNA testing and technology, we can now positively identify or rule out suspects based on DNA evidence left at the scene of a crime. In most wrongful conviction cases, new testing of DNA evidence taken from the crime scene years before points to another perpetrator.
Once released, exonerees face huge and sometimes insurmountable challenges. Multiple studies have shown that upon release, these individuals often have difficulty reentering society. They have lost the prime years of their life, serving time in prison for crimes they did not commit. The vast majority of exonerated individuals entered prison in their teens or 20s, and they stayed there while some of their peers on the outside settled on careers, married, started families, bought homes, and began saving for retirement. They have emerged from prison many years behind, and it is difficult to catch up. Think about how much the economy has changed in just the last 10 years, and think about how difficult it would be to adjust if you had spent that time behind bars.
Shockingly, despite being imprisoned for an average of 12 years, exonerees typically leave prison with less help pre-release counseling, job training, substance-abuse treatment, housing assistance and other services than some states offer to paroled prisoners. Even the basic tasks that seem so unremarkable to you and I, like going to the grocery store, paying bills, and getting to and from work, are huge tasks for someone who has spent so much time in prison. In fact, in some cases, people have lost jobs once their employers find out about their past
conviction, despite the fact that they have been exonerated of the crime. I know that sounds unbelievable, but it's true. You didn't commit the crime, it is proven that you didn't commit the crime, but you still lose your job. Imagine for just a moment if this happened to one of your friends or family members. You would be outraged. The unfairness is heartbreaking.
Certainly we can all agree that these individuals deserve and need support after their release, and lawmakers on both the state and federal level have begun to address the question of compensation for wrongfully convicted individuals. In 2004, Congress passed the Justice for All Act, which I am proud to have cosponsored. This bill, among other things, raised the cap for potential federal compensation awards for wrongful convictions to $100,000. Although the federal compensation has not been claimed, this landmark piece of legislation set a precedent for state compensation laws. As of now, 22 States have followed suit and passed compensation laws as well. But the system is a patchwork. Some States, such as Maine and New York, provide exonerees with a lump sum as the court sees fit, and cap these awards at specific levels. Other States, such as California and Texas, give compensation based on time spent in jail. Only a few States, such as Louisiana, offer compensation to cover costs such as vocational training, medical bills and counseling, to aid re-entry.
We can and should do more. Of all people known by the Innocence Project to have been exonerated through DNA evidence as of August 2007, at least 79--nearly 40 percent--didn't receive a dime to compensate them for their years in prison. Even when someone is awarded compensation, they can wait in limbo for years. More than half of those who did receive compensation waited two years or longer after exoneration for the first payment, forcing them to rely on family, friends, lawyers, and even strangers for shelter, clothing, food and emotional support immediately after their release.
The Federal Government cannot and should not offer cash compensation for those who have been wrongfully convicted by state courts, but we do have the power to address how compensation awards are taxed, and how these individuals are taxed once they try to rebuild their lives. We can help even the playing field across all States by changing the law to ensure that there are some benefits that will be consistent across all 50 States. My bill changes the law in a number of ways to ensure that there are some benefits available to everyone, regardless of which State they call home.
The first change in my bill is more of a clarification than a new tax benefit. If an exoneree does receive a state compensation award, the Federal tax laws are unclear as to whether these awards are taxable. According to the Innocence Project, the Internal Revenue Service has not yet made any attempts to tax these awards, but the concern remains that the IRS could make such a claim in the future. My bill specifically clarifies that any civil damages, restitution, or other monetary awards related to the wrongful imprisonment are excluded from taxable income.
The second change in my bill will help provide much-needed economic assistance to exonerees that are trying to rebuild their lives, but finding it hard to make ends meet. My bill says that, for every year that someone was wrongfully imprisoned and then exonerated, up to 15 years, the first $50,000 they earn each year after their release will be free of Federal income and payroll taxes. For married couples filing jointly, the tax-free amount would be $75,000 per year. Again, the benefit would only apply to those who have never been convicted of a felony. If they had a conviction prior to their wrongful conviction, they would not be eligible. If they are subsequently convicted, they would lose their eligibility as well.
In terms of real dollars, let us take the example of someone earning $20,000 post-imprisonment. In a typical tax filing scenario, my bill will save them nearly $2,800 in income and payroll taxes. This is a real benefit that can make wages go just that much farther--it can pay for a few months' rent, or a community college course, or any number of things that can help this victim return to a productive life.
As my colleagues know, I feel very strongly about justice and fairness. I am not one to shy away from making tough decisions to strengthen our laws, but I also believe that when someone has been treated unfairly by the law, it is our responsibility to provide some help. I sincerely believe that people who have been wrongfully convicted of a crime have had parts of their lives taken from them, plain and simple.
Mr. President, I thank you for the opportunity to speak on the issue of fair compensation for wrongful convictions. I stand ready to work with Senator Brownback and my colleagues on both sides of the aisle, including the chairman and ranking member of the Finance Committee, to get this bill enacted next year.