Louisiana House Bill HB699

Louisiana 2013 Regular Session

• Introduced: 4/17/13
• Refer: 4/18/13
• Report Pass: 5/28/13

Caption

Establishes an individual income tax credit based upon overtime wages earned by eligible taxpayers whose employment is subject to the Fair Labor Standards Act (EG DECREASE GF RV See Note)

Impact

The introduction of HB 699 marks a significant shift in Louisiana's tax policy by incentivizing overtime work through a financial reward. The bill requires employers to maintain accurate records of employees' overtime hours and wages, providing transparency and accountability. This legislative move encourages employers to comply with overtime regulations while assisting workers in receiving tax benefits they are entitled to. Furthermore, it is expected to promote economic activity by putting more disposable income into the hands of lower-income workers, potentially stimulating local economies.

Summary

House Bill 699 seeks to establish an individual income tax credit for eligible taxpayers based on the overtime wages earned during the tax year. Specifically, the credit is designed for Louisiana taxpayers earning an adjusted gross income of no more than $50,000 and whose employment is subject to the Fair Labor Standards Act. The law proposes a tax credit calculation method that allows taxpayers to receive up to $500, which is equated to 4% of their overtime wages. This measure aims to provide financial relief to lower-income workers, thereby supporting their economic well-being as they navigate higher living costs.

Sentiment

Overall, sentiment surrounding HB 699 appears positive among those advocating for increased support of low-income workers. Supporters view the bill as a progressive step towards improving the financial conditions of wage earners while also encouraging businesses to adhere to fair labor practices. However, there may be some concerns regarding the administrative burden it places on employers tasked with maintaining and providing overtime records, which could generate resistance from specific business groups.

Contention

While widely seen as beneficial, HB 699 may face contention regarding its implementation and the feasibility of compliance for small businesses. Critics may argue about the records-keeping requirements imposed on employers, suggesting that this could lead to logistical challenges for smaller enterprises. As discussions progress, balancing the proposed benefits with practical compliance issues will be crucial to address stakeholder concerns and ensure the bill's effectiveness.