Louisiana House Bill HB70

Louisiana 2015 Regular Session

• Introduced: 3/9/15
• Refer: 3/9/15
• Refer: 4/13/15
• Report Pass: 5/26/15

Caption

Increases the amount of the earned income tax credit (EG -$47,000,000 GF RV See Note)

Impact

If enacted, HB 70 would significantly alter the state tax landscape for individuals qualifying for the earned income tax credit. The enhanced state credit would likely result in an estimated state budget reduction of approximately $47 million, as it would decrease revenues derived from income taxes. The bill underscores Louisiana's commitment to supporting low-income households by incentivizing work through a more substantial tax concession, enhancing their purchasing power and ability to invest in essential needs such as housing, education, and healthcare.

Summary

House Bill 70 proposes an increase to the Louisiana earned income tax credit from 3.5% to 7% of the federal earned income tax credit. This measure is aimed at providing more financial relief to low-income individuals and families who qualify for the credit, ultimately enhancing their disposable income. By indexing the state credit to a higher percentage of the federal credit, the bill seeks to alleviate some of the financial burden that low-income earners face, contributing to their economic stability and well-being.

Sentiment

The sentiment surrounding HB 70 appears to be generally supportive among advocates for low-income families and economic justice. Proponents praise the measure as a necessary step towards improving the lives of disadvantaged populations in Louisiana. However, there may be contention among fiscal conservatives concerned about the financial implications on the state budget. The political discussion illustrates a classic tension between the desire to provide economic support to low-income citizens and the necessity for responsible fiscal management.

Contention

Notable points of contention raised during discussions about HB 70 include concerns about the impact on the state budget, given the projected revenue losses. Opponents argue that while the intent of supporting low-income residents is commendable, the financial feasibility of such a tax credit increase needs to be assessed rigorously. Furthermore, there are discussions about whether the increase would sufficiently incentivize work or whether it addresses broader issues within the state’s economy and employment landscape.