Working Poor To See Higher Tax Break Starting In 2019
Low-wage workers with kids will be getting a $40 to $50 boost on their 2019 tax returns as the legislature approved an expansion of the state’s Earned Income Tax Credit. It’s all but guaranteed to be signed by the governor.
Louisiana Budget Project Executive Director Jan Moller says it’ll help blunt the impact on the poor of relying on sales tax increases to fund budget gaps.
“Increasing the states sales tax which hits low income families harder than high income families it was a push to increase the earned income tax credit as a way to cushion the blow on the families that could least afford it.”
Moller says the extra cash will go right into the pockets of thousands of Louisiana families.
“One in three Louisiana households they are going to get about 40 dollars extra when they file their 2019 returns.”
The EITC was a bipartisan effort starting in the 70s, but was substantially expanded during the Clinton administration. It’s often regarded as one of the more effective anti-poverty tools in the government arsenal, and Moller says despite initial House Republican opposition about the cost, the measure managed to get the governor’s desk.
“Republicans and democrats recognize that families that work, families that have children to take care of need a little bit of extra help sometimes and that this credit is a good way to encourage people to go out into the workplace.”