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<p>The Times-Picayune By The Editorial Board, NOLA.com | The Times-Picayune </p>
<p>The special legislative session hit a seeming stalemate Monday night (March 7) when Gov. John Bel Edwards and Republican House leaders couldn't agree on a way to fill Louisiana's remaining budget gap. One of the main sticking points is whether to expand the earned income tax credit, which the governor and House Democrats want to do to ease the burden a higher sales tax will have on poor Louisianians.</p>
<p>Some House Republicans are adamantly opposed because that move would actually cost the state money — which would mean lawmakers have to find more revenue. That's a fair argument. But they are making it while clinging to tax credits for wealthier taxpayers and businesses, so they've undercut their own position.</p>
<p>The earned income tax credit sounds arcane, but it is a practical way to give lower-income working families a crucial financial boost. The federal credit was enacted during President Gerald Ford's administration and expanded in the Tax Reform Act of 1986 championed by President Ronald Reagan. Twenty-six states, including Louisiana, offer their own version of the credit.</p>
<p>Basically, it increases the annual tax refund for low-income families by as much as several hundred dollars. That may not sound like much money, but it could allow a family to pay a medical bill, get a car repaired or take care of some other essential expense.</p>
<p>At 3.5 percent, Louisiana's earned income tax credit is the lowest of any state offering one. Rep. Walt Leger, a New Orleans Democrat, has been trying to get lawmakers to double it to 7 percent. They refused last year during the regular session, but Gov. Edwards has made it part of his agenda. And the argument for it has gotten stronger as the Legislature voted during the special session to increase the state sales tax by at least a penny. Sales taxes hit lower income families harder than wealthier residents.</p>
<p>Now some House leaders want to add even more to the sales tax because they still haven't solved the entire budget deficit for this fiscal year.</p>
<p>That would be even worse for families, particularly those that are already struggling to pay for basics. Expanding the earned income tax credit at least would minimize the pressure a bit.</p>
<p>Rep. Leger has had an impressive group of allies for expanding the credit: Entergy, the United Way of Southeast Louisiana, the Louisiana Association of United Ways, the Louisiana Conference of Catholic Bishops, the Jesuit Social Research Institute at Loyola University and AARP Louisiana, among others.</p>
<p>More than 224,000 families in Louisiana have difficulty paying for essentials because of low wages, high housing costs, expensive health care and difficulty finding child care, according to a study released last January by the Jesuit Social Research Institute in Loyola University's College of Social Sciences in New Orleans.</p>
<p>More than 515,000 tax filers claimed the earned income tax credit on their 2012 Louisiana returns. That indicates how many low-wage workers the state has.</p>
<p>For many families, the annual credit "is the biggest lump sum they get in a year. It's a lot of money in the pocket (of people) who might be working really hard for $12,000, $15,000, $18,000 a year," Louisiana Budget Project director Jan Moller said last year.</p>
<p>Despite signals that the tax credit was dead Monday, House Speaker Taylor Barras later said it was still part of negotiations. "As cooler heads prevailed, we were a little clearer on what our options are," he said.</p>
<p>It is smart to keep the credit in the mix. It would give hundreds of thousands of Louisiana families a little extra money to spend, which would be good for all of us.</p>
<p><a href="http://www.nola.com/politics/index.ssf/2016/03/louisiana_tax_credit.html">MORE>></a></p>
<p>The special legislative session hit a seeming stalemate Monday night (March 7) when Gov. John Bel Edwards and Republican House leaders couldn't agree on a way to fill Louisiana's remaining budget gap. One of the main sticking points is whether to expand the earned income tax credit, which the governor and House Democrats want to do to ease the burden a higher sales tax will have on poor Louisianians.</p>
<p>Some House Republicans are adamantly opposed because that move would actually cost the state money — which would mean lawmakers have to find more revenue. That's a fair argument. But they are making it while clinging to tax credits for wealthier taxpayers and businesses, so they've undercut their own position.</p>
<p>The earned income tax credit sounds arcane, but it is a practical way to give lower-income working families a crucial financial boost. The federal credit was enacted during President Gerald Ford's administration and expanded in the Tax Reform Act of 1986 championed by President Ronald Reagan. Twenty-six states, including Louisiana, offer their own version of the credit.</p>
<p>Basically, it increases the annual tax refund for low-income families by as much as several hundred dollars. That may not sound like much money, but it could allow a family to pay a medical bill, get a car repaired or take care of some other essential expense.</p>
<p>At 3.5 percent, Louisiana's earned income tax credit is the lowest of any state offering one. Rep. Walt Leger, a New Orleans Democrat, has been trying to get lawmakers to double it to 7 percent. They refused last year during the regular session, but Gov. Edwards has made it part of his agenda. And the argument for it has gotten stronger as the Legislature voted during the special session to increase the state sales tax by at least a penny. Sales taxes hit lower income families harder than wealthier residents.</p>
<p>Now some House leaders want to add even more to the sales tax because they still haven't solved the entire budget deficit for this fiscal year.</p>
<p>That would be even worse for families, particularly those that are already struggling to pay for basics. Expanding the earned income tax credit at least would minimize the pressure a bit.</p>
<p>Rep. Leger has had an impressive group of allies for expanding the credit: Entergy, the United Way of Southeast Louisiana, the Louisiana Association of United Ways, the Louisiana Conference of Catholic Bishops, the Jesuit Social Research Institute at Loyola University and AARP Louisiana, among others.</p>
<p>More than 224,000 families in Louisiana have difficulty paying for essentials because of low wages, high housing costs, expensive health care and difficulty finding child care, according to a study released last January by the Jesuit Social Research Institute in Loyola University's College of Social Sciences in New Orleans.</p>
<p>More than 515,000 tax filers claimed the earned income tax credit on their 2012 Louisiana returns. That indicates how many low-wage workers the state has.</p>
<p>For many families, the annual credit "is the biggest lump sum they get in a year. It's a lot of money in the pocket (of people) who might be working really hard for $12,000, $15,000, $18,000 a year," Louisiana Budget Project director Jan Moller said last year.</p>
<p>Despite signals that the tax credit was dead Monday, House Speaker Taylor Barras later said it was still part of negotiations. "As cooler heads prevailed, we were a little clearer on what our options are," he said.</p>
<p>It is smart to keep the credit in the mix. It would give hundreds of thousands of Louisiana families a little extra money to spend, which would be good for all of us.</p>
<p><a href="http://www.nola.com/politics/index.ssf/2016/03/louisiana_tax_credit.html">MORE>></a></p>