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Backers push doubling Louisiana earned-income tax credit to 10% as child-poverty safety net
Summary
Supporters told the House committee that doubling Louisiana’s EITC from 5% to 10% of the federal credit would put more money into low- and moderate-income households and flow rapidly back into local economies, while opponents warned about fraud risk and fiscal cost during a tight budget year.
Lawmakers and advocates pressed the House Ways and Means Committee May 5 to expand Louisiana’s earned-income tax credit (EITC), an income-tax measure that refunds money to low- and moderate-income working families.
Representative Tanner Willard proposed doubling the state EITC from 5% to 10% of the federal credit and argued the additional refunds would flow quickly into local economies and help families struggling with rising costs. “Doubling the earned income tax credit to 10% is a step in the right direction,” Willard said, noting the state’s high child‑poverty rate.
Supporters’ case United Way, faith groups and anti-poverty advocates described the EITC as a pro-work policy that helps families cover essentials and stabilizes households. Charmaine Cascioppi of United Way of Southeast Louisiana told the committee that, in her service region, nearly half of households earn above poverty but below a “survival budget”: “For many families that we serve, their earned income tax credit … could be the difference,” she said.
Jan Mueller of Invest in Louisiana noted that 31 states have a state-level EITC and that higher state supplements (10% or more of the federal credit, in research) often produce stronger outcomes for single-parent households and children.
Opposition and fiscal concerns Representative Robert Wilder introduced a repeal resolution (heard later in the session) and opponents raised concerns about fraud rates in the federal EITC. Fiscal witnesses noted the state’s EITC refunds are refundable and interact with federal block grants (for example, TANF maintenance-of-effort rules), meaning changes to the credit can have administrative and budget consequences.
Committee action Willard’s bill was voluntarily deferred to allow further committee discussion, modeling and outreach. Witnesses asked the Department of Revenue and the Legislative Fiscal Office to provide updated five‑year estimates and to model targeted options such as limiting the credit to younger children or lower income bands.
Why it matters The EITC is one of the broadest refundable tax credits in Louisiana: advocates noted it already reaches roughly 600,000 households and that refunds typically get spent quickly on groceries, fuel and other essentials. Supporters say an increase would be a pro-work, anti-poverty measure that channels money directly into local businesses; opponents say the state must weigh fraud risk and budget constraints.
