Louisiana’s Earned Income Tax Credit Proves Successful

With poverty on the rise in Louisiana, a new Louisiana Budget Project report urges policymakers to consider doubling the value of the state’s Earned Income Tax Credit (EITC)—one of the most effective anti-poverty policies.

Nearly 30 percent of Louisiana households receive the EITC, which rewards and encourages work by increasing income. The credit is especially beneficial for children, as studies have shown that higher family incomes leads to stronger school performance and improved lifetime earnings.

Unlike many other tax credits that have never been rigorously evaluated, the benefits of the EITC for Louisiana’s families and children are proven. Doubling the value of the EITC would be an important investment in a stronger economic future for Louisiana.

For a copy of the full report and more information on LBP, visit www.labudget.org and read “Louisiana’s Earned Income Tax Credit: A Smart Investment in Working Families and Children.”

The governor's plan will mainly benefit corporations and the wealthy, while working and middle-class families will pay more for services and products we use every day such as diapers, garbage collection, haircuts and home repairs. Louisiana’s tax system certainly needs to be improved, but this is the wrong way to do it.
Gov. Jeff Landry has called the Legislature into a special session to overhaul Louisiana’s tax structure.