Earned income tax credit boost fail
Published 7:35 am Thursday, June 11, 2015
BATON ROUGE — Two efforts to double the amount of the Louisiana earned income tax credit have failed at the current legislative session.
The tax credit is a benefit for low- to moderate-income working people. It could reduce their income tax burden or even qualify them for a refund.
Rep. Walt Leger, D-New Orleans, wanted to double the credit from 31⁄2 percent to 7 percent. It was estimated to cost state government $45 million annually.
The legislation was opposed by Rep. Jim Fannin, chairman of the House Appropriations Committee. He said the cost added to a $1.6 billion deficit for the fiscal year beginning July 1.
Leger’s House Bill 70 failed to pass on its first try June 1. The legislation got 48 votes for and 49 against.
Voting for it were Reps. James Armes, D-Leesville; Mike Danahay, D-Sulphur; A.B. Franklin, D-Lake Charles; Johnny Guinn, R-Jennings; and Dorothy Sue Hill, D-Dry Creek.
Against were House Speaker Chuck Kleckley, R-Lake Charles, and Reps. Brett Geymann, R-Moss Bluff; Bob Hensgens, R-Abbeville; and Frank Howard, R-Many.
Leger tried to call the bill from the calendar, but the House refused to go along. The vote was 57-30, but 70 votes (two-thirds) are necessary to bring the bill up for another vote.
Kleckley, Armes, Danahay, Franklin and Hill voted to call the bill off the calendar. Geymann, Hensgens and Howard were against. Guinn was recorded as absent.
Leger succeeded in attaching his income tax credit bill to Senate Bill 93 when it arrived in the House. The vote was 52-50.
Sen. Robert Adley, R-Benton, objected to the amendment when his measure returned to the Senate and asked his colleagues to reject the House changes. He said his measure, designed to save the state about $4 million, would end up costing the state $44.7 million with Leger’s amendment.
The Senate voted 31-6 to reject the House changes, and the bill went to a conference committee to iron out the House and Senate differences in S.B. 93. It is expected to delete the Leger amendment.
Sens. Ronnie Johns, R-Sulphur; Dan “Blade” Morrish, R-Jennings; Eric LaFleur, D-Ville Platte; and John Smith, R-Leesville, voted to reject the changes to Adley’s bill.
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