Senate passes bill to expand a tax credit for working poor

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The Senate passed a bill by Sen. J.P. Morrell, D-New Orleans, to expand a tax credit for the working poor to offset some of the impact of a possible sales tax extension. (Credit: Sarah Gamard, Manship School News Service)

Paul Braun

The Senate voted 30-5 to increase the state’s earned income tax credit by 42.8 percent to offset some the impact that a renewal of part of the state’s sales tax would have on the working poor.

The state’s earned income tax credit is 3.5 percent of the amount of a similar federal credit. Morrell’s bill would increase it to 5 percent.

However, his bill also would need to pass the House, which killed two similar bills in committee on Friday.

Increasing the tax credit would cost the state an estimated $21 million in revenue, making it a tough sell amid the state’s current budget crisis.

Read the story in KALB.

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