INDReporter

Group targets La. income tax on poor

by Walter Pierce

The policy "runs counter to decades of efforts by policymakers across the political spectrum to help families work their way out of poverty."

In a report released this week, the nonpartisan Center on Budget and Policy Priorities casts a critical eye on the Bayou State's continuing fiscal policy of levying income taxes on poor and working-poor families, concluding the policy "runs counter to decades of efforts by policymakers across the political spectrum to help families work their way out of poverty."

The federal government and a majority of U.S. states have eliminated income taxes on the poorest families.

Among the findings in the report:

Louisiana was one of 11 states in which a single-parent family of three living at the poverty line still owed state income taxes. The poverty line for a family of three in 2010 was $17,374.

Louisiana was also one of 15 states in which a two-parent family of four living at the poverty line still owed income taxes. The poverty line for a family of four in 2010 was $22,314.

Louisiana is among 22 states where a family of three living just above the poverty line (125 percent of poverty, or $21,718 per year) pays income taxes, and one of 23 states that tax families of four earning 125 percent of the poverty line ($27,893).

Read the full report here.