La. among few states taxing income of working poor, report says

A new report by the Center on Budget and Policy Priorities says in an era when state policymakers have given generous tax breaks to corporations and the wealthy, Louisiana remains one of the few states that continue to tax the income of the working poor. The report acknowledges Louisiana has made progress in reducing the tax burden on poor families through the Earned Income Tax Credit, as well as state sales-tax exemptions for groceries and residential utilities, but says many poor Louisiana families still owe state income taxes at the end of the year. Among other findings, based on 2010 data, the report says 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 was among 22 states where a family of three living just above the poverty line (approximately $21,718 per year) pays income taxes, and one of 23 states that taxes families of four earning 125% of the poverty line, or $27,893 annually. See the full report here.