You can only get damage against Lao with b+2, oki, and punishes (excluding lucky risk payoffs). You can't fight him inside spin range, you just can't. but then again no character can. As soon as your opponent sees you'll be doing anything up in his face they can spin you out of it. You also can't jump against KL ever ever ever. If you get away with jumping in a KL match that just means your opponent wasn't on the ball or had a bad reaction.
The secret to beating KL from neutral is spacing. You gotta stay at sweep distance or just outside, because that's where he can't reach you without moving in, but you can hit him with b+2 or dash cancel a sweep or something to start oki. KL is very vulnerable in Smoke's oki game, just make better reads and he's toast. If he rolls at you block; if he spins punish. If he does anything else GTFO with drift or b+3 to send him fullscreen or EX shake or something, just get out of there. If he catches you in his rushdown you're screwed.
I was doing really well against Check's KL with this strategy. He ended up winning more matches than I beat him, but they were close games.