asked the Minister for Finance whether he proposes to institute a review of the general income-tax code, by way of a commission of inquiry or by other methods, with particular reference to the need for generally amending the code, so as to secure a distribution of the tax burden on the various sections in the community conforming more closely to their relative taxable capacities, and also to determine the incidence of taxation on the lower and middle income groups as compared with other groups.
Ceisteanna—Questions. Oral Answers. - Income-Tax Code.
The Deputy's question would appear to imply that the existing spread of the tax burden is unrelated to taxable capacity.
Such, however, is not the case. If the Deputy will refer to Tables 67 and 78 of the Twenty-ninth Annual Report of the Revenue Commissioners he will find, for example, that for the year 1951-52 a married man with three children would not have had to pay income-tax if his earnings were £600 a year, while with £700 a year he would have been charged at an effective rate of only 3d. on each £ of his income and with £800 a year at an effective rate of 8½d. If his income were £5,000 a year he would have borne, in income-tax and surtax, an effective rate of 7/2 on every £ of his income.
The Thirtieth Annual Report of the Revenue Commissioners, which is in course of publication, will give the corresponding figures for 1952-53, which are the same as those for the current year. A married man with three children now pays only 1d.—instead of 3d. as in 1951-52—for each £ of income if his earnings are £700 a year and 4½d. —instead of 8½d.—if they are £800. Where, however, the income is £5,000 the effective rate has risen from 7/2 in 1951-52 to 7/10 in 1952-53 and 1953-54.
The Deputy will appreciate from these figures that the position is kept under constant review and that no formal inquiry directed to the purposes indicated in his question appears to be necessary.