asked the Minister for Finance the cost-yield of an increase-decrease of £100 in each of the following personal tax allowances (a) the married couple's allowance (b) the single person's allowance (c) the widow-widower's allowance (d) the PAYE allowance (e) the PRSI allowance (f) the dependent relative allowance (g) the incapacitated child allowance and (h) the age allowance; and the average tax credit equivalent value of each of these allowances at current tax rates.
Written Answers. - Personal Tax Allowance.
53.
Following is the information requested:
|
(1) |
(2) |
(3) |
|
|
Allowance for which £100 increase/decrease is proposed |
Full year cost/yield to the Exchequer |
Estimated average value of each allowance to taxpayers |
|
|
At average marginal rate |
At standard rate |
||
|
£million |
£ |
£ |
|
|
Married |
14.0 |
1,676 |
1,435 |
|
Single |
16.4 |
878 |
717.5 |
|
Widowed |
1.7 |
1,008 |
892.5 |
|
Employee (PAYE) |
33.2 |
337 |
280 |
|
PRSI |
27.2 |
120 |
100.1 |
|
Dependent relative |
1.6 |
46 |
38.5 |
|
Incapacitated child |
0.3 |
245 |
210 |
|
Age |
2.7 |
Single & widowed |
70 |
|
82 |
70 |
||
|
Married 160 |
140 |
These figures are estimated by reference to the income tax year 1988-89 and assume the enactment of this year's Finance Bill.
Notes:
1. —While the figure given for the cost of the increase/decrease in the married allowance is based on an increase/decrease of £100, as proposed, it should be noted that any increase/decrease in the single allowance should be combined with double that increase/decrease in the allowance for married persons assessed to tax on the aggregate basis.
2. —In the costing of the proposed increase/decrease of the age allowance it is assumed that any increase/decrease in that allowance for single and widowed persons takes into account double that increase/decrease in the allowance for married persons assessed to tax on the aggregate basis.
3. —The average marginal rate used in column (3) is not the same in respect of each allowance. It varies depending on the average marginal rate of the claimants involved.