Written Answers. - Tax Thresholds.

Proinsias De Rossa

Question:

101 Proinsias De Rossa asked the Minister for Finance in respect of each of the last nine years, (a) the tax threshold as a percentage of average male industrial earnings for a married man with two children whose spouse is not working and (b) the tax threshold as a percentage of average male industrial earnings for a single person.

The information requested is as follows:

Tax threshold as percentage of average male industrial earnings.

(a)

(b)

Tax Year

Married with two children (one spouse earning)

Single person

%

%

1981-82

45.4

24.2

1982-83

50.2

29.6

1983-84

44.6

26.1

1984-85

47.3

27.1

1985-86

45.3

25.8

1986-87

43.1

25.8

1987-88

41.4

24.8

1988-89

41.0

24.8

1989-90

39.6

23.9

(Prov.)

NOTES:
(1) The tax threshold is calculated on the assumption that no tax reliefs or allowances are available other than the personal allowance, PAYE allowance, PRSI allowance and child allowance — where relevant.
(2) The figures for average male industrial earnings are derived from the entries in the CSO series, "Gross Earnings and hours worked for male and female Industrial Workers (Adult Rates) by Sector". The CSO date for transportable goods industries were used.
(3) Up to and including 1985-86, an income tax allowance was available in respect of dependent children and this is reflected in the table for the relevant years. It was abolished in respect of the 1986-87 and subsequent tax years. Its abolition was accompanied by an increase in child benefit sufficient to compensate standard-rate taxpayers — then paying tax at 35 per cent — for its loss.