Written Answers. - Tax Thresholds and Rates.
Proinsias De Rossa
Question:
55
Proinsias De Rossa
asked the
Minister for Finance
if he will outline in respect of each year from 1980 to 1990 inclusive (a) the tax threshold as a percentage of average male industrial earnings per married man with two children, wife not working (b) the tax threshold as a percentage of the average male industrial earnings for a single person (c) the first rate of tax payable (d) the standard rate of tax payable (e) the standard rate of income tax (f) the effective rate of income tax (g) the average amount of income tax paid by the average PAYE worker and (h) the number of persons currently subjected to PAYE.
Proinsias De Rossa
Question:
62
Proinsias De Rossa
asked the
Minister for Finance
the average effective rate of income tax for each year from 1980 to 1990 inclusive.
I propose to take Questions Nos. 55 and 62 together.
The information requested is given in the following table:
|
Year
|
(a)
|
(b)
|
(c)
|
(d)/(e)
|
(f)
|
(g)
|
(h)
|
|
%
|
%
|
%
|
%
|
%
|
£
|
000s
|
|
1980/81 (1980)
|
49.4
|
24.8
|
25
|
35
|
(i) 14.5
|
1,130
|
777
|
|
|
|
|
|
(ii) 24.7
|
|
|
|
1981/82 (1981)
|
45.4
|
24.2
|
25
|
35
|
(i) 16.3
|
1,405
|
778
|
|
|
|
|
|
(ii) 25.1
|
|
|
|
1982/83 (1982)
|
50.2
|
29.6
|
25
|
35
|
(i) 14.9
|
1,672
|
759
|
|
|
|
|
|
(ii) 25.5
|
|
|
|
1983/84 (1983)
|
44.6
|
26.1
|
25
|
35
|
(i) 17.2
|
1,911
|
745
|
|
|
|
|
|
(ii) 28.3
|
|
|
|
1984/85 (1984)
|
47.3
|
27.1
|
35
|
35
|
(i) 18.4
|
2,289
|
735
|
|
|
|
|
|
(ii) 30.0
|
|
|
|
1985/86 (1985)
|
45.3
|
25.8
|
35
|
35
|
(i) 19.1
|
2,457
|
745
|
|
|
|
|
|
(ii) 30.9
|
|
|
|
1986/87 (1986)
|
43.1
|
25.8
|
35
|
35
|
(i) 19.9
|
2,690
|
739
|
|
|
|
|
|
(ii) 31.3
|
|
|
|
1987/88 (1987)
|
41.4
|
24.8
|
35
|
35
|
(i) 20.5
|
2,904
|
736
|
|
|
|
|
|
(ii) 32.3
|
|
|
|
1988/89 (1988)
|
41.0
|
24.8
|
35
|
35
|
(i) 20.6
|
3,096¹
|
736
|
|
|
|
|
|
(ii) 31.0
|
2,994²
|
|
|
1989/90 (1989)
|
39.5
|
23.9
|
32
|
32
|
(i) 19.4
|
3,127*
|
747*
|
|
|
|
|
|
(ii) 29.6
|
|
|
|
1990/91 (1990)
|
38.1
|
23.1
|
30
|
30
|
(i) 18.6
|
3,292*
|
747*
|
|
|
|
|
|
(ii) 28.7
|
|
|
¹Includes amnesty related yield of £75 million.
²Excludes the effects of the amnesty.
*These figures are provisional.
General Note
The figures in columns (a) to (h) inclusive relate to the tax year specified except in the case of column (g) in relation to which the figures are based on the PAYE net receipt in the financial year indicated in brackets.
Notes on table
Columns (a) and (b)
(i)Personal Allowances:
The single and married allowances have been augmented by the addition of the PAYE allowance. From 1982-83 onwards account has been taken of the PRSI allowance. 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.
(ii)Average male industrial earnings:
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 data for transportable goods industries were used. The entries in columns (a) and (b) for 1990-91 are estimated.
Column (d)/(e):
There is no apparent difference between the questions at (d) and (e). Consequently, the relevant information is given under one heading, (d)/(e), in the table.
Column (f):
Effective rate of income tax:
This is the effective rate of tax levied on the total income of
(i) a married man with two children, wife not working, on average male industrial earnings as described in the notes for columns (a) and (b) above, and
(ii) a single person on average male industrial earnings as described in the notes for columns (a) and (b) above.
Column (g):
The amounts shown in the column are obtained by dividing the net reciept of PAYE tax in each calendar year by the number of taxpaying units shown for the corresponding tax year in column (h).
Column (h):
The numbers shown in this column are the numbers of taxpaying units estimated to be effectively liable to tax under PAYE. A married couple who has elected or has been deemed to have elected to have the income of both spouses assessed on the husband is counted as one taxpaying unit.
