Vol. 422 No. 5
80 Mr. Noonan (Limerick East) asked the Minister for Finance the cost of extending the range of the standard rate of income tax so that (a) 65 per cent, (b) 70 per cent, (c) 75 per cent, (d) 80 per cent, (e) 85 per cent and (f) 90 per cent of taxpayers would pay tax at the standard rate.
The following table sets out the estimated costs to the Exchequer of the increases to the standard rate band which would be necessary to achieve the effects outlined in the question.
|
Percentage of taxpayers liable to tax at a rate not exceeding the standard rate |
Estimated cost to the Exchequer |
|
|
1992 |
Full Year |
|
|
£m |
£1m. |
|
|
65% |
19 |
32 |
|
70% |
58 |
96 |
|
75% |
97 |
162 |
|
80% |
137 |
228 |
|
85% |
172 |
286 |
|
90% |
208 |
346 |
81 Mr. Noonan (Limerick East) asked the Minister for Finance the cost to the Exchequer of introducing an income tax rate of 15 per cent in respect of the first £500 of taxable income for single and £1,000 for married persons.
Presumably the Deputy has in mind the taxation at 15 per cent of the suggested portion of the band currently taxable at the standard rate, i.e. 27 per cent. On that basis the estimated full-year cost to the Exchequer arising from the change mentioned by the Deputy would be £66 million.
These figures are provisional and are estimated by reference to the 1992/93 income tax year.
