Dáil Éireann debate -
Tuesday, 4 Nov 1997

Vol. 482 No. 3

Written Answers. - Tax Yields.

Paul McGrath

Question:

166 Mr. McGrath asked the Minister for Finance the tax and PRSI contributions paid by a single income family of husband, wife and three children earning £230 per week gross with no mortgage or other reliefs; the family income supplement entitlements of this family; and if he will give details of the take home pay gain to this family of a £10, £20, £30 and £40 increase in gross wages. [17745/97]

Minister for Finance (Mr. McCreevy)

The position of a single income family of husband, wife, three children earning £230 to £270 per week gross, with details of deductions for tax, PRSI and levies, as well as additions for family income supplement is shown in the following table:

Gross Pay p.w.:	£230	£240	£250	£260	£270
Less	£	£	£	£	£
PRSI	6.75	7.20	7.65	8.10	8.55
Levies	5.18	5.40	5.63	5.85	6.08
Income tax	18.54	22.54	26.54	30.54	34.54
Sub-total	199.44	204.86	210.19	215.51	220.84
Plus
FIS	16.16	10.56	5.00	None	None
Net Pay	215.70	215.42	215.19	215.51	220.84

It is vital in interpreting this table that the mechanism for reviewing the family income supplement is understood. FIS is renewable on a 12 monthly basis: once awarded it will not be reduced or withdrawn until the end of the period, regardless of any upward movement in pay during that period. Therefore, gross income from employment can increase insignificantly during the course of a year while adjustments to FIS may not occur until some time later.

It should be noted that, in order to improve the return from work to families with children, there is a commitment in Partnership 2000 to reform the family income supplement during the lifetime of the Partnership, by adjusting the method of calculation from a gross income to a net income basis. As the first element in honouring this commitment, the family income supplement has been calculated, since June, on a basis net of PRSI and the health and employment levies.