Michael Creed
Question:127 Mr. Creed asked the Minister for Finance the estimated cost to the Exchequer of exempting the remainder of the minimum wage from income tax. [29850/00]
Written Answers. - Tax Code.
I am informed by the Revenue Commissioners that, assuming the enactment of the changes announced in the 2001 budget, the full year costs to the Exchequer of the measure mentioned by the Deputy are estimated as follows: If the personal allowances for single and widowed persons were increased so that the combined total of the single allowance and PAYE allowance was equal to the current level of the minimum wage, based on earnings of £4.40 per hour over an assumed standard 39 hour week and with a pro rata increase of double that amount for married persons, the cost would be of the order of £428 million.
These figures are provisional and are likely to be revised.
Michael Creed
Question:128 Mr. Creed asked the Minister for Finance the cost to the Exchequer of the reduction, in Budget 2001, to the top rate of income tax. [29851/00]
As indicated in my Budget Statement of 6 December, 2000, part one of the Summary of 2001 Budget Measures, the estimated cost to the Exchequer in a full year of reducing the top rate of income tax from 44 to 42 per cent tax in the budget package will be £163 million.