Dáil Éireann debate -
Tuesday, 23 Oct 2001

Vol. 542 No. 5

Written Answers. - Income Tax.

Pat Carey

Question:

269 Mr. P. Carey asked the Minister for Finance the percentage of take home pay which has been deducted from workers in the self-employed sector as income tax for each year from 1977 to 2000; and if he will make a statement on the matter. [25229/01]

Minister for Finance (Mr. McCreevy)

I understand from the Revenue Commissioners that the relevant information available is the percentage of total income represented by the tax liability of income earners whose main source of income is derived from self-employment or investments.

The data in respect of income tax years 1977-78 to 1999-2000 inclusive are as follows:

Year ended5th April	Total Income			Tax			Tax as % of Total Income
	£m	m	£m	m	%
1978	437.1	555.0	113.1	143.6	25.9
1979	559.6	710.0	156.0	198.1	27.9
1980	796.2	1,010.9	253.2	321.5	31.8
1981	1,030.2	1,308.1	309.6	393.1	30.0
1982	1,164.5	1,478.6	362.1	459.8	31.1
1983	1,221.6	1,551.1	403.0	511.7	33.0
1984	1,316.4	1,671.4	464.5	589.8	35.3
Year ended5th April	Total Income			Tax			Tax as % of Total Income
	£m	m	£m	m	%
1985	1,229.1	1,560.6	398.6	506.1	32.4
1986	1,136.2	1,442.6	321.0	548.3	28.3
1987	1,063.6	1,350.5	276.1	350.6	26.0
1988	1,091.1	1,385.4	280.3	355.9	25.7
1989	1,045.8	1,327.9	230.5	292.7	22.0
1990	1,320.3	1,676.4	304.4	386.5	23.1
1991	1,426.4	1,811.1	298.0	378.2	20.9
1992	1,647.5	2,091.8	374.8	475.9	22.7
1993	1,825.2	2,317.5	425.8	540.6	23.3
1994	1,972.8	2,504.9	439.0	557.4	22.2
1995	2,167.3	2,751.8	489.9	622.0	22.6
1996	2,458.1	3,121.1	558.7	709.4	22.7
1997	2,729.5	3,465.6	635.3	806.6	23.3
1998	2,998.6	3,807.3	701.1	890.2	23.4
1999	3,478.8	4,417.0	826.7	1,049.7	23.8
2000*	4,859.4	6,170.2	1,219.7	1,548.7	25.1

*This figure is provisional and subject to revision.

It should be noted that some of the figures of income and tax included in the table for years up to 5 April 1988 were estimates subject to revision and are upwardly distorting the average rates of tax.

The recent upward trend in the table may have been due to an increasing proportion of income tax becoming liable to tax at the top rate. Notwithstanding this, the income tax concessions announced in budgets 2000 and 2001 have had the effect of reducing the tax burden with tax as a proportion of income projected to fall to 24.4% (tax year 2000-01) and 22.7% (short tax year 2001) respectively in the tax years affected by the changes.

Total income is the total income of taxpayers from all sources as estimated in accordance with the provisions of the Income Tax Acts. It is net of such items as capital allowances, allowable interest which is not subject to relief at the standard rate, losses, allowable expenses, retirement annuities and superannuation contributions.