Dáil Éireann Debate, Wednesday - 21 September 2011
16 Deputy Eamonn Maloney asked the Minister for Finance the amount of revenue which would be raised in a full year if the top rate of income tax was increased by 1% in respect of all incomes of more than €60,000 per annum, of more than €80,000 per annum and of more than €100,000 per annum. [25159/11]
View answerIt is assumed that the threshold for the proposed new tax bands mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples. I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2012 incomes, of the introduction of each of the proposed new rate and bands would be of the order of €102 million, €70 million and €54 million respectively.
However, given the current band structures, major issues would need to be resolved as to how, in practice, such new rates could be integrated into the current system and how this would affect the relative position of different types of income earners.
The introduction of this new rate would raise the marginal rate of tax to 53% for PAYE taxpayers on those incomes.
These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends for the year 2012. They are therefore provisional and likely to be revised.
