Dáil Éireann Debate, Wednesday - 18 April 2012
241 Deputy Eoghan Murphy asked the Minister for Finance if he will provide estimates of the expected decrease in direct revenue to the State from a 1 percentage point reduction in the lower and higher rates of income taxation respectively; and if he will provide same for a 10% increase in the respective tax bands. [19429/12]
View answerI am informed by the Revenue Commissioners that the full year costs to the Exchequer, estimated by reference to 2012 incomes, of reducing the standard and higher rates of income tax by 1 percentage point would be approximately €470 million and €205 million respectively. The estimated cost of increasing the standard rate tax bands by 10% would be approximately €540 million in a full year.
The 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.
