Dáil Éireann Debate, Thursday - 25 April 2013
67. Deputy Eric Byrne asked the Minister for Finance the revenue raised from the introduction of a third rate of income tax of 48% on income of more than €100,000; and if he will make a statement on the matter. [19658/13]
View answerIt is assumed that the threshold for the proposed new tax rate 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. On that basis, I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2013 incomes, of the introduction of a new 48% income tax rate would be of the order of €365 million. However, given the current band structures, major issues would need to be resolved as to how in practice such a new rate could be integrated into the current system and how this would affect the relative position of different types of income earners.
This figure is an estimate from the Revenue tax-forecasting model using latest actual data for the year 2010, adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and subject to revision.
