Dáil Éireann Debate, Tuesday - 11 June 2013
174. Deputy Dominic Hannigan asked the Minister for Finance the amount of revenue that would be gained if there was a 1% increase in income tax on those who are earning over €65,000; and if he will make a statement on the matter. [26971/13]
View answerIt is assumed that the threshold for the proposed new income 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 third rate of income tax of 42%, to be applied on the portion of taxable incomes in excess of €65,000 per annum, would be of the order of €87 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.
These figures are 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. They are, therefore, provisional and subject to revision.
