Tuesday, 25 June 2013

Questions (198)

Pearse Doherty

Question:

198. Deputy Pearse Doherty asked the Minister for Finance the cost to the Exchequer of increasing the entry point for the 41% marginal rate of tax from its current level to the following respective categories, €34,000; €35,000; €36,000. [30291/13]

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Written answers (Question to Finance)

I assume that the Deputy refers to an increase in the standard rate tax bands, which would apply similarly to single and widowed persons, as well as to lone parents. In addition, the proposed extensions to the various standard rate bands are assumed to also apply to married couples. On this basis, I am informed by the Revenue Commissioners that the full year cost to the Exchequer, estimated by reference to 2013 incomes, of increasing the single persons standard rate tax band to €34,000, €35,000 and €36,000 while also maintaining the current monetary differences between the single persons standard rate tax band and the various other classes of standard rate tax bands would be of the order of €185 million, €335 million and €475 million respectively.

These figures are estimates 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 likely to be revised.