Tax Yield

Dáil Éireann Debate, Wednesday - 26 June 2013

Wednesday, 26 June 2013

Questions (82)

Pearse Doherty

Question:

82. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised for the Exchequer if tax credits for high income earners were phased out with a reduction of half the credits for income earners between €100,000 and €150,000; by three quarters for income earners between €150,000 and €200,000; and the abolition of tax credits for income earners in excess of €200,000; and further, to set out the impact this would have on the average tax take from salary earners in each of those categories for example €125,000, €175,000, €225,000. [30922/13]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2013 incomes, of reducing the main personal and employee tax credits in the manner mentioned by the Deputy would be of the order of €315 million. A breakdown of the estimated yield by each specified income range, together with an indication of the average additional tax payable by income earners within each income range, is as follows.

Range of Gross Income	Estimated yield to the Exchequer - €m	Average additional tax take per income earner within the gross income range
€100,000 to €150,000	170	€2,560
€150,001 to €200,000	65	€3,532
Over €200,000	80	€4,077

It should be noted that the income ranges shown in the above table relate to Gross Income as defined in Revenue Statistical Report 2011.

These figures are estimates from the Revenue tax-forecasting model using 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.

It should also be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.