Tuesday, 2 July 2013

Questions (187)

Pearse Doherty


187. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised for the Exchequer if tax credits for a person's earnings were capped at €100,000, and of every €2 earned after €100,000, €1 in tax credits was lost. [31665/13]

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Written answers (Question to Finance)

I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2013 incomes, of restricting the main personal and employee tax credits in the manner mentioned by the deputy would be of the order of €460 million. This estimate is derived from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is 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.