Tuesday, 2 July 2013

Questions (196)

Pearse Doherty


196. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised for the Exchequer by increasing the top rate of USC paid by PAYE workers by an additional 3% on income over €100,000, similar to that charged to self-employed top earners. [31727/13]

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Written answers (Question to Finance)

I am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, from extending the additional universal social charge of 3%, which is currently applicable to self-employed income in excess of €100,000, to all PAYE income earners at this level of income would be of the order of €71 million. The Universal Social Charge is an individualised charge and as such, the estimate of yield is based on individual incomes of more than €100,000. The estimated yield is based on confining the extension of the 3% rate to the portion of income which is in excess of €100,000, that is, the increase is not applied to the portion of total income earned up to €100,000. 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.