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 income tax credits, but not the employee tax credit, for all income earners in the manner mentioned by the Deputy, would be of the order of €204 million. A breakdown of the estimated Exchequer 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 payable per
income earner within
the gross income range
|
|
€100,000 to € 150,000
|
101
|
€ 1,540
|
|
€ 150,001 to € 200,000
|
41
|
€ 2,305
|
|
Over € 200,000
|
62
|
€ 3,079
|
If the impact of a new third tax rate of 48% on taxable income over €100,000
is included with the reductions in tax credits already mentioned above, the corresponding average additional tax payable by income earners within each income range, is as follows.
|
Range of Gross Income
|
Average additional
tax take per income
earner within the
gross income range
|
|
€100,000 to € 150,000
|
€ 1,954
|
|
€ 150,001 to € 200,000
|
€ 4,757
|
|
Over € 200,000
|
€ 17,668
|
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.
