Dáil Éireann Debate, Thursday - 18 July 2013
156. Deputy Michael McGrath asked the Minister for Finance if he will set out, in tabular form, the revenue that would be raised from increasing the universal social charge for PAYE earners and non-PAYE earners by 1%, 2% and 3%, respectively, for earnings above €200,000; and if he will make a statement on the matter. [36640/13]
View answerI am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, of increasing the universal social charge by either 1 percentage point, 2 percentage points or 3 percentage points for all income earners with incomes in excess of €200,000 is set out in the table.
|
Rate increase |
Full Year Yield From PAYE Income Earners earning in excess of €200,000 |
Full Year Yield From Non-PAYE Income Earners earning in excess of €200,000 |
|
1% |
€8 million |
€26 million |
|
2% |
€16 million |
€52 million |
|
3% |
€24 million |
€78 million |
The Universal Social Charge is an individualised charge and as such, the estimate of yield is based on individual incomes of more than €200,000.
The estimated yield is based on confining the extension of the new Universal Social Charge rates to the portion of income which is in excess of €200,000, that is, the increase is not applied to the portion of total income earned up to €200,000.
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.
