Dáil Éireann Debate, Thursday - 19 December 2013
113. Deputy Michael McGrath asked the Minister for Finance the cost to the Exchequer that would arise from increasing the threshold for the top rate of tax for single earners from €32,800 to €34,000, €35,000, €38,000 and €40,000, respectively; and if he will make a statement on the matter. [55092/13]
View answer114. Deputy Michael McGrath asked the Minister for Finance the cost to the Exchequer that would arise from increasing the threshold for the top rate of tax for single earners from €32,800 to €34,000, €35,000, €38,000 and €40,000, respectively, with pro rata increases for married-civil partnership couples with two earners; and if he will make a statement on the matter. [55093/13]
View answerI propose to take Questions Nos. 113 and 114 together.
I assume that the Deputy refers to increases in the standard rate tax bands, which would apply similarly to single and widowed persons, as well as to lone parents. In addition, the proposed increases are assumed to also apply to married/civil partnership couples. On this basis, I am informed by the Revenue Commissioners that the full year cost to the Exchequer, estimated by reference to 2014 incomes, of increasing the single person's standard rate tax band to €34,000, €35,000, €38,000 and €40,000 while also maintaining the current monetary differences between the single person's standard rate tax band and the various other classes of standard rate tax bands would be of the order of €190 million, €340 million, €740 million, and €975 million respectively.
These figures are estimates from the Revenue tax-forecasting model using latest actual data for the year 2011, adjusted as necessary for income and employment trends in the interim. They are, therefore, provisional and likely to be revised.
