Dáil Éireann Debate, Tuesday - 24 June 2014
140. Deputy Maureen O'Sullivan asked the Minister for Finance the amount of revenue that would be gathered in the current year from the imposition of a 70% wealth tax on all income above €150,000; and if he will make a statement on the matter. [26807/14]
View answerIt is assumed that the Deputy is referring to the introduction of a third rate of Income Tax of 70% to be applied on the portion of taxable incomes in excess of €150,000 per annum. In addition, it is assumed that the threshold for the proposed new Income Tax rates mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents, married couples and civil partnerships. In addition, it is assumed that the Universal Social Charge continues to apply at the relevant rates.
I am advised by the Revenue Commissioners that, given the current band structures, major issues would need to be resolved as to how in practice such a new rate could be integrated into the current system and how this would affect the relative position of different types of income earners. Notwithstanding these issues, I am advised by the Commissioners that the full year yield to the Exchequer, estimated by reference to 2014 incomes, of the introduction of the new rate would be of the order of €1,015 million.
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2011, adjusted as necessary for income self-employment and employment trends in the interim. They are provisional and may be revised. Married persons or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.
