Dáil Éireann Debate, Tuesday - 1 July 2014
149. Deputy Richard Boyd Barrett asked the Minister for Finance if he will calculate the extra revenue that would be created by introducing the following changes in income tax rates: a 50% band rate on earnings between €100,000 and €140,000; a 55% rate on earnings between €140,000 and €180,000; a 60% rate on earnings between €180,000 and €250,000; and a 65% rate on earnings over €250,000; and if he will make a statement on the matter. [28557/14]
View answerIt is assumed that the thresholds 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 structure, major issues would need to be resolved as to how in practice such a new structure with multiple additional rates 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 suggested new rates and bands of Income Tax would be of the order of €922 million.
This figure is an estimate 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.
