Dáil Éireann Debate, Tuesday - 4 November 2014
275. Deputy Finian McGrath asked the Minister for Finance if he will change the tax status where middle and low income earners pay more tax then large corporations; if this status has changed following budget 2015; and if he will make a statement on the matter. [41079/14]
View answerThe Deputy will be aware that individuals and corporations are taxed on a very different basis and that it is highly unlikely that any low or middle income earners pay more tax than large corporations.
In addition to the Corporation Tax that companies pay on their profits, they also are liable for employer PRSI contributions in respect of their employees, which are charged at a much higher rate than the rate which applies to employees. In addition, large corporations may have other tax obligations that arise as a result of their operations.
All employees are entitled to a series of tax credits which help reduce their tax liability. In addition, the changes I have introduced in Budget 2015 will ensure that all those who currently pay income tax and/or USC will see a reduction in their tax bill from next year.
Ireland already has one of the most progressive income tax systems in the developed world. To preserve that progressivity, the Budget also contains USC measures which have the effect of limiting the maximum benefit of the tax measures to approximately €14 per week for any individual taxpayer, which means that those with very high incomes will only benefit to the same extent, as those with incomes at the level of the ceiling imposed, i.e. at approximately €70,000.
