Universal Social Charge Application

Dáil Éireann Debate, Thursday - 6 November 2014

Thursday, 6 November 2014

Questions (68)

Eoghan Murphy

Question:

68. Deputy Eoghan Murphy asked the Minister for Finance if he will provide in tabular form the way a single, self-employed earner on an annual income of €15,000, €20,000, €25,000, €30,000, €40,000, €60,000, €100,000, €120,000, €150,000 and €200,000 will be affected by the income tax and universal social charge changes in 2015 compared to 2014 and if he will provide these figures in both cash terms and as a proportion of gross income; and if he will make a statement on the matter. [42661/14]

Written answers

Minister for Finance

The data requested by the Deputy is set out in the following table.

Gross Income	Income Tax		USC		Net Income		Annual Change	Change as % of Gross Income
	Existing	Proposed	Existing	Proposed	Existing	Proposed	Per Year
€	€	€	€	€	€	€	€	%
15,000	1,350	1,350	399	285	12,651	12,765	115	0.8%
20,000	2,350	2,350	719	545	16,131	16,305	174	0.9%
25,000	3,350	3,350	1,069	895	19,581	19,755	174	0.7%
30,000	4,350	4,350	1,419	1,245	23,031	23,205	174	0.6%
40,000	7,862	7,590	2,119	1,945	28,419	28,865	446	1.1%
60,000	16,062	15,590	3,519	3,345	38,019	38,665	646	1.1%
100,000	32,462	31,590	6,319	6,444	57,219	57,966	747	0.7%
120,000	40,662	39,590	8,319	8,644	66,219	66,966	747	0.6%
150,000	52,962	51,590	11,319	11,944	79,719	80,466	747	0.5%
200,000	73,462	71,590	16,319	17,444	102,219	102,966	747	0.4%

It should be noted that the introduction of the 8% USC rate and the increase in the existing 10% USC rate to 11%, provided for in the Budget, are necessary measures to limit the maximum benefit from the package of tax measures to approximately €14 per week for any individual taxpayer. This ensures that those with very high incomes will only benefit to the same extent, as those with more modest incomes, reinforcing the highly progressive nature of the Irish income tax system.

The changes announced in the Budget will ensure that all those currently paying income tax and/or USC will see a reduction in their tax bill in 2015. I propose to continue this reform in future Budgets, subject to the required economic growth and the consequent fiscal space available to the Government.