Tax Code

Dáil Éireann Debate, Tuesday - 18 November 2014

Tuesday, 18 November 2014

Questions (172)

Olivia Mitchell

Question:

172. Deputy Olivia Mitchell asked the Minister for Finance if he will provide in tabular form the impact on single, employed PAYE earners on annual incomes of €15,000, €20,000, €25,000, €30,000, €40,000, €60,000, €100,000, €120,000, €150, 000 and €200,000 owing to the income tax and universal social charge changes in 2015 compared to 2014; 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. [44056/14]

Written answers

Minister for Finance

The data requested by the Deputy are set out in the table below.

Gross Income	Income Tax		USC		Net Income		Annual Benefit	Change as % of Gross Income
	Existing	Proposed	Existing	Proposed	Existing	Proposed
€	€	€	€	€	€	€	€	%
15,000	0	0	399	285	14,601	14,715	115	0.8%
20,000	700	700	719	545	17,781	17,955	174	0.9%
25,000	1,700	1,700	1,069	895	21,231	21,405	174	0.7%
30,000	2,700	2,700	1,419	1,245	24,681	24,855	174	0.6%
40,000	6,212	5,940	2,119	1,945	30,069	30,515	446	1.1%
60,000	14,412	13,940	3,519	3,345	39,669	40,315	646	1.1%
100,000	30,812	29,940	6,319	6,444	58,869	59,616	747	0.7%
120,000	39,012	37,940	7,719	8,044	68,469	69,216	747	0.6%
150,000	51,312	49,940	9,819	10,444	82,869	83,616	747	0.5%
200,000	71,812	69,940	13,319	14,444	106,869	107,616	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.