I assume that the Deputy wishes to establish at what level the standard and marginal Income Tax rates alone would need to be set to yield to the Exchequer the receipts currently delivered through the combination of both Income Tax and Universal Social Charge (USC). These combined receipts totalled just under €16 billion in 2013.
I am informed by the Revenue Commissioners that, with reference to estimated 2015 incomes in circumstances outlined by the Deputy, where
1. all personal tax reliefs and allowances were discontinued,
2. the first €15,000 of income was subject to a 0% Income Tax rate,
3. the next €35,000 of income was subject to the standard Income Tax rate, and
all income in excess of €50,000 was subject to the marginal Income Tax rate. It is estimated it would be necessary to increase both the standard and marginal Income Tax rates by an additional 8 percentage points to 28% and 48% respectively to raise the Income Tax yield to the total amount currently collected through Income Tax and USC combined. All figures above are estimates for 2015, using the actual data for the year 2012 (the latest year for which data are available) adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. A married couple or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit. I am advised by the Revenue Commissioners that this scenario is presented purely for illustrative purposes, there are other permutations that could deliver similar outcomes. The Commissioners have not examined the administrative issues involved in the above scenario.
