Dáil Éireann Debate, Thursday - 12 March 2015
99. Deputy Eoghan Murphy asked the Minister for Finance the cost to the Exchequer in terms of revenue foregone if the standard rate of tax was decreased to 19% and the entry point to the higher rate was increased by €1,000 to €34,800 for a single person and by a similar amount for one-parent families, married couples with one income and married couples with two incomes. [10968/15]
View answer100. Deputy Eoghan Murphy asked the Minister for Finance the cost to the Exchequer in terms of revenue foregone if the standard rate of tax was decreased to 18% and the entry point to the higher rate was increased by €1,000 to €34,800 for a single person and by a similar amount for one-parent families, married couples with one income and married couples with two incomes. [10969/15]
View answer101. Deputy Eoghan Murphy asked the Minister for Finance the cost to the Exchequer in terms of revenue foregone if PAYE workers and self-employed persons were treated equally for tax purposes on incomes up to €15,000, €20,000, €25,000 and €30,000, all for a single person. [10970/15]
View answer102. Deputy Eoghan Murphy asked the Minister for Finance the cost to the Exchequer in terms of revenue foregone if PAYE workers and self-employed persons were treated equally for tax purposes up to an income of €34,800, for a single person. [10971/15]
View answer103. Deputy Eoghan Murphy asked the Minister for Finance the cost to the Exchequer in terms of revenue foregone if 80,000 fewer persons were paying universal social charge at the lower rates. [10972/15]
View answer104. Deputy Eoghan Murphy asked the Minister for Finance the cost to the Exchequer in terms of revenue foregone if the top rate of universal social charge for self-employed persons was abolished. [10973/15]
View answer105. Deputy Eoghan Murphy asked the Minister for Finance the cost to the Exchequer in terms of revenue foregone if changes were introduced, that is, the standard rate of tax was decreased to 19% and the higher rate of tax was decreased to 39%; the entry point to the higher rate was increased by €1,000 to €34,800 for a single person and by a similar amount for one-parent families, married couples with one income and married couples with two incomes; the bottom 80,000 payers of universal social charge were removed from the charge and income tax liabilities were calculated at the same rate for PAYE and self-employed persons up to a value of €25,000 in terms of income earned. [10974/15]
View answerI proposed to take Questions Nos. 99 to 105, inclusive, together.
In relation to the questions regarding the cost of reducing the standard rate of income tax and increasing the entry point to the higher rate, I am informed by the Revenue Commissioners that the estimated first and full year cost to the Exchequer of decreasing the standard rate of income tax to 19% and increasing the standard rate band by €1,000 is €493 million and €667 million respectively. The estimated first and full year cost to the Exchequer of decreasing the standard rate of income tax from 20% to 18% and increasing the standard rate band by €1,000 is €894 million and €1.2 billion respectively.
In relation to the questions on the cost of equalising the tax treatment of PAYE and self-employed taxpayers at certain specified income levels, I assume that the Deputy wishes to ascertain the cost of extending the equivalent of the PAYE Credit to single self-employed individuals. The estimated cost to the Exchequer of extending the PAYE credit to such individuals on incomes of up to €15,000, €20,000, €25,000, €30,000 and €34,800 is €3 million, €13.5 million, €26.5 million, €38 million and €48 million respectively. It is important to point out that these estimates assume that the Deputy's proposal specifically excludes the extension of the PAYE credit to self-assessed individuals that are married or civil partners.
The estimated first and full year cost of exempting 80,000 income earners from liability to the Universal Social Charge (USC) is €16 million and €22 million respectively. This is costed on the basis of removing the 80,000 cases with the lowest incomes currently paying USC from the charge.
The estimated first and full year cost to the Exchequer of removing the 3% USC surcharge on self-employed income in excess of €100,000 is €54 million and €125 million respectively.
In relation to the question regarding reducing both income tax rates by 1%, increasing the standard rate band by €1,000, removing a further 80,000 income earners from USC and extending the equivalent of the PAYE credit to self-employed persons with incomes up to €25,000, I am informed by the Revenue Commissioners that the first and full year cost to the Exchequer is estimated to be in the order of €695 million and €971 million respectively.
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.
