Peadar Tóibín
Question:92. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be raised for the Exchequer from the introduction of a new rate of 48% on an individual’s income in excess of €100,000. [25264/15]
View answerWednesday, 24 June 2015
Questions (92, 110, 124)
Peadar Tóibín
Question:110. Deputy Peadar Tóibín asked the Minister for Finance if he will provide, in tabular form, the cost to the Exchequer of exempting income earners below €17,542, €20,000, €22,500, €25,000, €27,500 and €30,000 per annum, from the universal social charge. [25285/15]
View answerPeadar Tóibín
Question:124. Deputy Peadar Tóibín asked the Minister for Finance the annual cost to the Exchequer of providing a pay-as-you-earn credit for self-employed earners, up to €50,000. [25299/15]
View answerWritten answers
I propose to take Questions Nos. 92, 110 and 124 together.
Regarding the first question, I am advised by the Revenue Commissioners that full year yield to the Exchequer, estimated by reference to 2015 incomes, of the introduction of the suggested new third rate of Income Tax of 48%, is in the order of €512 million.
Regarding the second question, I am informed by the Revenue Commissioners that the respective full and first year costs to the Exchequer from exempting income earners below €17,542, €20,000, €22,500, €25,000, €27,500, €30,000 per annum from the Universal Social Charge (USC) are set out in the following table.
|
USC Threshold |
First Year Cost |
Full Year Cost |
|
17,542 |
€56m |
€78m |
|
20,000 |
€100m |
€138m |
|
22,500 |
€160m |
€220m |
|
25,000 |
€234m |
€321m |
|
27,500 |
€321m |
€439m |
|
30,000 |
€416m |
€567m |
These estimates are based on the assumption that taxpayers earning above the revised thresholds continue to pay USC at existing rates and bands.
Regarding the final question, I am advised by the Revenue Commissioners that the respective first and full year cost to the Exchequer of extending the PAYE tax credit of €1,650, to self-employed income earners who earn up to €50,000 per annum, is estimated to be in the order of €63 million and €146 million.
These figures are estimates for 2015 from the Revenue tax forecasting model using the latest actual data for the year 2012, adjusted as necessary for income, self-employment and employment trends in the interim. They are, therefore, 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.
Questions No. 93 and 94 answered with Question No. 83.