Dáil Éireann Debate, Tuesday - 14 July 2015
260. Deputy Thomas P. Broughan asked the Minister for Finance the estimated income for the Exchequer which would be generated if a third rate of income tax of 48% was introduced on individual incomes above €100,000 per year; and if he will make a statement on the matter. [28351/15]
View answerIt is assumed that the threshold for the 48% Income Tax rate proposed by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents, married couples and civil partnerships.
I am advised by the Revenue Commissioners that, given the current band structures, major issues would need to be resolved as to how, in practice, such a new Income Tax rate could be integrated into the current system and how this would affect the relative position of different types of income earners.
Notwithstanding these issues, the Revenue Commissioners estimate that the first and full year yield to the Exchequer of the introduction of the suggested new third rate of Income Tax of 48% would be of the order of €317 million and €512 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.
