Dáil Éireann Debate, Wednesday - 15 July 2015
83. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be generated from reducing the entry level adjusted income threshold to €120,000, and the full restriction level to €180,000, with an effective tax rate of 38%. [29498/15]
View answerI assume that the Deputy is referring to the restriction on the use of certain tax reliefs and exemptions by high income individuals. Data to provide a definitive estimate of the yield from the measures outlined by the Deputy is not readily available. However, based on personal income tax returns filed for the year 2013, the latest year for which data is available, it is tentatively estimated that reducing the entry level adjusted income threshold to €120,000 and full restriction level to €180,000 and to impose an effective income tax rate of 38% on those subject to the full restriction, would generate an additional yield in the order of €67 million. USC and PRSI would also be payable by the individuals concerned.
It should be noted that this estimate takes no account of any changes in taxpayer behaviour which might arise from the introduction of such a change.
In relation to effective income tax rates I would point out that, a single employee earning €180,000 this year would have an effective income tax rate of 34.4%, where only the personal and PAYE tax credits were claimed.
