Michael McGrath
Question:167. Deputy Michael McGrath asked the Minister for Finance the cost of completing the equalisation of tax treatment for the self-employed; and if he will make a statement on the matter. [43973/15]
View answerTuesday, 8 December 2015
Questions (167)
Written answers
I assume that the equalisation the Deputy is referring to the removal of the 3% USC surcharge on non-PAYE incomes in excess of €100,000 and increasing in the Earned Income Credit (EIC) to €1,650, the same level the existing PAYE credit. On this basis I'm informed by the Revenue Commissioners that the estimated total first and full year costs of such proposals would be in the order of €70 million and €235 million respectively. It should also be noted that this estimate does not take into account the ability of the EIC to be fully absorbed.
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2016 incomes and are provisional and may be revised.