Dáil Éireann Debate, Wednesday - 20 January 2016
55. Deputy Michael McGrath asked the Minister for Finance the first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €70,000, only on the portion of income above €70,000; and if he will make a statement on the matter. [2466/16]
View answer56. Deputy Michael McGrath asked the Minister for Finance the projected first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €80,000, only on the portion of income above €80,000; and if he will make a statement on the matter. [2467/16]
View answer57. Deputy Michael McGrath asked the Minister for Finance the projected first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €90,000, only on the portion of income above €90,000; and if he will make a statement on the matter. [2468/16]
View answer58. Deputy Michael McGrath asked the Minister for Finance the projected first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €100,000, only on the portion of income above €100,000; and if he will make a statement on the matter. [2469/16]
View answer59. Deputy Michael McGrath asked the Minister for Finance the first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €120,000, only on the portion of income above €120,000; and if he will make a statement on the matter. [2470/16]
View answer60. Deputy Michael McGrath asked the Minister for Finance the first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €150,000, only on the portion of income above €150,000; and if he will make a statement on the matter. [2471/16]
View answerI propose to take Questions Nos. 55 to 60, inclusive, together.
I am advised by the Revenue Commissioners that the estimated first and full year costs of abolishing the Universal Social Charge (USC) structure, as set out in Budget 2016, would be in the order of €2,522 million and €3,703 million respectively.
The estimated yield to the Exchequer from the various single band and rate USC structures as requested by the Deputy, being the yield as compared to a tax system with no USC, is set out in the following tables:
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€70,000 |
5% |
€887 |
€1,359 |
|
>€70,000 |
6% |
€1,064 |
€1,631 |
|
>€70,000 |
7% |
€1,242 |
€1,903 |
|
>€70,000 |
8% |
€1,419 |
€2,175 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€80,000 |
5% |
€722 |
€1,131 |
|
>€80,000 |
6% |
€866 |
€1,358 |
|
>€80,000 |
7% |
€1,010 |
€1,584 |
|
>€80,000 |
8% |
€1,154 |
€1,810 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€90,000 |
5% |
€608 |
€974 |
|
>€90,000 |
6% |
€730 |
€1,169 |
|
>€90,000 |
7% |
€852 |
€1,364 |
|
>€90,000 |
8% |
€974 |
€1,559 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€100,000 |
5% |
€527 |
€859 |
|
>€100,000 |
6% |
€632 |
€1,030 |
|
>€100,000 |
7% |
€737 |
€1,202 |
|
>€100,000 |
8% |
€843 |
€1,374 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€120,000 |
5% |
€417 |
€702 |
|
>€120,000 |
6% |
€501 |
€842 |
|
>€120,000 |
7% |
€584 |
€983 |
|
>€120,000 |
8% |
€668 |
€1,123 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€150,000 |
5% |
€320 |
€558 |
|
>€150,000 |
6% |
€384 |
€670 |
|
>€150,000 |
7% |
€448 |
€781 |
|
>€150,000 |
8% |
€512 |
€893 |
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.
The following revised reply was received on 2 February 2016:
I propose to take Questions Nos. 55 to 60, inclusive, together.
It has been noted that the answer provided to the above questions was based on an incorrect interpretation of the Deputy’s Questions, in that it included an estimate of the yield to the Exchequer of an income levy at the rates specified on all of the income of persons with income over the specified levels, rather than on the portion of income above those levels only.
The revised reply below contains tables setting out the yield from applying an income levy on income above the various levels only.
I am advised by the Revenue Commissioners that the estimated first and full year costs of abolishing the Universal Social Charge (USC) as set out in Budget 2016 would be in the order of €2,522 million and €3,703 million respectively.
The estimated yield to the Exchequer from the various single band and rate USC structures as requested by the Deputy is set out in the following tables:
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€70,000 |
5% |
€376 |
€623 |
|
>€70,000 |
6% |
€451 |
€748 |
|
>€70,000 |
7% |
€526 |
€872 |
|
>€70,000 |
8% |
€601 |
€997 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€80,000 |
5% |
€315 |
€534 |
|
>€80,000 |
6% |
€378 |
€641 |
|
>€80,000 |
7% |
€441 |
€748 |
|
>€80,000 |
8% |
€504 |
€855 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€90,000 |
5% |
€271 |
€470 |
|
>€90,000 |
6% |
€325 |
€564 |
|
>€90,000 |
7% |
€380 |
€658 |
|
>€90,000 |
8% |
€434 |
€752 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€100,000 |
5% |
€238 |
€420 |
|
>€100,000 |
6% |
€286 |
€504 |
|
>€100,000 |
7% |
€334 |
€588 |
|
>€100,000 |
8% |
€381 |
€672 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€120,000 |
5% |
€192 |
€348 |
|
>€120,000 |
6% |
€230 |
€418 |
|
>€120,000 |
7% |
€268 |
€488 |
|
>€120,000 |
8% |
€307 |
€558 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€150,000 |
5% |
€148 |
€278 |
|
>€150,000 |
6% |
€177 |
€334 |
|
>€150,000 |
7% |
€207 |
€390 |
|
>€150,000 |
8% |
€236 |
€445 |
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.
