Dáil Éireann Debate, Thursday - 14 April 2016
97. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Questions Nos. 138 and 139 of 6 April 2016, if he will provide further details of each of the tax credits referred to and the associated revenue generated from the tapering out of these tax credits, that is, a detailed breakdown of the composition of the €618 million and €872 million respectively. [6536/16]
View answer98. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn, and earned income credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000. [6537/16]
View answer99. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn, and earned income credits by 2% per €1,000 on individual income between €100,000 and €150,000 per year, resulting in no entitlement to these tax credits when income is in excess of €150,000. [6538/16]
View answer100. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn, and earned income credits by 5% per €1,000 on individual income between €100,000 and €120,000 per year, resulting in no entitlement to these tax credits when income is in excess of €120,000. [6539/16]
View answer101. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn, and earned income credits by 5% per €1,000 on individual income between €100,000 and €120,000 per year, resulting in no entitlement to these tax credits when income is in excess of €120,000, and coupled with this, a 2% levy on individual income between €120,000 to €200,000, a 4% levy on individual income between €200,000 and €250,000 and a 5% levy on individual income in excess of €250,000. [6540/16]
View answer102. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn, and earned income credits by 5% per €1,000 on individual income between €100,000 and €120,000 per year, resulting in no entitlement to these tax credits when income is in excess of €120,000, and coupled with this, a 5% levy on individual income between €120,000 to €200,000, a 6% levy on individual income between €200,000 and €250,000 and a 7% levy on individual income in excess of €250,000. [6541/16]
View answer103. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn, and earned income credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000, and coupled with this, a 2% levy on individual income between €140,000 to €250,000 and a 5% levy on individual income in excess of €250,000. [6542/16]
View answer104. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn, and earned income credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000, and coupled with this, a 4% levy on individual income between €140,000 to €200,000 and a 5% levy on individual income in excess of €200,000. [6543/16]
View answer105. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn, and earned income credits by 2% per €1,000 on individual income between €100,000 and €150,000 per year, resulting in no entitlement to these tax credits when income is in excess of €150,000, and coupled with this, a 4% levy on individual income between €150,000 to €250,000 and a 5% levy on individual income in excess of €250,000. [6544/16]
View answerI propose to take Questions Nos. 97 to 105, inclusive, together.
I am advised by the Revenue Commissioners that a breakdown of the estimated yield which would arise from the measure outlined in Parliamentary Question Number 139 of 6 April 2016 is provided in the following table.
|
Credit |
First Year €m |
Full Year €m |
|
Personal Credit |
404.76 |
586 |
|
PAYE Credit |
189.54 |
243 |
|
Earned Income Credit |
1.38 |
4.6 |
|
Additional Credit for Incapacitated Child |
6.05 |
10.34 |
|
Person Taking Care of Incapacitated Taxpayer |
5.13 |
8.89 |
|
Home Carer Tax Credit |
5.16 |
8.09 |
|
Age Tax Credit |
3.19 |
6.05 |
|
Single Person Child Carer Credit * |
2.09 |
3.76 |
|
Additional Bereavement Credit to Widowed Parent |
0.34 |
0.63 |
|
Dependent Relative Tax Credit |
0.12 |
0.22 |
|
Revenue Job Assist |
0.12 |
0.21 |
|
Blind Person's Credit including Guide Dog Allowance |
0.09 |
0.17 |
|
Seafarers Allowance |
0.07 |
0.16 |
|
Estimated Total Yield |
618 |
872 |
*The estimated yield from applying the measure to the Single Person Child Carer Credit is based on 2013 Returns in respect of the One Parent Family Tax Credit which it replaced.
The estimated first and full year yield to the Exchequer of tapering the Personal, PAYE and the Earned Income Credits by 2.5% per €1,000 on income between €100,000 and €140,000, resulting in no entitlement to these credits on income in excess of €140,000, is in the order of €308 million and €424 million respectively.
In relation to tapering the Personal, PAYE and the Earned Income Credits by 2% per €1,000 on income between €100,000 and €150,000, resulting in no entitlement to these credits on income in excess of €150,000, the estimated first and full year yield to the Exchequer is in the order of €281 million and €387 million respectively.
As regards the first and full year yield to the Exchequer of tapering the PAYE and the Earned Income Credits by 5% per €1,000 on income between €100,000 and €120,000, resulting in no entitlement to either credit on income in excess of €120,000, this is estimated to be in the order of €158 million and €204 million respectively.
The estimated first and full year yield to the Exchequer of tapering the Personal, PAYE and the Earned Income Credits by 5% per €1,000 on income between €100,000 and €120,000, resulting in no entitlement to these credits on income in excess of €120,000, and the introduction of a 2%, 4% and 5% income levy, at the thresholds specified by the Deputy, is in the order of €583 million and €812 million respectively.
In relation to the first and full year yield to the Exchequer of tapering the Personal, PAYE and the Earned Income Credits by 5% per €1,000 on income between €100,000 and €120,000, resulting in no entitlement to these credits on income in excess of €120,000, and the introduction of a 5%, 6% and 7% income levy, at the thresholds specified by the Deputy, this is estimated to be in the order of €737 million and €1,032 million respectively.
As regards the first and full year yield to the Exchequer of tapering the Personal, PAYE and the Earned Income Credits by 2.5% per €1,000 on income between €100,000 and €140,000, resulting in no entitlement to these credits on income in excess of €140,000, and the introduction of a 2% and 5% income levy, at the thresholds specified by the Deputy, this is estimated to be in the order of €497 million and €693 million respectively.
The estimated first and full year yield to the Exchequer of tapering the Personal, PAYE and the Earned Income Credits by 2.5% per €1,000 on income between €100,000 and €140,000, resulting in no entitlement to these credits on income in excess of €140,000, and the introduction of a 4% and 5% income levy, at the thresholds specified by the Deputy, is in the order of €554 million and €775 million respectively.
As regards the first and full year yield to the Exchequer of tapering the Personal, PAYE and the Earned Income Credits by 2% per €1,000 on income between €100,000 and €150,000, resulting in no entitlement to these credits on income in excess of €150,000, and the introduction of a 4% and 5% income levy, at the thresholds specified by the Deputy, this is estimated to be in the order of €503 million and €704 million respectively.
The estimates above are 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.
Finally, I have been advised by the Revenue Commissioners that, given the current tax structures, major issues would need to be resolved as to how in practice such a credit tapering could be integrated into the current system and how this would affect the relative position of different types of income earners.
