Dáil Éireann Debate, Tuesday - 28 March 2017
114. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised from the introduction of a new rate of 41%, 42%, 43%, 44%, 45%, 46% and 47% on a person's income in excess of €100,000. [14880/17]
View answerIt is assumed for the purposes of these estimates that the existing standard rate band structure and 20% and 40% income tax rates would remain for income up to €100,000, with the rates proposed by the Deputy to apply on income in excess of that amount.
I am advised by Revenue that major issues would need to be resolved as to how, in practice, such new Income Tax rates could be integrated into the current system and how this would affect the relative position of different types of income earners.
Notwithstanding these issues, Revenue estimates that the full year yield to the Exchequer of the introduction of the suggested new third rate of Income Tax of 41%, 42%, 43%, 44%, 45%, 46% and 47% on income in excess of €100,000 would be of the order of €86 million, €172 million, €258 million, €343 million, €429 million, €515 million, and €601 million respectively.
All figures above are estimates for 2017, using the actual data for the year 2014, the latest year for which data are available, adjusted 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. This means that, in the case of a jointly assessed two-earner couple, the yield estimates above assume the higher rate of income tax would apply once joint income exceeds €100,000.
