Tuesday, 15 May 2018

Questions (152, 153)

Pearse Doherty

Question:

152. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the self-employed tax credit to €1,300, €1,400, €1,500 and €1,650, respectively in circumstances (details supplied). [21178/18]

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Pearse Doherty

Question:

153. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the self-employed tax credit to €1,300, €1,400, €1,500 and €1,650, respectively; and if he will make a statement on the matter. [21179/18]

View answer

Written answers (Question to Finance)

I propose to take Questions Nos. 152 and 153 together.

I am advised by Revenue that the cost of increasing the earned income tax credit to the levels set out by the Deputy, in addition to introducing a taper of this increase such that those with incomes in excess of €100,000 would only be able to avail of the existing level of the earned income tax credit of €1,150 is set out in the following table:

Earned Income Credit €

First Year Cost €m

Full Year Cost €m

1,300

11

20

1,400

19

34

1,500

26

48

1,650

38

68

I am advised by Revenue that the data above provide the cost of tapering the earned income credit on a taxpayer unit basis, i.e. married persons or civil partners who have elected or who have been deemed to have elected for joint assessment are counted as one tax unit, and it is not possible to provide this costing on an individual taxpayer basis. These estimates are generated on estimated incomes in 2018, using latest actual data for the year 2015, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.

I am further advised by Revenue that the cost of increasing the earned income tax credit is given on page 6 of the Ready Reckoner which is available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.

While the exact amounts requested by the Deputy may not be given in this table, they may be calculated on a pro-rata or straight-line basis from the costs shown.