Tuesday, 15 May 2018

Questions (181, 182, 183, 184, 185, 189)

Pearse Doherty

Question:

181. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering the personal pay as you earn and earned income credits by 0.7% per €1,000 on individual income between €100,000 and €170,000 per annum resulting in no entitlement to these tax credits when income is in excess of €170,000. [21208/18]

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Pearse Doherty

Question:

182. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised in circumstances (details supplied). [21209/18]

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Pearse Doherty

Question:

183. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned income credit 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. [21210/18]

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Pearse Doherty

Question:

184. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned income credit by 2% per €1,000 on individual income between €100,000 and €150,000 per annum resulting in no entitlement to these tax credits when income is in excess of €150,000. [21211/18]

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Pearse Doherty

Question:

185. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the PAYE and earned income credit by 5% per €1,000 on individual income between €100,000 and €120,000 per annum resulting in no entitlement to these tax credits when income is in excess of €120,000. [21212/18]

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Pearse Doherty

Question:

189. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the PAYE credit and earned income credit from income in excess of €80,000, a reduced credit by 5% per €1,000 for gross income between €80,000 and €100,000 and a 0% credit on gross income in excess of €100,000. [21216/18]

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Written answers (Question to Finance)

I propose to take Questions Nos. 181 to 185, inclusive and 189 together.

I am advised by Revenue that the estimated yields from tapering the specified credits at the various thresholds as set out by the Deputy are given in the following tables:

Taper out of credits at incomes between €100,000 and €170,000 at a rate of 0.7% per €1,000:

First Year €m

Full Year €m

Taper out of credits at incomes between €100,000 and €170,000 at a rate of 0.7% per €1,000:

First Year €m

Full Year €m

PAYE

104

117

PAYE

104

117

Personal

180

221

Personal (Single + Widowed only)

13

17

Earned Income Credit

4.4

7.9

Earned Income Credit

4.4

7.9

Total

288

346

Total

121

142

Taper out of credits at incomes between €100,000 and €140,000 at a rate of 2.5% per €1,000:

First Year €m

Full Year €m

Taper out of credits at incomes between €100,000 and €150,000 at a rate of 2% per €1,000:

First Year €m

Full Year €m

PAYE

190

214

PAYE

173

194

Personal

303

366

Personal

279

338

Earned Income Credit

6.4

11.5

Earned Income Credit

6.1

10.8

Total

499

592

Total

458

543

Taper out of credits at incomes between €100,000 and €120,000 at a rate of 5% per €1,000:

First Year €m

Full Year €m

Taper out of credits at incomes between €80,000 and €100,000 at a rate of 5% per €1,000:

First Year €m

Full Year €m

PAYE

236

265

PAYE

403

453

Earned Income Credit

7.4

13.1

Earned Income Credit

10

18

Total

243

278

Total

413

471

I am advised by Revenue while a rate of 0.7% per €1,000 on incomes over €100,000 would not taper to zero at incomes of €170,000, it is assumed the relevant credits are reduced to zero for incomes above €170,000 in these scenarios.

I am also advised that the data provided provide the cost of tapering 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 have been generated by reference to 2018 incomes as calculated on the basis of actual data for the year 2015, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimates are provisional and may be revised.