Tuesday, 15 May 2018

Questions (186, 187, 188)

Pearse Doherty

Question:

186. 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, coupled with an additional USC rate of 2%, 3%, 4%, 5%, 6% and 7%, respectively in excess of €120,000. [21213/18]

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Pearse Doherty

Question:

187. 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 annum resulting in no entitlement to these tax credits when income is in excess of €140,000 coupled with an additional USC rate of 2%, 3%, 4%, 5%, 6% and 7%, respectively, in excess of €140,000. [21214/18]

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Pearse Doherty

Question:

188. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned icome 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, coupled with an additional USC rate of 2%, 3%, 4%, 5%, 6% and 7%, respectively, in excess of €150,000. [21215/18]

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Written answers (Question to Finance)

I propose to take Questions Nos. 186 to 188, inclusive, together.

I am advised by Revenue that the estimated yields associated with the introduction of both a tapering of credits together with an additional rate of USC at the various levels and rates proposed by the Deputy are provided in the following tables:

Tapering of PAYE and Earned Income Tax Credits plus additional USC rate, at income levels in excess of €120,000, of:

First Year Yield

€m

Full Year Yield

€m

2%

403

496

3%

482

605

4%

562

714

5%

642

823

6%

722

932

7%

802

1,041

Tapering of PAYE, Personal and Earned Income Tax Credits plus additional USC rate, at income levels in excess of €140,000, of:

First Year Yield

€m

Full Year Yield

€m

2%

638

785

3%

708

881

4%

777

978

5%

847

1,074

6%

917

1,170

7%

986

1,267

Tapering of PAYE, Personal and Earned Income Tax Credits plus additional USC rate, at income levels in excess of €150,000, of:

First Year Yield

€m

Full Year Yield

€m

2%

589

726

3%

655

817

4%

720

908

5%

786

1,000

6%

852

1,091

7%

917

1,183

The data above 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 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.

It should be noted that the above estimates do not take account of any behavioural or other impacts that might arise upon implementation of the measures costed.