Dáil Éireann Debate, Tuesday - 27 November 2018
153. Deputy Pearse Doherty asked the Minister for Finance the cost or revenue raised by a policy of a 5% income levy on income above €140,000 for individual income based on the latest available individualised data together with the tapering of tax credits on individual income between €100,000 and €140,000 at the rate of 2.5% per €1,000. [48932/18]
View answerI am advised by Revenue that to calculate a combined cost for the proposals described by the Deputy, it is necessary to base all costs and calculations on 2016 tax return data. An exercise was undertaken on 2016 data to break down the gross incomes of taxpayer units to an individualised level and a manual estimation process (outside of Revenue’s usual tax modelling software) was required. As the exercise can only split gross incomes, this estimation process requires certain assumptions to be made in relation to the distribution of credits for the tapering on individual income.
Furthermore, it is assumed that the 5% levy on income above €140,000 proposed by the Deputy will not be subject to any credits, reliefs or exemptions.
Subject to these assumptions the estimated yield from these changes is set out in the table below.
|
- |
First Year (€m) |
Full Year (€m) |
|
Yield from tapering credits by 2.5% per €1,000 for individualised gross incomes between €100,000 and €140,000 |
185 |
220 |
|
Yield from 5% levy on individual incomes over €140,000 |
235 |
310 |
|
Total Yield |
420 |
530 |
