Dáil Éireann Debate, Tuesday - 22 October 2019
146. Deputy Seán Haughey asked the Minister for Finance if he will consider introducing a long paying tax credit for PAYE taxpayers who have been consistently paying tax for over 30 years or more as a gesture of gratitude for their contribution to the State; if such tax payers are recognised in the tax code at present; and if he will make a statement on the matter. [43214/19]
View answerI am satisfied that, in the context of limited resources, the tax code already recognises those who have contributed to the State for a long period through measures that reduce the amount of tax that such persons pay in retirement.
For example, a person aged 65 and over is fully exempt from income tax where his or her total income from all sources is less than the relevant exemption limit of €36,000 in the case of a married couple or civil partners and €18,000 for a single individual. Where a couple have dependent children, the exemption limit is increased by €575 per child for the first 2 children and €830 for each child thereafter. Where an individual exceeds the exemption limit, he or she is liable to tax based on the normal system of tax rates, rate bands and tax credits, subject to the application of marginal relief where relevant.
Other supports for the over 65s may apply depending on personal circumstances, including the Age Tax Credit which is available to all individuals aged 65 or over who do not qualify for an exemption from income tax. This credit is currently set at €245 for single individuals or €490 for a married couple or civil partners.
It should also be noted that those over 66 are exempt from Employee PRSI, and those over 70 with a total annual income of less than €60,000 benefit from a reduced rate of Universal Social Charge. And other income tax credits may also be available depending on the personal circumstances of the individual, such as the personal tax credit, those for widows/widowers, for blind individuals, for those caring for incapacitated children or dependant relatives, and for health expenses incurred by the taxpayer. These apply in addition to the various expenditure measures that give support to those aged 66 and over, including the State Pension and the Free Travel Scheme.
