Dáil Éireann Debate, Tuesday - 28 July 2020
245. Deputy Pearse Doherty asked the Minister for Finance the estimated full-year revenue in 2021 that would be raised by 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 in cases in which income is in excess of €140,000 based on the latest individualised income figures available to the Revenue Commissioners. [18755/20]
View answerI am advised by Revenue that the first and full year yield from the Deputy’s proposal is estimated to be of the order of €210 million and €260 million respectively.
These figures are based on tax returns for 2017. An exercise was undertaken using data from these returns to break down the gross incomes of taxpayer units to an individualised level and apply a manual estimation process (outside of Revenue’s usual tax modelling software) As the exercise could only split gross incomes, this estimation process required a number of assumptions to be made in relation to the distribution of credits.
