Dáil Éireann Debate, Tuesday - 5 October 2021
219. Deputy Pearse Doherty asked the Minister for Finance the first and full year costs of indexing tax credits and income tax bands by 1%, 2%, 3% and 4% for persons with incomes above €100,000, in tabular form. [48384/21]
View answer220. Deputy Pearse Doherty asked the Minister for Finance the first and full year costs of indexing income tax bands by 1%, 2%, 3% and 4% for persons with incomes above €100,000, in tabular form. [48385/21]
View answerI propose to take Questions Nos. 219 and 220 together.
The estimated costs of indexation of various rate bands and tax credits are available in Revenue’s Ready Reckoner, available at www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf. For the convenience of the Deputy, the estimated cost of indexation at 1% is outlined in the table below.
|
Cost of Indexation at 1% |
First Year € million |
Full Year € million |
|
Personal Tax Credits with rate bands |
121 |
139 |
|
Exemption limits, Personal Tax Credits with rate bands |
127 |
146 |
|
PAYE Credit, Exemption limits, Personal Tax Credits with rate bands |
157 |
180 |
|
Earned Income Credit |
2 |
3 |
|
USC rate bands and exemption limits |
20 |
24 |
The cost of indexation at various levels can be extrapolated from the above on a straight line basis, however it should be noted that these costings assume no behavioural change.
These estimates are outputs from Revenue’s micro-simulation model and provide the estimated cost of applying the changes in 2022. While it is possible to estimate a cost associated with indexation of the items outlined, it is not possible within Revenue’s model to only apply these changes to taxpayers meeting certain criteria, such as an income threshold.
