Dáil Éireann Debate, Wednesday - 13 July 2022
152. Deputy Ged Nash asked the Minister for Finance the estimated yield from removing the PAYE and earned income tax credits which reduce final income tax liabilities from taxpayers with incomes above €100,000 per year; and if he will make a statement on the matter. [38657/22]
View answerI am advised by Revenue that the removal of the Employee Tax Credit and the Earned Income Tax Credit for individuals with incomes above €100,000 would have yielded an estimated €170 million and €205 million on a first and full-year basis respectively in 2019, the latest year for which fully-analysed data are available.
These estimates do not take account of any potential changes in taxpayer behaviour resulting from the proposed change; for example, a taxpayer on an income of €101,000 would have a lower after-tax pay than a taxpayer on an income of €100,000. The estimates are also based on assumptions on the distribution of credits within taxpayer units.
