asked the Minister for Finance the cost of increasing the threshold for the top rate of tax by making the first £15,000 of taxable income exempt for a single person and the first £30,000 for a married person.
Written Answers. - Income Tax Bands.
146.
It is assumed that the Deputy has in mind the extension of the 35 per cent or 48 per cent income tax bands to ensure that the top rate of 60 per cent will apply only to taxable income in excess of £15,000 for single and widowed persons and in excess of £30,000 for married persons.
If the proposed change was effected by the extension of the 35 per cent band the full year cost, estimated by reference to the current income tax year, would be about £247 million. The extension of the 48 per cent band to give effect to the change would cost an estimated £68 million in a full year.
If, on the other hand, the Deputy has in mind the extension of the personal allowance from its present level of £1,900 for a single person and £3,800 for marrieds to £15,000 for a single person and £30,000 for married persons, the change would cost in excess of £2 billion in a full year.
147.
asked the Minister for Finance if the principle of making two-thirds of taxpayers subject only to the standard rate of tax were to be applied in 1986 the income threshold for the next band this would imply; and the change in revenue which would be involved.
The proposal contained in the question would result in an extension of the limits of the 35 per cent income tax band from £4,500 to £5,632 for single and widowed persons and from £9,000 to £11,264 for married persons. The full year cost of these changes, estimated by reference to the current income tax year, is estimated at £82 million.
148.
asked the Minister for Finance the cost of widening the 35 per cent band (a) to the first £5,000 for a single person and the first £10,000 for a married person and (b) to the first £6,000 and £12,000 respectively.
The full year costs, estimated by reference to the current income tax year, of the changes referred to in the question are estimated at (a) £40 million and (b) £103 million.