asked the Minister for Finance the revenue that would be raised by levying (a) a 2 per cent (b) a 3 per cent (c) a 4 per cent and (d) a 5 per cent social security tax on all income except the first £3,000.
Written Answers. - Tax Revenue.
56.
The question does not state what forms of income would be covered, nor whether the tax referred to would be additional to, or in substitution for, existing taxation in whole or in part. These factors could have a substantial influence on prospective yield.
Assuming a broad definition of income similar to that adopted by the Commission on Taxation in their consideration of a social security tax, and a tax base which would include the profits of companies benefiting from export sales relief, gross yields of the following order might be tentatively estimated:
Direct Gross Yields from Social Security Tax.
|
At 2% |
At 3% |
At 4% |
At 5% |
|
£m |
£m |
£m |
£m |
|
224 |
335 |
447 |
559 |
The net yield from the tax would be influenced considerably by the degree to which existing taxation, social insurance contributions or social welfare benefits were altered in the light of the existence of a social security tax.
57.
asked the Minister for Finance the approximate revenue that could be raised by the imposition of a wealth tax at a 3 per cent and 5 per cent rate.
I have been advised by the Revenue Commissioners that figures are not available which would enable them to give the information sought other than on a tentative basis. On this basis, the estimated full year yield from the re-introduction of wealth tax would be in the order of £50 million if the tax were applied at a rate of five per cent, and £30 million if the tax were applied at a rate of three per cent.