Paul Bradford
Ceist:64 Mr. Bradford asked the Minister for Finance the estimated cost to the Exchequer of a combined tax/PRSI code comprising two main rates at 31 and 50 per cent; and if he will outline the components of this costing.
Vol. 412 No. 5
64 Mr. Bradford asked the Minister for Finance the estimated cost to the Exchequer of a combined tax/PRSI code comprising two main rates at 31 and 50 per cent; and if he will outline the components of this costing.
I take it that the Deputy's question arises out of the recently concluded Review of the Programme for Government. The review sets out the firm intention of the Government to endeavour to achieve the objectives of a standard income tax rate of 25 per cent with a single higher rate of 44 per cent. Reduction of the standard rate to 25 per cent would cost an estimated £260 million in a full year, while introduction of a single higher rate of 44 per cent would cost an estimated £176 million. Both of these figures are costed in 1992-93 terms and on the basis of there being no other change in the income tax code. On this basis, introduction of these two tax rates in one step would cost an estimated £436 million in 1992-93 terms.