Peadar Clohessy
Ceist:57 Mr. Clohessy asked the Minister for Finance the number of social welfare recipients in this country now liable for tax. [10611/95]
Written Answers. - Tax Liability.
Statistics are not kept in a fashion which would allow a precise answer to be provided to the question. However, it is estimated that during 1994 approximately 250,000 social welfare recipients paid some tax on their incomes. The extent to which taxation actually arises depends essentially on the amount of other income which the social welfare recipient, or the recipient's spouse, receives in the same tax year. If there is no other income in addition to the social welfare payment, the existing exemption limits and allowances, nearly all cases, will ensure that there is no tax to be paid.
Máirín Quill
Ceist:58 Miss Quill asked the Minister for Finance the net effect of the 1995 budget on the tax wedge in respect of single persons earning the average industrial wage; and if he will make a statement on the matter. [11926/95]
The tax wedge in respect of a single person, full rate PRSI contributor, earning the estimated average industrial wage is 37.3 per cent in 1995. Without the measures introduced in the 1995 budget the tax wedge would have been 39.1 per cent. A reduction of 1.8 percentage points in the tax wedge in respect of single persons on the estimated average industrial wage is a significant achievement and reflects the Government's commitment to reduce the tax/PRSI burden.