Paul McGrath
Ceist:100 Mr. P. McGrath asked the Minister for Finance the annual percentage of PAYE taxpayers who paid income tax at the higher rate in each of the past ten years; and the estimated figure for the 2003 tax year. [28670/03]
Written Answers. - Tax Code.
Paul McGrath
Ceist:101 Mr. P. McGrath asked the Minister for Finance the annual percentage of PAYE workers who were tax exempt in each of the past ten years. [28671/03]
Paul McGrath
Ceist:102 Mr. P. McGrath asked the Minister for Finance the annual percentage of PAYE taxpayers who paid income tax at the lower rate in each of the past ten years. [28672/03]
I propose to take Questions Nos. 100 to 102, inclusive, together.
It is assumed that what the Deputy requires is the number in each category as a percentage of all PAYE income earners on the tax record. I am advised by the Revenue Commissioners that the information requested by the Deputy is as follows:
Percentage of PAYE earners in different tax bands 1993-94 to 2003.
|
Tax Year |
Exempt |
Standard rate* |
Higher rate |
|
% |
% |
% |
|
|
1993-1994 |
24.54 |
44.70 |
30.76 |
|
1994-1995 |
24.61 |
46.16 |
29.23 |
|
1995-1996 |
23.20 |
47.38 |
29.42 |
|
1996-1997 |
23.96 |
47.10 |
28.94 |
|
1997-1998 |
24.64 |
46.09 |
29.27 |
|
1998-1999 |
24.57 |
44.35 |
31.09 |
|
1999-2000 |
27.36 |
38.71 |
33.93 |
|
2000-2001* |
28.02 |
40.50 |
31.48 |
|
2001** |
32.93 |
38.38 |
28.69 |
|
2002† |
34.99 |
36.66 |
28.36 |
|
2003† |
35.18 |
33.72 |
31.10 |
*includes taxpayers benefiting from marginal relief.
**Short tax "year" from 6 April 2001 to 31 December 2001.
†Provisional and likely to be revised.
As will be seen from the table, the percentage of those in the exempt category in the PAYE sector who are outside the tax net has increased significantly, for example, by more than 50% since 1995-96, from 23.2% of all PAYE income earners to 35.18% now. In numerical terms, the change has been even more notable with the provisional figure increasing from 267,527 in 1995-96 to 581,920 now, an increase of more than 117%.
Since 1995-96 also, the number of PAYE earners on the tax record increased significantly, according to the provisional figures by more than 500,000 from 1,153,000 to 1,654,000 now, an increase of well over 40%. This increase reflects the significant growth in employment over the period. In the same period, the higher rate of tax was reduced from 48% to 42% and the standard rate from 27% to 20%, thus reducing the tax burden greatly on all those in the tax net.
The percentages in the table are expressed in terms of the numbers of all PAYE income earners on the income tax record. It should be noted that a married couple which has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
Paul McGrath
Ceist:103 Mr. P. McGrath asked the Minister for Finance the amount of income tax and PRSI payable by a single PAYE worker in each of the past five years, where gross income in each year was an amount assuming only personal and PRSI allowances are applicable. [28673/03]
It is assumed that what the Deputy requires is the amount of income tax and PRSI payable by a single PAYE worker in each of the past five years over a range of incomes.
Income Tax* and PRSI** payable by a single PAYE worker, 1999-2003.
|
Year |
1999 |
2000 |
2001 |
2002 |
2003 |
|
|
Income (€) |
€ |
€ |
€ |
€ |
€ |
|
|
30,000 |
Income tax |
8,304 |
6,859 |
5,108 |
4,260 |
4,120 |
|
PRSI |
1,053 |
1,053 |
936 |
936 |
936 |
|
|
40,000 |
Income tax |
12,904 |
11,259 |
9,308 |
8,460 |
8,320 |
|
PRSI |
1,211 |
1,263 |
1,196 |
1,291 |
1,336 |
|
|
50,000 |
Income tax |
17,504 |
15,659 |
13,508 |
12,660 |
12,520 |
|
PRSI |
1,257 |
1,314 |
1,242 |
1,341 |
1,398 |
|
|
60,000 |
Income tax |
22,104 |
20,059 |
17,708 |
16,860 |
16,720 |
|
PRSI |
1,291 |
1,343 |
1,272 |
1,377 |
1,434 |
|
|
70,000 |
Income tax |
26,704 |
24,459 |
21,908 |
21,060 |
20,920 |
|
PRSI |
1,314 |
1,371 |
1,298 |
1,402 |
1,459 |
|
|
80,000 |
Income tax |
31,304 |
28,859 |
26,108 |
25,260 |
25,120 |
|
PRSI |
1,331 |
1,388 |
1,313 |
1,418 |
1,480 |
|
|
100,000 |
Income tax |
40,504 |
37,659 |
34,508 |
33,660 |
33,520 |
|
PRSI |
1,354 |
1,411 |
1,338 |
1,443 |
1,505 |
*Assumes that the single person receives the personal allowance or personal credit and the PAYE allowance or employee credit, as appropriate, in the years in question.
**Assumes the person is insured under class A (full rate) PRSI and that the individual's salary does not fluctuate from week to week over the course of the given year.
Paul McGrath
Ceist:104 Mr. P. McGrath asked the Minister for Finance the amount of income tax paid by a double income family with gross pay of ?56,000 and a single income family with total gross pay of ?56,000, assuming two equal incomes of ?28,000, salaries of ?37,000 and ?19,000 respectively; and if he will compare this to the amount of income tax paid by a single income family with gross pay of ?56,000, assuming the home-caring spouse is claimable and not applicable and that no mortgage of interest relief is claimable. [28674/03]
The position is that the tax rates and bands for a married couple for 2003 are as follows:
|
Married couple (one spouse with income) |
First €37,000 @ 20%Balance @ 42% |
|
Married couple (both spouses with income) |
First €37,000 with increase of €19,000 maximum @ 20%Balance @ 42% |
In the case of married couples with two incomes the standard rate band available to one spouse will not be greater than that available to a one income married couple, that is, €37,000. The second spouse may avail of the balance of the €56,000 band.
A home carer tax credit of €770 can be claimed by married persons who are jointly assessed to tax and where one spouse works at home to care for a dependent person, which includes a dependent child, provided certain conditions are satisfied. A married couple cannot claim both the home carer tax credit and the increased standard rate band. They can, however, claim whichever of the two is the most beneficial. The home carer tax credit is not due where the home caring spouse's income exceeds €6,620.
The following eight examples show the income tax payable by single and double income families as requested by the Deputy on a gross income of €56,000 for the current tax year. The examples refer to earners in the PAYE and self-employed sectors and are based on the assumption in each case that the married couple is jointly assessed for tax purposes.
Example 1
In this example it is assumed that the individual is in the PAYE system.
One income family with no dependent children.
|
Gross Income |
€56,000 |
||
|
Band Available |
€37,000 |
||
|
Band Utilised |
€37,000 |
||
|
Tax |
€37,000 @ 20% = |
€7,400 |
|
|
€19,000 @ 42% = |
€7,980 |
||
|
Gross Tax Due |
€15,380 |
||
|
Less Tax Credits |
Personal Credit |
(€3,040) |
|
|
Employee Credit |
(€ 800) |
||
|
= Total Credits |
(€3,840) |
||
|
Net Tax Due |
€11,540 |
Example 2
In this example it assumes that both spouses are working in the PAYE sector.
Two income family with no dependent children and income split between spouses €28,000: €28,000.
|
Joint Income |
€56,000 |
||
|
Spouses Income |
€28,000 |
€28,000 |
|
|
Band Available |
€28,000 |
€28,000 |
|
|
Band Utilised |
€28,000 |
€28,000 |
|
|
Tax liability |
€5,600(€28,000@20%) |
€5,600 (€28,000@20%) |
|
|
Gross Tax Due |
€11,200 |
||
|
Less Tax Credits |
(€1,520) |
personal credit |
(€1,520) |
|
(€800) |
employee credit |
(€800) |
|
|
(€2,320) |
(€2,320) |
||
|
=Total credits |
(€4,640) |
||
|
Net Tax Due |
€6,560 |
Example 3
In this example it is assumed that both spouses are in the PAYE system.
Two income family with no dependent children and income split between spouses €37,000: €19,000.
|
Joint Income |
€56,000 |
||
|
Spouses Income |
€37,000 |
€19,000 |
|
|
Band Available |
€37,000 |
€19,000 |
|
|
Band Utilised |
€37,000 |
€19,000 |
|
|
Tax Liability |
€7,400 (€37,000 @20%) |
€3,800(€19,000 @20%) |
|
|
Gross Tax Due |
€11,200 |
||
|
Less Tax Credits |
(€1,520) |
personal credit |
(€1,520) |
|
(€ 800) |
employee credit |
(€ 800) |
|
|
=Total Credits |
(€4,640) |
||
|
Net Tax Due |
€6,560 |
Example 4
In this example it is assumed that the individual is in the PAYE system
One income family with dependent children.
|
Gross Income |
€56,000 |
||
|
Band Available |
€37,000 |
||
|
Band Utilised |
€37,000 |
||
|
Tax |
€37,000 @ 20% = |
€7,400 |
|
|
€19,000 @ 42% = |
€7,980 |
||
|
Gross Tax Due |
€15,380 |
||
|
Less Tax Credits |
Personal Credit |
(€3,040) |
|
|
Employee Credit |
(€800) |
||
|
Home carers |
(€770) |
||
|
= Total Credits |
(€4,610) |
||
|
Net Tax Due |
€10,770 |
Example 5
In this example it is assumed that the earner is self-employed.
One income family with no dependent children.
|
Gross Income |
€56,000 |
||
|
Band Available |
€37,000 |
||
|
Band Utilised |
€37,000 |
||
|
Tax |
€37,000 @ 20% |
= €7,400 |
|
|
€19,000 @ 42% |
= €7,980 |
||
|
Gross Tax Due |
€15,380 |
||
|
Less Tax Credits |
Personal Credit |
(€3,040) |
|
|
Net Tax Due |
€12,340 |
Example 6
In this example it assumes that each spouse is self-employed.
Two income family with no dependent children and income split between spouses €28,000: €28,000.
|
Joint Income |
€56,000 |
||
|
Spouses Income |
€28,000 |
€28,000 |
|
|
Band Available |
€28,000 |
€28,000 |
|
|
Band Utilised |
€28,000 |
€28,000 |
|
|
Tax liability |
€5,600(€28,000@20%) |
€5,600(€28,000@20%) |
|
|
Gross Tax Due |
€11,200 |
||
|
Less Tax Credits |
(€1,520) |
personal credit |
(€1,520) |
|
= Total credits |
(€3,040) |
||
|
Net Tax Due |
€8,160 |
Example 7
In this example it is assumed that both spouses are self-employed.
Two income family with no dependent children and income split between spouses €37,000: €19,000.
|
Joint Income |
€56,000 |
||
|
Spouses Income |
€37,000 |
€19,000 |
|
|
Band Available |
€37,000 |
€19,000 |
|
|
Band Utilised |
€37,000 |
€19,000 |
|
|
Tax Liability |
€7,400(€37,000@ 20%) |
€3,800(€19,000 @20%) |
|
|
Gross Tax Due |
€11,200 |
||
|
Less Tax Credits |
(€1,520) |
personal credit |
(€1,520) |
|
= Total Credits |
(€3,040) |
||
|
Net Tax Due |
€8,160 |
Example 8
In this example it is assumed that the earner is self-employed.
One Income Family with dependent children.
|
Gross Income |
€56,000 |
||
|
Band Available |
€37,000 |
||
|
Band Utilised |
€37,000 |
||
|
Tax |
€37,000 @ 20% |
= €7,400 |
|
|
€19,000 @ 42% |
= €7,980 |
||
|
Gross Tax Due |
€15,380 |
||
|
Less Tax Credits |
Personal Credit |
(€3,040) |
|
|
Home carers |
(€770) |
||
|
= Total Credits |
€3,810 |
||
|
Net Tax Due |
€11,570 |
Paul McGrath
Ceist:105 Mr. P. McGrath asked the Minister for Finance the number of taxpayers in the PAYE sector and self-employed who availed, per annum, of the home-caring spouse tax allowance since this tax relief was first introduced. [28675/03]
I am informed by the Revenue Commissioners that in respect of PAYE taxpayers claiming the home carer's tax allowance the most up-to-date relevant information available is as at 25 November 2003. The relevant data are as follows:
PAYE taxpayers claiming the home carer's tax allowance.
|
Tax Year |
2000-01 |
2001 |
2002 |
2003 |
|
Claimants |
117,514 |
108,011 |
99,930 |
94,658 |
The latest available information in respect of claimants who are self-employed taxpayers is for the income tax year 2000-01. The corresponding information for later years will not be available until the appropriate data from self-assessment tax returns for tax years 2001 to 2003, inclusive, are received. However, the projected number of potential self-employed claimants is tentatively estimated for later years as follows:
Self-employed taxpayers claiming the home carer's
tax allowance
|
Tax Year |
2000-01 |
2001 |
2002 |
2003 |
|
Claimants |
22,790 |
23,022 |
20,969 |
21,801 |
Paul McGrath
Ceist:106 Mr. P. McGrath asked the Minister for Finance the number of PAYE income earners in a number of income thresholds, or nearest equivalent, in each of the past five years. [28676/03]
Paul McGrath
Ceist:107 Mr. P. McGrath asked the Minister for Finance the number of self-employed workers in the number of income thresholds or nearest equivalent in each of the past five years. [28677/03]
I propose to take Questions Nos. 106 and 107 together.
I assume that what the Deputy requires is the number of PAYE and self-employed income earners on the income tax record for each of the past five years over a range of income categories. I am informed by the Revenue Commissioners that the information requested by the Deputy is as follows:
Distribution of PAYE income earners on tax records, including tax exempt individuals, by ranges of income
|
Range of Gross Income€ |
1999-2000 |
2000-01 |
2001 |
2002 |
2003 |
|
€1 –€10,000 |
454,161 |
429,684 |
415,545 |
395,504 |
378,809 |
|
€10,001 –€20,000 |
414,034 |
406,468 |
390,375 |
373,165 |
353,913 |
|
€20,001 –€30,000 |
250,650 |
293,151 |
314,649 |
317,649 |
318,013 |
|
€30,001 –€40,000 |
143,155 |
168,437 |
178,574 |
192,670 |
201,480 |
|
€40,001 –€50,000 |
77,800 |
102,866 |
120,397 |
128,658 |
137,143 |
|
€50,001 –€60,000 |
41,473 |
55,155 |
71,928 |
82,737 |
89,902 |
|
€60,001 –€70,000 |
23,380 |
32,291 |
37,555 |
45,554 |
55,750 |
|
€70,001 –€80,000 |
13,938 |
21,316 |
25,682 |
30,155 |
33,170 |
|
€80,001 –€100,000 |
12,253 |
20,330 |
26,675 |
34,471 |
38,920 |
|
€100,001 –€125,000 |
5,799 |
10,068 |
14,174 |
17,227 |
20,100 |
|
€125,001 –€150,000 |
2,598 |
5,911 |
5,986 |
6,950 |
9,341 |
|
€150,001 –€200,000 |
2,476 |
4,587 |
6,546 |
8,433 |
8,215 |
|
Over €200,000 |
2,915 |
5,737 |
7,011 |
7,726 |
9,247 |
Distribution of Self-Employed income earners on tax records, including tax exempt individuals, by ranges of income
|
Range of Gross Income€ |
1999-2000 |
2000-01 |
2001 |
2002 |
2003 |
|
€1 –€10,000 |
43,636 |
45,516 |
40,202 |
38,485 |
36,134 |
|
€10,001 –€20,000 |
49,296 |
55,111 |
50,602 |
48,109 |
46,565 |
|
€20,001 –€30,000 |
30,027 |
38,484 |
39,209 |
40,372 |
39,299 |
|
€30,001 –€40,000 |
17,387 |
22,601 |
24,485 |
25,155 |
27,266 |
|
€40,001 –€50,000 |
10,611 |
12,154 |
14,199 |
15,583 |
17,228 |
|
€50,001 –€60,000 |
6,468 |
7,875 |
9,316 |
9,600 |
10,649 |
|
€60,001 –€70,000 |
4,217 |
4,877 |
6,399 |
6,667 |
6,935 |
|
€70,001 –€80,000 |
2,868 |
3,888 |
3,972 |
4,827 |
5,411 |
|
€80,001 –€100,000 |
3,711 |
4,850 |
6,505 |
6,874 |
6,773 |
|
€100,001 –€125,000 |
2,569 |
4,536 |
4,456 |
3,933 |
4,818 |
|
€125,001 –€150,000 |
1,614 |
2,002 |
2,115 |
3,213 |
4,118 |
|
€150,001 –€200,000 |
1,669 |
2,898 |
3,044 |
3,311 |
3,258 |
|
Over €200,000 |
2,831 |
4,208 |
5,376 |
5,750 |
6,542 |
Notes1. A married couple which has elected or has deemed to have elected for joint assessment is counted as one tax unit.
2. The figures for the years 2000-01, 2001 and 2002 have been revised from those quoted in the Deputy's Question No. 207 of 26 November 2002 to take account of more up-to-date base information and revised macro-economic projections of income levels and numbers at work which have become available. The figures for 2001 onwards are projected estimates and may be subject to further revision.
Paul McGrath
Ceist:108 Mr. P. McGrath asked the Minister for Finance the number of self-employed taxpayers who were tax exempt, paid only at the lower rate and paid at the top rate, in each of the past ten years; and if he will give these figures as percentages of the total in this category. [28678/03]
It is assumed that what the Deputy requires is the number in each category as a percentage of all self-employed income earners on the tax record. I am advised by the Revenue Commissioners that the information requested by the Deputy is as follows:
Distribution of self-employed income earners by tax band, 1993-94 to 2003
|
Year |
Exempt |
Standard Rate# |
Higher Rate |
Total |
|||||||
|
Number |
% |
Number |
% |
Number |
% |
Number |
% |
||||
|
1993-94 |
68,580 |
37.5 |
77,047 |
42.1 |
37,374 |
20.4 |
183,000 |
100 |
|||
|
1994-95 |
57,606 |
33.2 |
77,848 |
44.8 |
38,146 |
22.0 |
173,600 |
100 |
|||
|
1995-96 |
58,722 |
32.9 |
80,778 |
45.2 |
39,100 |
21.9 |
178,600 |
100 |
|||
|
1996-97 |
56,973 |
31.2 |
86,583 |
47.4 |
39,144 |
21.4 |
182,700 |
100 |
|||
|
1997-98 |
60,708 |
31.1 |
90,508 |
46.3 |
44,184 |
22.6 |
195,400 |
100 |
|||
|
1998-99 |
57,190 |
28.9 |
89,932 |
45.4 |
50,778 |
25.7 |
197,900 |
100 |
|||
|
1999-00 |
59,711 |
28.6 |
100,869 |
48.3 |
48,120 |
23.1 |
208,700 |
100 |
|||
|
2000-01 |
66,439 |
31.8 |
91,960 |
44.0 |
50,601 |
24.2 |
209,000 |
100 |
|||
|
2001*† |
70,664 |
33.7 |
86,961 |
41.4 |
52,373 |
24.9 |
209,998 |
100 |
|||
|
2002* |
73,159 |
34.5 |
87,364 |
41.2 |
51,477 |
24.3 |
212,000 |
100 |
|||
|
2003* |
71,802 |
33.4 |
87,473 |
40.7 |
55,725 |
25.9 |
215,000 |
100 |
#Includes taxpayers benefiting from marginal relief.
†Short tax "year" from 6 April 2001 to 31 December 2001.
*Provisional and subject to revision.
The figures for the years 2000-01, 2001 and 2002 have been revised from those quoted in Question No. 205, tabled by the Deputy on 26 November 2002, to take account of more up-to-date base information and revised macro-economic projections of income levels and numbers at work which has become available.
From the 1999-2000 tax year onwards, the standard rated personal credits, formerly allowances, and employee credit, formerly PAYE allowance, are deducted after tax is calculated, rather than before the tax calculation as was previously the case. This should be taken into account in comparing figures for 1999-2000 and later years with earlier years. It should be noted that a married couple which has elected or been deemed to have elected for joint assessment is counted as one tax unit.
Paul McGrath
Ceist:109 Mr. P. McGrath asked the Minister for Finance the estimated cost of reducing the top rate of income tax by one point and two points. [28731/03]
I am informed by the Revenue Commissioners that reducing the top rate of income tax by one percentage point and two percentage points would cost the Exchequer an estimated €190 million and €380 million, respectively, in a full year, based on projected 2004 incomes. These figures are provisional and are subject to revision.
Paul McGrath
Ceist:110 Mr. P. McGrath asked the Minister for Finance the estimated cost of increasing the single person tax credit of ?1,520 by ?100, ?200, ?300 and ?400, respectively. [28732/03]
The increases mentioned are assumed to apply in similar measures to single and widowed persons and to include the normal consequential increases in the tax credit for lone parents. Double those amounts are assumed to apply to married couples. On this basis, I am informed by the Revenue Commissioners that the full year costs to the Exchequer, based on projected 2004 incomes, of the increases mentioned by the Deputy are estimated as follows:
|
Increase in Person Tax Credit |
Estimated Full Year Cost |
|
Single/Married |
€m |
|
€100/€200 |
177 |
|
€200/€400 |
351 |
|
€300/€600 |
521 |
|
€400/€800 |
688 |
These figures are provisional and are subject to revision.
Paul McGrath
Ceist:111 Mr. P. McGrath asked the Minister for Finance the estimated cost to the Exchequer in 2002 of tax relief on un-reimbursed medical expenses. [28733/03]
I am informed by the Revenue Commissioners that the most recent relevant information available on medical expenses relates to the income tax year 2000-01, in respect of which some 107,800 claims for tax relief were allowed at an estimated cost to the Exchequer of approximately €41 million.