I propose to take Questions Nos. 482 and 483 together.
It is assumed that the levy proposed by the Deputy, would be chargeable on the same income definition to which Income Levy currently applies and on income over €100 and €200 per week, taken to mean €5,200 and €10,400 per annum respectively. It is also assumed that there are no other exemptions, thresholds or ceilings to reduce the yield.
I am advised by the Revenue Commissioners that the estimated yields in respect of the levy proposed by the Deputy on incomes, earned and unearned, over €100 and over €200 per week and at the rates of 4%, 5% and 6% are set out in the table below.
Income per week
|
Estimated Full Year Yield
|
|
@4%
|
@5%
|
@6%
|
Over €100
|
€2,680m
|
€3,350m
|
€4,025m
|
Over €200
|
€2,240m
|
€2,800m
|
€3,360m
|
These figures are estimates from the Revenue tax-forecasting model using actual data from the 2008 adjusted as necessary for income and employment trends for the year 2011. They are therefore provisional and are likely to be revised.
As regards the application of such a charge to social welfare payments, I have been informed by the Department of Social Protection that without further clarification in relation to the question, it would be difficult to answer accurately. It is not clear, for example, whether the proposed charge would apply equally to a single individual in receipt of a personal rate social welfare payment or a person claiming and receiving a personal rate of payment and an additional allowance on behalf of a dependent. It is also not clear whether it would apply to secondary payments (e.g. rent supplement or fuel allowance). If the Deputy is willing to clarify the possible application of the levy to social welfare payments directly to the Department of Social Protection, I am informed that it may be possible to provide an answer.