Dáil Éireann Debate, Wednesday - 23 May 2012
59 Deputy Patrick Nulty asked the Minister for Finance the potential yield from the introduction of a new third rate of income tax of 48% for those earning more than €80,000 per annum; if he will consider the introduction of such a tax; and if he will make a statement on the matter. [25412/12]
Amharc ar fhreagraIt is assumed that the threshold for the proposed new tax band mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples. I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2012 incomes, of the introduction of a new 48% rate would be of the order of €490 million. However, given the current band structures, major issues would need to be resolved as to how in practice such a new rate could be integrated into the current system and how this would affect the relative position of different types of income earners. This figure is an estimate from the Revenue tax-forecasting model using latest actual data for the year 2009, adjusted as necessary for income and employment trends for the year 2012. It is, therefore, provisional and subject to revision.
It is a long-standing practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.
