Finian McGrath
Ceist:241. Deputy Finian McGrath asked the Minister for Finance the amount of extra revenue that would be raised by increasing income tax on couples earning €120,000 if there was a 5% tax increase. [38006/12]
Amharc ar fhreagraTuesday, 18 September 2012
Ceisteanna (241, 316)
Finian McGrath
Ceist:316. Deputy Finian McGrath asked the Minister for Finance if he will provide details on the extra revenue that would be raised by an increase of 5% on taxation for single persons earning in excess of €120,000. [38646/12]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 241 and 316 together.
It is assumed that the threshold for the proposed new tax rate 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 2013 incomes, of the introduction of a new 46% rate on individual incomes in excess of €120,000 would be of the order of €214 million, with some €176 million of that yield derived solely from applying the change to all married couples.
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. These figures are an estimate from the Revenue tax-forecasting model using latest actual data for the year 2010, adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and subject to revision.
Question No. 242 answered with Question No. 188.