Dáil Éireann Debate, Thursday - 20 September 2012
37. Deputy Brendan Griffin asked the Minister for Finance if he will consider a third rate of income tax for very high earners; the amount of additional revenue that would be generated by a rate of income tax for earners of €100,000 and over of 45%, 46%, 47%, 48%, 49% and 50%; and if he will make a statement on the matter. [39823/12]
Amharc ar fhreagraIt is assumed that the threshold for the proposed new tax rates 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 each of the proposed new rates of 45%, 46%, 47%, 48%, 49% and 50% would be of the order of €210 million, €260 million, €315 million, €365 million, €415 million and €470 million respectively.
However, given the current band structures, major issues would need to be resolved as to how in practice such new rates could be integrated into the current system and how this would affect the relative position of different types of income earners. These figures are estimates 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.
