Thursday, 8 November 2012

Ceisteanna (116)

Seán Fleming


116. Deputy Sean Fleming asked the Minister for Finance the revenue that would be raised from increasing the universal social charge for PAYE and selfemployed earners by 1%, 2% and 3% respectively for earnings above €120,000; and if he will make a statement on the matter. [49281/12]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, of a 1, 2, and 3 percentage point increase in the rate of Universal Social charge (USC) applying to the incomes of all income earners exceeding €120,000 would be of the order of €56 million, €112 million and €168 million respectively. The Universal Social Charge is an individualised charge and as such, the estimated yields are based on individual incomes of more than €120,000. The estimated yields are based on confining the 1, 2 and 3 percentage point increases to the portion of income which is in excess of €120,000, that is, the increase is not applied to the portion of total income earned up to €120,000.

The figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and likely to be revised.