Thursday, 8 November 2012

Ceisteanna (116)

Seán Fleming

Ceist:

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.