Dáil Éireann Debate, Tuesday - 13 November 2012
228. Deputy Joe Higgins asked the Minister for Finance the current average effective rate of tax including PRSI and universal social charge of persons earning within the bands (details supplied) and the amount of additional revenue that would be collected if the nominal and effective rates were adjusted. [49624/12]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2012 incomes, that would result from increasing the nominal tax rates of income earners as proposed by the Deputy would be of the order of €859 million. A breakdown of the figures, by range of taxable income, is set out in the table.
Nominal Tax Rates
|
Range of Taxable Income |
Nominal Rate Proposed |
Tax Increase Proposed |
|
€ |
€m |
|
|
90,001-100,000 |
48% |
0 |
|
100,001-120,000 |
50% |
17.9 |
|
120,001-140,000 |
55% |
43.2 |
|
140,001-160,000 |
60% |
54.9 |
|
160,001-180,000 |
65% |
59.8 |
|
180,001-200,000 |
68% |
56.1 |
|
200,001-250,000 |
70% |
110.7 |
|
250,001-1,000,000 |
75% |
404.9 |
|
Over 1,000,000 |
78% |
111.1 |
|
TOTAL |
858.6 |
It is assumed that the total existing nominal rate, as is indicated for the income range €90,000 - €100,000, is composed of an aggregate of the top USC rate of 7% and the top income tax rate of 41%. It is assumed PRSI is not taken into account. On that basis the proposed increases in the aggregate nominal rates commencing with income range €100,000 - €120,000 are assumed for the purpose of estimating the Exchequer yields to take the form of an increase in the top income tax rate of 41%, applying as 43% to taxable income range €100,000 - €120,000, as 48% applying to taxable income range €120,000 - €140,000, and successively increasing over the stated ranges to arrive at a rate of 71% applying to taxable income in excess of €1 million.
The results shown in the table for the nominal rate of 75% as proposed for a sequence of income ranges, commencing at €250,000 and concluding at €1,000,000, have of necessity been presented in the table as a single range to reflect the method of estimation by the Revenue tax-forecasting model. I am also advised by the Revenue Commissioners that the full year yield, estimated by reference to 2012 incomes, that would result from increasing the effective tax rates of income earners as proposed by the Deputy would be of the order of €1.3 billion. A breakdown of the figures by range of gross income, is set out in the table.
|
Range of gross income |
Gross Income |
Tax/USC/ PRSI |
Effective Tax Rate |
Proposed Rate |
Proposed New Tax/USC/ PRSI |
Proposed Tax Increase |
|
€ |
€ |
€ |
€ |
€m |
||
|
90,001-100,000 |
3,174,795,435 |
936,659,669 |
29.50% |
31.0% |
984,186,585 |
47.5 |
|
100,001-120,000 |
4,565,439,796 |
1,430,393,858 |
31.33% |
34.0% |
1,552,249,531 |
121.9 |
|
120,001-140,000 |
2,983,516,699 |
993,161,460 |
33.29% |
36.0% |
1,074,066,012 |
80.9 |
|
140,001-160,000 |
1,960,277,282 |
678,721,677 |
34.62% |
37.0% |
725,302,594 |
46.6 |
|
160,001-180,000 |
1,359,220,515 |
481,690,586 |
35.44% |
38.0% |
516,503,796 |
34.8 |
|
180,001-200,000 |
1,013,060,376 |
366,091,852 |
36.14% |
39.0% |
395,093,547 |
29.0 |
|
200,001-250,000 |
1,791,691,539 |
658,452,673 |
36.75% |
44.0% |
788,344,277 |
129.9 |
|
250,001-300,000 |
1,177,244,030 |
438,294,588 |
37.23% |
47.0% |
553,304,694 |
115.0 |
|
300,001-350,000 |
850,570,163 |
318,196,139 |
37.41% |
50.0% |
425,285,082 |
107.1 |
|
350,001-400,000 |
608,215,973 |
232,244,256 |
38.18% |
50.0% |
304,107,987 |
71.9 |
|
400,001-450,000 |
491,782,546 |
186,358,473 |
37.89% |
50.0% |
245,891,273 |
59.5 |
|
450,001-500,000 |
386,210,649 |
147,475,511 |
38.19% |
50.0% |
193,105,325 |
45.6 |
|
500,001-750,000 |
1,218,485,106 |
467,037,155 |
38.33% |
52.0% |
633,612,255 |
166.6 |
|
750,001-1,000,000 |
552,453,776 |
217,533,809 |
39.38% |
52.0% |
287,275,964 |
69.7 |
|
Over 1,000,000 |
1,734,701,664 |
708,847,488 |
40.86% |
53.0% |
919,391,882 |
210.5 |
|
TOTAL |
1,336.5 |
It should be noted that the figures for tax and effective tax rate include income tax, PRSI and Universal Social Charge (USC). The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends in the interim. These are, therefore, provisional and likely to be revised. In addition, it should be noted that Gross Income is as defined in the Revenue Statistical Report 2010.
