Tuesday, 19 February 2013

Ceisteanna (266)

Aodhán Ó Ríordáin


266. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the potential earnings for the Exchequer of the introduction of a 1% income tax increase for all earners over €100,000. [8408/13]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

It is assumed that the threshold for the proposed new income 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. On that basis, 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 42% income tax rate, would be of the order of €52 million. 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.

This figure is 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.