Tuesday, 13 May 2014

Ceisteanna (184, 203)

Michael McGrath

Ceist:

184. Deputy Michael McGrath asked the Minister for Finance the cost in 2015 of retaining the exemption which is due to expire on 1 January 2015 from the 7% rate of universal social charge for those on medical cards who have an aggregate income below €60,000; and if he will make a statement on the matter. [21112/14]

Amharc ar fhreagra

Michael McGrath

Ceist:

203. Deputy Michael McGrath asked the Minister for Finance the yield that would be realised from retaining in 2015 the 10% rate of USC for self employed persons earning more than €100,000 per annum; and if he will make a statement on the matter. [21220/14]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 184 and 203 together.

I am advised by the Revenue Commissioners that the estimated full year cost, estimated by reference to 2014 incomes, of retaining the exemption from the 7% rate of Universal Social Charge (USC) for those on medical cards with an aggregate annual income below €60,000 is tentatively estimated in the order of €102 million. I am further advised by the Revenue Commissioners that the yield from retaining the 10% rate of USC, which is currently applicable to self-employed income in excess of €100,000, estimated by reference to 2014 incomes, would be of the order of €123 million.

These costing are provisional. The basic calculations are derived from the Revenue tax forecasting model using actual data for the year 2011 adjusted as necessary for income, employment and self-employment trends in the interim. While not directly available from tax records, recent data exchanges between Revenue and the HSE mean medical card holders can be identified and linked to Revenue's taxpayer records. Based on this, it is estimated that 20% of earners with USC liable income between €16,016 and €60,000 hold a medical card and this is the basis for the above costing.