Tax Code

Dáil Éireann Debate, Tuesday - 13 October 2015

Tuesday, 13 October 2015

Ceisteanna (46)

Dara Calleary

Ceist:

46. Deputy Dara Calleary asked the Minister for Finance the cost to the Exchequer of introducing a 30% flat rate tax to attract skilled foreign workers; the loss to the Exchequer compared to normal income tax, pay related social insurance and the universal social charge rates that currently apply for a person earning €30,000; €35,000; €40,000; €45,000; €50,000; €60,000; €65,000; €70,000; €75,000; €80,000; €85,000; €90,000; €95,000; €100,000 in gross income per year, over a five year period on this reduced tax rate; and if he will make a statement on the matter. [35300/15]

Freagraí scríofa

Minister for Finance

Details for each pay level are listed below, comparing the current net income of a single employee to that of an individual on a 30% flat tax rate, replacing income tax, USC amd PRSI. For the purposes of the calculation no tax credits are available against the flat rate tax proposal. In the absence of numbers of individuals that might avail of such a scheme, it is not possible to forecast an overall cost for the proposal.

Income (€)	Income Tax (€)	PRSI	USC	Net Income (€)	30% flat tax	Net Income (€)	Yield(+)/ Cost (-) per annum	Yield (+)/ Cost (-) over 5 years
30,000	2,700	1,200	1,245	24,855	9,000	21,000	3,855	19,275
35,000	3,940	1,400	1,595	28,065	10,500	24,500	3,565	17,825
40,000	5,940	1,600	1,945	30,515	12,000	28,000	2,515	12,575
45,000	7,940	1,800	2,295	32,965	13,500	31,500	1,465	7,325
50,000	9,940	2,000	2,645	35,415	15,000	35,000	415	2,075
60,000	13,940	2,400	3,345	40,315	18,000	42,000	-1,685	-8,425
65,000	15,940	2,600	3,695	42,765	19,500	45,500	-2,735	-13,675
70,000	17,940	2,800	4,045	45,215	21,000	49,000	-3,785	-18,925
75,000	19,940	3,000	4,444	47,616	22,500	52,500	-4,884	-24,420
80,000	21,940	3,200	4,844	50,016	24,000	56,000	-5,984	-29,920
85,000	23,940	3,400	5,244	52,416	25,500	59,500	-7,084	-35,420
90,000	25,940	3,600	5,644	54,816	27,000	63,000	-8,184	-40,920
95,000	27,940	3,800	6,044	57,216	28,500	66,500	-9,284	-46,420
100,000	29,940	4,000	6,444	59,616	30,000	70,000	-10,384	-51,920