Dáil Éireann Debate, Tuesday - 3 November 2015
283. Deputy Stephen S. Donnelly asked the Minister for Finance for the full year cost of the tax breaks given in budget 2016 to those earning, €70,000; €100,000; and €150,000, in tabular form; and if he will make a statement on the matter. [37162/15]
Amharc ar fhreagraI understand from clarifications given by the Deputy that his Question relates to the impact of the Universal Social Charge (USC) changes and the introduction of the Earned Income Credit (EIC) announced in Budget 2016 on PAYE workers and the self-employed.
I am informed by the Revenue Commissioners that the estimated, full year, combined cost of the USC changes and the introduction of the EIC to those earning gross incomes of €70,000 and over, €100,000 and over and €150,000 and over, for both PAYE and Schedule D income earners, is as set out in the following tables. The figures are cumulative and therefore the figures given in respect of incomes of €70,000 and over, for example, include all incomes above that level.
|
PAYE |
|
|
|
Gross Incomes |
Cost of USC & EIC measures |
Income earners |
|
€70,000 and over |
€272 Million |
311,321 |
|
€100,000 and over |
€132 Million |
140,232 |
|
€150,000 and over |
€45 Million |
52,083 |
|
Schedule D |
|
|
|
Gross Incomes |
Cost of USC & EIC measures |
Income earners |
|
€70,000 and over |
€53 Million |
53,791 |
|
€100,000 and over |
€35 Million |
32,608 |
|
€150,000 and over |
€19 Million |
17,575 |
The retention of the 8% and 11% USC rates, originally provided for in Budget 2015, serve to limit the maximum benefit from the Budget 2016 USC measures and ensure that those with very high incomes will only benefit from USC reductions on their income of up to €70,044. This reinforces the highly progressive nature of the Irish income tax system.
Budget 2016 also increased the USC exemption threshold to €13,000, and it is expected that in 2016 over 700,000 people, approximately 29% of income earners, will be outside the scope of USC. The exemption threshold of €13,000 relates to income liable to USC, and is in addition to any income which is not liable to USC such as social welfare pensions.
All the figures provided are based on estimates for 2016, using the actual data for the year 2013 (the latest year for which data are available) adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.
