Dáil Éireann Debate, Thursday - 29 September 2016
100. Deputy Richard Boyd Barrett asked the Minister for Finance the cost in 2017 of abolishing the USC for all those earning less than €40,000 and reducing the USC by half for those earning less than €70,000. [28028/16]
Amharc ar fhreagra103. Deputy Richard Boyd Barrett asked the Minister for Finance the projected yield in 2017 of establishing new PAYE bands (details supplied). [28034/16]
Amharc ar fhreagraI propose to take Questions Nos. 100 and 103 together.
I am advised by the Revenue Commissioners that the estimated first and full year cost to the Exchequer of implementing the USC measures suggested by the Deputy is in the order of €2,035 million and €2,373 million respectively. In developing these estimates, it was assumed that no USC would be paid on the first €40,000 (effectively abolishing the 1% and 3% USC rates and bands), the next €30,000 up to €70,000 would be subject to a 2.75% USC rate (half the 5.5% USC rate) and the current rate of 8% would continue on income over €70,000 as well as the 3% surcharge on the portion of self-employed income over €100,000.
In relation to introducing a 50% income tax rate on income between €100,000 and €140,000, a 55% income tax rate on income between €140,000 and €180,000, a 60% rate on income between €180,000 and €250,000 and a 65% rate on all income over €250,000, I am advised by Revenue that the estimated first and full year yield to the Exchequer is in the order of €1,199 million and €1,580 million respectively.
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2014, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to projected 2017 incomes. They are provisional and may be revised.
