Dáil Éireann Debate, Tuesday - 20 June 2017
343. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer of decreasing the standard rate of PAYE by 1% and 2% respectively; and if he will make a statement on the matter. [28984/17]
Amharc ar fhreagra344. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer of decreasing the higher rate of PAYE by 1% and 2% respectively; and if he will make a statement on the matter. [28985/17]
Amharc ar fhreagra345. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer of decreasing each of the rates of universal social charge by 0.25%, 0.5%, 0.75% and 1% respectively, in tabular form; and if he will make a statement on the matter. [28986/17]
Amharc ar fhreagraI propose to take Questions Nos. 343 to 345, inclusive, together.
Regarding the Deputy’s two questions regarding reductions in the standard and higher rate of PAYE by 1% and 2%, it is assumed that the Deputy is referring to the standard and higher rates of income tax overall rather than the rates of income tax for PAYE employment income only.
I am advised by Revenue that a Post-Budget 2017 Ready Reckoner is available on the Revenue Statistics webpage http://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx . The Deputy may be interested in page 5 of the Ready Reckoner which shows the cost to the Exchequer of decreasing the income tax rates by 1%. Other decreases can be estimated on a straight line basis from the figures published.
In relation to the Exchequer cost of decreasing USC rates, page 5 of the Ready Reckoner also shows a wide range of detailed information, including the estimated cost or yield to the Exchequer of changes to the Universal Social Charge (USC) bands and rates. While the Ready Reckoner does not show all of the specific costings requested by the Deputy, others can be estimated on a pro-rata basis with those displayed in the Reckoner. For example, the full year cost of decreasing the 2.5% USC rate to 1.5% is estimated to be €159 million. Other decreases can be estimated on a straight line basis.
