Tax Data

Dáil Éireann Debate, Tuesday - 4 July 2017

Tuesday, 4 July 2017

Ceisteanna (132, 133, 134, 135, 136, 137)

Pearse Doherty

Ceist:

132. Deputy Pearse Doherty asked the Minister for Finance the number of persons with an annual income over €100,000. [31516/17]

Pearse Doherty

Ceist:

133. Deputy Pearse Doherty asked the Minister for Finance the number of self-employed persons that are subject to the 3% USC levy which is assessed on an individual basis on income over €100,000. [31517/17]

Pearse Doherty

Ceist:

134. Deputy Pearse Doherty asked the Minister for Finance the estimated income that would be raised by increasing the self-employed levy on income over €100,000 of 3% to 10%, respectively. [31518/17]

Pearse Doherty

Ceist:

135. Deputy Pearse Doherty asked the Minister for Finance the estimated income that would be raised from introducing a new USC levy on all income earners with individual income over €100,000 of 2% to 7%, respectively, to be applied in the same way in which USC is currently applied on an individual basis. [31519/17]

Pearse Doherty

Ceist:

136. Deputy Pearse Doherty asked the Minister for Finance the number of persons liable for PAYE that have employer PRSI applied on an individual basis on annual income of over €100,000. [31520/17]

Pearse Doherty

Ceist:

137. Deputy Pearse Doherty asked the Minister for Finance the cost of abolishing the 3% USC surcharge on the self employed with income over €100,000. [31521/17]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 132 to 137, inclusive, together.

The personal tax system is comprised of two charges, income tax and USC, each of which has a different tax base.  For the purposes of income tax, Revenue records incomes at tax unit level (married persons or civil partners who have elected or who have been deemed to have elected for joint assessment are counted as one tax unit) rather than at the individual level. However, using Income Tax returns information it is possible to identify the incomes of individuals used to assess USC liability, which is an individualised tax. On this basis, using information for the year 2015, the latest year for which data are available, 81,794 individuals had annual income for the purposes of USC of over €100,000.

As regards the 3% USC surcharge applicable to self-employed income in excess of €100,000, 12,299 persons were subject to the charge in 2015, the latest year for which data are available.

I am advised by Revenue that the estimated first and full year yields to the Exchequer of increasing the self-employed levy on income over €100,000 as set out by the Deputy are outlined in the table below. These estimates have been developed on the basis that the proposed levies would replace the existing 3% USC levy on self-employed income earners who earn in excess of €100,000.

USC levy on self-employed with income in excess of €100,000	First Year (Millions €)	Full Year (Millions €)
3%	No Change	No Change
4%	23	41
5%	46	82
6%	69	123
7%	92	164
8%	115	205
9%	138	246
10%	160	287

As regards the cost of abolishing the 3% USC surcharge on the self-employed with income over €100,000, I am advised by Revenue that the estimated first and full year cost to the Exchequer of this measure is €69 million and €123 million respectively.

As regards introducing a new USC levy on all income earners with individual income over €100,000, the estimated first and full year yields to the Exchequer of introducing the measures as set out by the Deputy are outlined in the table below. These estimates are net yields derived on the basis that the proposed USC levies would replace the existing 3% levy on self-employed income earners who earn in excess of €100,000.  The estimates therefore incorporate both the cost of abolishing the current 3% levy on self-employed income and the yield from introducing a new levy at the specified percentage on all income in excess of €100,000.

USC levy on all individual income in excess of €100,000	First Year (Millions €)	Full Year (Millions €)
2%	84	79
3%	160	180
4%	236	280
5%	312	381
6%	388	482
7%	465	583

In relation to the number of persons liable for PAYE that have employer PRSI applied on an individual basis on annual income of over €100,000, I would point out that PRSI is applied to earnings on a weekly basis and not by reference to cumulative annual income.  I am informed by the Department of Social Protection that, in 2016, there were 197,902 employments which had a weekly income of over €1,923 in at least one week of the year.  However, this does not necessarily mean that annual income was over €100,000 for each one of these employments, as to reach this amount annually would require 52 weeks of employment at this income.

These above 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.