Dáil Éireann Debate, Thursday - 28 September 2017
96. Deputy Niall Collins asked the Minister for Finance the estimated cost to the Exchequer in a full year of the proposal as suggested by An Taoiseach recently to allow the higher income tax entry point here to be calculated at €150,000; and if he will make a statement on the matter. [41209/17]
Amharc ar fhreagraI am advised by Revenue that the estimated first and full year cost to the Exchequer of increasing the entry point to the 40% Income Tax rate for all income earners to €150,000 is in the order of €4,257 million and €4,915 million respectively. This change in the Income Tax structure would mean that the 40% Income Tax rate would only begin to apply on gross income that is in excess of €150,000.
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2015, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2018 incomes and are provisional and may be revised.
However, I understand that the Deputy’s question relates to a reference by An Taoiseach to the higher rate of income tax in France not becoming payable until income exceeds €150,000. A relevant point to note in this regard is that the French tax system includes a range of four rates of income tax applying over a number of income bands, in contrast to the current two rates of income tax (not including Universal Social Charge) in Ireland. The entry point into the highest generally-applying band of taxation on income in Ireland is currently €70,044, the point from with the 8% rate of USC becomes payable.
