Dáil Éireann Debate, Tuesday - 24 July 2018
209. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the PAYE and earned income credit by 5% per €1,000 on individual income between €100,000 and €120,000 per year, resulting in no entitlement to these tax credits when income is in excess of €120,000, coupled with an additional USC rate (details supplied); and if he will make a statement on the matter. [33212/18]
Amharc ar fhreagra210. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned income credit by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000, coupled with an additional USC rate (details supplied); and if he will make a statement on the matter. [33213/18]
Amharc ar fhreagra211. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned income credit by 2% per €1,000 on individual income between €100,000 and €150,000 per year, resulting in no entitlement to these tax credits when income is in excess of €150,000, coupled with an additional USC rate (details supplied); and if he will make a statement on the matter. [33214/18]
Amharc ar fhreagraI propose to take Questions Nos. 209 to 211, inclusive, together.
I am advised by Revenue that the yields associated with the introduction of both a tapering of credits together with an additional rate of USC at various levels and rates as proposed by the Deputy are provided in the following tables. The additional rate of USC is applied as a surcharge on income over the specified levels, in addition to the standard USC rate of 8%.
|
Tapering of PAYE and Earned Income credits plus additional USC rate, at income levels in excess of €120,000, of: |
First Year €m |
Full Year €m |
|
2% |
403 |
496 |
|
3% |
482 |
605 |
|
4% |
562 |
714 |
|
5% |
642 |
823 |
|
6% |
722 |
932 |
|
7% |
802 |
1,041 |
|
Tapering of PAYE, Personal and Earned Income credits plus additional USC rate, at income levels in excess of €140,000, of: |
First Year €m |
Full Year €m |
|
2% |
638 |
785 |
|
3% |
708 |
881 |
|
4% |
777 |
978 |
|
5% |
847 |
1,074 |
|
6% |
917 |
1,170 |
|
7% |
986 |
1,267 |
|
Tapering of PAYE, Personal and Earned Income credits plus additional USC rate, at income levels in excess of €150,000, of: |
First Year €m |
Full Year €m |
|
2% |
589 |
726 |
|
3% |
655 |
817 |
|
4% |
720 |
908 |
|
5% |
786 |
1,000 |
|
6% |
852 |
1,091 |
|
7% |
917 |
1,183 |
I am informed by Revenue that the data above provides the cost of tapering on a taxpayer unit basis (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). It is not possible to provide this costing on an individual taxpayer basis.
These estimates are generated on estimated incomes in 2018, using latest actual data for the year 2015, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.
It should be noted that the above estimates do not take account of any behavioural or other impacts that might arise upon implementation of the measures costed.
