Dáil Éireann Debate, Tuesday - 24 July 2018
230. Deputy Thomas P. Broughan asked the Minister for Finance the estimated amount that would be raised in 2019 if the minimum effective tax rate of persons earning in excess of €300,000 per year increased from 30% to 35%; and if he will make a statement on the matter. [33517/18]
Amharc ar fhreagraI assume the Deputy is referring to the high earners restriction which limits the use of certain tax reliefs and exemptions (known as “specified reliefs”) by high-income individuals. A comprehensive analysis of the high earners restriction is published on an annual basis. These reports are available on my Department's website, http://www.finance.gov.ie, and on Revenue’s website at:
http://www.revenue.ie/en/corporate/information-about-revenue/research/statistical-reports/high-income-earners-reports.aspx
The latest full year for which information is published is 2014 and updates for 2015 and 2016 will be published in due course.
The Deputy will note from Table 2A on Page 8 of the 2014 Report (see below), that the average effective rate of income tax, for cases with income in excess of €300,000 per year to which the high earners restriction applies, was already greater than 35%. As the average effective rate already exceeds the higher rate proposed by the Deputy, no additional yield would arise from increasing the rate from 30% to 35%.
|
Range of Adjusted Income |
Number of Cases |
Income Tax before Restriction |
Income Tax after Restriction |
Additional Income Tax after application of Restriction |
Average Effective Rate before application of Restriction |
Average Effective Rate after application of Restriction |
Tax including USC payable after Restriction |
Average Effective Rate (including USC) |
|
€ |
€ |
€ |
% |
% |
€ |
% |
€ |
% |
|
Under 125,000 |
15 |
182,391 |
287,303 |
104,912 |
6.60% |
11.10% |
459,126 |
19.22% |
|
125,001 to 160,000 |
140 |
899,292 |
2,570,460 |
1,671,168 |
5.90% |
11.10% |
4,707,090 |
21.30% |
|
160,001 to 200,000 |
124 |
1,143,413 |
3,991,765 |
2,848,352 |
8.30% |
17.20% |
6,641,254 |
28.81% |
|
200,001 to 250,000 |
125 |
1,970,366 |
6,216,234 |
4,245,869 |
10.60% |
21.20% |
9,144,940 |
31.41% |
|
250,001 to 325,000 |
118 |
3,634,673 |
9,097,140 |
5,462,467 |
14.10% |
25.60% |
12,392,497 |
35.18% |
|
325,001 to 399,999 |
74 |
2,487,914 |
7,715,593 |
5,227,679 |
15.40% |
28.60% |
10,341,375 |
38.31% |
|
Totals |
596 |
10,318,049 |
29,878,495 |
19,560,447 |
10.36% |
19.53% |
43,686,282 |
29.80% |
The 2014 report is available at the following link:
http://www.revenue.ie/en/corporate/documents/research/ror-2014-report.pdf.
