Dáil Éireann Debate, Tuesday - 25 September 2018
149. Deputy Michael McGrath asked the Minister for Finance the estimated number of persons or income tax cases that in the event of no change to the USC bands or income tax bands in 2019 would move to a different USC band with a higher USC rate; the number that would cross the threshold to start paying income tax at the marginal rate; and if he will make a statement on the matter. [38555/18]
Amharc ar fhreagraThe table on page 3 of the Pre-Budget 2019 Revenue Ready Reckoner which is available on the Revenue website at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx gives the estimated number of taxpayer units paying income tax and USC at the various rates in 2019. The number of taxpayer units moving between the various bands, between 2018 and 2019, are set out in the following table:
|
Estimated number of taxpayer units 2018 |
Estimated number of taxpayer units 2019 |
Difference between number of taxpayer units in 2018 and 2019 |
||
|
Income Tax |
Higher rate (40%) |
531,700 |
595,900 |
64,200 |
|
Standard rate (20%) |
1,128,400 |
1,186,000 |
57,600 |
|
|
Exempt |
956,200 |
941,600 |
-14,600 |
|
|
USC |
8% rate |
224,100 |
243,300 |
19,200 |
|
4.75% rate |
1,114,500 |
1,183,300 |
68,800 |
|
|
2% rate |
507,900 |
521,500 |
13,600 |
|
|
Exempt |
769,800 |
775,500 |
5,700 |
|
|
Paying neither Income Tax or USC |
769,800 |
775,500 |
5,700 |
|
|
Total Income Earners |
2,616,300 |
2,723,500 |
107,200 |
This is only indicative of the number of people who would move as while some of the changes are due to taxpayers moving to a higher tax band, another factor is the growth in the overall number of taxpayer units.
The 2018 estimates have been generated by reference to 2018 incomes as calculated on the basis of actual data for the year 2015. The 2019 estimates have been generated by reference to 2019 incomes as calculated on the basis of actual data for the year 2016, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimates are provisional and may be revised.
