Tax Credits

Dáil Éireann Debate, Thursday - 24 June 2021

Thursday, 24 June 2021

Ceisteanna (194)

Pearse Doherty

Ceist:

194. Deputy Pearse Doherty asked the Minister for Finance the estimated full-year revenue in 2022 that would be raised by tapering out the personal, employee and earned income tax credits by 2.5 % per €1,000 on individual incomes between €100,000 and €140,000 per year resulting in no entitlement to these credits in cases in which individual income is in excess of €140,000 based on the latest available figures available to the Revenue Commissioners. [34020/21]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the tapering out of tax credits on income above €100,000, at a rate of 2.5% per €1,000 of income, such that the taxpayer has no entitlement to credits at an income level above €140,000, would yield an estimated €236 million and €286 million on a first and full year basis respectively.

I am further advised by Revenue that these estimates are based on tax returns for 2018 (the latest available year) and that, in analysing the gross incomes of taxpayer units at individual level, a range of assumptions were necessarily made in relation to the distribution of credits in such units. Therefore, it is important to note that were such a change implemented, it may lead to outcomes different to the above estimates.