Dáil Éireann Debate, Wednesday - 13 July 2022
170. Deputy Ged Nash asked the Minister for Finance the estimated additional yield from increasing the effective rate to 40% for all those earning in excess of €200,000; and if he will make a statement on the matter. [38681/22]
Amharc ar fhreagraI am advised by Revenue that taxpayer units on taxable incomes in excess of €200,000 had an effective tax rate of 42.1% in 2019. It is important to point out that this effective tax rate of 42.1% is in respect of income tax and Universal Social Charge and it does not include PRSI.
Therefore, it is assumed the Deputy is seeking the estimated additional yield from increasing the effective income tax rate to 40% on taxpayer units earning in excess of €200,000. On that basis, I am advised by Revenue that taxpayer units on taxable incomes in excess of €200,000 had a combined taxable income of €11,996m with a combined income tax liability of €4,137m, in 2019. As such, these taxpayers paid an average effective income tax rate of 34.5%. If the effective income tax rate applied to this income was 40%, the estimated increased amount of income tax collected would have been €660m approximately.
