Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy is right in his first question. Someone on €35,000 will benefit from the electricity credit that has been brought in and the rent credit that we will come to in a moment but at that level of income they are also outside the means-tested benefits that have been changed by the Minister for Social Protection. I accept the Deputy's point but I would still make the case that it is very unfair, and we do need to make progress on it in an affordable way, that somebody who is on an average wage is on a higher rate of income tax. The Deputy and I differ on that and it is fine. I am also particularly conscious of these issues after the recent developments in our jobs market which remind us of the need for our country to have a competitive personal tax offering to attract and keep international jobs and investment. That is another reason we should make progress on average wage earners being on the higher rate of tax. The Deputy and I differ on that and we have been exchanging views on it for some time. I respect the Deputy's view just as he does mine but I stand over my core contention that those on €39,000 who are working very hard should not pay the higher rate of income tax. I believe we should change that.

Regarding the difference in our figures, it is estimated that, on a pre-budget 2023 basis, 742,900 taxpayers pay tax at the higher rate of 40%. However, it should be noted that this number excludes taxpayers whose liability at the higher rate of tax is fully covered by their tax credits. Instead, those taxpayers are allocated to the standard rate grouping. On a post-budget 2023 basis, it is estimated that 644,100 taxpayers pay tax at the higher rate of 40%. Some 98,800 taxpayer units will be removed from the higher tax bracket either as a result of the increase in the standard rate cut-off point, the increase in tax credits that offset their liability to tax at 40% or a combination of both. That is the difference between our two figures.