Written answers

Thursday, 27 October 2005

5:00 pm

Paul McGrath (Westmeath, Fine Gael)
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Question 149: To ask the Minister for Finance the estimated cost of reducing the top rate of income tax (details supplied) by one point or two points. [31240/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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By reference to the 2006 pre-budget ready reckoner prepared by the Revenue Commissioners the full-year costs to the Exchequer of reducing the top rate of income tax by one percentage point and two percentage points are estimated to be €205 million and €415 million, respectively.

These figures are provisional, subject to revision and estimated to the nearest €5 million. The ready reckoner is available on my Department's website, www.finance.gov.ie.

Paul McGrath (Westmeath, Fine Gael)
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Question 150: To ask the Minister for Finance the estimated cost of increasing the single person tax credit of €1,580 by €100, €200, €300 or €400. [31241/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The increases mentioned in the question are assumed to apply in similar measures to single and widowed persons and to include the normal consequential increases in the tax credit for lone parents. These amounts doubled are assumed to apply to married couples. On this basis, and by reference to the 2006 pre-budget ready reckoner prepared by the Revenue Commissioners, the full-year costs to the Exchequer of the increases mentioned by the Deputy are estimated as follows:

Increase in personal tax credit Estimated full-year cost
Single/Marriedâ'¬m
€100/€200 190
€200/€400 380
€300/€600 570
€400/€800 760

These figures are provisional, subject to revision and estimated to the nearest €5 million. The ready reckoner is available on my Department's website, www.finance.gov.ie.

Paul McGrath (Westmeath, Fine Gael)
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Question 151: To ask the Minister for Finance the estimated cost of increasing the PAYE allowance of €1,270 by €100, €200, €300 or €400. [31242/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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By reference to the 2006 pre-budget ready reckoner prepared by the Revenue Commissioners the full-year costs to the Exchequer of the increases mentioned by the Deputy are estimated as follows:

Increase in employee (PAYE) credit.
Estimated full-year costâ'¬m
â'¬100 130
â'¬200 265
â'¬300 395
â'¬400 530

These figures are provisional, subject to revision and are estimated to the nearest €5 million. The ready reckoner is available on my Department's website, www.finance.gov.ie.

Paul McGrath (Westmeath, Fine Gael)
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Question 152: To ask the Minister for Finance the estimated costs to the Exchequer in 2003 of tax relief on medical expenses. [31243/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the most recent relevant information available on medical expenses relates to the income tax year 2002, in respect of which some 143,900 claims for tax relief were allowed at an estimated cost to the Exchequer of approximately €63 million.

Paul McGrath (Westmeath, Fine Gael)
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Question 153: To ask the Minister for Finance the amount of income tax and PRSI payable by a single PAYE worker in each of the past five years where gross income in each year was €30,000, €40,000, €50,000, €60,000, €70,000, €80,000 and €100,000 assuming only personal and PRSI allowances are applicable. [31244/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Income tax* and PRSI** payable by a single PAYE worker, 2001-2005.
Income (€) 2001 2002 2003 2004 2005
â'¬â'¬â'¬â'¬â'¬
30,000 Income tax 5,108 4,260 4,120 3,880 3,282
PRSI 936 936 936 936 936
40,000 Income tax 9,308 8,460 8,320 8,080 7,482
PRSI 1,196 1,291 1,336 1,336 1,336
50,000 Income tax 13,508 12,660 12,520 12,280 11,682
PRSI 1,242 1,341 1,402 1,463 1,534
60,000 Income tax 17,708 16,860 16,720 16,480 15,882
PRSI 1,273 1,377 1,438 1,498 1,569
70,000 Income tax 21,908 21,060 20,920 20,680 20,082
PRSI 1,298 1,402 1,463 1,524 1,600
80,000 Income tax 26,108 25,260 25,120 24,880 24,282
PRSI 1,313 1,418 1,480 1,544 1,620
100,000 Income tax 34,508 33,660 33,520 33,280 32,682
PRSI 1,338 1,443 1,509 1,575 1,650
(Rounded to the nearest euro).
*Assumes that the single person receives the personal allowance or personal credit and the PAYE allowance or employee credit, as appropriate, in the year in question.
**Assumes the person is insured under class A, full-rate, PRSI and that the individual's salary does not fluctuate from week to week over the course of the given year. The calculations do not include the health levy contribution of 2% applicable to all income over the threshold of €18,512 per annum for the tax years 2001 to 2004 and €20,800 per annum for the tax year 2005.

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