Róisín Shortall (Dublin North West, Labour)
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Question 185: To ask the Minister for Finance the breakdown of tax credits and income tax bill that will apply in 2006 to employees in respect of persons (details supplied), without reference to PRSI, health levies or tax credits other than single, married and employee credits. [39815/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The following examples show the tax credits and bands available in 2006 in the cases outlined by the Deputy. The examples refer to earners in the PAYE sector and are based on the assumption in each case that the married couple is jointly assessed for tax purposes.

Example 1

Single Person

Gross Income €26,000

Band Available €32,000

Band Utilised €26,000

Tax€26,000 @ 20% = €5,200

Gross Tax Due €5,200

Less Tax Credits Personal Credit(€1,630)

Employee Credit(€1,490)

= Total Credits (€3,120)

Net Tax Payable (€2,080)

Example 2

One Income Family

Gross Income €39,000

Band Available €41,000

Band Utilised €39,000

Tax€39,000 @ 20% = €7,800

Gross Tax Due €7,800

Less Tax Credits Married Credit(€3,260)

Employee Credit(€1,490)

= Total Credits (€4,750)

Net Tax Payable (€3,050)

Example 3

Two Income Family and income split between spouses

€35,000: €22,000

Joint Income €57,000

Spouses' Income €35,000

€22,000

Band Available €41,000

€23,000

Band Utilised €35,000

€22,000

Tax€7,000 (35,000 @ 20%)

€4,400 (22,000 @ 20%)

Gross Tax Due €11,400

Less Tax Credits

Personal Credit(€1,630)

(€1,630)

Employee Credit(€1,490)

(€1,490)

= Total Credits (6,240)

Net Tax Payable(5,160)