John Gormley (Dublin South East, Green Party)
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Question 221: To ask the Minister for Finance the number of people who earn over €200,000 per annum here; the tax generated at a rate of 45% from those who earn above €200,000 per annum; and if he will make a statement on the matter. [7644/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners the number of income earners expected to be on the income tax records in 2006 with gross incomes in excess of €200,000 is projected at 17,800.

It is assumed the Deputy wishes to ascertain the amount of income tax directly attributable to the top rate of income tax, which is currently set at 42%. As the application of the tax rates in a tax computation occurs before tax credits are applied, the credits are not apportioned between the tax charged at the different tax rates and it is not possible to quantify the tax charged at the different rates on a post-tax credit basis.

However, I would refer the Deputy to page B.23 of the budget 2006 booklet, which contains a table detailing where all tax reliefs go. He will see that, of the €10.8 billion in relief for the tax year 2002, €5.6 billion or 52% went on personal tax credits and reliefs, €3.4 billion or 31% to help fund pensions and savings and over €1 billion or 10% on capital allowances for traders, including farmers, to ensure their viability and job creation capacity. The vast bulk of tax relief each year thus goes to ordinary taxpayers at all income levels and to sustain business investment and jobs. In addition, the 17,800 income earners earning over €200,000 in 2006 represent approximately 0.9% of all income earners. It is estimated that the top 0.9% of income earners will account for approximately 20% of total income tax receipts in 2006.