Séamus Kirk (Louth, Fianna Fail)
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Question 146: To ask the Minister for Finance the percentage of PAYE workers who are outside the tax net; the percentage of PAYE workers on the lower rate of tax; the percentage of PAYE workers who pay the combined lower and higher rate of tax; and if he will make a statement on the matter. [6985/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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There are many taxpayers who are nominally liable at the higher rate of tax but who effectively pay tax at no more than the standard rate of tax. This is due to their higher rate liability for tax being fully offset by the value of their personal credits, as explained in pages C23 to C28 of the 2007 Budget booklet.

Assuming the enactment of the Budget 2007 measures in the Finance Bill it is estimated that, allowing for this effect, an estimated 39.6 % of all PAYE income earners will be exempt from tax, 41% will pay tax at an effective rate of 20% or less and 19.3% will pay tax at an effective rate of more than 20%.