Richard Bruton (Dublin North Central, Fine Gael)
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Question 73: To ask the Tánaiste and Minister for Finance the number of people at work who are paying tax at the 41% rate. [19151/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The information on the records held by the Revenue Commissioners relates to income from work or other sources received by individuals. 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. Allowing for this effect, for 2007, an estimated 438,200 of all income earners are expected to be liable at the higher rate of income tax and will pay tax at a rate greater than 20 per cent. This figure is an estimate from the Revenue tax forecasting model using actual data for the year 2003 adjusted as necessary for income and employment growth for the years in question. It is therefore provisional and likely to be revised. It should be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.