Leo Varadkar (Dublin West, Fine Gael)
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Question 200: To ask the Tánaiste and Minister for Finance the cost of introducing a middle tax rate of 30% to be applied to the first €10,000 single and €20,000 couple currently paid at the higher rate; and if he will make a statement on the matter. [23875/07]

Leo Varadkar (Dublin West, Fine Gael)
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Question 201: To ask the Tánaiste and Minister for Finance the first €20,000 single and €40,000 couple currently paid at the higher rate; and if he will make a statement on the matter. [23877/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 200 and 201 together.

It is assumed that the thresholds for the proposed new tax bands mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples.

I am advised by the Revenue Commissioners that the full year cost to the Exchequer, estimated by reference to 2008 incomes, of the introduction of each of these 30 per cent rate bands could be of the order of €800 million and €1,300 million, respectively, depending on how the bands were structured. Given the current band structures there would be major issues to be worked out as to how such a new rate could be integrated in practice into the current system and how this would affect the relative position of different types of income earners. These figures are provisional and subject to revision.