Leo Varadkar (Dublin West, Fine Gael)
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Question 63: To ask the Tánaiste and Minister for Finance the estimated cost of introducing a middle income tax rate of 35% to be applied to all those with an income in a band of €35,400 to €50,000 for a single person, €44,000 to €60,000 for a married couple with one income and €70,800 to €100,00 for a married couple with two incomes; and if he will make a statement on the matter. [13753/08]

Leo Varadkar (Dublin West, Fine Gael)
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Question 67: To ask the Tánaiste and Minister for Finance the estimated cost of introducing a middle income tax rate of 30% to be applied to all income in a band of €35,400 to €50,000 for a single person, €44,400 to €60,000 for a married couple with one income and €70,800 to €100,000 for a married couple with two incomes; and if he will make a statement on the matter. [13802/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 63 and 67 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 35% and 30% rate bands could be of the order of €560 million and €1,020 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.