Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 28: To ask the Tánaiste and Minister for Finance if he has given consideration to the impact of an expansion of low paid employment on the tax take, both in terms of income tax revenue and revenue from spending taxes. [15243/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Government Policy over the last number of years in relation to low paid workers has been to keep them out of the tax net entirely. As a result, in 2008 it is projected that a total of 878,100 or 37.6% of income earners will be outside the tax net. As provided in the Programme for Government, this Government's priority is to keep low earners out of the standard rate band and average earners out of the higher band. Tax revenues are forecast by the Department of Finance on a disaggregated individual tax-head basis using relevant macroeconomic drivers and, where appropriate, certain elasticity factors. When preparing the Department's forecasts, changes in employment, earnings and consumption patterns are taken into account.