Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 230: To ask the Minister for Finance the number and proportion of taxpayers for the years 2007 and to date in 2008 paying tax at the standard rate who are nominally liable to pay tax at the higher rate before tax credits and reliefs are taken into account. [31989/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that the information requested by the Deputy is as follows in respect of the income tax years 2007 and 2008.

Because of the operation of tax credits, many taxpayers who are nominally liable at the higher rate of tax 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. The above data allows for this effect. What matters to earners is the amount of their earnings that they keep in their pockets. For all income earners, whether single or married, the position is that their take home pay has increased very significantly in real terms over the last number of years.

Notes

The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2005 adjusted as necessary for income and employment growth for the years in question. They are 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.

Figures in the table are rounded to the nearest hundred and any apparent discrepancies in totals are due to this.