Written answers

Thursday, 6 November 2008

5:00 pm

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 60: To ask the Minister for Finance his views on introducing a higher rate of income levy than 2% for persons earning significantly more than €100,000; the number of taxpayers who have a taxable income of €100,000 to €200,000 and €200,000 and above; the number of these taxpayers who are married couples; the number of these who are individual taxpayers; the number of these who are PAYE taxpayers; the number of these who are self-employed, carrying on a trade or business; and if he will make a statement on the matter. [38828/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that the income levy will be applied to gross income except social welfare payments and contributory and non-contributory social welfare pensions. It is also proposed to exempt those on low incomes from the income levy. Full details on the levy will be set out in the forthcoming Finance Bill.

In relation to information requested by the Deputy, I am informed by the Revenue Commissioners that the numbers of income earners in the ranges of income specified are as provided in the following table. The numbers of earners are based on the adjusted data for 2005 projected forward to 2009 terms in accordance with macroeconomic data relating to actual and expected growth in wages and employment.

Range of Gross incomePAYESelf-EmployedTotal
100,001- 200,000Single14,2004,80019,000
Married two earning78,20014,90093,200
Married one earning18,0004,40022,400
Widowed7006001,400
Range Total111,10024,700135,900
over 200,000Single2,0002,7004,800
Married two earning10,2009,00019,200
Married one earning4,5003,8008,300
Widowed200300500
Range Total16,90015,80032,800

Any apparent discrepancies in totals are due to rounding.

It should be noted that the income ranges shown in the above table relate to gross income as defined in Revenue Statistical Report, 2006. They do not include incomes such as income from patent royalties, profits from commercial forestry, income before pension contributions and income from earnings of writers, composers and artists that will be subject to the income levy but are not currently available in the range basis breakdown as requested by the Deputy.

It should also be noted that gross income is different to taxable income, also defined in the Revenue Statistics Report 2006, which relates to income after personal reliefs and deductions (including deductions for capital allowances) but prior to the application of tax credits and reliefs at the standard rate.

A married couple who has elected or has deemed to have elected for joint assessment is counted as one tax unit.

The figures are projected estimates rounded to the nearest hundred and may be subject to further revision.

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