Written answers

Thursday, 19 February 2009

5:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 96: To ask the Minister for Finance the yield to the Exchequer if the income levy for those on annual salaries of €200,000 was increased to 6%. [6784/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that an increase in the income levy from 2% and 3% to 6% on incomes above €200,000 would yield approximately €130 million in a full year. 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 2009. They are therefore provisional and likely to be revised. The figures for income and employment growth used are based on macro-economic indicators, which have been recently revised in the light of the latest economic outlook for 2009.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 97: To ask the Minister for Finance the expected yield to the Exchequer if the income levy for those on annual salaries of €100,000 to €200,000 was increased to 3%. [6785/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that an increase in the income levy from 2% to 3% on incomes between €100,101 and €200,000 would yield approximately €35 million in a full year. However, I should point out that this would create an anomalous situation where an individual would be liable to the income levy at a rate of 1 per cent up to a ceiling of €100,100, a rate of 3 per cent on income from €100,101 to €200,000, a rate of 2 per cent on income from €200,001 to €250,120 and a rate of 3 per cent on the balance. 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 2009. They are therefore provisional and likely to be revised. The figures for income and employment growth used are based on macro-economic indicators which have been recently revised in the light of the latest economic outlook for 2009.

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