Arthur Morgan (Louth, Sinn Fein)
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Question 129: To ask the Minister for Finance the cost to the Exchequer of lowering the 20% tax rate on those earning less than €25,000 to 18%. [9570/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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If what the Deputy has in mind is the taxation at 18% of portions of the bands currently taxable at 20%, the full-year cost to the Exchequer, by reference to the income tax year 2009, is estimated by the Revenue Commissioners to be about €735 million. This cost is estimated on the basis that the thresholds for the proposed new tax bands would not alter the existing standard rate cut-off point applying to single and widowed persons, lone parents and married couples.

Given the current band structures, there would be major issues to be worked out as to how, in practice, such a new rate could be integrated 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.

Arthur Morgan (Louth, Sinn Fein)
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Question 130: To ask the Minister for Finance the potential yield to the Exchequer of introducing a new tax band to facilitate a new tax rate of 30% on those earning between €36,400 and €40,000. [9571/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the threshold 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 must advice the Deputy that this measure would result in a cost to the Exchequer rather than a yield as suggested.

I am advised by the Revenue Commissioners that the estimated full year cost to the Exchequer, estimated by reference to 2009 incomes, of the introduction of this 30% rate band could be of the order of €280 million, depending on how the band was 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. This figure is provisional and subject to revision.

Arthur Morgan (Louth, Sinn Fein)
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Question 131: To ask the Minister for Finance the potential yield to the Exchequer of increasing the tax rate on those earning between €44,000 and €75,000 to 44% and to increase it to 48% for those earning in excess of €75,000. [9572/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the threshold 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 estimated full year yield to the Exchequer, estimated by reference to 2009 incomes, would be of the order of €830 million. Given the current band structures, major issues would need to be resolved as to how in practice such new rates could be integrated into the current system and how this would affect the relative position of different types of income earners. This figure is provisional and subject to revision.