Leo Varadkar (Dublin West, Fine Gael)
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Question 141: To ask the Minister for Finance the cost of creating a new tax band for all income between €36,400 and €50,000 for a single person and the equivalent for a couple of 30%, of 33% and of 35%; and if he will make a statement on the matter. [36529/09]

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 cost to the Exchequer, estimated by reference to 2010 incomes, of the introduction of these new rates of 30%, 33% and 35% could be of the order of €515 million, €375 million and €280 million respectively, depending on how each band is 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. The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2007 adjusted as necessary for income and employment trends for the year 2010. They are therefore provisional and likely to be revised.