Leo Varadkar (Dublin West, Fine Gael)
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Question 144: To ask the Minister for Finance if he will estimate the yield from taxing capital income on the same basis as earned income. [36587/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the Deputy has in mind the replacement of the charge to capital gains tax on capital gains with income tax. I am informed by the Revenue Commissioners that sufficient basic data are not available on which to base a precise estimate of the yield to the Exchequer from this proposal. However, on the basis of aggregated data and an assumed average marginal rate of income tax the estimated net full year yield is estimated to be in the region of €150 million, assuming no significant behavioural change on the part of the affected taxpayers. As CGT is very dependent on individual behaviour, any change in rate may not produce a corresponding increase or decrease in tax yield. In current economic conditions any estimate of additional yield must be treated with caution and, in such circumstances, increasing the rate could lead to a reduction in yield from the tax.

Leo Varadkar (Dublin West, Fine Gael)
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Question 145: To ask the Minister for Finance if he will estimate the yield from applying income tax to all off-course winnings, bets, prizes and the national lottery. [36588/09]

Leo Varadkar (Dublin West, Fine Gael)
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Question 146: To ask the Minister for Finance if he will estimate the yield from applying a tax of 20% on all off-course winnings, bets and prizes including the national lottery. [36589/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 145 and 146 together.

Basic data on prizes is not available on which to base an accurate estimate of the yield to the Exchequer from these proposals. It is also difficult to understand how a tax of 20% or income tax could be applied to the value of bets placed; such bets are already subject to betting duty. However, in relation to the taxation of winnings from off-course betting, some rough estimates can be made.

The base to which betting duty applies is approximately €3 billion per annum and assuming a payout rate of 85% would lead to gross winnings of around €2.55 billion. A direct tax of 20% would produce a nominal full year gross yield of approximately €500 million. The application of income tax to such winnings, assuming an average marginal rate of tax, would produce a nominal full year gross yield of the order of €850 million. On a similar basis, the nominal full year gross yield from a direct tax of 20% on National Lottery prizes would be of the order of €90 million and from the application of income tax, assuming an average marginal rate of tax, would be approximately €150 million.

However, it must be stressed that these estimates assume no significant behavioural change on the part of the affected taxpayers and therefore may not be an accurate measure of the yield that would actually transpire in reality. Moreover, the application of income tax to these amounts could also lead to deductions for allowable losses, personal allowances and other relevant costs, thereby reducing the level of income that would actually be subject to tax. This would be a particular concern with respect to betting and gambling generally.

Leo Varadkar (Dublin West, Fine Gael)
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Question 147: To ask the Minister for Finance if he will estimate the yield from a 20% income levy applied to all earned income excluding social welfare; and the additional revenue from applying a 40% income levy on income above €80,000. [36590/09]

Leo Varadkar (Dublin West, Fine Gael)
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Question 148: To ask the Minister for Finance his estimate of the yield from a 3% income levy applied to all personal income including social welfare with no threshold or ceiling; and if he will make a statement on the matter. [36591/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 147 and 148 together.

I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2010 incomes, from applying a 20% income levy to all earned income, excluding social welfare income, is estimated to be of the order of €14 billion. On the same basis, the additional full year yield from applying a 40% income levy on income above €80,000 (i.e. an extra 20% on income above €80,000) would be approximately €1.6 billion. The full year yield, estimated by reference to 2010 incomes, from a 3% income levy applied to all personal income, excluding social welfare income and with no threshold or ceiling, is estimated to be of the order of €2.3 billion.

Payments from the Department of Social and Family Affairs comprise means-tested payments and non-means tested payments. In accordance with the 2009 estimates, the total cost of these payments in 2009 would be in the region of €20 billion and 3% of this figure is €600 million. Apart from those related to Social Welfare payments, 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.