Written answers

Thursday, 26 November 2009

5:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 87: To ask the Minister for Finance the estimate yield from lowering the threshold for the application of the minimum effective income tax of 20% to all incomes above €250,000, all incomes above €200,000, all incomes above €150,000 and all incomes above €100,000; and if he will make a statement on the matter. [43674/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the Deputy is referring to the restriction of reliefs measure relating to higher income earners announced in Budget 2006, which came into operation from 1 January 2007. It is estimated by the Revenue Commissioners that reducing the existing threshold of €500,000, at which the full restriction applies, to the stated amounts, would result in the following full year yields to the Exchequer. These estimates are based on personal income tax data for 2007, the latest year for which the relevant information is available.

New thresholds & marginal relief limits€Full year yield€m
125,000 - 250,0008.7
100,000 - 200,00011.2
75,000 - 150,00013.8
50,000 – 100,00015.5

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