Richard Bruton (Dublin North Central, Fine Gael)
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Question 63: To ask the Minister for Finance the amount of revenue that would be collected from a universal social contribution using a set of criteria (details supplied) in tabular form; the revenue which would be generated from the social contribution from different categories of persons; and if he will make a statement on the matter. [14332/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy will be aware, I announced in the Budget that, with a view to restoring balance in the income tax system, to simplify it, to make it fairer and more broadly based, I intended to introduce a new system of just two charges on income viz. a new universal social contribution to replace employee PRSI, the Health Levy and the Income Levy. This will be paid by everyone at a low rate on a wide base as a collective contribution to public services. Income Tax will apply on a progressive basis to those with higher incomes reflecting their capacity to make a greater contribution.

The position is that the possible parameters of such a system are under active examination by my Department in consultation with the Department of Social Protection, the Revenue Commissioners and other Departments concerned. A steering group and a variety of working groups have been established to carry out the necessary research. As the Deputy may be aware the combined yield from the income levy, the health levy and employee and self-employed PRSI is projected to be of the order of €5.8 billion in 2010 on the basis of current arrangements. The extensive work currently underway to examine restructuring the system on the lines indicated is very significant, represents a fundamental review of the system and involves very detailed analysis and interrogation of the existing three data sets, drawing from the health levy, income levy and PRSI.

Accordingly, in my view it would be unhelpful to the overall process at this stage to divert the limited resources available into carrying out the detailed analysis requested by the Deputy. Notwithstanding this, I would point out to the Deputy my contribution to the Committee Stage of the Finance Bill 2010 on this matter and that I remain committed to publishing a discussion paper in due course which will include much of the analysis requested.