Written answers

Tuesday, 19 October 2010

9:00 am

Photo of Frank FaheyFrank Fahey (Galway West, Fianna Fail)
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Question 209: To ask the Minister for Finance the amount of revenue that would accrue to the Exchequer in 2011, if a third tax rate for persons earning over €100,000 was introduced at 50%, 55% and 60% [37357/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Minister, Department of Finance; 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 2011 incomes, of the introduction of each of the proposed new rates would be of the order of €525 million, €820 million and €1,110 million respectively. 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.

These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2008 adjusted as necessary for income and employment trends for the year 2011. They are therefore provisional and likely to be revised.

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