Joan Burton (Dublin West, Labour)
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Question 260: To ask the Minister for Finance the 2012 and full year cost to the Exchequer of increasing the zero-rate threshold for the universal social charge by €100; the 2012 and full year cost to the Exchequer of increasing the 4% rate threshold for the universal social charge by €100; and the 2012 and full year cost to the Exchequer of increasing the 7% rate threshold for the universal social charge by €100. [1050/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the costs to the Exchequer, estimated by reference to 2011 incomes, of increasing the proposed thresholds as suggested by the Deputy are set out as follows:

· increasing the lower exemption threshold by €100 from €4,004 to €4,104 would cost €0.4 million in 2011 and €0.5 million in a full year.

· increasing the middle threshold by €100 from €10,036 to €10,136 would cost €6.5 million in 2011 and €9 million in a full year.

· increasing the upper threshold by €100 from €16,016 to €16,116 would cost €3.5 million in 2011 and €5 million in a full year.

It should be noted that these changes have been individually costed and if the three measures were taken together the overall aggregate cost as a package could vary from the sum total of the three individual costs.

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.

The Revenue costing model is not currently in a position to provide corresponding estimates in terms of 2012 incomes.

Joan Burton (Dublin West, Labour)
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Question 261: To ask the Minister for Finance the 2012 and full year cost to the Exchequer of reducing the lower universal social charge rate by 1%; the 2012 and full year cost to the Exchequer of reducing the higher universal social charge rate by 1%; the 2012 and full year revenue which would be raised by introducing a third higher rate for the universal social charge on single incomes of more than €100,000, and dual incomes more than €200,000, at rates of 8%, 9%, 10%, 11%, 12%, 13%, 14% and 15% on that part of income which is above the relevant threshold [1051/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the costs to the Exchequer, estimated by reference to 2011 incomes, of reducing the proposed rates as suggested by the Deputy are set out as follows:

· reducing the lower USC rate of 2% to 1% would cost €160 million in 2011 and €220 million in a full year.

· reducing the 4% rate to 3% would cost would cost €80 million in 2011 and €110 million in a full year.

· reducing the 7% rate to 6% would cost would cost €325 million in 2011 and €465 million in a full year.

These changes have been individually costed and if the three measures were taken together the overall aggregate cost as a package could vary from the sum total of the three individual costs.

The Universal Social Charge is an individualised charge and as such the yields are calculated for individual incomes of more than €100,000 rather than dual incomes of more than €200,000. On that basis, the estimated Exchequer yields from introducing new higher rates ranging from 8% to 15% to replace the existing 7% rate on single incomes in excess of €100,000 are set out as follows:

· a new rate of 8% would yield €40 million in 2011 and €70 million in a full year.

· a new rate of 9% would yield €80 million in 2011 and €140 million in a full year.

· a new rate of 10% would yield €120 million in 2011 and €205 million in a full year.

· a new rate of 11% would yield €160 million in 2011 and €275 million in a full year.

· a new rate of 12% would yield €205 million in 2011 and €345 million in a full year.

· a new rate of 13% would yield €245 million in 2011 and €415 million in a full year.

· a new rate of 14% would yield €285 million in 2011 and €480 million in a full year.

· a new rate of 15% would yield €325 million in 2011 and €550 million in a full year.

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.

The Revenue costing model is not currently in a position to provide corresponding estimates in terms of 2012 incomes.