Leo Varadkar (Dublin West, Fine Gael)
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Question 98: To ask the Minister for Finance the amount that would be raised by reducing capital gains tax exemption thresholds by 50% for group A and 50% for group B; and if he will make a statement on the matter. [1901/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am assuming the Deputy is referring to the tax-free thresholds for Capital Acquisitions Tax. Assuming the enactment of the changes to these thresholds announced in the 2011 Budget I am advised by the Revenue Commissioners that the estimated full year gains to the Exchequer from reducing the Group A and Group B thresholds for Capital Acquisitions Tax by the stated amounts would be of the order of €50 million and €29 million respectively. These estimates are based on transactions recorded in 2009.

The Group C threshold is currently half of the Group B threshold, so reducing the Group B threshold by 50% would make the Group B and Group C thresholds the same amount.

It should be noted that these estimates are based upon an assumption that there would be no behavioural impact of the changes, which could lead to a lesser, or in some circumstances, greater than expected impact on Exchequer yield. In addition, the realisation of any estimated yield from an increase in taxation on assets relating to property, is subject to movements in the value of such assets, which are currently occurring in the economy.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 99: To ask the Minister for Finance if his attention has been drawn to the fact that lower paid workers who hold a medical card and were exempt from paying the income levy and health levy will now have to pay the universal social charge and will no longer be exempt resulting in some cases of a reduction of €81 per week in their take home pay which represents up to a 16% pay cut; if he will take the appropriate action to restore the exemption; and if he will make a statement on the matter. [1922/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that having an entitlement to a medical card will not exempt an individual from the Universal Social Charge (USC). However, it should be noted that payments from the Department of Social Protection such as job seeker's benefit, job seeker's allowance and the contributory and non-contributory State pension will be exempt from the USC. Therefore, the Universal Social Charge will apply to the income or portion of the income of a medical card holder to the extent that it is not a payment from the Department of Social Protection. Furthermore, the legislation provides that where an individual's total annual income which is chargeable to the USC, is below €4,004 in a year of assessment, the USC would not apply. In addition, those who are over 70 will not be liable to the higher rate of 7%.

I should point out that based on the information provided; the level of earnings would have to amount to approximately €70,000 per annum to experience a reduction in net pay of €81 per week solely in respect of the Universal Social Charge. This level of earnings represents more than double the average industrial wage.

I am satisfied that these concessions protect those on low incomes and those in receipt of payments from the Department of Social Protection.