Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context

Question 92: To ask the Minister for Finance the amount that can be saved by the State if the number on the live register falls to an average of 405,000 in 2011 in terms of average taxation receipts if these persons were to go into employment at the average industrial wage; and if he will make a statement on the matter. [8449/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

As an individual's income tax contribution is based on a number of unique factors such as their taxable income and personal circumstances, it is not possible to state with absolute confidence the effect that a decrease in live register figures would have on the total labour taxes yield. Having said that, it is possible to make an estimate on the basis of reasonable, if somewhat stylised, set of assumptions.

The average tax, employee PRSI, employer PRSI and Universal Social Charge yield per annum for an individual earning the average industrial wage is €8,023. This is approximately €8 million per 1,000 employees per annum. The following assumptions were made:

The average industrial wage for 2010 of €32,089 is based on Quarter 1 weekly figures from CSO Earnings Hours and Employment Costs Survey for production, transport, craft and other manual workers grossed up;

The breakdown by marital status broadly follows the economy wide breakdown in 2010;

The yield is based on a full calendar year.

No account was taken for:

· Employees' pension contributions or other salary sacrifice arrangements

· Minor tax credits or income tax reliefs such as health expenses relief, rent relief, trade union subscriptions.