Pearse Doherty (Donegal South West, Sinn Fein)
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Question 177: To ask the Minister for Finance his plans to phase out tax credits on higher incomes, for example halving the tax credits after €100,000 and eliminating them beyond €150,000 per annum; and the estimated savings for the Exchequer. [27427/11]

Michael Noonan (Limerick City, Fine Gael)
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The Programme for Government states that as part of the Government's fiscal strategy we will maintain the current rates of income tax together with bands and credits. However, the position is that all taxation measures will be considered in the context of the forthcoming Budget and Finance Bill. I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2012 incomes, of the restricting or abolishing the main personal and employee tax credits as suggested in the question for income earners earning in excess of €100,000 would be of the order of €135 million.

This figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends for the year 2012. It is therefore provisional and likely to be revised.