Tuesday, 26 June 2012
Department of Finance
Question 159: To ask the Minister for Finance in the context of preparing for the budget, if he will consider a special income levy of 1%, ring fenced for the mental health and disability services, in view of the difficulty being faced by the those in these sectors in their ability to continue to fund existing services and the need to protect persons receiving and dependent on those services. [30280/12]
Question 160: To ask the Minister for Finance if a special income levy of 1% were to be applied to incomes in various brackets of €50k to €60k, €61k to €70k, €71k, to €80k, €81k to €90k, €91k to €100, and €101k+, the amount of revenue such a levy would generate in each bracket; and if he will make a statement on the matter. [30281/12]
I propose to take Questions Nos. 159 and 160 together.
I am advised by the Revenue Commissioners that the full year yield, estimated by reference to the income tax year 2012, from imposing a further income levy of 1% on all income that is currently liable to the Universal Social Charge (USC) would be of the order of €760 million.
If the new 1% levy is confined to incomes in excess of €50,000 the corresponding full year yield would be of the order of €442 million. A breakdown of that yield amount by range of income liable to USC is set out in the following table in ranges of €50,000 to €60,000, €60,001 to €70,000, €70,001 to €80,000, €80,001 to €90,000, €90,001 to €100,000 and greater than €100,000, in order to ensure completeness of the application of the proposed levy.
The estimated yield associated with the different income ranges is based on applying a 1% levy to all the income of income earners in each range, that is, to the income they earn below each income range as well as to the income earned within the specified income range.
All Income earners for Income Tax Year 2012 (provisional)
|Range of Income Liable to USC||Yield from 1% Levy|
|€50,000 - €60,000||€70 million|
|€60,001 - €70,000||€58 million|
|€70,001 - €80,000||€49 million|
|€80,001 - €90,000||€39 million|
|€90,001 - €100,000||€30 million|
|Over €100,000||€196 million|
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends in the interim. These are, therefore, provisional and likely to be revised.
In addition, I should point out that policy on how public funds are allocated across each area of Government spending is the responsibility of the Minister for Public Expenditure and Reform and the provision of health services is a matter for the Minister for Health.