Written answers

Wednesday, 4 July 2012

9:00 pm

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 75: To ask the Minister for Finance the estimated increase in tax revenue if earnings of €100,000 or greater were taxed at a rate of 50% on the portion of their income over €100,000; and if he will make a statement on the matter. [32764/12]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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It is assumed that the threshold for the proposed new tax rate mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples. I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2012 incomes, of the introduction of a new 50% rate would be of the order of €490 million.

However, given the current band structures, major issues would need to be resolved as to how in practice such a new rate could be integrated into the current system and how this would affect the relative position of different types of income earners.

This figure is an estimate from the Revenue tax-forecasting model using latest actual data for the year 2009, adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and subject to revision.


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