Joe Higgins (Dublin West, Socialist Party)
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To ask the Minister for Finance the number of tax cases in the following bands (details supplied) that are composed of individual earners as opposed to couples. [49623/12]

Michael Noonan (Limerick City, Fine Gael)
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Generally speaking the statistics on incomes published by my Department in relation to income tax are based on tax cases. This is clearly stated in publications and in replies to Parliamentary Questions. The vast majority of married income earners choose to be assessed jointly as one tax unit for income tax purposes. While it may be possible, with the assistance of significant development to the existing computer-based databases and costing model, to produce income statistics for income tax based on individual earners, this is problematic for various reasons, in particular given the facility for married couples to transfer credits and, in part, the standard rate band.

It is therefore not possible to provide the Deputy with the information he has sought. The Deputy may, however, wish to refer to the reply to Parliamentary Question No 42354 answered on 3rd October 2012 which sets out the information currently available on the income distribution and tax liabilities of income earners estimated by reference to the income tax year 2012. Again the number of earners shown in the table in the reply counts a married couple who has elected or has been deemed to have elected for joint assessment as one tax unit. In the interests of consistency, I am reluctant to alter the way income tax statistics are currently presented. Furthermore, I am not convinced that presenting income tax statistics in a manner different to the way income tax is actually assessed and collected provides significant additional value.

Joe Higgins (Dublin West, Socialist Party)
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To ask the Minister for Finance the current average effective rate of tax including PRSI and universal social charge of persons earning within the bands (details supplied) and the amount of additional revenue that would be collected if the nominal and effective rates were adjusted. [49624/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2012 incomes, that would result from increasing the nominal tax rates of income earners as proposed by the Deputy would be of the order of €859 million. A breakdown of the figures, by range of taxable income, is set out in the table.

Nominal Tax Rates

It is assumed that the total existing nominal rate, as is indicated for the income range €90,000 - €100,000, is composed of an aggregate of the top USC rate of 7% and the top income tax rate of 41%. It is assumed PRSI is not taken into account. On that basis the proposed increases in the aggregate nominal rates commencing with income range €100,000 - €120,000 are assumed for the purpose of estimating the Exchequer yields to take the form of an increase in the top income tax rate of 41%, applying as 43% to taxable income range €100,000 - €120,000, as 48% applying to taxable income range €120,000 - €140,000, and successively increasing over the stated ranges to arrive at a rate of 71% applying to taxable income in excess of €1 million.

The results shown in the table for the nominal rate of 75% as proposed for a sequence of income ranges, commencing at €250,000 and concluding at €1,000,000, have of necessity been presented in the table as a single range to reflect the method of estimation by the Revenue tax-forecasting model. I am also advised by the Revenue Commissioners that the full year yield, estimated by reference to 2012 incomes, that would result from increasing the effective tax rates of income earners as proposed by the Deputy would be of the order of €1.3 billion. A breakdown of the figures by range of gross income, is set out in the table.

It should be noted that the figures for tax and effective tax rate include income tax, PRSI and Universal Social Charge (USC). 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, it should be noted that Gross Income is as defined in the Revenue Statistical Report 2010.