Seán Fleming (Laois-Offaly, Fianna Fail)
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To ask the Minister for Finance the revenue that would be raised from increasing the universal social charge for all persons over 70 years to 7% on income over €100,000; and if he will make a statement on the matter. [50713/12]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the standard rates of Universal Social Charge are:-

- 2% on the first €10,036,

- 4% on the next €5,980, and

- 7% on the balance.

However, the maximum rate of charge for such individuals who are aged 70 years or over is 4% irrespective of the level of their income, unless they have self-employment income in excess of €100,000 for a tax year, in which case the maximum rate rises to 7% on the amount of the excess over €100,000.

I am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, from extending the additional universal social charge of 3%, which is currently applicable to self-employed income in excess of €100,000 in the hands of income earners aged 70 and over, to all income earners aged 70 and over at this level of income would be of the order of €3 million. The Universal Social Charge (USC) is an individualised charge and as such, the estimate of yield is based on individual incomes of more than €100,000.

The estimated yield is based on confining the 3% USC surcharge to the portion of income which is in excess of €100,000, that is, the increase is not applied to the portion of total income earned up to €100,000.

The figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and likely to be revised.

Seán Fleming (Laois-Offaly, Fianna Fail)
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To ask the Minister for Finance the revenue that would be raised from extending the universal social charge to social protection payments, excluding child benefit, that are currently exempt; and if he will make a statement on the matter. [50714/12]

Michael Noonan (Limerick City, Fine Gael)
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To estimate the potential yield from applying the universal social charge (USC) to social protection payments it would be necessary to identify certain details in respect of each recipient of social protection payments such as the individual amount of these payments received, the amount of any other income potentially liable to USC, the age of each individual and whether there was an entitlement to a medical card. This information would be essential to determine whether a charge to USC applied or not at individual level, and at what rate if it did. It is possible in many cases that the rate could be low or even nil. In addition, as the Deputy will be aware, a number of social protection payments would be below the current exemption threshold for USC which is currently €10,036 per annum. I am informed by the Revenue Commissioners that as they do not maintain such a database of social protection payments there is no basis on which an estimate of the yield from the change mentioned in the question could be compiled.

By way of illustration, if for example a 1 per cent levy was imposed on social protection payments, the full year yield to the Exchequer would be €180 million on the basis that the estimated provision for such payments in 2012, excluding child benefit, is approximately €18 billion. The figure of €18 billion excludes administration and other administration expenses but may include certain non-departmental operational costs. The estimate of Exchequer yield assumes that there is no exemption threshold, allowance or personal reliefs that could be used to offset against some of the levy.