Written answers

Tuesday, 18 December 2012

Department of Finance

Universal Social Charge

Photo of Aodhán Ó RíordáinAodhán Ó Ríordáin (Dublin North Central, Labour)
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To ask the Minister for Finance if he will provide, in tabular form, the estimated income that would be generated for the State by raising the universal social charge by 3% on all taxable income above €70,000 and for each €5,000 increment thereafter up to and including €120,000; and if he will make a statement on the matter. [56911/12]

Photo of Michael NoonanMichael 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 2013 incomes, of a 3 percentage point increase in the rate of Universal Social Charge (USC) applying to the incomes of all income earners exceeding €70,000 but not exceeding €120,000 would be of the order of €41 million. If the increased rate is also assumed to apply to income earners with incomes in excess of €120,000 the total full year yield would be of the order of €294 million.

The Universal Social Charge is an individualised charge and as such, the estimated yields are based on individual incomes of more than €70,000. The estimated yields are based on confining the 3 percentage point increase to the portion of income which is in excess of €70,000, that is, the increase is not applied to the portion of total income earned up to €70,000. A breakdown of the yield of €41million for the rate change limited to earners with income of no more than €120,000 is as follows.

Range of taxable income for USC
Yield from 3% increase
€m
70,001-75,000
1.1
75,001-80,000
2.6
80,001-85,000
3.6
85,001-90,000
4.2
90,001-95,000
4.5
95,001-100,000
4.7
100,001-105,000
5.0
105,001-110,000
5.0
110,001-115,000
5.2
115,001-120,000
5.1
Total yield
41.0

The figures are estimates 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.

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