Olivia Mitchell (Dublin South, Fine Gael)
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To ask the Minister for Finance if, in view of changes to the rate of universal social charge for the over-70s in Budget 2013, he will provide an update to the example he previously cited in Dáil Éireann (details supplied) which outlined the difference between the gross and net take-home pay of a single public service pensioner over the age of 70 whose gross income is €125,000 after paying the PSPR, universal social charge and all other relevant taxes; and if he will make a statement on the matter. [7173/13]

Michael Noonan (Limerick City, Fine Gael)
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The indicative calculations of the amounts of Public Service Pension Reduction (PSPR), Income Tax, and Universal Social Charge (USC) in 2012 and 2013 which apply to a single public service pensioner aged 70 years of age with gross income of €125,000 are set out as follows:

2012 – Single Public Service Pensioner aged 70



Gross Income€125,000





Public Service Pension Reduction (PSPR)



First €12,000 @ 0% = €0

Next €12,000 @ 6%= €720

Next €36,000 @ 9%= €3,240

Next €40,000 @ 12% = €4,800

Balance @ 20%= €5,000 (€13,760)





Universal Social Charge



€10,036 @ 2%= €200.72



€101,204@ 4% = €4,048.16(€4,249)





Income Tax



€32,800 @ 20%= €6,560

€78,440@ 41%= €32,160


€38,720



Less Tax Credits

Personal Tax Credit (€1,650)

PAYE Tax Credit (€1,650)

Age Tax Credit (€245)(€35,175)





Total Deduction(€53,184)



Net Income €71,816



2013 – Single Public Service Pensioner aged 70



Gross Income€125,000





Public Service Pension Reduction (PSPR)



First €12,000 @ 0% = €0

Next €12,000 @ 6%= €720

Next €36,000 @ 9%= €3,240

Next €40,000 @ 12% = €4,800

Balance @ 20%= €5,000 (€13,760)





Universal Social Charge



€10,036 @ 2%= €200.72



€5,980@ 4% = €239.20



€95,224@ 7%= €6,665.68(€7,106)



Income Tax



€32,800 @ 20%= €6,560

€78,440@ 41%= €32,160


€38,720



Less Tax Credits

Personal Tax Credit (€1,650)

PAYE Tax Credit (€1,650)

Age Tax Credit (€245)(€35,175)





Total Deduction(€56,041)



Net Income €68,959