Tommy Broughan (Dublin North East, Labour)
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184. To ask the Minister for Finance the amount of revenue that would be generated in each case if a third rate of tax of 48%, 49% or 50% was applied to persons earning over €100,000 in Budget 2014. [27484/13]

Michael Noonan (Limerick City, Fine Gael)
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It is assumed that the Deputy is referring to the introduction of a third rate of income tax of 48%, 49% or 50% to be applied on the portion of taxable incomes in excess of €100,000 per annum. In addition, it is also assumed that the threshold for the proposed new income tax rates 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. On that basis, I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2013 incomes, of the introduction of the new income tax rates would be of the order of €365 million, €415 million and €470 million respectively.

The above yields have been calculated on the basis of three separate alternative proposals and are rounded to the nearest five million. However, given the current band structures, major issues would need to be resolved as to how, in practice, such new rates could be integrated into the current system and how this would affect the relative position of different types of income earners.

These figures are estimates from the Revenue tax-forecasting model using latest actual data for the year 2010, adjusted as necessary for income and employment trends in the interim. They are, therefore, provisional and subject to revision.