Written answers

Tuesday, 15 October 2013

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Independent)
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34. To ask the Minister for Finance the cost to the Exchequer for every €100 increase in the standard rate cut off point for income tax across all categories. [43484/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I assume that the Deputy refers to an increase of €100 in the standard rate tax bands, which would apply similarly to single and widowed persons, as well as to lone parents. In addition, the proposed increase is assumed to also apply to married couples. On this basis, I am informed by the Revenue Commissioners that the full year cost to the Exchequer, estimated by reference to 2014 incomes, of increasing the single person's standard rate tax band by €100 while also maintaining the current monetary differences between the single person's standard rate tax band and the various other classes of standard rate tax bands would be of the order of €16million.

It should be noted that any further increases of €100 to the standard rate tax bands may or may not cost the same amount. The cost is very much dependant on the numbers of taxpayers who are positioned in the income brackets where band increases will take effect and these can vary.

These figures are estimates from the Revenue tax-forecasting model using latest actual data for the year 2011, adjusted as necessary for income and employment trends in the interim. They are, therefore, provisional and likely to be revised.

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