Written answers
Thursday, 6 November 2014
Department of Finance
Universal Social Charge Application
Eoghan Murphy (Dublin South East, Fine Gael)
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68. To ask the Minister for Finance if he will provide in tabular form the way a single, self-employed earner on an annual income of €15,000, €20,000, €25,000, €30,000, €40,000, €60,000, €100,000, €120,000, €150,000 and €200,000 will be affected by the income tax and universal social charge changes in 2015 compared to 2014 and if he will provide these figures in both cash terms and as a proportion of gross income; and if he will make a statement on the matter. [42661/14]
Michael Noonan (Limerick City, Fine Gael)
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The data requested by the Deputy is set out in the following table.
| Gross Income | Income Tax | USC | Net Income | Annual Change | Change as % of Gross Income | |||
|---|---|---|---|---|---|---|---|---|
| Existing | Proposed | Existing | Proposed | Existing | Proposed | Per Year | ||
| € | € | € | € | € | € | € | € | % |
| 15,000 | 1,350 | 1,350 | 399 | 285 | 12,651 | 12,765 | 115 | 0.8% |
| 20,000 | 2,350 | 2,350 | 719 | 545 | 16,131 | 16,305 | 174 | 0.9% |
| 25,000 | 3,350 | 3,350 | 1,069 | 895 | 19,581 | 19,755 | 174 | 0.7% |
| 30,000 | 4,350 | 4,350 | 1,419 | 1,245 | 23,031 | 23,205 | 174 | 0.6% |
| 40,000 | 7,862 | 7,590 | 2,119 | 1,945 | 28,419 | 28,865 | 446 | 1.1% |
| 60,000 | 16,062 | 15,590 | 3,519 | 3,345 | 38,019 | 38,665 | 646 | 1.1% |
| 100,000 | 32,462 | 31,590 | 6,319 | 6,444 | 57,219 | 57,966 | 747 | 0.7% |
| 120,000 | 40,662 | 39,590 | 8,319 | 8,644 | 66,219 | 66,966 | 747 | 0.6% |
| 150,000 | 52,962 | 51,590 | 11,319 | 11,944 | 79,719 | 80,466 | 747 | 0.5% |
| 200,000 | 73,462 | 71,590 | 16,319 | 17,444 | 102,219 | 102,966 | 747 | 0.4% |
It should be noted that the introduction of the 8% USC rate and the increase in the existing 10% USC rate to 11%, provided for in the Budget, are necessary measures to limit the maximum benefit from the package of tax measures to approximately €14 per week for any individual taxpayer. This ensures that those with very high incomes will only benefit to the same extent, as those with more modest incomes, reinforcing the highly progressive nature of the Irish income tax system.
The changes announced in the Budget will ensure that all those currently paying income tax and/or USC will see a reduction in their tax bill in 2015. I propose to continue this reform in future Budgets, subject to the required economic growth and the consequent fiscal space available to the Government.
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