Michael Noonan (Limerick City, Fine Gael)
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It is assumed the Deputy is referring to the introduction of a new third rate of Income Tax on incomes over €100,000. I am advised by the Revenue Commissioners that, given the current band structures, major issues would need to be resolved as to how in practice such a rate could be integrated into the current system and how this would affect the relative position of different types of income earners. Notwithstanding these issues, the first and full year estimated yield from the tax increases on incomes over €100,000 are shown in the following table.

Tax Rate	First year estimated yield	Full year estimated yield
41% on income >€100,000	€40m	€64m
45% on income > €100,000	€198m	€320m

The figures are estimates from the Revenue tax-forecasting model for 2015, using actual data for the year 2012 adjusted as necessary for income, self-employment and employment trends in the interim. These are, therefore, provisional and may be revised.

The progress made over the past three years in improving public finances, increasing economic growth and creating jobs, means the Government can focus on reforming the income tax system in a manner that  contributes positively to and strengthens our economic recovery. The Government is therefore following a considered and focused tax reform plan to be delivered over a number of Budgets that will maintain the highly progressive nature of the Irish tax system. 

Marginal tax rates are an important element of the reform plan because they influence individual decisions to work more or indeed to work at all.  Having a low and competitive top marginal tax rate is viewed as one of the major drivers in promoting labour force participation. I have long said that the burden of the income tax system in Ireland is too high and is acting as a disincentive for work and investment in Ireland. That is why, as part of a range of income tax reform measures, I reduced the higher rate of income tax from 41% to 40% in Budget 2015.

As I have stated on a number of occasions, wealth can be taxed in a variety of ways, some of which are already in place in Ireland.  Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) are, in effect, taxes on wealth, in that they are levied on an individual or company on the disposal of an asset (CGT) or the acquisition of an asset through gift or inheritance (CAT). Deposit Interest Retention Tax (DIRT) is charged at 41%, with limited exemptions, on interest earned on deposit accounts.  Local Property Tax (LPT) introduced in 2013 is a tax based on the market value of residential properties. Finance Act 2010 introduced a new levy known as the Domicile Levy which can be seen as a form of wealth tax. It is aimed at high wealth individuals with a substantial connection to Ireland, whether they are tax resident or not, to ensure they make a tax contribution to this country in a year of at least €200,000.

The Government has no plans to introduce a wealth tax, although all taxes and potential taxation options are of course constantly reviewed.