Derek Nolan (Galway West, Labour)
Link to this: Individually | In context | Oireachtas source

253. To ask the Minister for Finance the estimated cost of the change announced in budget 2015 of the reduction in the 41% rate of income tax to 40% for income earners earning over €70,044; and if he will make a statement on the matter. [2799/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am informed by the Revenue Commissioners that the estimated cost to the Exchequer of the reduction in the 41% rate of Income Tax to 40% for income earners earning over €70,044 is in the order of €180 million. This cost includes the benefit these income earners get on all of their incomes liable to the higher rate and not just on the portion of their incomes above €70,044. It should also be noted that most of these income earners will have been liable to increased Universal Social Charge (USC) rates on income in excess of €70,044, which limits the benefit of the total tax package to any one individual to a maximum of around €14 per week. It is estimated that the additional yield on USC for these cases will be in the order of €113 million.

These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2012, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2015 incomes and are provisional and may be revised. Married persons or civil partners who have elected or who have been deemed to have elected for joint assessments are counted as one tax unit.