Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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302. To ask the Minister for Finance the rate at which a flat tax on income would be, if all existing tax credits, allowances and reliefs were abolished, with the first €15,000 of earnings exempt of tax for every income earner, in order to achieve a target yield equal to the amount currently raised from income tax, the universal social charge and employee’s pay related social insurance; and if he will make a statement on the matter. [20590/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that an estimated flat tax rate of 46%, on all income over €15,000, would be necessary to achieve a target yield equal to the total amount currently raised from universal social charge and income tax combined, and the abolition of all existing tax credits, allowances and reliefs, including the various income exemptions, marginal reliefs, personal, married and child credits. The amount currently raised from employees' PRSI is not readily available to the Revenue Commissioners.

The target yield is based on the Department of Finance's forecasts published in the Budget 2015 Economic and Fiscal Outlook and the Revenue Commissioners 'Cost of Tax Credits, Allowances and Reliefs' for 2012 published on Revenue's website at . The estimated flat tax rate figure has been calculated on the basis of estimates for 2015, using the actual data for the year 2012 (the latest year for which data are available) adjusted as necessary for income, self-employment and employment trends in the interim.

I am advised by the Revenue Commissioners that this scenario is presented purely for illustrative purposes, there may be other permutations that could deliver similar outcomes. The Commissioners have not examined the administrative issues involved in the above scenario.