Written answers
Tuesday, 13 October 2015
Department of Finance
Tax Code
Dara Calleary (Mayo, Fianna Fail)
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46. To ask the Minister for Finance the cost to the Exchequer of introducing a 30% flat rate tax to attract skilled foreign workers; the loss to the Exchequer compared to normal income tax, pay related social insurance and the universal social charge rates that currently apply for a person earning €30,000; €35,000; €40,000; €45,000; €50,000; €60,000; €65,000; €70,000; €75,000; €80,000; €85,000; €90,000; €95,000; €100,000 in gross income per year, over a five year period on this reduced tax rate; and if he will make a statement on the matter. [35300/15]
Michael Noonan (Limerick City, Fine Gael)
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Details for each pay level are listed below, comparing the current net income of a single employee to that of an individual on a 30% flat tax rate, replacing income tax, USC amd PRSI. For the purposes of the calculation no tax credits are available against the flat rate tax proposal. In the absence of numbers of individuals that might avail of such a scheme, it is not possible to forecast an overall cost for the proposal.
| Income (€) | Income Tax (€) | PRSI | USC | Net Income (€) | 30% flat tax | Net Income (€) | Yield(+)/ Cost (-) per annum | Yield (+)/ Cost (-) over 5 years |
|---|---|---|---|---|---|---|---|---|
| 30,000 | 2,700 | 1,200 | 1,245 | 24,855 | 9,000 | 21,000 | 3,855 | 19,275 |
| 35,000 | 3,940 | 1,400 | 1,595 | 28,065 | 10,500 | 24,500 | 3,565 | 17,825 |
| 40,000 | 5,940 | 1,600 | 1,945 | 30,515 | 12,000 | 28,000 | 2,515 | 12,575 |
| 45,000 | 7,940 | 1,800 | 2,295 | 32,965 | 13,500 | 31,500 | 1,465 | 7,325 |
| 50,000 | 9,940 | 2,000 | 2,645 | 35,415 | 15,000 | 35,000 | 415 | 2,075 |
| 60,000 | 13,940 | 2,400 | 3,345 | 40,315 | 18,000 | 42,000 | -1,685 | -8,425 |
| 65,000 | 15,940 | 2,600 | 3,695 | 42,765 | 19,500 | 45,500 | -2,735 | -13,675 |
| 70,000 | 17,940 | 2,800 | 4,045 | 45,215 | 21,000 | 49,000 | -3,785 | -18,925 |
| 75,000 | 19,940 | 3,000 | 4,444 | 47,616 | 22,500 | 52,500 | -4,884 | -24,420 |
| 80,000 | 21,940 | 3,200 | 4,844 | 50,016 | 24,000 | 56,000 | -5,984 | -29,920 |
| 85,000 | 23,940 | 3,400 | 5,244 | 52,416 | 25,500 | 59,500 | -7,084 | -35,420 |
| 90,000 | 25,940 | 3,600 | 5,644 | 54,816 | 27,000 | 63,000 | -8,184 | -40,920 |
| 95,000 | 27,940 | 3,800 | 6,044 | 57,216 | 28,500 | 66,500 | -9,284 | -46,420 |
| 100,000 | 29,940 | 4,000 | 6,444 | 59,616 | 30,000 | 70,000 | -10,384 | -51,920 |
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