Joanna Tuffy (Dublin Mid West, Labour)
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143. To ask the Minister for Finance further to Parliamentary Question No. 51 of 13 October 2015, the percentage of the tax yield from incomes of less than €30,000 in 2016, under the terms of budget 2016; if he will indicate if a flat tax of 23% applied, assuming removal of all income tax credits and the percentage of income earners that earn less than €30,000. [37122/15]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that an estimated 51% of income earners on Revenue records have gross income of €30,000 or less and these cases would contribute an estimated 20.4% of the total tax yield were a 23% flat tax implemented. Post Budget 2016, it is estimated that this group will pay 4.2% of total combined income tax and USC in 2016.

For the purposes of these estimates, it is assumed that the 23% flat rate would replace the post-Budget 2016 income tax structure (including the Universal Social Charge) and that all income tax credits would be removed, including the PAYE, Personal and Home Carer credits.

These figures are based on estimates for 2016, using the actual data for the year 2013 (the latest year for which data are available) adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.