Pearse Doherty (Donegal, Sinn Fein)
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135. To ask the Minister for Finance the revenue from tapering out the personal, pay as you earn and earned income credits by 0.7% per €1,000 on individual income between €100,000 and €170,000 per year, resulting in no entitlement to these tax credits when income is in excess of €170,000. [19332/16]

Pearse Doherty (Donegal, Sinn Fein)
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136. To ask the Minister for Finance the revenue from tapering out the personal, pay as you earn and earned income credits by 0.7% per €1,000 on individual income between €100,000 and €170,000 per year, resulting in no entitlement to these tax credits when income is in excess of €170,000 and introducing levies of 2% and 4% on income over €170,000. [19333/16]

Pearse Doherty (Donegal, Sinn Fein)
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137. To ask the Minister for Finance the revenue from tapering out the pay as you earn and earned income credits by 5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000 and introducing levies of 2%, 4% and 5% on income over €140,000. [19334/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 135 to 137, inclusive, together.

I am advised by the Revenue Commissioners that the estimated first and full year yields to the Exchequer of tapering the Personal, PAYE and the Earned Income Credits per €1,000 on income between €100,000 and €170,000, resulting in no entitlement to these credits on income in excess of €170,000, are in the order of €279 million and €358 million respectively.  The estimated total first and full year yields to the Exchequer of also introducing a levy of 2% on all income in excess of €170,000 are in the order of €343 million and €478 million respectively. The same credit tapering structure with a levy of 4% on all income in excess of €170,000 is estimated to generate a first and full year yield to the Exchequer of €407 million and €599 million respectively.

Tapering the PAYE and the Earned Income Credits on income between €100,000 and €140,000 would require a taper of 2.5% per €1,000. On that basis and on no entitlement to these credits on income in excess of €140,000, and also introducing a levy of 2% on all income in excess of €140,000 the estimated first and full year yields to the Exchequer are in the order of €205 million and €313 million respectively.  The same credit tapering structure with a levy of 4% on all income in excess of €140,000 is estimated to generate first and full year yields to the Exchequer of €285 million and €463 million respectively. Again, using the same credit tapering structure, with a levy of 5% on all income in excess of €140,000, is estimated to generate a first and full year yield to the Exchequer of €324 million and €538 million respectively.

The estimates above have been generated by reference to 2016 incomes as calculated on the basis of actual data for the year 2013, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimates are provisional and may be revised.

Finally, I have been advised by the Revenue Commissioners that, given the current tax structures, major issues would need to be resolved as to how in practice such a tapering of credits could be integrated into the current system and how this would affect the relative position of different types of income earners.