Pearse Doherty (Donegal, Sinn Fein)
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201. To ask the Minister for Finance the cost of increasing the PAYE and self-employed tax credits by €400 each and tapering out the increase from €55,000 to €65,000, by 10 % per €1,000, resulting in no entitlement to the increased credit over €65,000. [22579/16]

Pearse Doherty (Donegal, Sinn Fein)
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202. To ask the Minister for Finance the cost of increasing the PAYE and self-employed tax credits by €300 each and tapering out the increases from €50,000 to €70,000, by 5% per €1,000, resulting in no entitlement to the increased credit over €70,000. [22580/16]

Pearse Doherty (Donegal, Sinn Fein)
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203. To ask the Minister for Finance the cost of increasing the PAYE and self-employed tax credits by €400 each and tapering out the increases from €50,000 to €70,000, by 5 % per €1,000, resulting in no entitlement to the increased credit over €70,000. [22581/16]

Pearse Doherty (Donegal, Sinn Fein)
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204. To ask the Minister for Finance the cost of increasing the PAYE and self-employed tax credits by €300 each and tapering out the increase from €55,000 to €65,000, by 10% per €1,000, resulting in no entitlement to the increased credit over €65,000. [22582/16]

Pearse Doherty (Donegal, Sinn Fein)
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205. To ask the Minister for Finance the cost of increasing the PAYE and self-employed tax credits by €200 each and tapering out the increase from €55,000 to €65,000, by 10 per cent per €1,000, resulting in no entitlement to the increased credit over €65,000. [22583/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 201 to 205 together.

I am advised by Revenue that the estimated first and full year cost to the Exchequer of increasing the PAYE and the Earned Income Credits by €400 and tapering out the increase by 10% per €1,000 on income between €55,000 and €65,000 is in the order of €380 million and €445 million respectively.

The first and full year cost to the Exchequer of increasing  the PAYE and Earned Income Credits by €400 and tapering out the increases from €50,000 to €70,000 by 5% per €1000 is estimated to be in the order of €375 million and €440 million respectively.

The first and full year cost to the Exchequer of increasing the PAYE and the Earned Income Credits by €300 and tapering out the increase by 10% per €1,000 on income between €55,000 and €65,000 is in the order of €217 million and €244 million respectively.

The first and full year cost to the Exchequer of increasing the PAYE and the Earned Income Credits by €300 and tapering out the increases from €50,000 to €70,000 by 5% per €1,000 is estimated to be in the order of €287 million and €336 million respectively.

The first and full year cost to the Exchequer of increasing the PAYE and the Earned Income Credits by €200 and tapering out the increase by 10% per €1,000 on income between €55,000 and €65,000 is in the order of €92 million and €113 million respectively.

The estimates above have been generated by reference to 2017 incomes as calculated on the basis actual data for the year 2014, 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.

The Deputy may wish to note that the annual update of the Tax Modeller application has now taken place. The Base Year dataset has been updated from 2013 to 2014, the latest year for which returns are now available. In addition, the reference year for which costs/yields are estimated, after adjustments for income, self-employment and employment trends in the interim, has been updated from 2016 to 2017. In advance of the updating of the model this year, an analysis of the First Year/Full Year apportionment of costs was also undertaken to ensure the estimated apportionment is as accurate as possible. It should be noted that this revision does not impact on the total cost/yield of a measure, it only changes the apportionment of the Exchequer impact over the first and second years in which it comes into effect.

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