Michael McGrath (Cork South Central, Fianna Fail)
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163. To ask the Minister for Finance the cost in 2017 and in a full year of increasing the income exemption threshold for the universal social charge from €13,000 to €13,500, €14,000, €14,500, €15,000, €15,500, €16,000, €16,500, €17,000, €17,500 and €18,000; the estimated number of persons who would be taken out of the USC net at each interval in tabular form; and if he will make a statement on the matter. [24243/16]

Michael McGrath (Cork South Central, Fianna Fail)
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164. To ask the Minister for Finance the first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €70,000, only on the portion of income above €70,000, €80,000, €90,000 and €100,000, respectively; and if he will make a statement on the matter. [24244/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 163 and 164 together.

Regarding the question on increasing the Universal Social Charge (USC) threshold, I am advised by Revenue that the first and full year cost to the Exchequer of increasing the exemption rate as set out by the Deputy, and the increase in the number of income earners exempt from the USC is set out in the following table:

In relation to the Deputy's question on abolishing the USC and introducing a new Income Levy, I am advised by Revenue that the estimated first and full year costs of abolishing the USC structure, as set out in Budget 2016, would be in the order of €3,332 million and €4,040 million respectively. The estimated yield to the Exchequer from an income levy at the various thresholds and rates as outlined by the Deputy is set out in the following tables:

The estimates for Income Tax and USC in the Ready Reckoner have been generated by reference to 2017 incomes as calculated on the basis of 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.

Also for Income Tax and USC, the Deputy may wish to note that the annual update of the Revenue 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.