Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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101. To ask the Minister for Finance if he has considered increasing the standard rate tax band from €33,800, based on personal circumstances of a single, widowed or a surviving civil partner, to €36,900 with a similar increase for all other personal circumstances; if he will provide a costing of same in tabular form; and if he will make a statement on the matter. [23419/17]

Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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102. To ask the Minister for Finance if he has considered introducing an additional tax band for income levels between €33,800 and €36,900 taxable at 33% based on personal circumstances of a single, widowed or a surviving civil partner without qualifying children with a similar band for all other personal circumstances; if he will provide a costing of same in tabular form; and if he will make a statement on the matter. [23420/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 101 and 102 together.

The Deputy may wish to note that a Post-Budget 2017 Ready Reckoner is available on the Revenue Statistics webpage at .

In relation to the first question, this Ready Reckoner shows a wide range of detailed information, including the estimated cost or yield to the Exchequer of widening the standard tax rate bands. While the Ready Reckoner does not show all of the specific costings requested by the Deputy, other changes can be estimated on a pro-rata basis with those displayed in the Reckoner.

In relation to the second question, I am informed by Revenue that the first and full year cost of introducing an additional tax band in the manner outlined by the Deputy is estimated to be in the order of €165 million and €191 million respectively.

These figures and all figures provided in the Ready Reckoner are estimates from the Revenue tax forecasting model using latest actual data for the year 2014, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to projected 2017 incomes. They are provisional and may be revised.

As the Deputy will be aware, in the Programme for Partnership Government there is a commitment to ask the Oireachtas to continue to phase out the Universal Social Charge (USC) as part of a wider medium-term income tax reform plan that keeps the tax base broad, reduces excessive tax rates for middle income earners, and limits the benefit for high earners. The Programme for Government therefore incudes a commitment not to index tax credits or rate bands. Indexation of the income tax standard-rate bands would benefit only those currently paying income tax at the higher rate – i.e. single individuals earning over €33,800 and single-income married couples earning over €42,800.  It is estimated that in 2017, 21% of taxpayer units will pay income tax at the higher rate.  Indexation of the standard rate bands would therefore be of benefit to only 21% of taxpayers.

I have long said that the burden of the income tax system in Ireland is too high and that I would seek to reduce it as soon as it was prudent to do so. Budget 2017 has, for the third year in succession, introduced reductions in the income tax burden for all those within the scope of USC with the three lowest rates of USC having been reduced over these years from 2%, 4% and 7% to 0.5%, 2.5% and 5% respectively. This is important progress in making work pay and supporting individuals returning to and remaining in employment.

In this regard the Income Tax Reform Plan developed for consultation with the Oireachtas, published in July last year, may be of interest, and is available at the following link: