Pearse Doherty (Donegal, Sinn Fein)
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184. To ask the Minister for Finance the cost of increasing to amounts (details supplied), the standard rate income tax cut off point for a single point; the estimated cost of an equivalent increase for married couples and so on; and if he will make a statement on the matter. [44997/18]

Pearse Doherty (Donegal, Sinn Fein)
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185. To ask the Minister for Finance the estimated cost or revenue raised by proposed measures (details supplied). [44998/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 184 and 185 together.

I am advised by Revenue that the figures requested are as follows:

With regards to 44997/18, to achieve each of the standard cut off rates proposed, the Budget 2019 band must be increased by €4,700, €9,700 and €14,700 respectively.

Single and Widowed or surviving Civil Partner without qualifying child - Current Band €35,300;

Married or in a Civil Partnership, one Spouse or Civil Partners with Income - Current Band €44,300;

Married or in a Civil Partnership, both Spouses or CivilPartners with Income - Current Bands €44,300 for Major Earner and €26,300 for Minor Earner

Total Cost of Band Widening

The estimates in the tables above have been generated by reference to 2019 incomes, calculated on the basis of actual data for the year 2016, the latest year for which returns are available and adjusted for income, self-employment and employment trends in the interim. They are provisional and may be revised.

Regarding Question 44998/18, I am informed by Revenue that to calculate a combined cost for the proposals described by the Deputy, it is necessary to base all costs and calculations on 2016 tax return data. An exercise was undertaken on 2016 data to break down the gross incomes of taxpayer units to an individualised level and a manual estimation process (outside of Revenue’s usual tax modelling software) was required. As the exercise can only split gross incomes, this estimation process requires certain assumptions to be made in relation to the distribution of credits for the tapering on individual income.

Furthermore, due to the interaction between the Income Tax rates and credits, reliefs and exemptions, it is not possible to accurately identify the yield from introducing a third Income Tax rate to individual incomes. The additional 45% tax rate and increases to the Standard Rate Cut Off outlined are, therefore, costed on a taxpayer unit basis.

*The Standard Rate Cut Off for a single earner was €33,800 in 2016.

Where figures are negative, it indicates a cost to the Exchequer and where figures are positive it indicates a yield to the Exchequer.