Thursday, 5 March 2020
Department of Finance
96. To ask the Minister for Finance the amount it would cost in a full year if the income tax band for a single person increased from €35,300 to €37,000; the estimated cost for a married couple in which the income tax band for one earner increases from €44,300 to €47,000; and if he will make a statement on the matter. [3499/20]
It is assumed that the Deputy’s request is to increase the standard rate cut off point (SRCO) for the major earner of a jointly assessed unit (couple) with two incomes (currently €44,300) while also increasing the SRCO for both singly assessed taxpayers (currently €35,300), and jointly assessed taxpayer units with one income (currently €44,300). It is further assumed that the Deputy wishes to retain the current structure, whereby the maximum SRCO available to a jointly assessed couple with two incomes, i.e. €70,600, is equivalent to twice the SRCO available to a singly assessed taxpayer.
That being the case, it is assumed the Deputy wishes to increase the SRCO point to €37,000 for singly assessed taxpayers, €46,000 for jointly assessed taxpayers with one income, and €47,700 for the major earner in a jointly assessed unit (couple).
The estimated first and full year cost of this change is €365m and €421m respectively.
These estimates have been generated by reference to 2020 incomes, based on actual data for the year 2017 (the latest year for which returns are available) adjusted as necessary for income, self-employment and employment trends in the interim.