Catherine Murphy (Kildare North, Social Democrats)
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277. To ask the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned income credit of a taxpayer unit by 3% per €1,500 on a person's income between €110,000 and €160,000+ per year resulting in no entitlement to these tax credits when income is in excess of €160,000+ in addition to a USC rate of 3.25% in excess of €190,000. [12707/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The tapering out of tax credits on income above €110,000, at a rate of 3% per €1,500 of income, such that the taxpayer has no entitlement to credits at an income level of about €160,000, combined with the introduction of an additional USC rate of 3.25% on income in excess of €190,000, would yield an estimated €530m and €660m on a first and full year basis respectively.

These calculations are on a taxpayer unit basis, where jointly assessed couples are combined as one tax unit. The figures are estimates for 2021, based on data for the latest year available (2018 currently) adjusted to account for employment and income changes in the interim. Figures are provisional and may be revised. Finally, I have been advised by Revenue that the introduction of credit tapering would involve significant change to operational systems and processes, which would require further evaluation to fully understand the potential impacts on the relative position of different types of income earners.