Sorca Clarke (Longford-Westmeath, Sinn Fein)
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218. To ask the Minister for Finance the estimated revenue that would be generated from an increase to 50% in the minimum effective tax rate of those earning more than €325,000 per year. [48372/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that taxpayer units with taxable incomes exceeding €325,000 incurred an average effective income tax rate in the region of 36% in 2018, the latest year for which data are currently available.

If this effective rate was 50%, it is estimated very roughly that the additional yield would be approximately €800m in a full year.

Pearse Doherty (Donegal, Sinn Fein)
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219. To ask the Minister for Finance the first and full year costs of indexing tax credits and income tax bands by 1%, 2%, 3% and 4% for persons with incomes above €100,000, in tabular form. [48384/21]

Pearse Doherty (Donegal, Sinn Fein)
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220. To ask the Minister for Finance the first and full year costs of indexing income tax bands by 1%, 2%, 3% and 4% for persons with incomes above €100,000, in tabular form. [48385/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 219 and 220 together.

The estimated costs of indexation of various rate bands and tax credits are available in Revenue’s Ready Reckoner, available at www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf. For the convenience of the Deputy, the estimated cost of indexation at 1% is outlined in the table below.

The cost of indexation at various levels can be extrapolated from the above on a straight line basis, however it should be noted that these costings assume no behavioural change.

These estimates are outputs from Revenue’s micro-simulation model and provide the estimated cost of applying the changes in 2022. While it is possible to estimate a cost associated with indexation of the items outlined, it is not possible within Revenue’s model to only apply these changes to taxpayers meeting certain criteria, such as an income threshold.