Dáil Éireann Debate, Thursday - 15 November 2012
71. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 270 of 6 November 2012, if he will provide details of his estimate of the extra tax revenue that would be raised by placing a 5% levy on all income in excess of €100,000; and if he will make a statement on the matter. [50578/12]
View answerI assume the Deputy has in mind a 5 percentage point increase in the rate of Universal Social Charge (USC) applying to incomes exceeding €100,000. The Universal Social Charge (USC) is an individualised charge and as such the yield is calculated for individual incomes of more than €100,000. On that basis I am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2012 incomes, would be €321 million. The estimated yield is based on confining the 5 percentage point increase to the portion of income which is in excess of €100,000, that is, the increase is not applied to the portion of total income earned up to €100,000.
The figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and likely to be revised.
