Dáil Éireann Debate, Tuesday - 18 December 2012
187. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if he will provide, in tabular form, the estimated income that would be generated for the State by raising the universal social charge by 3% on all taxable income above €70,000 and for each €5,000 increment thereafter up to and including €120,000; and if he will make a statement on the matter. [56911/12]
View answerI am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, of a 3 percentage point increase in the rate of Universal Social Charge (USC) applying to the incomes of all income earners exceeding €70,000 but not exceeding €120,000 would be of the order of €41 million. If the increased rate is also assumed to apply to income earners with incomes in excess of €120,000 the total full year yield would be of the order of €294 million.
The Universal Social Charge is an individualised charge and as such, the estimated yields are based on individual incomes of more than €70,000. The estimated yields are based on confining the 3 percentage point increase to the portion of income which is in excess of €70,000, that is, the increase is not applied to the portion of total income earned up to €70,000. A breakdown of the yield of €41million for the rate change limited to earners with income of no more than €120,000 is as follows.
|
Range of taxable income for USC |
Yield from 3% increase |
|
€ |
€m |
|
70,001-75,000 |
1.1 |
|
75,001-80,000 |
2.6 |
|
80,001-85,000 |
3.6 |
|
85,001-90,000 |
4.2 |
|
90,001-95,000 |
4.5 |
|
95,001-100,000 |
4.7 |
|
100,001-105,000 |
5.0 |
|
105,001-110,000 |
5.0 |
|
110,001-115,000 |
5.2 |
|
115,001-120,000 |
5.1 |
|
Total yield |
41.0 |
The figures are estimates 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.
