Dáil Éireann Debate, Thursday - 15 November 2012
85. Deputy Sean Fleming asked the Minister for Finance the revenue that would be raised from increasing the universal social charge for all persons over 70 years to 7% on income over €100,000; and if he will make a statement on the matter. [50713/12]
Amharc ar fhreagraAs the Deputy is aware, the standard rates of Universal Social Charge are:-
- 2% on the first €10,036,
- 4% on the next €5,980, and
- 7% on the balance.
However, the maximum rate of charge for such individuals who are aged 70 years or over is 4% irrespective of the level of their income, unless they have self-employment income in excess of €100,000 for a tax year, in which case the maximum rate rises to 7% on the amount of the excess over €100,000.
I am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, from extending the additional universal social charge of 3%, which is currently applicable to self-employed income in excess of €100,000 in the hands of income earners aged 70 and over, to all income earners aged 70 and over at this level of income would be of the order of €3 million. The Universal Social Charge (USC) is an individualised charge and as such, the estimate of yield is based on individual incomes of more than €100,000.
The estimated yield is based on confining the 3% USC surcharge 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.
