MINISTER FOR FINANCE Michael Noonan has given a full breakdown of how much money the State would bring in if new rates of income tax were brought in for high earners.
Minister Noonan said that between €52 million and €312 million a year could be brought in each year with a higher income tax rate of between 42 per cent and 47 per cent for people earning over €100,000.
He also released figures in response to Sinn Féin TD Pearse Doherty on how much money an increase in the Universal Social Charge (USC) would bring in if levied on high earners.
Noonan has followed the tradition of previous Ministers for Finance in refusing to discuss what will be contained in October’s Budget; however he has strongly indicated that any kind of ‘wealth tax’ – including a raised income tax – is unlikely to happen.
“Given the current band structures, major issues would need to be resolved as to how in practice such a new rate could be integrated into the current system and how this would affect the relative position of different types of income earners,” he said.
Here are the figures Noonan provided – from estimates by the Revenue Commissioners – based on new tax rates on taxable incomes of over €100,000. (Note: The current higher rate of income tax is 41 per cent on income over €32,800).
However, he noted that the figures are estimates using a forecasting model based on data for 2010 and are therefore subject to revision.
Noonan also gave figures about how much would be brought in by an increase in the Universal Social Charge. Revenue Commissioners have estimated that between €24 million and €142 million could be brought in by an increase of between 1 per cent and 6 per cent on the USC for PAYE workers earning over €100,000.
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