Revenue estimate tax-take contribution of high earners rises

The State will receive a greater proportion of income tax from top earners this year on foot of measures in the budget last October, official estimates from the Revenue Commissioners suggest.

The Revenue data, released to Fine Gael MEP Brian Hayes, suggests the share of income tax and universal social charge (USC) paid by those earning more than €200,000 rises to 21 per cent after the budget, up from 19 per cent. This cohort is estimated to represent 1 per cent of all earners.

The data suggests all people earning more than €100,000 – 6 per cent of earners – will see their total share of income tax and USC rise to 44 per cent as a result of the budget, up from 42 per cent.

Tax increases

“Parties of the left believe that all our problems can be solved by a very large tax increase on those earning more than €100,000,” said Mr Hayes. “The difficulty with their suggestion is that we don’t have enough people earning that level of income.”

The figures also indicate that the share of income tax and USC paid by people on less than €50,000 declines to 20 per cent after the budget from 21 per cent. This makes up 76 per cent of all earners.

The share paid by all people on more than €50,000 rises to 80 per cent from 79 per cent. This group makes up 24 per cent of all earners.

Earners

According to the Revenue estimates, the share of income tax and USC paid by all people on more than €80,000 rises to 55 per cent after the budget from 54 per cent. This represents 9 per cent of all earners.

The data suggests the number paying the standard income tax rate rose by 27,400 to 1.03 million after the budget while the number paying the higher rate declined by 27,500 to 431,000. The number exempt from income tax rose by 100 to 880,700.

The Revenue data follows an ESRI budget assessment in December, which said households with the top 10 per cent of incomes would gain most.

It said the changes would hit the 10 per cent of households with the lowest incomes most, bringing a 1 per cent reduction in income.