Wealth tax would raise €67m

Mon, Sep 24, 2012, 01:00

AN ESTIMATED €67 million in tax would be raised if a 1 per cent levy was applied to incomes above €100,000, according to Minister for Finance Michael Noonan.

He said that adding 1 per cent to the universal social charge on individualised incomes above that amount would yield €67 million.

Labour TD Joanna Tuffy had asked the Minister in a written parliamentary question the estimated tax yield if a 1 per cent levy was “applied in budget 2013 to all earners whose individual incomes surpassed €100,000 or on couples whose joint income surpassed €200,000”.

Mr Noonan interpreted the question as referring to the universal social charge, which he said was an individualised levy. He said on that basis the Revenue Commissioners estimated that the full-year intake would be €67 million based on 2013 incomes.

He said the estimated yield was based on a 1 per cent increase “to the portion of income which is in excess of €100,000” and not the total income earned up to €100,000.

The figure is based on 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,” the Minister said.

Last week in the Dáil Tánaiste Eamon Gilmore challenged United Left Alliance (ULA) TD Richard Boyd Barrett to detail his proposals either for a property tax or a levy on the wealthy.

The Dún Laoghaire TD and his colleagues in the ULA have repeatedly called for a tax on those earning more than €100,000. Questioning Mr Gilmore, he claimed it was becoming clear the property tax to be introduced to replace the household charge would “not be fairer”.

Mr Boyd Barrett warned there would be a revolt against the charge but Mr Gilmore called on him to “leave down your picket sign and take up your pen and set out your proposals and what you think would be a fair system”.