Dáil reply on Thursday, 17 July, 2014
I am informed by the Revenue Commissioners that, estimated by reference to 2014 incomes, around 856,000 (39%) income earners are exempt from income tax:
- 75,700 self-employed income earners are exempt from Income Tax, this represents 35% of self-employed income earners and 3% of all income earners.
- 780,300 PAYE income earners are exempt from Income Tax, this represents 40% of PAYE income earners and 36% of all income earners.
It should be noted that this analysis focuses on Income Tax, some taxpayers exempt from Income Tax may be paying Universal Social Charge (USC). Overall, it is estimated by the Commissioners that around 25% of taxpayers pay neither Income Tax or USC.
I am further informed by the Revenue Commissioners that, estimated by reference to 2014 incomes, the number of income earners with earnings less than €32,800 and more than €32,800 is 1,267,600 and 922,600 respectively. In addition, 266,500 one-income married couples have earnings of less than €41,800.
Regarding a reduction in the marginal tax rate, it is assumed that the Deputy refers to a reduction in the 41% Income Tax rate. On this basis the Revenue Commissioners estimate that, a reduction of that rate would affect approximately 392,000 (18%) income earners.
The figures quoted above are estimates from the Revenue tax forecasting model for 2014, using the latest actual data for the year 2011 adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. A married couple or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.