Written Answers. - Tax Code.

Tuesday, 3 December 2002

Dáil Éireann Debate
Vol. 558 No. 4

 205. Mr. P. McGrath    asked the Minister for Finance    the tax paid by a single income married couple with gross income of ?56,000 in 2002; if he will compare this amount to that paid by a double income married couple with each earning ?28,000 per annum, one earning ?37,000 and the other earning ?19,000, assuming in all cases no dependent children or other additional tax credits. [24820/02]

Minister for Finance (Mr. McCreevy):   The position is that the tax rates and bands for a married couple for 2002 are as follows: Married couple, one spouse with income – first €37,000 @ 20%, balance @ 42%; married couple, both spouses with income – first €37,000 with increase of €19,000 maximum @ 20%, balance @ 42%.

In the case of married couples with two incomes the standard rate band available to one spouse will not be greater than that available to a one income married couple i.e. €37,000. The second spouse may avail of the balance of the €56,000 band.

The following six examples show the income tax payable by single and double income families as requested by the Deputy on a gross income of €56,000 for the current tax year. The examples refer to earners in the PAYE and self-employed sectors and are based on the assumption in each case that the married couple are jointly assessed for tax purposes.

Example 1

In this example it is assumed that the individual is in the PAYE system.

One Income Family with no dependent children

[1052] Example 2

In this example it assumes that both spouses are working in the PAYE sector.

Two Income Family with no dependent children and income split between spouses €28,000: €28,000.

Example 3

In this example it is assumed that both spouses are in the PAYE

system.

Two Income Family with no dependent children and income split between spouses €37,000: €19,000.

Example 4

In this example it is assumed that the earner is self-employed.

One Income Family with no dependent children.

Example 5

In this example it assumes that each spouse is self employed.

Two Income Family with no dependent children and income split between spouses €28,000: €28,000.

[1053] Example 6

In this example it is assumed that both spouses are self-employed.

Two Income Family with no dependent children and income split between spouses €37,000:€19,000.