EXAMPLE 13

Married couple, one income, four children

Taxed under Schedule D

GROSS

PRSI/Levy Liability

Tax Liability

Child Benefit

Total

Gain as % of

INCOME

Existing

Proposed

Existing

Proposed

Increase (a)

Gain

Net Income (b)

%

12,000

360

360

0

0

324

324

1.8

13,000

390

390

0

0

324

324

1.7

14,000

420

420

0

0

324

324

1.7

15,000

450

450

0

0

324

324

1.6

16,000

480

480

0

0

324

324

1.5

17,000

510

510

0

0

324

324

1.4

18,000

540

540

0

0

324

324

1.4

19,000

950

950

0

0

324

324

1.4

20,000

1,000

1,000

190

190

324

324

1.3

25,000

1,250

1,250

1,190

1,190

324

324

1.1

30,000

1,500

1,500

2,190

2,190

324

324

1.0

35,000

1,750

1,750

3,190

3,190

324

324

0.9

40,000

2,000

2,000

4,850

4,850

324

324

0.8

45,000

2,250

2,250

6,950

6,950

324

324

0.8

50,000

2,500

2,500

9,050

9,050

324

324

0.7

55,000

2,750

2,750

11,150

11,150

324

324

0.7

60,000

3,000

3,000

13,250

13,250

324

324

0.7

70,000

3,500

3,500

17,450

17,450

324

324

0.6

80,000

4,000

4,000

21,650

21,650

324

324

0.5

90,000

4,500

4,500

25,850

25,850

324

324

0.5

100,000

5,000

5,000

30,050

30,050

324

324

0.5

110,000

5,500

5,500

34,250

34,250

324

324

0.4

120,000

6,000

6,000

38,450

38,450

324

324

0.4

130,000

6,500

6,500

42,650

42,650

324

324

0.4

(a) Value during 2003 of the increase in Child Benefit (CB) made in the Budget, which is effective from April, 2003

(i.e. assuming 9 months of CB increase).

(b) Net income includes CB less deductions of tax, levy and PRSI (where appropriate) and so may be higher than the gross income.