EXAMPLE 14

Married couple, two incomes, two 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

506

506

0

0

144

144

1.0

13,000

507

507

0

0

144

144

1.0

14,000

526

526

0

0

144

144

0.9

15,000

546

546

0

0

144

144

0.8

16,000

565

565

160

160

144

144

0.8

17,000

585

585

360

360

144

144

0.8

18,000

604

604

560

560

144

144

0.7

19,000

624

624

760

760

144

144

0.7

20,000

643

643

960

960

144

144

0.7

25,000

750

750

1,960

1,960

144

144

0.6

30,000

1,290

1,290

2,960

2,960

144

144

0.5

35,000

1,505

1,505

3,960

3,960

144

144

0.4

40,000

1,720

1,720

4,960

4,960

144

144

0.4

45,000

1,935

1,935

5,960

5,960

144

144

0.4

50,000

2,150

2,150

6,960

6,960

144

144

0.3

55,000

2,750

2,750

7,960

7,960

144

144

0.3

60,000

3,000

3,000

9,840

9,840

144

144

0.3

70,000

3,500

3,500

14,040

14,040

144

144

0.3

80,000

4,000

4,000

18,240

18,240

144

144

0.2

90,000

4,500

4,500

22,440

22,440

144

144

0.2

100,000

5,000

5,000

26,640

26,640

144

144

0.2

110,000

5,500

5,500

30,840

30,840

144

144

0.2

120,000

6,000

6,000

35,040

35,040

144

144

0.2

130,000

6,500

6,500

39,240

39,240

144

144

0.2

This example assumes that the joint income is divided by 65% and 35% between both spouses.

(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.