EXAMPLE 2
Married couple, one income, two children taxed under PAYE
Full rate PRSI contributor

GROSS PRSI/Levy Liability Tax Liability Child Benefit Total Gain as % of Total Gain where Gain including FIS
INCOME Existing Proposed Existing Proposed Increase (a) Gain Net Income (b) FIS applies (c) as % of Net Income (d)
% %
12,000 0 0 0 0 144 144 1.0 664 3.4
13,000 0 0 0 0 144 144 0.9 664 3.3
14,000 0 0 0 0 144 144 0.9 664 3.3
15,000 336 336 0 0 144 144 0.8 664 3.2
16,000 376 376 0 0 144 144 0.8 664 3.2
17,000 416 416 0 0 144 144 0.7 664 3.1
18,000 456 456 0 0 144 144 0.7 664 3.0
19,000 876 876 0 0 144 144 0.7 664 3.0
20,000 936 936 0 0 144 144 0.7 716 3.2
25,000 1,236 1,236 530 390 144 284 1.1 284 1.1
30,000 1,536 1,536 1,530 1,390 144 284 1.0 284 1.0
35,000 1,836 1,836 2,530 2,390 144 284 0.9 284 0.9
40,000 2,091 2,136 4,190 4,050 144 239 0.7 239 0.7
45,000 2,221 2,278 6,290 6,150 144 227 0.6 227 0.6
50,000 2,341 2,398 8,390 8,250 144 227 0.5 227 0.5
55,000 2,462 2,519 10,490 10,350 144 227 0.5 227 0.5
60,000 2,577 2,634 12,590 12,450 144 227 0.5 227 0.5
70,000 2,802 2,859 16,790 16,650 144 227 0.4 227 0.4
80,000 3,018 3,080 20,990 20,850 144 222 0.4 222 0.4
90,000 3,233 3,295 25,190 25,050 144 222 0.3 222 0.3
100,000 3,443 3,505 29,250 144 222 0.3 222 0.3
110,000 3,653 3,715 33,590 33,450 144 222 0.3 222 0.3
120,000 3,863 3,925 37,790 37,650 144 222 0.3 222 0.3
130,000 4,068 4,130 41,990 41,850 144 222 0.3 222 0.3

(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.

(c)  The two last columns show the total gain where Family Income Supplement (FIS) is taken up in both years.  The gain includes the value during 2003  of the

       improvement in FIS made in this Budget which take effect from January, 2003.

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