EXAMPLE 4
|
Married
couple, two incomes, two children taxed under PAYE
|
|
Full
rate PRSI contributors
|
|
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
|
0
|
0
|
0
|
0
|
144
|
144
|
0.8
|
664
|
3.2
|
|
16,000
|
0
|
0
|
0
|
0
|
144
|
144
|
0.8
|
664
|
3.1
|
|
17,000
|
0
|
0
|
0
|
0
|
144
|
144
|
0.7
|
664
|
3.1
|
|
18,000
|
0
|
0
|
0
|
0
|
144
|
144
|
0.7
|
664
|
3.0
|
|
19,000
|
0
|
0
|
0
|
0
|
144
|
144
|
0.7
|
664
|
3.0
|
|
20,000
|
0
|
0
|
0
|
0
|
144
|
144
|
0.6
|
144
|
0.6
|
|
25,000
|
386
|
386
|
640
|
360
|
144
|
424
|
1.6
|
424
|
1.6
|
|
30,000
|
906
|
906
|
1,640
|
1,360
|
144
|
424
|
1.4
|
424
|
1.4
|
|
35,000
|
1,101
|
1,101
|
2,640
|
2,360
|
144
|
424
|
1.3
|
424
|
1.3
|
|
40,000
|
1,296
|
1,296
|
3,640
|
3,360
|
144
|
424
|
1.1
|
424
|
1.1
|
|
45,000
|
1,857
|
1,857
|
4,640
|
4,360
|
144
|
424
|
1.0
|
424
|
1.0
|
|
50,000
|
2,122
|
2,122
|
5,640
|
5,360
|
144
|
424
|
0.9
|
424
|
0.9
|
|
55,000
|
2,772
|
2,772
|
6,640
|
6,360
|
144
|
424
|
0.9
|
424
|
0.9
|
|
60,000
|
3,061
|
3,072
|
8,520
|
8,240
|
144
|
414
|
0.8
|
414
|
0.8
|
|
70,000
|
3,437
|
3,494
|
12,720
|
12,440
|
144
|
367
|
0.6
|
367
|
0.6
|
|
80,000
|
3,807
|
3,864
|
16,920
|
16,640
|
144
|
367
|
0.6
|
367
|
0.6
|
|
90,000
|
4,168
|
4,230
|
21,120
|
20,840
|
144
|
362
|
0.5
|
362
|
0.5
|
|
100,000
|
4,528
|
4,585
|
25,320
|
25,040
|
144
|
367
|
0.5
|
367
|
0.5
|
|
110,000
|
4,878
|
4,940
|
29,520
|
29,240
|
144
|
362
|
0.5
|
362
|
0.5
|
|
120,000
|
5,123
|
5,237
|
33,720
|
33,440
|
144
|
310
|
0.4
|
310
|
0.4
|
|
130,000
|
5,349
|
5,468
|
37,920
|
37,640
|
144
|
305
|
0.3
|
305
|
0.3
|
|
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.
|
|
(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.
|
|