EXAMPLE 8

Married couple, one income, four children taxed under PAYE

Modified 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

324

324

1.8

844

3.5

13,000

0

0

0

0

324

324

1.7

844

3.4

14,000

0

0

0

0

324

324

1.6

844

3.3

15,000

123

123

0

0

324

324

1.6

844

3.3

16,000

132

132

0

0

324

324

1.5

844

3.3

17,000

141

141

0

0

324

324

1.4

844

3.2

18,000

150

150

0

0

324

324

1.4

896

3.3

19,000

539

539

0

0

324

324

1.3

844

3.1

20,000

568

568

0

0

324

324

1.3

844

3.1

25,000

713

713

530

390

324

464

1.6

464

1.6

30,000

858

858

1,530

1,390

324

464

1.4

464

1.4

35,000

1,003

1,003

2,530

2,390

324

464

1.2

464

1.2

40,000

1,137

1,148

4,190

4,050

324

453

1.1

453

1.1

45,000

1,238

1,253

6,290

6,150

324

449

1.0

449

1.0

50,000

1,339

1,354

8,390

8,250

324

449

1.0

449

1.0

55,000

1,440

1,455

10,490

10,350

324

449

0.9

449

0.9

60,000

1,541

1,555

12,590

12,450

324

449

0.9

449

0.9

70,000

1,742

1,757

16,790

16,650

324

449

0.8

449

0.8

80,000

1,943

1,957

20,990

20,850

324

449

0.7

449

0.7

90,000

2,143

2,158

25,190

25,050

324

449

0.7

449

0.7

100,000

2,344

2,359

29,390

29,250

324

449

0.6

449

0.6

110,000

2,544

2,559

33,590

33,450

324

449

0.6

449

0.6

120,000

2,745

2,760

37,790

37,650

324

449

0.5

449

0.5

130,000

2,945

2,960

41,990

41,850

324

449

0.5

449

0.5

(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.