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Department of Finance - Department of Public Expenditure and Reform

The Budget

EXAMPLE 9

Married couple, two incomes, two children

Modified 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

134

134

640

360

144

424

1.6

424

1.6

30,000

553

553

1,640

1,360

144

424

1.4

424

1.4

35,000

648

648

2,640

2,360

144

424

1.2

424

1.2

40,000

742

742

3,640

3,360

144

424

1.1

424

1.1

45,000

966

966

4,640

4,360

144

424

1.0

424

1.0

50,000

1,076

1,076

5,640

5,360

144

424

0.9

424

0.9

55,000

1,571

1,571

6,640

6,360

144

424

0.9

424

0.9

60,000

1,713

1,716

8,520

8,240

144

422

0.8

422

0.8

70,000

1,946

1,961

12,720

12,440

144

409

0.7

409

0.7

80,000

2,179

2,194

16,920

16,640

144

409

0.6

409

0.6

90,000

2,412

2,427

21,120

20,840

144

409

0.6

409

0.6

100,000

2,644

2,659

25,320

25,040

144

409

0.5

409

0.5

110,000

2,876

2,891

29,520

29,240

144

409

0.5

409

0.5

120,000

3,080

3,109

33,720

33,440

144

395

0.5

395

0.5

130,000

3,281

3,311

37,920

37,640

144

394

0.4

394

0.4

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.