Examples Showing the Effects of the Budget changes on Different Categories of Single and Married Taxpayers

Examples 1 to 10 attached show for various categories of taxpayers the income tax, levy and PRSI liabilities payable under the existing and proposed structure. Changes to Child Benefit from April 2004 and the Family Income Supplement from January 2004 are also included in the calculations. The examples are based on specimen incomes with the basic tax credits and exemption limits only. The Home Carer credit is included as appropriate. The examples do not take account of discretionary reliefs or Benefit-in-Kind changes. Examples showing the net gains to married two earner couples are calculated using the assumption that the higher income-earning spouse earns 65% of the couple's total income and that the lower earning spouse earns 35% of the couple's income. This is representative of actual cases by reference to Revenue records. Variations can arise due to rounding.
Married couple, one income, no children taxed under PAYE. Full rate PRSI contributor
Married couple, one income, two children, taxed under PAYE. Full rate PRSI contributor
Married couple, two incomes, two children taxed under PAYE. Full rate PRSI contributors
Example 4
Single person taxed under PAYE. Full rate PRSI contributor
Married couple, one income, no children taxed under PAYE. Modified rate PRSI contributor
Married couple, one income, two children taxed under PAYE. Modified rate PRSI contributor
Married couple, two incomes, two children. Modified rate PRSI contributors
Single person taxed under PAYE. Modified rate PRSI contributor
Married couple, one income, two children. Taxed under Schedule D
Married couple, two incomes, two children. Taxed under Schedule D