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)
€ € € € € € € % € %
15,000 336 336 0 0 108 108 0.6 992 4.6
20,000 936 936 0 0 108 108 0.5 940 4.0
25,000 1,236 1,236 390 150 108 348 1.3 348 1.3
30,000 1,536 1,536 1,390 1,150 108 348 1.2 348 1.2
35,000 1,836 1,836 2,390 2,150 108 348 1.0 348 1.0
40,000 2,136 2,136 4,050 3,810 108 348 0.9 348 0.9
45,000 2,278 2,337 6,150 5,910 108 289 0.7 289 0.7
50,000 2,398 2,463 8,250 8,010 108 283 0.7 283 0.7
60,000 2,634 2,698 12,450 12,210 108 283 0.6 283 0.6
80,000 3,080 3,144 20,850 20,610 108 283 0.5 283 0.5
100,000 3,505 3,575 29,250 29,010 108 278 0.4 278 0.4
120,000 3,925 3,990 37,650 37,410 108 283 0.3 283 0.3
Variations can arise due to rounding
(a) Value during 2004 of the increase in Child Benefit (CB) made in the Budget, which is effective from April, 2004 (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 2004 of the
improvement in FIS made in this Budget which take effect from January, 2004.
(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.