Example 3
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)
€ € € € € € € % € %
15,000 0 0 0 0 108 108 0.6 992 4.6
20,000 0 0 0 0 108 108 0.5 992 4.2
25,000 386 386 360 0 108 468 1.7 468 1.7
30,000 906 906 1,360 880 108 588 1.9 588 1.9
35,000 1,101 1,101 2,360 1,880 108 588 1.7 588 1.7
40,000 1,296 1,296 3,360 2,880 108 588 1.5 588 1.5
45,000 1,857 1,857 4,360 3,880 108 588 1.4 588 1.4
50,000 2,122 2,122 5,360 4,880 108 588 1.3 588 1.3
60,000 3,072 3,072 8,240 7,760 108 588 1.1 588 1.1
80,000 3,864 3,924 16,640 16,160 108 529 0.8 529 0.8
100,000 4,585 4,650 25,040 24,560 108 523 0.7 523 0.7
120,000 5,237 5,355 33,440 32,960 108 470 0.6 470 0.6
Variations can arise due to rounding
This example assumes that the joint income is divided 65% and 35% between spouses.
(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.