EXAMPLE 6
Married couple, one income, two 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)
€ € € € € € € % € %
15,000 123 123 0 0 108 108 0.6 992 4.6
20,000 568 568 0 0 108 108 0.5 992 4.2
25,000 713 713 390 150 108 348 1.3 348 1.3
30,000 858 858 1,390 1,150 108 348 1.1 348 1.1
35,000 1,003 1,003 2,390 2,150 108 348 1.0 348 1.0
40,000 1,148 1,148 4,050 3,810 108 348 0.9 348 0.9
45,000 1,253 1,268 6,150 5,910 108 333 0.8 333 0.8
50,000 1,354 1,369 8,250 8,010 108 333 0.8 333 0.8
60,000 1,555 1,571 12,450 12,210 108 333 0.7 333 0.7
80,000 1,957 1,973 20,850 20,610 108 333 0.6 333 0.6
100,000 2,359 2,374 29,250 29,010 108 332 0.5 332 0.5
120,000 2,760 2,775 37,650 37,410 108 333 0.4 333 0.4
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.