(I) DETAILS OF MAIN INCOME TAX CHANGES
In Irish Pounds
Personal Allowances at Standard Rate	EXISTING	PROPOSED	Allowance	Tax Credit	Tax Credit
	Allowance	Allowance	Increase	12 Months (1)	9 Months (2)
Basic Personal Allowances	£	£	£	£	£
Single Persons	4,700	5,500	800	1,100	814
Married Couples	9,400	11,000	1,600	2,200	1,628
PAYE	1,000	2,000	1,000	400	296

Additional Personal Allowances
One-Parent Family Allowance / Widowed / Other Parent	4,700	5,500	800	1,100	814
Tax Rates and Tax Bands	EXISTING	PROPOSED	CHANGE
Rates
Standard Rate	22%	20%	-2%
Top Rate	44%	42%	-2%
	EXISTING	PROPOSED	INCREASE		PROPOSED
	12 Months	12 Months	12 Months		9 Months
Standard Rate Bands	£	£	£		£
Single/Widowed Persons	17,000	20,000	3,000		14,800
Married Couples, One Income	28,000	29,000	1,000		21,460
Married Couples, Two Incomes (3)	34,000	40,000	6,000		29,600
One-Parent Families	20,150	23,150	3,000		17,131
Exemption Limits (4)	EXISTING	PROPOSED	INCREASE		PROPOSED
	12 Months	12 Months			9 Months
65 and Over	£	£	£		£
Single/Widowed	7,500	8,500	1,000		6,290
Married	15,000	17,000	2,000		12,580

Notes
1. Equivalent value of standard rated allowances as tax credits, i.e. £5,500 @ 20% = ú1,100.
2. Equivalent value of tax credits for nine months, due to the alignment of the tax year with the calendar year, i.e. 2001 tax year is from April 2001- December 2001.
3. The tax band of £40,000 available to married couples with two incomes is transferable between spouses up to a maximum of £29,000 for any one spouse.
4. The Marginal Relief tax rate remains at 40 %. (It continues to apply until such time as it is more beneficial for the taxpayer to be assessed under the normal taxation system).

(i) DETAILS OF MAIN INCOME TAX CHANGES
	In Euro
Personal Allowances - at Standard Rate	EXISTING	PROPOSED	Allowance	Tax Credit	Tax Credit
	Allowance	Allowance	Increase	12 Months (1)	9 Months (2)
Basic Personal Allowances
Single Persons	5,968	6,984	1,016	1,397	1,034
Married Couples	11,936	13,968	2,032	2,794	2,068
PAYE	1,270	2,540	1,270	508	376

Additional Personal Allowances
One-Parent Family Allowance / Widowed / Other Parent	5,968	6,984	1,016	1,397	1,034



Tax Rates and Tax Bands	EXISTING	PROPOSED	CHANGE
Rates
Standard Rate	22%	20%	-2%
Top Rate	44%	42%	-2%
	EXISTING	PROPOSED	INCREASE		PROPOSED
Standard Rate Bands	12 Months	12 Months			9 Months

Single/Widowed Persons	21,586	25,395	3,810		18,793
Married Couples, One Income	35,553	36,823	1,270		27,249
Married Couples, Two Incomes (3)	43,172	50,790	7,619		37,585
One-Parent Families	25,586	29,395	3,810		21,752



Exemption Limits (4)	EXISTING	PROPOSED	INCREASE		PROPOSED
	12 Months	12 Months			9 Months
65 and Over
Single/Widowed	9,534	10,793	1,270		7,987
Married	19,047	21,586	2,540		15,974

Notes

1. Equivalent value of standard rated allowances as tax credits.

2. Equivalent value of tax credits for nine months, due to the alignment of the tax year with the calendar year, i.e. 2001 tax year is from April 2001- December 2001.

3. The tax band of €50,790 available to married couples with two incomes is transferable between spouses up to a maximum of €36,823 for any one spouse.

4. The Marginal Relief tax rate remains at 40 %. (It continues to apply until such time as it is more beneficial for the taxpayer to be assessed under the normal taxation system).

(ii) Examples Showing the Effects of Budget Changes on Different Categories of Married and Single Taxpayers

EXAMPLE 1
Married couple, one income, no children taxed under PAYE
Full rate PRSI contributor
GROSS		PRSI/Levy Liability			Tax Liability			Total	Gain as % of
INCOME		Existing	Proposed		Existing	Proposed		Gain	Net Income
£		£	£		£	£		£	%
9,000		0	0		0	0		0	0.0
10,000		0	0		0	0		0	0.0
11,000		0	0		132	0		132	1.2
12,000		306	272		352	0		386	3.4
13,000		351	312		572	0		611	5.1
14,000		396	352		792	200		636	5.0
15,000		741	692		1,012	400		661	5.0
16,000		806	752		1,232	600		686	4.9
17,000		871	812		1,452	800		711	4.8
18,000		936	872		1,672	1,000		736	4.8
20,000		1,066	992		2,112	1,400		786	4.7
22,000		1,196	1,112		2,552	1,800		836	4.6
24,000		1,326	1,232		2,992	2,200		886	4.5
26,000		1,456	1,352		3,432	2,600		936	4.4
28,000		1,528	1,472		3,872	3,000		928	4.1
30,000		1,586	1,534		4,752	3,620		1,184	5.0
35,000		1,713	1,662		6,952	5,720		1,283	4.9
40,000		1,835	1,782		9,152	7,820		1,385	4.8
45,000		1,953	1,898		11,352	9,920		1,487	4.7
50,000		2,067	2,010		13,552	12,020		1,589	4.6
60,000		2,289	2,230		17,952	16,220		1,791	4.5
70,000		2,503	2,446		22,352	20,420		1,989	4.4
80,000		2,712	2,654		26,752	24,620		2,190	4.3
90,000		2,921	2,862		31,152	28,820		2,391	4.3
100,000		3,130	3,070		35,552	33,020		2,592	4.2


EXAMPLE 2
Married couple, one income, two children taxed under PAYE
Full rate PRSI contributor
GROSS	PRSI/Levy Liability			Child Benefit			Gain as % of	Total Gain where	Gain including FIS as
INCOME	Existing	Proposed	Existing	Proposed	Increase (a)	Gain	Net Income (b)	FIS applies (c)	% of Net Income (d)
£	£	£	£	£	£	£	%	£	%
9,000	0	0	0	0	500	500	5.0	1,280	10.3
10,000	0	0	0	0	500	500	4.6	1,280	10.0
11,000	0	0	0	0	500	500	4.2	1,280	9.7
12,000	306	272	0	0	500	534	4.2	1,314	9.7
13,000	351	312	0	0	500	539	4.0	1,111	7.9
14,000	396	352	132	0	500	676	4.7	1,196	8.3
15,000	741	692	352	0	500	901	6.1	1,421	9.6
16,000	806	752	572	0	500	1,126	7.2	1,126	7.2
17,000	871	812	792	200	500	1,151	7.1	1,151	7.1
18,000	936	872	1,012	400	500	1,176	6.9	1,176	6.9
20,000	1,066	992	1,452	800	500	1,226	6.7	1,226	6.7
22,000	1,196	1,112	1,892	1,200	500	1,276	6.4	1,276	6.4
24,000	1,326	1,232	2,332	1,600	500	1,326	6.2	1,326	6.2
26,000	1,456	1,352	2,772	2,000	500	1,376	6.1	1,376	6.1
28,000	1,528	1,472	3,212	2,400	500	1,368	5.7	1,368	5.7
30,000	1,586	1,534	4,092	3,020	500	1,624	6.4	1,624	6.4
35,000	1,713	1,662	6,292	5,120	500	1,723	6.2	1,723	6.2
40,000	1,835	1,782	8,492	7,220	500	1,825	6.0	1,825	6.0
45,000	1,953	1,898	10,692	9,320	500	1,927	5.8	1,927	5.8
50,000	2,067	2,010	12,892	11,420	500	2,029	5.6	2,029	5.6
60,000	2,289	2,230	17,292	15,620	500	2,231	5.4	2,231	5.4
70,000	2,503	2,446	21,692	19,820	500	2,429	5.2	2,429	5.2
80,000	2,712	2,654	26,092	24,020	500	2,630	5.0	2,630	5.0
90,000	2,921	2,862	30,492	28,220	500	2,831	4.9	2,831	4.9
100,000	3,130	3,070	34,892	32,420	500	3,032	4.8	3,032	4.8

(a) Value during 2001 [assuming a 12 month tax year] of the increase in Child Benefit [CB] made in the Budget, which is effective from June, 2001 [i.e. assuming 10 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 2001 [assuming a 12 month tax year] of the

improvement in FIS made in this Budget which take effect from April, 2001 [i.e. assuming 52 weeks of FIS increase]

(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

EXAMPLE 3
Married couple, one income, four children taxed under PAYE
Full rate PRSI contributor
GROSS	PRSI/Levy Liability			Child Benefit			Gain as % of	Total Gain where	Gain including FIS as
INCOME	Existing	Proposed	Existing	Proposed	Increase (a)	Gain	Net Income (b)	FIS applies (c)	% of Net Income (d)
£	£	£	£	£	£	£	%	£	%
9,000	0	0	0	0	500	500	5.0	1,280	10.3
10,000	0	0	0	0	500	500	4.6	1,280	10.0
11,000	0	0	0	0	500	500	4.2	1,280	9.7
12,000	306	272	0	0	500	534	4.2	1,314	9.7
13,000	351	312	0	0	500	539	4.0	1,111	7.9
14,000	396	352	132	0	500	676	4.7	1,196	8.3
15,000	741	692	352	0	500	901	6.1	1,421	9.6
16,000	806	752	572	0	500	1,126	7.2	1,126	7.2
17,000	871	812	792	200	500	1,151	7.1	1,151	7.1
18,000	936	872	1,012	400	500	1,176	6.9	1,176	6.9
20,000	1,066	992	1,452	800	500	1,226	6.7	1,226	6.7
22,000	1,196	1,112	1,892	1,200	500	1,276	6.4	1,276	6.4
24,000	1,326	1,232	2,332	1,600	500	1,326	6.2	1,326	6.2
26,000	1,456	1,352	2,772	2,000	500	1,376	6.1	1,376	6.1
28,000	1,528	1,472	3,212	2,400	500	1,368	5.7	1,368	5.7
30,000	1,586	1,534	4,092	3,020	500	1,624	6.4	1,624	6.4
35,000	1,713	1,662	6,292	5,120	500	1,723	6.2	1,723	6.2
40,000	1,835	1,782	8,492	7,220	500	1,825	6.0	1,825	6.0
45,000	1,953	1,898	10,692	9,320	500	1,927	5.8	1,927	5.8
50,000	2,067	2,010	12,892	11,420	500	2,029	5.6	2,029	5.6
60,000	2,289	2,230	17,292	15,620	500	2,231	5.4	2,231	5.4
70,000	2,503	2,446	21,692	19,820	500	2,429	5.2	2,429	5.2
80,000	2,712	2,654	26,092	24,020	500	2,630	5.0	2,630	5.0
90,000	2,921	2,862	30,492	28,220	500	2,831	4.9	2,831	4.9
100,000	3,130	3,070	34,892	32,420	500	3,032	4.8	3,032	4.8

(a) Value during 2001 [assuming a 12 month tax year] of the increase in Child Benefit [CB] made in the Budget, which is effective from June, 2001 [i.e. assuming 10 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 2001 [assuming a 12 month tax year] of the
improvement in FIS made in this Budget which take effect from April, 2001 [i.e. assuming 52 weeks of FIS increase]
(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

EXAMPLE 4
Married couple, two incomes, two children taxed under PAYE
Full rate PRSI contributors
GROSS	PRSI/Levy Liability						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)
£	£	£	£	£	£	£	%	£	%
9,000	0	0	0	0	500	500	5.0	1,280	10.3
10,000	0	0	0	0	500	500	4.6	1,280	10.0
11,000	0	0	0	0	500	500	4.2	1,280	9.7
12,000	0	0	132	0	500	632	4.9	1,360	10.0
13,000	0	0	352	0	500	852	6.3	1,216	8.6
14,000	0	0	572	0	500	1,072	7.5	1,592	11.1
15,000	0	0	792	0	500	1,292	8.5	1,292	8.5
16,000	0	0	1,012	200	500	1,312	8.2	1,312	8.2
17,000	0	0	1,232	400	500	1,332	8.0	1,332	8.0
18,000	0	0	1,452	600	500	1,352	7.7	1,352	7.7
20,000	351	312	1,892	1,000	500	1,431	7.7	1,431	7.7
22,000	410	364	2,332	1,400	500	1,478	7.3	1,478	7.3
24,000	780	728	2,772	1,800	500	1,524	7.1	1,524	7.1
26,000	865	806	3,212	2,200	500	1,571	6.9	1,571	6.9
28,000	949	884	3,652	2,600	500	1,617	6.6	1,617	6.6
30,000	1,034	962	4,092	3,000	500	1,664	6.4	1,664	6.4
35,000	1,562	1,439	5,412	4,000	500	2,035	7.0	2,035	7.0
40,000	1,852	1,704	7,612	5,000	500	3,260	10.4	3,260	10.4
45,000	2,351	2,248	9,812	7,100	500	3,315	9.8	3,315	9.8
50,000	2,553	2,438	12,012	9,200	500	3,427	9.4	3,427	9.4
60,000	2,942	2,810	16,412	13,400	500	3,644	8.8	3,644	8.8
70,000	3,322	3,170	20,812	17,600	500	3,864	8.3	3,864	8.3
80,000	3,639	3,526	25,212	21,800	500	4,025	7.7	4,025	7.7
90,000	3,879	3,768	29,612	26,000	500	4,223	7.4	4,223	7.4
100,000	4,106	4,000	34,012	30,200	500	4,418	7.0	4,418	7.0

This example assumes that the joint income is divided by 65% and 35% between both spouses.

(a) Value during 2001 [assuming a 12 month tax year] of the increase in Child Benefit [CB] made in the Budget, which is effective from June, 2001 [i.e. assuming 10 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 2001 [assuming a 12 month tax year] of the improvement in FIS made in this Budget which take effect from April, 2001 [i.e. assuming 52 weeks of FIS increase]

(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

EXAMPLE 5
Single person taxed under PAYE
Full rate PRSI contributor
GROSS	PRSI/Levy Liability		Tax Liability		Total	Gain as % of
INCOME	Existing	Proposed	Existing	Proposed	Gain	Net Income
£	£	£	£	£	£	%
9,000	0	0	726	300	426	5.1
10,000	0	0	946	500	446	4.9
11,000	0	0	1,166	700	466	4.7
12,000	306	272	1,386	900	520	5.0
13,000	351	312	1,606	1,100	545	4.9
14,000	396	352	1,826	1,300	570	4.8
15,000	741	692	2,046	1,500	595	4.9
16,000	806	752	2,266	1,700	620	4.8
17,000	871	812	2,486	1,900	645	4.7
18,000	936	872	2,926	2,100	890	6.3
20,000	1,066	992	3,806	2,500	1,380	9.1
25,000	1,391	1,292	6,006	4,600	1,505	8.5
30,000	1,586	1,534	8,206	6,700	1,558	7.7
35,000	1,713	1,662	10,406	8,800	1,657	7.2
40,000	1,835	1,782	12,606	10,900	1,759	6.9
45,000	1,953	1,898	14,806	13,000	1,861	6.6
50,000	2,067	2,010	17,006	15,100	1,963	6.3
60,000	2,289	2,230	21,406	19,300	2,165	6.0
70,000	2,503	2,446	25,806	23,500	2,363	5.7
80,000	2,712	2,654	30,206	27,700	2,564	5.4
90,000	2,921	2,862	34,606	31,900	2,765	5.3
100,000	3,130	3,070	39,006	36,100	2,966	5.1


EXAMPLE 6
Married couple, one income, no children taxed under PAYE
Modified rate PRSI contributor
GROSS	PRSI/Levy Liability		Tax Liability		Total	Gain as % of
INCOME	Existing	Proposed	Existing	Proposed	Gain	Net Income
ú	ú	ú	ú	ú	ú	%
9,000	0	0	0	0	0	0.0
10,000	0	0	0	0	0	0.0
11,000	0	0	132	0	132	1.2
12,000	99	99	352	0	352	3.0
13,000	108	108	572	0	572	4.6
14,000	117	117	792	200	592	4.5
15,000	426	426	1,012	400	612	4.5
16,000	455	455	1,232	600	632	4.4
17,000	484	484	1,452	800	652	4.3
18,000	513	513	1,672	1,000	672	4.2
20,000	571	571	2,112	1,400	712	4.1
22,000	629	629	2,552	1,800	752	4.0
24,000	687	687	2,992	2,200	792	3.9
26,000	745	745	3,432	2,600	832	3.8
28,000	790	803	3,872	3,000	859	3.7
30,000	830	845	4,752	3,620	1,117	4.6
35,000	931	947	6,952	5,720	1,216	4.5
40,000	1,032	1,048	9,152	7,820	1,316	4.4
45,000	1,133	1,148	11,352	9,920	1,417	4.4
50,000	1,233	1,249	13,552	12,020	1,516	4.3
60,000	1,434	1,450	17,952	16,220	1,716	4.2
70,000	1,635	1,650	22,352	20,420	1,917	4.2
80,000	1,835	1,851	26,752	24,620	2,116	4.1
90,000	2,036	2,051	31,152	28,820	2,317	4.1
100,000	2,236	2,252	35,552	33,020	2,516	4.0

EXAMPLE 7
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)
£	£	£	£	£	£	£	%	£	%
9,000	0	0	0	0	500	500	5.0	1,280	10.3
10,000	0	0	0	0	500	500	4.6	1,280	10.0
11,000	0	0	0	0	500	500	4.2	1,280	9.7
12,000	99	99	0	0	500	500	3.9	1,280	9.4
13,000	108	108	0	0	500	500	3.6	968	6.8
14,000	117	117	132	0	500	632	4.3	1,152	7.8
15,000	426	426	352	0	500	852	5.6	852	5.6
16,000	455	455	572	0	500	1,072	6.7	1,072	6.7
17,000	484	484	792	200	500	1,092	6.6	1,092	6.6
18,000	513	513	1,012	400	500	1,112	6.4	1,112	6.4
20,000	571	571	1,452	800	500	1,152	6.1	1,152	6.1
22,000	629	629	1,892	1,200	500	1,192	5.8	1,192	5.8
24,000	687	687	2,332	1,600	500	1,232	5.6	1,232	5.6
26,000	745	745	2,772	2,000	500	1,272	5.4	1,272	5.4
28,000	790	803	3,212	2,400	500	1,299	5.2	1,299	5.2
30,000	830	845	4,092	3,020	500	1,557	6.0	1,557	6.0
35,000	931	947	6,292	5,120	500	1,656	5.8	1,656	5.8
40,000	1,032	1,048	8,492	7,220	500	1,756	5.6	1,756	5.6
45,000	1,133	1,148	10,692	9,320	500	1,857	5.4	1,857	5.4
50,000	1,233	1,249	12,892	11,420	500	1,956	5.3	1,956	5.3
60,000	1,434	1,450	17,292	15,620	500	2,156	5.1	2,156	5.1
70,000	1,635	1,650	21,692	19,820	500	2,357	5.0	2,357	5.0
80,000	1,835	1,851	26,092	24,020	500	2,556	4.8	2,556	4.8
90,000	2,036	2,051	30,492	28,220	500	2,757	4.7	2,757	4.7
100,000	2,236	2,252	34,892	32,420	500	2,956	4.6	2,956	4.6

(a) Value during 2001 [assuming a 12 month tax year] of the increase in Child Benefit [CB] made in the Budget, which is effective from June, 2001 [i.e. assuming 10 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 2001 [assuming a 12 month tax year] of the improvement in FIS made in this Budget which take effect from April, 2001 [i.e. assuming 52 weeks of FIS increase]
(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

EXAMPLE 8
Married couple, one income, four 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)
£	£	£	£	£	£	£	%	£	%
9,000	0	0	0	0	1,100	1,100	9.8	1,880	12.6
10,000	0	0	0	0	1,100	1,100	9.0	1,880	12.3
11,000	0	0	0	0	1,100	1,100	8.3	1,880	12.0
12,000	99	99	0	0	1,100	1,100	7.8	1,880	11.7
13,000	108	108	0	0	1,100	1,100	7.3	1,880	11.4
14,000	117	117	132	0	1,100	1,232	7.7	1,908	11.3
15,000	426	426	352	0	1,100	1,452	8.9	2,024	11.9
16,000	455	455	572	0	1,100	1,672	9.7	1,776	10.1
17,000	484	484	792	200	1,100	1,692	9.4	2,212	12.4
18,000	513	513	1,012	400	1,100	1,712	9.2	1,712	9.2
20,000	571	571	1,452	800	1,100	1,752	8.7	1,752	8.7
22,000	629	629	1,892	1,200	1,100	1,792	8.3	1,792	8.3
24,000	687	687	2,332	1,600	1,100	1,832	7.9	1,832	7.9
26,000	745	745	2,772	2,000	1,100	1,872	7.6	1,872	7.6
28,000	790	803	3,212	2,400	1,100	1,899	7.3	1,899	7.3
30,000	830	845	4,092	3,020	1,100	2,157	7.9	2,157	7.9
35,000	931	947	6,292	5,120	1,100	2,256	7.5	2,256	7.5
40,000	1,032	1,048	8,492	7,220	1,100	2,356	7.2	2,356	7.2
45,000	1,133	1,148	10,692	9,320	1,100	2,457	6.9	2,457	6.9
50,000	1,233	1,249	12,892	11,420	1,100	2,556	6.7	2,556	6.7
60,000	1,434	1,450	17,292	15,620	1,100	2,756	6.3	2,756	6.3
70,000	1,635	1,650	21,692	19,820	1,100	2,957	6.1	2,957	6.1
80,000	1,835	1,851	26,092	24,020	1,100	3,156	5.8	3,156	5.8
90,000	2,036	2,051	30,492	28,220	1,100	3,357	5.6	3,357	5.6
100,000	2,236	2,252	34,892	32,420	1,100	3,556	5.5	3,556	5.5

(a) Value during 2001 [assuming a 12 month tax year] of the increase in Child Benefit [CB] made in the Budget, which is effective from June, 2001 [i.e. assuming 10 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 2001 [assuming a 12 month tax year] of the
improvement in FIS made in this Budget which take effect from April, 2001 [i.e. assuming 52 weeks of FIS increase]
(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

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)
£	£	£	£	£	£	£	%	£	%
9,000	0	0	0	0	500	500	5.0	1,280	10.3
10,000	0	0	0	0	500	500	4.6	1,280	10.0
11,000	0	0	0	0	500	500	4.2	1,280	9.7
12,000	0	0	132	0	500	632	4.9	1,360	10.0
13,000	0	0	352	0	500	852	6.3	1,216	8.6
14,000	0	0	572	0	500	1,072	7.5	1,592	11.1
15,000	0	0	792	0	500	1,292	8.5	1,292	8.5
16,000	0	0	1,012	200	500	1,312	8.2	1,312	8.2
17,000	0	0	1,232	400	500	1,332	8.0	1,332	8.0
18,000	0	0	1,452	600	500	1,352	7.7	1,352	7.7
20,000	108	108	1,892	1,000	500	1,392	7.3	1,392	7.3
22,000	119	119	2,332	1,400	500	1,432	7.0	1,432	7.0
24,000	443	443	2,772	1,800	500	1,472	6.8	1,472	6.8
26,000	481	481	3,212	2,200	500	1,512	6.5	1,512	6.5
28,000	518	518	3,652	2,600	500	1,552	6.3	1,552	6.3
30,000	556	556	4,092	3,000	500	1,592	6.1	1,592	6.1
35,000	751	751	5,412	4,000	500	1,912	6.4	1,912	6.4
40,000	861	861	7,612	5,000	500	3,112	9.6	3,112	9.6
45,000	1,262	1,277	9,812	7,100	500	3,197	9.2	3,197	9.2
50,000	1,379	1,394	12,012	9,200	500	3,297	8.8	3,297	8.8
60,000	1,612	1,627	16,412	13,400	500	3,497	8.1	3,497	8.1
70,000	1,844	1,859	20,812	17,600	500	3,697	7.7	3,697	7.7
80,000	2,063	2,092	25,212	21,800	500	3,883	7.2	3,883	7.2
90,000	2,265	2,295	29,612	26,000	500	4,081	6.9	4,081	6.9
100,000	2,466	2,497	34,012	30,200	500	4,281	6.6	4,281	6.6

This example assumes that the joint income is divided by 65% and 35% between both spouses.
(a) Value during 2001 [assuming a 12 month tax year] of the increase in Child Benefit [CB] made in the Budget, which is effective from June, 2001 [i.e. assuming 10 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 2001 [assuming a 12 month tax year] of the
improvement in FIS made in this Budget which take effect from April, 2001 [i.e. assuming 52 weeks of FIS increase]
(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

EXAMPLE 10
Single person taxed under PAYE
Modified rate PRSI contributor
GROSS		PRSI/Levy Liability			Tax Liability			Total	Gain as % of
INCOME		Existing	Proposed		Existing	Proposed		Gain	Net Income
£		£	£		£	£		£	%
9,000		0	0		726	300		426	5.1
10,000		0	0		946	500		446	4.9
11,000		0	0		1,166	700		466	4.7
12,000		99	99		1,386	900		486	4.6
13,000		108	108		1,606	1,100		506	4.5
14,000		117	117		1,826	1,300		526	4.4
15,000		426	426		2,046	1,500		546	4.4
16,000		455	455		2,266	1,700		566	4.3
17,000		484	484		2,486	1,900		586	4.2
18,000		513	513		2,926	2,100		826	5.7
20,000		571	571		3,806	2,500		1,306	8.4
25,000		716	716		6,006	4,600		1,406	7.7
30,000		830	845		8,206	6,700		1,491	7.1
35,000		931	947		10,406	8,800		1,590	6.7
40,000		1,032	1,048		12,606	10,900		1,690	6.4
45,000		1,133	1,148		14,806	13,000		1,791	6.2
50,000		1,233	1,249		17,006	15,100		1,890	6.0
60,000		1,434	1,450		21,406	19,300		2,090	5.6
70,000		1,635	1,650		25,806	23,500		2,291	5.4
80,000		1,835	1,851		30,206	27,700		2,490	5.2
90,000		2,036	2,051		34,606	31,900		2,691	5.0
100,000		2,236	2,252		39,006	36,100		2,890	4.9

EXAMPLE 11
Married couple, one income, no children
Taxed under Schedule D
GROSS	PRSI/Levy Liability		Tax Liability			Total	Gain as % of
INCOME	Existing	Proposed	Existing	Proposed		Gain	Net Income
£	£	£	£	£		£	%
9,000	398	270	0	0		128	1.5
10,000	448	300	132	0		280	3.0
11,000	498	330	352	0		520	5.1
12,000	548	360	572	200		560	5.1
13,000	598	390	792	400		600	5.2
14,000	648	420	1,012	600		640	5.2
15,000	998	750	1,232	800		680	5.3
16,000	1,068	800	1,452	1,000		720	5.3
17,000	1,138	850	1,672	1,200		760	5.4
18,000	1,208	900	1,892	1,400		800	5.4
20,000	1,348	1,000	2,332	1,800		880	5.4
22,000	1,488	1,100	2,772	2,200		960	5.4
24,000	1,628	1,200	3,212	2,600		1,040	5.4
26,000	1,768	1,300	3,652	3,000		1,120	5.4
28,000	1,833	1,400	4,092	3,400		1,125	5.1
30,000	1,873	1,500	4,972	4,020		1,325	5.7
35,000	1,973	1,750	7,172	6,120		1,275	4.9
40,000	2,073	2,000	9,372	8,220		1,225	4.3
45,000	2,173	2,250	11,572	10,320		1,175	3.8
50,000	2,273	2,500	13,772	12,420		1,125	3.3
60,000	2,473	3,000	18,172	16,620		1,025	2.6
70,000	2,673	3,500	22,572	20,820		925	2.1
80,000	2,873	4,000	26,972	25,020		825	1.6
90,000	3,073	4,500	31,372	29,220		725	1.3
100,000	3,273	5,000	35,772	33,420		625	1.0


EXAMPLE 12
Married couple, one income, two children
Taxed under Schedule D
GROSS	PRSI/Levy Liability		Tax Liability		Child Benefit	Total	Gain as % of
INCOME	Existing	Proposed	Existing	Proposed	Increase (a)	Gain	Net Income (b)
£	£	£	£	£	£	£	%
9,000	398	270	0	0	500	628	6.6
10,000	448	300	0	0	500	648	6.2
11,000	498	330	0	0	500	668	5.8
12,000	548	360	0	0	500	688	5.6
13,000	598	390	132	0	500	840	6.4
14,000	648	420	352	0	500	1,080	7.7
15,000	998	750	572	200	500	1,120	7.8
16,000	1,068	800	792	400	500	1,160	7.7
17,000	1,138	850	1,012	600	500	1,200	7.6
18,000	1,208	900	1,232	800	500	1,240	7.5
20,000	1,348	1,000	1,672	1,200	500	1,320	7.4
22,000	1,488	1,100	2,112	1,600	500	1,400	7.2
24,000	1,628	1,200	2,552	2,000	500	1,480	7.1
26,000	1,768	1,300	2,992	2,400	500	1,560	7.0
28,000	1,833	1,400	3,432	2,800	500	1,565	6.6
30,000	1,873	1,500	4,312	3,420	500	1,765	7.1
35,000	1,973	1,750	6,512	5,520	500	1,715	6.2
40,000	2,073	2,000	8,712	7,620	500	1,665	5.5
45,000	2,173	2,250	10,912	9,720	500	1,615	4.9
50,000	2,273	2,500	13,112	11,820	500	1,565	4.4
60,000	2,473	3,000	17,512	16,020	500	1,465	3.6
70,000	2,673	3,500	21,912	20,220	500	1,365	2.9
80,000	2,873	4,000	26,312	24,420	500	1,265	2.4
90,000	3,073	4,500	30,712	28,620	500	1,165	2.0
100,000	3,273	5,000	35,112	32,820	500	1,065	1.7

(a) Value during 2001 [assuming a 12 month tax year] of the increase in Child Benefit [CB] made in the Budget, which is effective from June, 2001 [i.e.
assuming 10 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

EXAMPLE 13
Married couple, one income, four children
Taxed under Schedule D
GROSS	PRSI/Levy Liability		Tax Liability		Child Benefit	Total	Gain as % of
INCOME	Existing	Proposed	Existing	Proposed	Increase (a)	Gain	Net Income (b)
£	£	£	£	£	£	£	%
9,000	398	270	0	0	1,100	1,228	11.4
10,000	448	300	0	0	1,100	1,248	10.6
11,000	498	330	0	0	1,100	1,268	10.0
12,000	548	360	0	0	1,100	1,288	9.4
13,000	598	390	132	0	1,100	1,440	10.0
14,000	648	420	352	0	1,100	1,680	11.1
15,000	998	750	572	200	1,100	1,720	11.0
16,000	1,068	800	792	400	1,100	1,760	10.8
17,000	1,138	850	1,012	600	1,100	1,800	10.6
18,000	1,208	900	1,232	800	1,100	1,840	10.4
20,000	1,348	1,000	1,672	1,200	1,100	1,920	10.0
22,000	1,488	1,100	2,112	1,600	1,100	2,000	9.7
24,000	1,628	1,200	2,552	2,000	1,100	2,080	9.5
26,000	1,768	1,300	2,992	2,400	1,100	2,160	9.2
28,000	1,833	1,400	3,432	2,800	1,100	2,165	8.7
30,000	1,873	1,500	4,312	3,420	1,100	2,365	9.1
35,000	1,973	1,750	6,512	5,520	1,100	2,315	8.1
40,000	2,073	2,000	8,712	7,620	1,100	2,265	7.2
45,000	2,173	2,250	10,912	9,720	1,100	2,215	6.5
50,000	2,273	2,500	13,112	11,820	1,100	2,165	5.9
60,000	2,473	3,000	17,512	16,020	1,100	2,065	4.9
70,000	2,673	3,500	21,912	20,220	1,100	1,965	4.1
80,000	2,873	4,000	26,312	24,420	1,100	1,865	3.5
90,000	3,073	4,500	30,712	28,620	1,100	1,765	3.0
100,000	3,273	5,000	35,112	32,820	1,100	1,665	2.6

(a) Value during 2001 [assuming a 12 month tax year] of the increase in Child Benefit [CB] made in the Budget, which is effective from June, 2001 [i.e. assuming 10 months
colspan=10 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

EXAMPLE 14
Married couple, two incomes, two children
Taxed under Schedule D
GROSS		PRSI/Levy Liability		Tax Liability	Child Benefit	Total	Gain as % of
INCOME	Existing	Proposed	Existing	Proposed	Increase (a)	Gain	Net Income (b)
£	£	£	£	£	£	£	%
9,000	456	400	0	0	500	556	5.9
10,000	488	400	132	0	500	720	7.0
11,000	521	415	352	0	500	958	8.7
12,000	553	434	572	200	500	991	8.4
13,000	586	454	792	400	500	1,024	8.2
14,000	618	473	1,012	600	500	1,057	7.9
15,000	651	493	1,232	800	500	1,090	7.8
16,000	696	512	1,452	1,000	500	1,136	7.7
17,000	746	532	1,672	1,200	500	1,186	7.6
18,000	796	551	1,892	1,400	500	1,237	7.6
20,000	896	600	2,332	1,800	500	1,328	7.5
22,000	996	660	2,772	2,200	500	1,408	7.3
24,000	1,408	1,032	3,212	2,600	500	1,488	7.3
26,000	1,534	1,118	3,652	3,000	500	1,568	7.2
28,000	1,660	1,204	4,092	3,400	500	1,648	7.1
30,000	1,786	1,290	4,532	3,800	500	1,728	7.0
35,000	2,101	1,505	5,852	4,800	500	2,148	7.7
40,000	2,416	1,720	8,052	5,800	500	3,448	11.3
45,000	2,909	2,250	10,252	7,900	500	3,511	10.7
50,000	3,096	2,500	12,452	10,000	500	3,548	10.0
60,000	3,471	3,000	16,852	14,200	500	3,623	8.9
70,000	3,846	3,500	21,252	18,400	500	3,698	8.1
80,000	4,146	4,000	25,652	22,600	500	3,698	7.2
90,000	4,346	4,500	30,052	26,800	500	3,598	6.4
100,000	4,546	5,000	34,452	31,000	500	3,498	5.6

This example assumes that the joint income is divided by 65% and 35% between both spouses.
(a) Value during 2001 [assuming a 12 month tax year] of the increase in Child Benefit [CB] made in the Budget, which is effective from June, 2001 [i.e. assuming 10 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

EXAMPLE 15
Single person taxed under Schedule D
Modified rate PRSI contributor
GROSS	PRSI/Levy Liability	Tax Liability		Total	Gain as % of
INCOME	Existing	Proposed	Existing	Proposed	Gain	Net Income
£	£	£	£	£	£	%
9,000	398	270	946	700	374	4.9
10,000	448	300	1,166	900	414	4.9
11,000	498	330	1,386	1,100	454	5.0
12,000	548	360	1,606	1,300	494	5.0
13,000	598	390	1,826	1,500	534	5.0
14,000	648	420	2,046	1,700	574	5.1
15,000	998	750	2,266	1,900	614	5.2
16,000	1,068	800	2,486	2,100	654	5.3
17,000	1,138	850	2,706	2,300	694	5.3
18,000	1,208	900	3,146	2,500	954	7.0
20,000	1,348	1,000	4,026	2,900	1,474	10.1
25,000	1,698	1,250	6,226	5,000	1,674	9.8
30,000	1,873	1,500	8,426	7,100	1,699	8.6
35,000	1,973	1,750	10,626	9,200	1,649	7.4
40,000	2,073	2,000	12,826	11,300	1,599	6.4
45,000	2,173	2,250	15,026	13,400	1,549	5.6
50,000	2,273	2,500	17,226	15,500	1,499	4.9
60,000	2,473	3,000	21,626	19,700	1,399	3.9
70,000	2,673	3,500	26,026	23,900	1,299	3.1
80,000	2,873	4,000	30,426	28,100	1,199	2.6
90,000	3,073	4,500	34,826	32,300	1,099	2.1
100,000	3,273	5,000	39,226	36,500	999	1.7

AVERAGE TAX RATES *
ANNUAL EARNINGS	SINGLE					MARRIED ONE INCOME					MARRIED TWO INCOMES**
						2 CHILDREN					2 CHILDREN
FULL RATE PRSI £	1997	1998	1999	2000	2001	1997	1998	1999	2000	2001	1997	1998	1999	2000	2001
5000	7.5%	5.0%	0.0%	0.0%	0.0%	0.8%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
10000	19.0%	16.7%	13.7%	9.5%	5.0%	7.0%	5.8%	3.6%	0.0%	0.0%	5.2%	3.6%	0.0%	0.0%	0.0%
15000	27.1%	24.4%	22.1%	18.6%	14.6%	20.1%	17.8%	13.9%	7.3%	4.6%	15.2%	12.7%	8.7%	5.3%	0.0%
20000	34.0%	31.5%	29.7%	24.4%	17.5%	23.2%	21.1%	18.1%	12.6%	9.0%	19.0%	16.7%	13.7%	9.5%	5.0%
30000	40.1%	37.9%	36.7%	32.6%	27.4%	28.2%	25.7%	23.1%	18.9%	15.2%	27.1%	24.4%	22.1%	18.6%	14.6%
50000	44.3%	42.2%	41.4%	38.1%	34.2%	37.1%	34.9%	33.2%	29.9%	26.9%	37.9%	35.6%	34.3%	29.6%	23.6%
MODIFIED PRSI £
5000	7.5%	5.8%	0.7%	0.0%	0.0%	0.7%	0.7%	0.7%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
10000	17.2%	15.3%	12.3%	9.5%	5.0%	5.2%	4.4%	2.3%	0.0%	0.0%	5.1%	4.3%	0.7%	0.0%	0.0%
15000	24.7%	22.3%	20.0%	16.5%	12.8%	17.7%	15.7%	11.8%	5.2%	2.8%	13.9%	12.1%	8.1%	5.3%	0.0%
20000	31.3%	29.0%	27.2%	21.9%	15.4%	20.5%	18.6%	15.6%	10.1%	6.9%	17.2%	15.3%	12.3%	9.5%	5.0%
30000	37.7%	35.6%	34.3%	30.1%	25.2%	25.8%	23.4%	20.7%	16.4%	12.9%	24.7%	22.3%	20.0%	16.5%	12.8%
50000	42.8%	40.6%	39.8%	36.5%	32.7%	35.6%	33.3%	31.6%	28.3%	25.3%	35.2%	33.0%	31.6%	26.9%	21.3%
SELF EMPLOYED £
5000	12.3%	11.5%	8.1%	5.6%	4.0%	4.3%	4.3%	4.3%	4.3%	4.0%	8.6%	8.6%	8.6%	8.6%	8.0%
10000	22.9%	20.9%	18.4%	16.1%	12.0%	8.9%	8.1%	8.1%	4.5%	3.0%	8.7%	7.9%	7.9%	5.6%	4.0%
15000	31.1%	28.6%	25.4%	21.8%	17.7%	22.9%	20.8%	17.2%	10.5%	6.3%	20.3%	18.2%	14.9%	12.5%	8.3%
20000	37.1%	34.7%	32.3%	26.9%	19.5%	25.5%	23.4%	20.7%	15.1%	11.0%	22.9%	20.9%	18.4%	16.1%	12.0%
30000	42.0%	39.9%	38.4%	34.3%	28.7%	30.1%	27.8%	24.8%	20.6%	16.4%	31.1%	28.6%	25.4%	21.8%	17.7%
50000	45.3%	43.3%	42.3%	39.0%	36.0%	38.2%	36.0%	34.1%	30.8%	28.6%	40.4%	38.3%	36.4%	31.7%	25.0%
* Average Tax Rates: Total of Income Tax, Levies and PRSI as a proportion of gross income. This measure includes only the standard PAYE and personal income tax allowances. It does not include the impact of any other allowances or reliefs.

** The Married Two-Incomes figures assume that both spouses are earning equal amounts.

(iv) DISTRIBUTION OF INCOME EARNERS
ON INCOME TAX FILE

		Exempt			Marginal			Standard			Top			Total
					Rate			Rate			Rate
Pre- Budget		534,803			7,334			718,098			508,765			1,769,000
		(30%)			-			(41%)			(29%)
Post-Budget		667,775			4,524			694,513			402,188			1,769,000
		(38%)			-			(39%)			(23%)

(v) ILLUSTRATIVE CASES

These cases deal only with basic personal tax allowances and the PAYE allowance. Discretionary tax reliefs such as mortgage interest relief, or charges e.g. BIK are not dealt with. Personal Tax Credits are shown as standard rated allowances with the equivalent Tax Credit value shown in brackets. All examples are on a full year 12 months basis for purposes of comparison.

Caroline
Caroline is single and employed earning £11,500. She will gain £476 from the Budget.

		Budget 2000	Budget 2001
		£	£
	Gross Income	11,500	11,500
	Total Allowances	5,700	7,500
	(Equivalent Tax Credits)	(1,254)	(1,500)
	Income Tax	1,276	800
	PRSI & Levy	0	0
	Net Cash Income	10,224	10,700
	Deduction as % of Gross Income	11.1%	7.0%


Paul and Mary

Paul and Mary are a retired couple. Paul is aged 68 and Mary is aged 66. Paul has an occupational pension of £7,250 and an old age pension of £8,351 which will increase to £9,651 after the Budget. After the new tax year they will be outside the tax net. They will gain £1,540 from the Budget as a result of the tax and social welfare changes.

		Budget 2000	Budget 2001
		£	£
	Gross Income	15,601	16,901
	Total Exemption Limits	15,000	17,000
	Income Tax	240	0
	Net Cash Income	15,361	16,901
	Deduction as % of Gross Income	1.5%	0.0%
The increase in Gross Income is due to increases introduced in social welfare payments.

John and Orla

John and Orla are married. John is employed earning £35,000 while Orla works in the home. They have two children, they will gain £1,803 from the Budget

		Budget 2000	Budget 2001
		£	£
	Gross Income	35,000	35,000
	Total Allowances	13,400	16,000
	(Equivalent Tax Credit)	(2,948)	(3,200)
	Income Tax	6,292	5,120
	PRSI & Levy	1,713	1,662
	Child Benefit	940	1,520
	Net Cash Income	27,935	29,738
	Deduction as % of Gross Income & CB	22.3%	18.6%

Liam and Sophie

Liam and Sophie are a married couple with three children. Liam is employed earning £40,000 and Sophie is employed earning £10,000. They will gain £3,575 from the Budget.

		Budget 2000	Budget 2001
		£	£
	Gross Income	50,000	50,000
	Total Allowances	11,400	15,000
	(Equivalent Tax Credit)	(2,508)	(3,000)
	Income Tax	12,012	9,420
	PRSI & Levy	1,835	1,782
	Child Benefit	1,562	2,492
	Net Cash Income	37,715	41,290
	Deduction as % of Gross Income & CB	26.9%	21.3%

John and Sheila

John and Sheila are a married couple with two children. John is self-employed and runs his own business and earns £40,000. Sheila is a school teacher and earns £30,000. They will gain £3,670 from the Budget.

		Budget 2000	Budget 2001
		£	£
	Gross Income	70,000	70,000
	Total Allowances	10,400	13,000
	(Equivalent Tax Credit)	(2,288)	(2,600)
	Income Tax	21,032	18,000
	PRSI & Levy	2,903	2,845
	Child Benefit	940	1,520
	Net Cash Income	47,005	50,675
	Deduction as % of Gross Income & CB	33.7%	29.2%

Sarah

Sarah is a widow aged 68, with a pension from her late husband's employment of £12,000. She is also in of a widow's contributory pension of £4,633 which will increase to £5,304 in the Budget.
She will gain £1,079 as a result of the tax and social welfare changes in the Budget.

		Budget 2000	Budget 2001
		£	£
	Gross Income	16,633	17,304^
	Total Allowances	7,500	9,300
	(Equivalent Tax Credit)	(1,650)	(1,860)
	Income Tax	2,009	1,601
	Net Cash Income	14,624	15,703
	Deduction as % of Gross Income	12.1%	9.3%
The increase in Gross Income is due to increases introduced in social welfare payments.

Blaithin

Blaithin is single and has a four year old son. Blaithin works as a technician and earns £23,000. She will gain
£1,778 from the Budget.

		Budget 2000	Budget 2001
		£	£
	Gross Income	23,000	23,000
	Total Allowances	10,400	13,000
	(Equivalent Tax Credit)	(2,288)	(2,600)
	Income Tax	3,399	2,000
	PRSI & Levy	1,261	1,172
	Child Benefit	470	760
	Net Cash Income	18,810	20,588
	Deduction as % of Gross Income & CB	20.0%	13.4%

As the move to a tax credit system will be completed in April 2001, all taxpayers income tax will be calculated
using the tax credit system. The following example shows how the tax liability is calculated using the tax credit system when applied to the example above.

Blaithin

Blaithin is single and has a four year old son. Blaithin works as a technician and earns £23,000. She will gain
£1,778 from the Budget.

			Budget 2001
			£
	Gross Income		23,000
	Standard Band		23,150
	Tax Liability (£23,000 @20%)		4,600
	Less Tax Credits (£13,000 allowances @ 20%)		-2,600
	Total Income Tax Due		2,000
	PRSI & Levy Due		1,172
	Total Liability		3,172
	Child Benefit		760
	Net Cash Income		20,588