Each year a report is issued showing the effects of the Restriction of Reliefs measure which limits the use of certain tax reliefs and exemptions by high-income individuals. These reports can be accessed below.
Information Notes on the Revenue Commissioners’ Report on the Restriction of Reliefs Measure for the 2013 Tax Year
1. The report notes that the restriction measure has ensured the payment of an average effective income tax rate of 30% for those subject to the full restriction in 2013.
2. It should be noted the 20% and 41% tax rates are marginal rates.
3. The marginal rate is different to effective income tax rates which are considerably lower for the average taxpayer.
4. In addition, high earners that were subject to the restriction in 2013 also paid PRSI and USC, which was progressive and increased along with income level.
5. Single individuals in the PAYE system would need income of almost €100,000 to have an effective income tax rate of 30%.