As we move towards another austerity budget (October 2013) it is useful to consider Government's choices in the context of the structure of earnings. Despite its relevance, limited attention tends to be given to the distribution of earnings and income in the formation of policy options and decisions.
Data from the Revenue Commissioners latest Statistical Report (for the tax year 2010) offers a useful insight into the distribution of earnings in the Republic of Ireland. The data details the distribution of tax cases (individuals or couples who are jointly assessed) by total gross income for that tax year. We highlight this data in the latest edition of the NERI's Quarterly Economic Facts, indicator 4.6a (p69-70).
A summary of that data shows us that:
• 18% of tax cases report a gross income of less than €10,000
• 18% report an income between €10,000 and €20,000
• 18% report an income between €20,000 and €30,000
• 23% report an income between €30,000 and €50,000
• 17% report an income between €50,000 and €100,000
• 3% report an income between €100,000 and €150,000
• 2% report an income above €150,000
Overall, the data offers some insight into the levels of earnings in Ireland and a reminder of the large number of households and individuals on low incomes. For example, there are 1.1 million tax cases below €30,000 per annum.
Full details in the latest edition of the NERI's Quarterly Economic Facts.