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CUTTING THE UNIVERSAL SOCIAL CHARGE (USC) is an option being considered in this year’s budget, according to Tánaiste Micheál Martin.
Speaking at the Fianna Fáil party think-in in Tipperary today, Martin said:
“We’re looking at all options, including USC.”
In recent months, Fianna Fáil politicians have been putting pressure on Finance Minister Michael McGrath to reduce the much-hated USC.
Speaking to reporters this afternoon, McGrath said he is “doing a trawl right through the entire taxation code to see what opportunities there may be to be more innovative and creative with the taxation system.
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“I am examining the role the USC can play in that regard,” he said, but added that there is no final decision.
“The income tax package will be the largest and most important part of the overall tax package in the Budget and from our point of view, the important thing is that we achieve the fairest and most equitable distribution of the benefit of the tax reductions,” McGrath said.
Budget talks set to intensify next week with budget day just under one month away. Public Expenditure Minister Paschal Donohoe told RTÉ’s Morning Ireland that the decision to cut the USC lies with the finance minister.
“We have changed Universal Social Charge before. We are many weeks away from the Budget being decided and Minister McGrath and I will work co-operatively and closely together on it. Universal Social Charge has been reduced in the past,” he said.
The USC was introduced in December 2010 by the then-Finance Minister Brian Lenihan at the height of the financial crisis. The measure came into effect on 1 January 2011.
At the time it applied to all gross incomes over €4,004, with the threshold increasing over the following years.
Energy bills
In his opening speech to the party members today, Martin strongly indicated that another energy credit is on the way for households.
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“We acted last year, particularly to help people with paying energy bills and to support the incomes of the most vulnerable in our society.
“While there have been some energy price reductions made , prices remain too high , we know people are still facing pressure and we will act to help them again,” Martin said.
The Tánaiste said there will be a combination of actions to help people with major price increases and action to try to reduce pressures pushing up prices.
He told reporters that the cost-of-living crisis is the “big issue facing people now”.
“We’re going to look at a range of measures to try and alleviate pressures on people. Some of that is to tax relief. We’re looking at all options and including USC and also then reducing costs in terms of services, which we have done with the expansion of GP cards,” said Martin.
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Cuts…no no no…get rid of it…was supposed to be temporary. Now they think they’re great because they’re considering cuts to it ..they must be really worried about the election.
Mute another one? what's going on is the semi state sec
Favourite another one? what's going on is the semi state sec
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Sep 11th 2023, 2:29 PM
@damien leen: they’d want to, they’ve made 7 billion more in income tax last year compared to 2019 and 3.5 billion more on VAT!!! Scandalous!!!!! USC not needed at all
Mute another one? what's going on is the semi state sec
Favourite another one? what's going on is the semi state sec
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Sep 11th 2023, 2:50 PM
@damien leen: coining it in during a cost of living crisis while we’re all struggling. When they have all this extra money they probably see it as an opportunity to increase departmental budgets. Once increased it’s very hard to reduce it. The HSE budget has increased by over 10 billion since 2007. It’s over 23 billion this year….. this nation’s finances are being mismanaged by those in charge while we are being taxed to the hilt. Not getting the services those taxes should provide!
@Aidan C: that promise was made once before, with a fresh faced fool called Leo holding the sign. USC will never go because suddenly the amount it brings it is desperately required now (whereas before it appeared we were grand, apparently). Now, all budget spending factors USC being a thing forever more.
So the promises to abolish it are out the window now? Be thankful for a few quid of your own wages back and vote us all back in next time…..can’t wait until we get even more politicians to hand over millions of euro in wages and pensions, too.
The energy credit is a get out of jail card for the energy companies. It is workers tax that is been given to these price gougers . Instead of insisting they lower their price , FFG make sure they get paid no matter what .
How about demanding or insisting the energy companies reduce their customers bill by the equivalent of €200 . Let the energy companies take the hit instead of the electorate by stealth .
The sooner FFG go , the better . Vote for the cat next door rather than FFG
@uUleRhCu: By ill informed do you mean the statements issued by Michael Martin…There Was No Bank Bailout?…FF had nothing to do with the economic crash? Irish water will be abolished FF election manifesto…When last in opposition Martin and FF kept Varadkar in power by a confidence and supply agreement…Now that’s I’ll informed especially when questioned by the opposition Martin goes apoplectic..conveniently forgetting when in opposition he kept the Blueshirts in power…Ill informed and hypocrisy from Martin and F.F.
Martin is a liar , only out for himself, he lied to the electorate last time around, made a pledge to not join FG in a coalition. Why believe anything he says ?
Another token cut to the USC which will leave us about €100 better off a year but cost the exchequer hundreds of millions. Maybe take the money you were going to give back and invest it into our broken housing, healthcare and transport systems. On paper we are one of the richest countries in the world per capita but yet we have living standards comparable to much poorer nations.
“He told reporters that the cost-of-living crisis is the “big issue facing people now”. Wow! For someone who is quite obviously not affected by it, he’s so clued into the problems faced by ordinary people that it’s uncanny! Why, it’s almost as if someone whispered in his ear, “Micheál, if you say this, you’ll appear caring and concerned, and you might rustle up a few extra votes from these morons…”
@Ollie McGlinchey: yes much better idea than some leftist comments wanting it to be abolished which in fact would benefit the high earners like M Martin himself the very person the lefties are criticising.
USC was forced on the taxpayers who had already paid the bank bailout. Martin seems to forget he was a Minister in the FF/ Green government that facilated in the gangsterism of the banks and developers who brought this country to its knees. Ironically Martin should explain why the USC was interduced as he publicly stated in the Dail …There Was No Bank Bailout..Martin and FF have done so many u turns perhaps that why he suffers from memory loss…Like the abolition of Irish Water which was in the election manifesto of FF…Seems Martin has forgotten that also.
Lies lies lies lies lies lies lies lie and more lies andhas the neck to expect to be voted in again. Nice fat million or more a year pension waiting. They’d make you sick.
Getting desperate if only they actually thought a bit before making serious decisions of the possible outcomes in years down the line when it’s obvious like a housing crisis getting worse every year for the past 10 if they just thought things out properly they would actually be popular with the people,that thinking just doesn’t seem possible at all
Why do people think USC should be abolished. For one think it replaced two levies , one being the health levy. And as well as that it is one tax nobody, the rich big farmers, builders , self employed cannot avoid paying, USC is due on all forms of income. Plus it is an important source of revenue for the government, about 4 billion a year. Helps pay for the salaries of some of our civil servants and our 120,000 HSE staff
@Peter Byrne: Maybe you’re not old enough, but I remember when it was introduced in 2011 by Brian Lenihan as a temporary tax to circumvent the recession at the time, as per Brian Cowen’s own words. People really opposed it, and he and Brian Lenihan time after time reaffirmed that this was a temporary tax, desperate times, desperate circumstances. Recession ended years ago and Covid is not an excuse, but in case you make it an excuse, it has also passed. Something will always happen, we pay way too much taxed and get little in return, it’s like I’m being pimped off my paycheck
USC shouldn’t be scraped. It’s one of the most progressive taxes we have in the state. And people with the most can’t avoid it. If we didn’t take a truck load of corporate tax recently we would be in a budget deficit to the tune of 500 million. People haven’t a clue about figures and numbers and it shows. The government should be focusing on reducing the cost of living, bringing in rent caps, helping people have more money in there pocket. Reducing the funds we have to invest in proper infrastructure for realistically a small amount in everyone’s pocket. Contrary to popular belief we pay far less tax then most European countries and that a fact. But we have less in our pockets because we’ve let business completely determine whatever they want to charge. Suppliers are fleecing us.
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