Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Cuts to USC under consideration as part of Budget, confirms Tánaiste

Budget talks are set to intensify next week.

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. 

“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. 

“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. 

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
56 Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Install the app to use these features.
    Mute damien leen
    Favourite damien leen
    Report
    Sep 11th 2023, 2:24 PM

    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.

    824
    Install the app to use these features.
    Mute another one? what's going on is the semi state sec
    Favourite another one? what's going on is the semi state sec
    Report
    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

    462
    Install the app to use these features.
    Mute damien leen
    Favourite damien leen
    Report
    Sep 11th 2023, 2:32 PM

    @another one? what’s going on is the semi state sec: seriously? The mind boggles?

    66
    See 1 more reply ▾
    Install the app to use these features.
    Mute another one? what's going on is the semi state sec
    Favourite another one? what's going on is the semi state sec
    Report
    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!

    157
    Install the app to use these features.
    Mute John Brennan
    Favourite John Brennan
    Report
    Sep 11th 2023, 2:30 PM

    Still not getting my vote

    425
    Install the app to use these features.
    Mute michael odwyer
    Favourite michael odwyer
    Report
    Sep 11th 2023, 3:30 PM

    @John Brennan: Here Here

    127
    Install the app to use these features.
    Mute Aidan C
    Favourite Aidan C
    Report
    Sep 11th 2023, 4:27 PM

    @John Brennan: everyone will vote ffg if they get rid of us as promised.

    23
    See 1 more reply ▾
    Install the app to use these features.
    Mute Derek Power
    Favourite Derek Power
    Report
    Sep 11th 2023, 4:33 PM

    @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.

    51
    Install the app to use these features.
    Mute Edward Hughes
    Favourite Edward Hughes
    Report
    Sep 11th 2023, 2:29 PM

    The last act of a condemned man…

    291
    Install the app to use these features.
    Mute Darren McCarthy
    Favourite Darren McCarthy
    Report
    Sep 11th 2023, 2:29 PM

    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.

    275
    Install the app to use these features.
    Mute christopher byrne
    Favourite christopher byrne
    Report
    Sep 11th 2023, 2:57 PM

    Stop paying NGO’s €6 billion a year. Problem solved. Cut USC and we’re still ahead by €2 billion.

    239
    Install the app to use these features.
    Mute barry lyons
    Favourite barry lyons
    Report
    Sep 11th 2023, 2:42 PM

    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

    242
    Install the app to use these features.
    Mute If you're
    Favourite If you're
    Report
    Sep 11th 2023, 4:10 PM

    @barry lyons: Barry, seriously do you think what is coming to replace FFG is going to be better?

    47
    Install the app to use these features.
    Mute Paul H
    Favourite Paul H
    Report
    Sep 11th 2023, 4:32 PM

    @If you’re: yes I do

    69
    See 3 more replies ▾
    Install the app to use these features.
    Mute uUleRhCu
    Favourite uUleRhCu
    Report
    Sep 11th 2023, 4:50 PM

    @Paul H: I’d be very afraid if I was in sf at the moment because of the ridiculous expectations that are on their heads by Ill informed people.

    24
    Install the app to use these features.
    Mute Tom tom
    Favourite Tom tom
    Report
    Sep 11th 2023, 5:57 PM

    @Paul H: Deluded

    7
    Install the app to use these features.
    Mute Donal Desmond
    Favourite Donal Desmond
    Report
    Sep 12th 2023, 12:14 PM

    @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.

    1
    Install the app to use these features.
    Mute Trent
    Favourite Trent
    Report
    Sep 11th 2023, 2:30 PM

    Cut your salary mehole while your cutting stuff

    233
    Install the app to use these features.
    Mute Ronan Meagle
    Favourite Ronan Meagle
    Report
    Sep 11th 2023, 2:30 PM

    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 ?

    354
    Install the app to use these features.
    Mute best of luck all
    Favourite best of luck all
    Report
    Sep 11th 2023, 2:59 PM

    Even if they did cut the USC (which they won’t!) the shortfall will be added to fuel or property tax again, either way Joe Soap is getting shafted!

    176
    Install the app to use these features.
    Mute Davy
    Favourite Davy
    Report
    Sep 11th 2023, 2:31 PM

    Still be destroyed at election. Off to EU masters Mehole for you.

    197
    Install the app to use these features.
    Mute Margaret Kelly
    Favourite Margaret Kelly
    Report
    Sep 11th 2023, 3:42 PM

    Abolish USC, it was supposed to be temporary, temporary would be 1 or 2 years, not 10 or 12, at least everyone would see a little improvement then

    126
    Install the app to use these features.
    Mute Adam Gibney
    Favourite Adam Gibney
    Report
    Sep 11th 2023, 3:01 PM

    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.

    113
    Install the app to use these features.
    Mute Hector turtlehead
    Favourite Hector turtlehead
    Report
    Sep 11th 2023, 3:18 PM

    Scrap the USC. Was only to be there to assist after the celtic crash.

    117
    Install the app to use these features.
    Mute William Tallon
    Favourite William Tallon
    Report
    Sep 11th 2023, 2:41 PM

    “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…”

    174
    Install the app to use these features.
    Mute Conor Glancy
    Favourite Conor Glancy
    Report
    Sep 11th 2023, 3:01 PM

    God bless the “temporary” USC

    85
    Install the app to use these features.
    Mute Jason Walsh
    Favourite Jason Walsh
    Report
    Sep 11th 2023, 3:04 PM

    Gives away budget being lined up to win votes.

    68
    Install the app to use these features.
    Mute Ollie McGlinchey
    Favourite Ollie McGlinchey
    Report
    Sep 11th 2023, 3:31 PM

    No one making under 35000 should have to pay it.

    67
    Install the app to use these features.
    Mute Martin d
    Favourite Martin d
    Report
    Sep 11th 2023, 3:40 PM

    @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.

    16
    Install the app to use these features.
    Mute Wolfgang Bonow
    Favourite Wolfgang Bonow
    Report
    Sep 11th 2023, 4:13 PM

    @Ollie McGlinchey: Why? Everyone over it will be hit by the higher tax band.
    Make it 80k – 100k and than we might have a deal.

    25
    Install the app to use these features.
    Mute Scott Nolan
    Favourite Scott Nolan
    Report
    Sep 11th 2023, 3:54 PM

    Not a word about Dirt or VRT?

    55
    Install the app to use these features.
    Mute Spanner
    Favourite Spanner
    Report
    Sep 11th 2023, 10:22 PM

    @Scott Nolan: No word about the “wind fall tax” almost a year later, so we should not be too hopeful for a cut to the usc in the near future.

    11
    Install the app to use these features.
    Mute Bren
    Favourite Bren
    Report
    Sep 11th 2023, 3:40 PM

    Can somebody smell horse manure?

    59
    Install the app to use these features.
    Mute Donal Desmond
    Favourite Donal Desmond
    Report
    Sep 11th 2023, 5:47 PM

    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.

    51
    Install the app to use these features.
    Mute Susan O'Neill
    Favourite Susan O'Neill
    Report
    Sep 11th 2023, 4:00 PM

    Every blooming year they say this

    43
    Install the app to use these features.
    Mute David Clarke
    Favourite David Clarke
    Report
    Sep 11th 2023, 2:33 PM

    Sure sign the irish tories are terrified of sin fein,they really are an awful shower of fools

    128
    Install the app to use these features.
    Mute Trent
    Favourite Trent
    Report
    Sep 11th 2023, 2:44 PM

    @David Clarke: The only way the Shinners will ever governor in the south is when our Island is unified until then keep dreaming of Unicorns

    18
    Install the app to use these features.
    Mute Andy Felthersnatch
    Favourite Andy Felthersnatch
    Report
    Sep 11th 2023, 4:27 PM

    @Trent: Okay governor!

    14
    Install the app to use these features.
    Mute john mac
    Favourite john mac
    Report
    Sep 11th 2023, 3:33 PM

    Said that the last time,the holidays are over for you

    39
    Install the app to use these features.
    Mute Brian Keelty
    Favourite Brian Keelty
    Report
    Sep 11th 2023, 3:06 PM

    The vote buying is off in ernest , against all the good fiscal advice being given…… they are a disgrace .

    68
    Install the app to use these features.
    Mute 6gRrQtLn
    Favourite 6gRrQtLn
    Report
    Sep 11th 2023, 4:16 PM

    When his lips move you know he’s lying,

    49
    Install the app to use these features.
    Mute Brendan shanahan
    Favourite Brendan shanahan
    Report
    Sep 11th 2023, 4:51 PM

    Why do wages not increase in line with inflation at a minimum? This would be a real solution to cost of living.

    31
    Install the app to use these features.
    Mute Paul H
    Favourite Paul H
    Report
    Sep 11th 2023, 4:31 PM

    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.

    62
    Install the app to use these features.
    Mute Pato
    Favourite Pato
    Report
    Sep 11th 2023, 2:48 PM

    A cut to the USC, well I never. By the way what is the USC?

    28
    Install the app to use these features.
    Mute Trent
    Favourite Trent
    Report
    Sep 11th 2023, 2:51 PM

    @Pato: ask your one in the post office where you get your dole,,

    82
    Install the app to use these features.
    Mute Monty Carlow
    Favourite Monty Carlow
    Report
    Sep 11th 2023, 3:21 PM

    Choppy, choppy, cut it offy!

    28
    Install the app to use these features.
    Mute Paddy C
    Favourite Paddy C
    Report
    Sep 11th 2023, 4:11 PM

    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

    22
    Install the app to use these features.
    Mute Damien Leahy
    Favourite Damien Leahy
    Report
    Sep 11th 2023, 7:03 PM

    Trying to buy votes a year out from a general election just proves that they know their goose is cooked.

    22
    Install the app to use these features.
    Mute Paddy Short
    Favourite Paddy Short
    Report
    Sep 11th 2023, 7:26 PM

    Quite possibly an election in the spring, I can’t see it going all the way to Spring 2025.

    If so what is the plan to manufacture a collapse the current government I wonder

    Will they be buying your vote for another potential 5 years of treachery?

    12
    Install the app to use these features.
    Mute mainmsam
    Favourite mainmsam
    Report
    Sep 11th 2023, 3:17 PM

    Won’t happen

    19
    Install the app to use these features.
    Mute Seanfhear míshásta
    Favourite Seanfhear míshásta
    Report
    Sep 11th 2023, 7:14 PM

    I hate having my intelligence insulted with these pre election teasers.

    26
    Install the app to use these features.
    Mute Peter Byrne
    Favourite Peter Byrne
    Report
    Sep 11th 2023, 3:55 PM

    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

    15
    Install the app to use these features.
    Mute J Ven
    Favourite J Ven
    Report
    Sep 11th 2023, 4:21 PM

    @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

    79
    Install the app to use these features.
    Mute Thomasheen Booba
    Favourite Thomasheen Booba
    Report
    Sep 11th 2023, 6:07 PM

    Anything to try swing next budget. Guarantee next budget will use the surplus to do their best to buy your vote.

    14
    Install the app to use these features.
    Mute Nathen
    Favourite Nathen
    Report
    Sep 12th 2023, 2:37 AM

    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.

    6
    Install the app to use these features.
    Mute James Kirby
    Favourite James Kirby
    Report
    Sep 13th 2023, 5:54 AM

    @Nathen: well said

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.

Leave a commentcancel

 
JournalTv
News in 60 seconds