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.

Shutterstock/Marian Weyo

Here's how much it would cost to get rid of the USC for incomes under €80,000

Last night the Labour party said that it will abolish charge on the first €72,000 of individual income.

IT’S THE MUCH-HATED tax that just won’t go away: the Universal Social Charge (USC).

Brought in by the late Finance Minister Brian Lenihan in 2011, we were assured at the height of the economic crisis that it would only be a temporary measure.

However, while Fine Gael has made promises to abolish the charge if re-elected, the party has recently been accused of ‘backtracking’ on this key issue.

Earlier this month Finance Minister Michael Noonan said that higher earners will be hit with new levies to “clawback” some of the benefits of the abolition of the USC.

Meanwhile, in a statement last night the Labour party said that it will abolish USC on the first €72,000 of individual income.

Costing 

When questioned in the Dáil about the cost of abolishing the charge on incomes below €80,000, Noonan said:

The estimated first and full year cost of increasing the USC exemption threshold from €13,000 to €80,000 is in the order of €1,584 million and €2,148 million respectively.

“This costing assumes that the current USC rates and bands as set out in Budget 2016 remain in place for those earning in excess of €80,000 per annum.

“These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2016 incomes and are provisional and may be revised.”

Read: Fine Gael’s promise to scrap the USC is not all it seems>

Your Voice
Readers Comments
62
    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.