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Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

USC rates

Summary

Deputy Griffin asks for serious consideration of cutting USC now that the public finances are strong. The Tánaiste says budget measures will be considered, while stressing prudence and housing priorities.

I welcome the strength of the public finances. This is positive news for everybody. Will the Government give serious consideration to tackling the rates of the universal social charge, USC, workers must pay? As the Tánaiste is aware, this was introduced at a time when the economy was in extreme difficulty and the public finances were in a very poor position. Many workers are asking me why they have to continue to pay such high rates of this punitive tax when the public finances are performing so strongly. I feel strongly that people who are working hard should be rewarded more for the work they are doing. This is an issue that the Government can and should tackle given the strength of the public finances. I ask that this matter be given serious priority.

Comment on this

Again, in the context of this year's budget, a broad range of measures will be discussed. Housing will continue to be the number one priority in respect of taxation and expenditure measures. The finances are in a good state; the Deputy is correct. Obviously, a significant element of these revenues comes from corporation tax, which the Department of Finance is concerned about as being once off. We must, therefore, be prudent in how we deal with the once-off dimension of corporation tax revenues. In the context of the forthcoming budget, however, we will do everything we can to alleviate pressures on people across the range of measures we have at our disposal, including taxation. There are other measures as well.

Comment on this