I am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, of a 3 percentage point increase in the rate of Universal Social Charge (USC) applying to the incomes of all income earners exceeding €70,000 but not exceeding €120,000 would be of the order of €41 million. If the increased rate is also assumed to apply to income earners with incomes in excess of €120,000 the total full year yield would be of the order of €294 million.
The Universal Social Charge is an individualised charge and as such, the estimated yields are based on individual incomes of more than €70,000. The estimated yields are based on confining the 3 percentage point increase to the portion of income which is in excess of €70,000, that is, the increase is not applied to the portion of total income earned up to €70,000. A breakdown of the yield of €41million for the rate change limited to earners with income of no more than €120,000 is as follows.
Range of taxable income for USC
|
Yield from 3% increase
|
€
|
€m
|
70,001-75,000
|
1.1
|
75,001-80,000
|
2.6
|
80,001-85,000
|
3.6
|
85,001-90,000
|
4.2
|
90,001-95,000
|
4.5
|
95,001-100,000
|
4.7
|
100,001-105,000
|
5.0
|
105,001-110,000
|
5.0
|
110,001-115,000
|
5.2
|
115,001-120,000
|
5.1
|
Total yield
|
41.0
|
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and likely to be revised.