Brendan Griffin
Question:176. Deputy Brendan Griffin asked the Minister for Finance the cost to the Exchequer of a 1%, 2%, 3%, 4% and 5% cut in the universal social charge; and if he will make a statement on the matter. [7757/14]
View answerTuesday, 18 February 2014
Questions (176)
Written answers
I am informed by the Revenue Commissioners that the full year cost to the Exchequer, estimated by reference to 2014 incomes, of 1, 2, 3, 4 and 5 percentage point cuts in the Universal Social Charge (USC) would be of the order of €750 million, €1.5 billion, €2.1 billion, €2.6 billion and €3.1 billion respectively. This assumes the same percentage point cut applies to all three USC rates, until the rates reaches 0% in some cases. The estimated yields include corresponding rate decreases applied to the 10% rate of USC that applies to income from self employment exceeding €100,000 and also to those individuals for whom the 4% rate applies to all income over €10,036.
These figures are estimates from the Revenue tax forecasting model using actual data for the year 2011 adjusted as necessary for income and employment trends in the interim. They are, therefore, provisional and likely to be revised.