Universal Social Charge Yield

Dáil Éireann Debate, Thursday - 17 July 2014

Thursday, 17 July 2014

Questions (65)

Pearse Doherty

Question:

65. Deputy Pearse Doherty asked the Minister for Finance the cost to the Exchequer, the number of persons that will benefit and the average amount that would be saved for those in income brackets of €10,000-€20,000; €20,000-€30,000; €30,000-€40,000; €40,000-€50,000; €50,000-€60,000; €60,000-€70,000; €70,000-€80,000; €80,000-€90,000; €90,000-€100,000; €100,000-€150,000; €150,000-€200,000 and more than €200,000, by the reduction of the universal social charge by 0.5% and 1%, respectively, in each of the categories, 2%, 4% and 7%. [32138/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the full year cost, estimated by reference to 2014 incomes, of reducing the 2%, 4% and 7% rates of Universal Social Charge (USC) by 0.5% and 1% is tentatively estimated to be of the order of €378 million and €756 million respectively.

The average benefit is not available but a breakdown of the number of beneficiaries by income range suggested by the Deputy is shown in the following table.

Range of Income from                to	Estimated Number Benefiting
€10,000   to   €20,000	353,500
€20,000   to   €30,000	305,300
€30,000   to   €40,000	240,900
€40,000   to   €50,000	172,400
€50,000   to   €60,000	118,500
€60,000   to   €70,000	84,300
€70,000   to   €80,000	59,500
€80,000   to   €90,000	40,700
€ 90,000   to   €100,000	27,900
€100,000   to   €150,000	60,200
€150,000   to   €200,000	16,800
Over             €200,000	20,400

These figures are estimates for 2014 incomes from the Revenue tax forecasting model using latest actual data for the year 2011, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. Married persons or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.