Dáil Éireann Debate, Wednesday - 17 September 2014
257. Deputy Pat Deering asked the Minister for Finance the amount of money that has been collected through the various rates of the universal social charge since it was introduced in tabular form on a yearly basis; the amount would it cost the Exchequer if all rates were reduced by 1% based on the current level of contribution; his plans to review the current rates and bands in the forthcoming budget; and if he will make a statement on the matter. [34236/14]
View answerThe receipts collected under the Universal Social Charge (USC) are listed in the table. It is important to take into account that these figures are based on end-year outturns and are on a Revenue Net Receipt basis. These can differ slightly from Exchequer Receipts for reasons of accounting and timing.
|
USC Social Charge |
2011 - € m |
2012 - € m |
2013 - € m |
|
USC Net Receipts |
3,114 |
3,790 |
3,930 |
I am informed by the Revenue Commissioners that the necessary data are not compiled in such a manner as to enable receipts to be broken down by band. However, the following table provides a breakdown by rate of the number of individuals who paid USC in 2012 (the most recent tax year for which complete data are available). These figures are rounded to the nearest 1,000.
|
USC Rate |
No. |
|
Exempt |
523,000 |
|
4% |
267,000 |
|
7% |
1,444,000 |
There is a 2% USC rate, applicable to the first €10,036. However where an individual's total income for a year does not exceed €10,036, they are exempt from USC, thus there are effectively no cases where an individual is solely liable to the 2% rate.
I am further informed by the Revenue Commissioners that the first and full year cost to the Exchequer, estimated by reference to 2015 incomes, of reducing the USC rates by 1%, would be of the order of €590 million and €830 million respectively.
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2012, 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.
