Universal Social Charge Application

Dáil Éireann Debate, Thursday - 18 September 2014

Thursday, 18 September 2014

Questions (79)

Brendan Griffin

Question:

79. Deputy Brendan Griffin asked the Minister for Finance the immediate costs to the Exchequer of raising the point of entry for universal social charge eligibility; if he will provide examples in tabular form of threshold increases; the number of taxpayers who would be affected and the costs involved; his views that action on this would be an effective way of easing the tax burden for the lowest paid workers in the State; and if he will make a statement on the matter. [34950/14]

Written answers

Minister for Finance

I assume that Deputy means that only the entry point to the charge of USC is increased and that once the increased threshold has been reached that full liability for USC at the current rates and thresholds would apply.

On that basis, I am informed by the Revenue Commissioners that the estimated first and full year costs, with reference to 2015 incomes, of increasing the exemption threshold for the Universal Social Charge (USC) to €11,000, €12,000, €13,000, €14,000 and €15,000 and the numbers affected by each increase are detailed in the following table.

USC Threshold	First Year Cost to the Exchequer €m*	Full Year Cost to the Exchequer €m*	Numbers Affected
€11,000	8	12	38,400
€12,000	19	26	80,500
€13,000	30	41	117,800
€14,000	42	59	155,700
€15,000	55	77	192,400

 *Assuming no change to the income levels at which the standard USC rates apply.

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.