Dáil Éireann Debate, Tuesday - 29 September 2015
237. Deputy Richard Boyd Barrett asked the Minister for Finance the cost to the Exchequer of abolishing the universal social charge for all income earners earning less than €70,000 per year; and if he will make a statement on the matter. [32959/15]
View answer238. Deputy Richard Boyd Barrett asked the Minister for Finance the cost to the Exchequer of abolishing the universal social charge for income earners earning less than €35,000 per year; of reducing the charge by 50% for income earners earning between €35,000 and €70,000 per year; and if he will make a statement on the matter. [32961/15]
View answer281. Deputy Thomas P. Broughan asked the Minister for Finance the cost to the Exchequer of raising the universal social charge threshold to €13,500, €14,000 and €14,500; and if he will make a statement on the matter. [33304/15]
View answer282. Deputy Thomas P. Broughan asked the Minister for Finance the tax expenditure involved in cutting the universal social charge 7%, 1%, 1.5% and 2%; and if he will make a statement on the matter. [33305/15]
View answer299. Deputy Pearse Doherty asked the Minister for Finance the cost of reducing the universal social charge rate of 7% to 5%; and to 6%. [33450/15]
View answerI propose to take Questions Nos. 237, 238, 281, 282 and 299 together.
Regarding the question on the abolition of the Universal Social Charge (USC), I am informed by the Revenue Commissioners that the estimated first and full year costs of abolishing the USC for all income earners earning less than €70,000 per year are €1.86 billion and €2.52 billion respectively. This estimated cost assumes that the current USC structure remains in place for those income earners earning in excess of €70,000 per year.
Regarding the question of abolishing the USC for all income earners earning less than €35,000 per annum and reducing the USC rates by 50% on all income earners earning between €35,000 and €70,000, I am informed by the Revenue Commissioners that the estimated first and full year costs are in the order of €1.5 billion and €2.07 billion respectively.
In response to the question of raising the current USC threshold, I am informed by the Revenue Commissioners that the estimated costs for increasing the current USC threshold as outlined are as follows;
- From €12,012 to €13,500 would be in the order of €11.3 million in the first year and €15.7 million in a full year
- From €12,012 to €14,000 would be in the order of €15.7 million in the first year and €21.8 million in a full year
- From €12,012 to €14,500 would be in the order of €20.4 million in the first year and €28.3 million in a full year
In relation to the questions as to the cost of reducing the 7% rate of USC, I am advised by the Revenue Commissioners that a Ready Reckoner is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/ready-reckoner.pdf . This Pre-Budget 2016 Ready Reckoner shows a wide range of information including a number of indicative changes to USC rates and thresholds. While the Ready Reckoner does not show all of the specific costing requested by the Deputies, other changes can be estimated broadly on a pro-rata (or straight-line) basis with those displayed in the Reckoner.
All figures provided above are estimates for 2016 incomes from the Revenue tax forecasting model using latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.
