Dáil Éireann Debate, Tuesday - 6 October 2015
284. Deputy Finian McGrath asked the Minister for Finance the estimated cost if the 3.5% universal social charge rate was decreased to 3% for persons earning between €12,012.01 and €17,576 per year; and if he will make a statement on the matter. [34719/15]
View answer285. Deputy Finian McGrath asked the Minister for Finance the estimated cost if the 7% universal social charge rate was increased to 8% for persons earning over €70,044 per year; and if he will make a statement on the matter. [34720/15]
View answerI propose to take Questions Nos. 284 and 285 together.
With regard to the estimated cost of decreasing the Universal Social Charge from 3.5% to 3% for earners between €12,012.01 and €17, 576, I am advised by the Revenue Commissioners that a Pre-Budget 2016 Ready Reckoner is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/ready-reckoner.pdf. This 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.
In relation to the estimated yield of increasing the 7% Universal Social Charge to 8% for those earning over €70,044, I note that the rate for earners over €70,044 is already 8%. The Deputy may wish to note that the Ready Reckoner provides an estimated yield for a further 1% increase in the 8% rate to 9%, should this be of interest.
All figures provided in the Ready Reckoner 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.
