Dáil Éireann Debate, Tuesday - 20 October 2015
255. Deputy Michael McGrath asked the Minister for Finance the cost in 2016 and in a full year of exempting an additional 42,000 income earners from the universal social charge; and if he will make a statement on the matter. [36602/15]
View answer258. Deputy Michael McGrath asked the Minister for Finance the cost in 2016 and in a full year of reducing the 1.5% rate of the universal social charge to 1%; and if he will make a statement on the matter. [36605/15]
View answer259. Deputy Michael McGrath asked the Minister for Finance the cost in 2016 and in a full year of reducing the 3.5% rate of the universal social charge to 3% and increasing the range of income it covers; and if he will make a statement on the matter. [36606/15]
View answer260. Deputy Michael McGrath asked the Minister for Finance the cost in 2016 and in a full year of reducing the 7% rate of the universal social charge to 5.5%; and if he will make a statement on the matter. [36607/15]
View answerI propose to take Questions Nos. 255 and 258 to 260, inclusive, together.
I am informed by the Revenue Commissioners that the estimated first and full year cost to the Exchequer of exempting an additional 42,000 income earners from the Universal Social Charge (USC), is in the region of €8 million and €11 million respectively.
The estimated first and full year cost to the Exchequer of reducing the 1.5% USC rate to 1% is in the order of €89 million and €121 million respectively.
In relation to reducing the 3.5% USC rate to 3%, the estimated first and full year cost to the Exchequer is in the order of €49 million and €66 million respectively.
In response to the question of reducing the 7% USC rate to 5.5%, the estimated first and full year cost to the Exchequer is in the order of €397 million and €546 million respectively.
The Deputy will note that these costings do not take into account the full range of changes to the USC announced in Budget 2016.
All figures provided above are based on the pre-Budget 2016 USC structure, including band thresholds, and 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.
