Dáil Éireann Debate, Tuesday - 27 September 2016
187. Deputy Ruth Coppinger asked the Minister for Finance the amount it would cost the State to abolish the universal social charge for all incomes under €100,000 and maintain it as it is for those over €100,000. [26900/16]
View answer188. Deputy Ruth Coppinger asked the Minister for Finance the net effect for the State of the abolition of the universal social charge for all income under €100,000; the maintenance of it as is for those between €100,000 and €150,000; introducing two new bands of USC of 10% for income between €150,001 and €200,000; and a 12% rate for all income over €200,000. [26901/16]
View answerI propose to take Questions Nos. 187 and 188 together.
I am advised by Revenue that the estimated first and full year cost to the Exchequer resulting from the abolition of the Universal Social Charge (USC) for all taxpayers with income under €100,000, and the maintenance of all the existing USC rates and bands for taxpayers with income of €100,000 or over, is in the order of €2,200 million and €2,553 million respectively.
As regards the abolition of the USC for all taxpayers with income under €100,000, the maintenance of the existing USC rates and bands for taxpayers on incomes between €100,000 and €150,000 and the introduction of new bands and rates of 10% for income between €150,001 and €200,000 and 12% for all income over €200,000, I am advised by Revenue that the estimated first and full year cost to the Exchequer is €2,025 million and €2,313 million respectively. These costs are net of the additional yield generated by the two new USC rates and bands proposed in the Deputy's question. The estimates assume the continued application of the surcharge of 3% on individuals who have non-PAYE income that exceeds €100,000 in a year.
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2014, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to projected 2017 incomes. They are provisional and may be revised.
