Thursday, 4 July 2019

Questions (77)

Michael McGrath

Question:

77. Deputy Michael McGrath asked the Minister for Finance the estimated first and full year costs of decreasing the non-PAYE USC surcharge from 3% to 2%, 1% and 0%, respectively; the estimated number of persons affected by such a change; and if he will make a statement on the matter. [28755/19]

View answer

Written answers (Question to Finance)

I am advised by Revenue that the costs of reducing (or removing) the non-PAYE 3% Universal Social Charge (USC) surcharge as outlined by the Deputy are shown in the following table. It is estimated that the proposed change would affect approximately 23,570 taxpayer units.

-

First Year Cost €m

Full Year Cost €m

Reduction of USC surcharge from 3% to 2%

23.4

41.8

Reduction of USC surcharge from 3% to 1%

46.8

83.6

Removal of the USC surcharge

70.2

125.4

These estimated figures are based on projected 2019 incomes, calculated on actual data for the year 2016, and may be revised. The estimates do not account for any behavioural impacts that might result from removing the non-PAYE USC surcharge.