Based on the current rate and band structure of the Universal Social Charge (USC), it is projected that the USC will raise €3.9 billion in 2020.
I am informed by Revenue that if the current structure of the USC was replaced with the rates and bands outlined by the Deputy, the estimated amount collected would be €230 million on a full year basis.
This assumes that there would be no exemption from the USC at any level of income, and no surcharge would apply to self-employed income. The reduced rate of USC for medical card holders and individuals who are aged 70 or over whose individual annual income does not exceed €60,000 has been retained but changed to 0.2% in line with the second USC band in the Deputy’s proposal.
These estimated figures are based on projected 2020 incomes, calculated from actual data for the year 2017, and may be revised.