Ireland has one of the most progressive personal income tax systems in the world, which plays a crucial role in the process of income redistribution. Our redistributive tax system has been acknowledged by the IMF, the OECD and the ESRI. It is my view that a broad-based, progressive income tax system, where the majority of income earners make some contribution but according to their means, is the most fair and sustainable income tax system in the long term.
To answer the Deputy's specific question, I am advised by Revenue that the estimated costs associated with the first €13,000 of income being exempt from USC are €157m and €181m on a first and full year basis, respectively.