Dáil Éireann Debate, Wednesday - 20 September 2023
156. Deputy Catherine Murphy asked the Minister for Finance the estimated cost in 2024 of reducing the 2% USC rate to persons earning between €12,012.01 and €22,920 to 1%, and for persons earning between €22,920.01 to €70,044, to reduce that 4.5% USC rate to 4%; and the number of persons who would benefit in both bands. [40116/23]
View answerI am advised by Revenue that the estimated cost to the Exchequer, on a first and full year basis, for the proposal outlined by the Deputy is €475 million and €545 million respectively. An estimated 2.16 million taxpayer units would benefit.
If the 2nd rate of USC was reduced to 1%, all taxpayer units paying USC would benefit. The number of taxpayer units that would benefit from a reduction of the 3rd rate of USC to 4% alone, without a reduction of the 2nd rate of USC, would be an estimated 1.59 million.
As the Deputy will be aware, reduced rates of USC apply for those aged 70 or over with income of €60,000 or less and for those who hold a full medical card with income of €60,000 or less. The estimated costing provided above also includes a decrease in the top rate of the reduced rate of USC from 2% to 1%, for consistency.
