Martin Browne
Ceist:172. Deputy Martin Browne asked the Minister for Finance the estimated cost in 2022 of removing the universal social charge for earnings up to €19,500. [36108/21]
Amharc ar fhreagraTuesday, 6 July 2021
Ceisteanna (172)
Freagraí scríofa
I am advised by Revenue that the estimated cost of exempting the first €19,500 of income from the Universal Social Charge (USC) is €390m and €451m on a first and full year basis.
These estimated figures are based on projected 2021 incomes, calculated from actual data for the year 2018, the latest year for which data are currently available.
I might take this opportunity to note that 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.