Dáil Éireann Debate, Tuesday - 13 July 2021
280. Deputy Carol Nolan asked the Minister for Finance if he will outline the reduction in the rates of the universal social charge; the changes to the relevant income bands; the estimated cost to the Exchequer for these changes for each year from 2014 to 2020; and if he will make a statement on the matter. [37648/21]
Amharc ar fhreagraI would 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.
Since 2015, policy in relation to the basic structure of the personal income tax system has focused on reductions to income tax targeted at low to middle income earners.
A summary of the taxation measures announced as part of the annual Budget is published each year at Budget time and is available at www.budget.gov.ie.
The table below sets out the applicable USC rates and bands, inclusive of any changes, for the years 2015 to 2020, together with the estimated costs of these changes. There were no changes to the USC for the year 2014.
