Seán Sherlock (Cork East, Labour)

The Minister for Finance said those earning the new reduced minimum wage would not be brought into the tax net. I seek clarification in this regard. Financial Resolution No. 12 states:

That, with effect from 1 January 2011, there shall be charged, levied and paid, in accordance with the provisions of this Resolution, a tax to be known as "universal social charge".

This is an acknowledgment that the universal social charge is a tax.

What is the situation in respect of the minimum wage? The charge will not be levied on incomes up to €4,000, at 2% on incomes up to €10,036 and at 4% on the next €5,980. There needs to be further clarification of the position of people who are earning the minimum wage. The Labour Party interpretation is that this charge is a tax to be levied on those in receipt of the new reduced minimum wage. If that is the case, it is grossly unfair.

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