Written answers
Thursday, 16 May 2024
Department of Finance
Universal Social Charge
Pearse Doherty (Donegal, Sinn Fein)
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158. To ask the Minister for Finance the estimated first- and full-year costs of reducing the first rate of USC from 0.5% to 0%, reducing the second rate of USC from 2% to 0% and increasing the threshold to the third rate of USC from €25,760 to €30,000. [22275/24]
Pearse Doherty (Donegal, Sinn Fein)
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159. To ask the Minister for Finance the estimated first- and full-year costs of reducing the first rate of USC from 0.5% to 0%, reducing the second rate of USC from 2% to 1% percent and increasing the threshold to the third rate of USC from €25,760 to €27,880; and if he will make a statement on the matter. [22276/24]
Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 158 and 159 together.
I am advised by Revenue of the estimated costs for the proposals outlined by the Deputy on a first and full year basis. They are shown in the below table.
As a reduced rate of USC of 2% currently applies for those aged over 70 years 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 costings also include a decrease in the reduced rate of USC from 2% to 1% and 0% respectively, for consistency.
| Proposed Measure | First Year Cost €m | Full Year Cost €m |
|---|---|---|
| First and second USC rates reduced to 0%, and the threshold to the third rate of USC increased from €25,760 to €30,000 | 985 | 1,135 |
| First rate of USC reduced to 0%, second rate of USC to 1% and the threshold to the third rate of USC increased from €25,760 to €27,880 | 530 | 610 |
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