Dáil Éireann Debate, Thursday - 16 May 2024
158. Deputy Pearse Doherty asked 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]
View answer159. Deputy Pearse Doherty asked 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]
View answerI 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 |
