Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I propose to take amendments Nos. 2 and 3 together.

The Deputy will be aware that I announced in my Budget Statement that individuals earning more than €60,000 would not be entitled to benefit from the lower rates of the universal social charge. If I were to accept the amendments, it would mean that every individual with an income that did not exceed €65,000 would not pay any universal social charge on their income. In addition, individuals aged 70 years and over with incomes exceeding €65,000 would only pay at a maximum rate of universal social charge of 4% on their incomes. In the case of an individual aged under 70 years and earning €64,500, there would be no liability for the universal social charge, whereas an individual earning €65,001 would have a liability of €3,868.87. The cost to the Exchequer of the amendments would be very high, having been estimated by the Revenue Commissioners at €2.4 billion, and they would benefit approximately 1.5 million taxpayers. Given the current Exchequer position, I cannot accept them.