Colm Brophy (Dublin South West, Fine Gael) | Oireachtas source

Professor Barrett mentioned the high marginal rates of tax, and USC is an integral part of how much tax people pay. Regardless of whether we like it, we have an open economy. We must look at how much tax is coming off starter salaries of €30,000 or €40,000 and the salaries of graduates coming out of college, be they nurses or computer programmers. They can go to the UK and be paid effectively the same amount of money but with take home pay which is completely disproportionate to what we have in Ireland. This is a disproportionate draw on our situation here. The witnesses spoke about it having no effect on employment and cited the fact employment has increased by 56,000. We had a huge unemployment crisis and it is great to see what has happened, but there is no question that there is a problem with the rates of USC and the rates of overall taxation on income when it comes to certain types of salaries and people who are highly mobile, young and want to leave Ireland. We paid for them to have a very good third-level education but they can go to the neighbouring jurisdiction and pay a fraction of the tax on their incomes they would be obliged to pay here. That is a matter to which consideration must be given.