Paul Murphy (Dublin South West, Solidarity) | Oireachtas source

I move amendment No. 1:

In page 8, between lines 16 and 17, to insert the following:

"3. The Minister shall, within 6 months of the passing of this Act, bring a report on the cost and implications of abolishing the Universal Social Charge for everyone earning less than €90,000 per annum.".

If we could move an amendment to simply abolish the USC for everyone earning less than €90,000 we would obviously do so. We cannot, however, as such an amendment would be ruled out of order. What we have instead, then, is this amendment calling for a report on the costs and the implications of such a move. The argument in favour of an abolition is that the USC is a tax hated by workers. It was introduced as an emergency tax during the economic crisis but has instead become a permanent feature of our tax landscape. It hits ordinary workers, including low and middle-income earners, as well as high earners. Our figures suggest that approximately 7% of tax units earn more than €90,000 a year. In the Solidarity-People Before Profit budget statement, we proposed the abolition of the USC for those earning under €90,000 per annum and the conversion of the USC into a high-income social charge for those earning more than that sum. Part of the reason for this proposal is to counter the notion that the left stands for increased taxation on ordinary workers. We do not, in fact, as we think that there would be sufficient potential tax revenue from the wealth and profits held by the top 7% earners at the very top of society. Rather than hitting ordinary workers, this is the section of society that should be targeted. It is not a choice between tax increases and ongoing high taxes for ordinary workers on the one hand and public services on the other. Public services should be paid for instead through increased taxation on very high earners and particularly through a significant increase in corporation tax and the introduction of a millionaires' tax.