Paul Murphy (Dublin South West, Anti-Austerity Alliance) | Oireachtas source

I move amendment No. 2:

In page 5, between lines 16 and 17, to insert the following:“2. The Minister for Finance is to order a study to be carried out into the impact of USC on ensuring a socially just distribution of income and is to report to the Dáil within six months of the enactment of this Act on the findings of the study.”.

It has been put about that the universal social charge, USC, is a progressive tax and that those on the left should be in favour of the USC charge. The purpose of this amendment is for a study to see the facts of this. In reality, for us the USC is a tax hated by many workers who see it, correctly, as something that was introduced in the context of the crisis and the bank bailout. We oppose the USC, are for the abolition of the USC and want to replace it with a new high income social charge which would apply the current marginal rates of USC on income over €90,000 which, according to the Minister for Finance, Deputy Michael Noonan, would raise €750 million, together with the introduction of new higher marginal rates of income tax on income over €100,000 with a number of bands - €100,000 to €140,000 at 50%, €140,000 to €180,000 at 55%, €180,000 to €250,000 at 60% and €250,000 plus at 65%. This would be a progressive tax system which we believe would mean taking the vast majority of workers completely out of the USC. We request a study of the impact of USC on the distribution of income.

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