Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

The amendment asks that we look at a study of the USC. It speaks about a socially just distribution of income. The key issue is that there be a study of USC. For whatever reason - I have my own views - some political parties have adopted the position that the USC should be abolished. Fine Gael has a very clear view that it should be abolished, to be replaced by some charge for higher earners. Fianna Fáil's version of the same policy is to abolish it for 90% of income earners in the State. The Labour Party's policy is to abolish it for a little less than 90%. What the Minister has done in the budget, which is underpinned by the Finance Bill, is a wake-up call for us all, without all of the other alarm bells ringing, including the concentration on corporation tax, the threats posed by Brexit which include a hard border and tariffs, the fact that there is an uncertain future for certain trade elements because of Donald Trump's election and because of other measures he could introduce that would impact on investment taking place in the State.

There is the idea that we continue, in Finance Bill after Finance Bill, stripping away - under this Bill the cost will be €390 million in a full year - USC income and not put down on paper what the benefits are, if any, in terms of what the USC provides for, it being a progressive tax and how it catches all of the income of many people, in particular high net worth individuals who are able to use the income tax code to reduce their tax liability. That needs to be put down on paper. The idea that Fine Gael want to abolish the USC 100%, supported by Fianna Fáil which wants to go 90% of the way, in the process eroding what is one of the most sustainable bases in the tax code, is not acceptable.

Whatever the reason for producing a report - I agree with the amendment - we need the information in black and white. We need the Department to do this. Obviously, the Minister has the authority to do it, but it is not prudent to decide to strip away €5.4 billion in annual income to be achieved by 2021 without it being underpinned by a departmental report on the potential consequences and effects and indicating whether it would be the socially just and right thing to do.

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