Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

On Report Stage we are not speaking to the sections so I will speak to this issue through amendment No. 2. The reductions in the USC brought about in this budget, although modest, will make a difference when combined, in particular, with the raising of the entry point to the marginal rate of tax. To reaffirm the situation, from our party's perspective the provisions of the confidence and supply agreement provide for gradual reductions in the universal social charge, with an emphasis on low and middle-income levels. We had a discussion on Committee Stage with regard to the Government's plans for an amalgamation of PRSI and USC and it is evident from what the Minister said at the select committee that the project, if it goes ahead, will take some years. I think the Minister said it would take five years or so. It is clear, therefore, that it will be an issue at the next general election and parties will have to put forward their respective positions on taxation. From our perspective, the priority is that gradual reductions are continued in a sustainable and progressive way.

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