Aindrias Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I move amendment No. 2:

In page 8, between lines 5 and 6, to insert the following:

“Universal Social Charge

3. Within 3 months of the passing of this Act, the Minister shall lay a report before Dáil Éireann on the current position regarding the Universal Social Charge, the number of taxpayers paying Universal Social Charge at each band and options to further reduce the Universal Social Charge burden for middle income earners in the years ahead.”.

This amendment is about getting a report on the current position in relation to the universal social charge and the number of taxpayers paying it on each of the different bands. It also seeks to look at further opportunities to reduce the USC burden, especially on middle income earners.

I want to acknowledge the tax changes and improvements, particularly the USC changes in the budget. A change in the band for the first time in five years is a significant milestone. It was introduced in a very different economic climate and it is a big issue for many people. The reduction from 4.5% to 4% is important, not just for the scale of it but also because it is the first time in five years this has happened.

I want to focus on the national minimum wage increase of €1.40 next year. This will bring it to a rate of €12.70 per hour. It is not just about the people on the minimum wage but it is also about other low-income workers in many businesses who are on wages just a little bit above the minimum. There might be someone getting one or two euro over the minimum wage. They will also see an improvement in their incomes next year when the increase comes into effect.

The key thing is that these people on low incomes will be able to remain outside the higher rates of USC. It is essential that the threshold on the 4% rate threshold be raised. I understand from the figures that it would be worth €2,300 annually to somebody on the minimum wage and a little bit more for people who are on related incomes.

I want to try to get an understanding of the numbers of people in that position because many thousands of middle-income and low-income earners might have felt that previous budgets did not benefit them as they would have hoped. I want to get a clearer picture of how they benefit from this USC change and to map and look ahead at possible changes that could be made to improve their situation.

Tá an leasú seo dírithe ar thuarascáil ar an líon daoine atá ag íoc an USC ag na rátaí éagsúla agus ar dheiseanna chun an cháin sin a laghdú do dhaoine. Tugadh isteach an cháin ag am ina raibh cúrsaí eacnamaíochta an-difriúil. Tá sé tábhachtach go mbeadh gach iarracht á déanamh chun deireadh a chur léi nó chun í a laghdú. Is maith an rud é go bhfuil laghdú tosaithe anois don chéad uair le cúig bliana. Is rud suntasach é ní hamháin go bhfuil an leibhéal ag athrú ó 4.5% go 4% ach go bhfuil iarracht déanta anois don chéad uair le cúig bliana chun í a laghdú.

Díreoidh mé orthu siúd ar an bpá is ísle, daoine ar an minimum wage. Tá sé sin le hardú ag tús na bliana seo chugainn. Cabhróidh sé sin go mór le hioncam a lán daoine agus fáiltím roimhe. Caithfidh a chinntiú nach mbeidh siad ag íoc níos mó USC de bharr an ardaithe sin. Tá sé tábhachtach go leanfaí ag cur feabhas air. Mar sin, táim ag lorg na tuairisce seo chun féachaint ar an líon daoine atá i gceist agus ar aon slite inar féidir feabhas a chur ar an USC chun an t-ualach sin a laghdú.

I also want welcome the USC concession that is being extended for medical card holders. I acknowledge the significance of this. I ask the Minister to give an outline of the report and the opportunities for further reducing the USC

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