Sharon Keogan (Independent) | Oireachtas source

The universal social charge, USC, has found itself in the spotlight once again. As we look at measures to combat the unsustainable rise in the cost of living, I believe we should be looking at the USC. The USC was introduced at the height of the financial crisis in December 2010 by the late Brian Lenihan of Fianna Fáil to help to shore up a huge hole in the public finances and to replace the income levy and the health levy. The USC now generates a tax revenue of around €4 billion per annum for the State. It is very much a progressive tax. In 2016, when Fine Gael promised to scrap the USC it was the case that 75% of the USC revenue raised, which was €3 billion, came from the top 20% of earners, and 43% came from those earning more than €100,000 per annum. When it was first introduced, it applied to all income over €4,000. The threshold was increased in later budgets and is currently €13,000. The increase in the lower threshold was due to the economy no longer being as dire as it was in 2011. That precedent of raising the threshold is one that can be looked at again. In 2011 we had a 15.6% unemployment rate. Today it is 5.4%. Effectively, two thirds of the people who were unemployed in 2011 are now employed. It is all very well to offer one-off bonuses and payments to try to offset the cost of living, but why not cut out the middleman? Why tax families and individuals and then make a big show of giving a portion of it back to them? Just let them keep their own money. Can we have a debate in this House on the pros and cons of raising the threshold, perhaps to €25,000? This would allow people on lower incomes to retain €500 to €600 annually of their own money and put this towards the cost of living essentials.

I will conclude by offering my sympathies to Deputy Verona Murphy, whose mother is to be buried this morning. I extend my sympathies from the House. I am very sorry.