Brendan Griffin (Kerry South, Fine Gael)
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Question 27: To ask the Minister for Finance his views on the benefits to the employee for paying the universal social charge; and if he will make a statement on the matter. [32043/11]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the Universal Social Charge (USC) was introduced in Budget 2011 to replace the Income Levy and the Health Levy. It is applied at a low rate on a wide base. The USC is designed to apply across income levels with a smoother progression and to address the irregularities caused by 'step effects' in the previous system of levies. It was a necessary measure to widen the tax base and remove poverty traps. The USC is a more sustainable charge than those it replaced. The USC is collected like all other taxes, and is used to provide the resources to pay for the services provided by the State.