Michael McGrath (Cork South Central, Fianna Fail)
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Question 108: To ask the Minister for Finance his plans to change the taxation treatment of redundancy lump sums with particular reference to standard capital superannuation benefit and top slicing relief; and if he will make a statement on the matter. [34097/11]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax or expenditure matters that might be the subject of Budget decisions.

Catherine Murphy (Kildare North, Independent)
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Question 109: To ask the Minister for Finance his plans to alter the cut off point for the universal social charge; if he has costed a change that would taper this liability; and if so, the outcome of same; and if he will make a statement on the matter. [34099/11]

Michael Noonan (Limerick City, Fine Gael)
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The position is that an individual is liable to pay the Universal Social Charge (USC) if his/her gross income exceeds the threshold of €4,004 per annum. USC is not levied on payments from the Department of Social Protection. For 2011, the rates of USC for PAYE income are as follows:

* 2% on the first €10,036

* 4% on the next €5,980

* 7% on the balance

It should be noted that there is a commitment in the Programme for Government to carry out a review of the USC. This review is close to completion. The Terms of Reference of the Review are broad and wide-ranging and include, but are not limited to, the following areas:

* Low paid income earners;

* Persons over 65;

* Medical Card Holders;

* Widows/Widowers;

* Self-employed;

* Public Service Pensioners;

* Employer contributions to PRSAs; and

* Any other issues (including any operational issues that have arisen in the administration of the charge).

When the Review is completed and the findings are presented to me, I will make any necessary decisions in the context of Budget 2012.