Terence Flanagan (Dublin North East, Independent)
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70. To ask the Minister for Finance his views on correspondence (details supplied) regarding the universal social charge; and if he will make a statement on the matter. [39590/14]

Michael Noonan (Limerick City, Fine Gael)
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The Universal Social Charge (USC) was introduced in Budget 2011 to replace the Income Levy and the Health Levy. It was a necessary measure to widen the tax base, remove poverty traps and raise revenue to reduce the budget deficit.  It is applied at a low rate on a wide base, and is a more sustainable charge than those it replaced.  It was designed and incorporated in to the Irish taxation system as part of its permanent structure and the revenues collected play a vital part in meeting the many expenditure demands placed on the Exchequer.

While individuals who are subject to the USC charge do not accumulate entitlements or specific benefits, they do benefit generally from the services provided by the State, which the yield from the USC and other taxes permit.

I would point out however, that as a result of a review of the USC conducted by my Department in 2011, the Government decided in Budget 2012 to increase the entry point to the Universal Social Charge from €4,004 to €10,036 per annum. It is estimated that this removed almost 330,000 individuals from the charge.  In Budget 2015 I have extended this exemption threshold to €12,012 to apply from 1 January onwards. This will exempt a further 80,000 individuals from the charge.