Pearse Doherty (Donegal, Sinn Fein)
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122. To ask the Minister for Finance the estimated cost of exempting earners at or below €19,572 from the USC. [14888/17]

Pearse Doherty (Donegal, Sinn Fein)
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123. To ask the Minister for Finance the estimated cost of exempting all earners at or below €19,572 from the USC and, respectively, with no USC payable on the first €19,572 of income for all persons earning over €19,572. [14889/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 122 and 123 together.

I am advised by Revenue that the first and full year costs to the Exchequer of exempting all income earners who earn at or below €19,572 from the Universal Social Charge (USC) are estimated to be €53 million and €62 million respectively. For the purposes of this costing it has been assumed that the current USC bands and rates will apply to taxpayers whose USC-liable income exceeds €19,572.

Regarding the Deputy's second question, I am advised by Revenue that the first and full year costs to the Exchequer of exempting all income at or below €19,572 from the USC for all earners are estimated to be €403 million and €569 million respectively. These changes would effectively remove the current 0.5% USC rate on all income up to €12,012 and the 2.5% USC rate on all income from €12,012 to €18,772 and would increase the entry point into the 5% USC rate to €19,572.

It is broadly estimated that increasing the entry threshold to USC from €13,000 to €19,572, or introducing a zero percent rate of USC on income up to €19,572 for all earners, would increase to approximately 38%, the proportion of income earners with no liability to the USC.

These estimates have been generated by reference to 2017 incomes as calculated on the basis of actual data for the year 2014, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimates are provisional and may be revised.