Michael McGrath (Cork South Central, Fianna Fail)
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186. To ask the Minister for Finance the number of persons paying the 8% rate of USC in each year since it was introduced; the yield in each year from the 8% rate; the estimated revenue loss from reducing the rate to 5% and 4% respectively; and if he will make a statement on the matter. [34253/17]

Michael McGrath (Cork South Central, Fianna Fail)
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187. To ask the Minister for Finance the number of persons paying the 11% rate of USC in each year since it was introduced; the yield in each year from the 11% rate; the estimated revenue loss from reducing the rate to 5% and 4% respectively; and if he will make a statement on the matter. [34254/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 186 and 187 together.

I am advised by the Revenue Commissioners that the number of taxpayers paying USC at each rate is available on the Revenue website at

The 7% rate of USC was increased to 8% for incomes in excess of €70,044 in Budget 2015. The USC yield on such incomes in 2015 was estimated at €989 million. This estimate includes the amount of USC paid at 8% by those who also pay the 3% USC surcharge that applies to the self-employed on the portion of their income over €100,000.

The 3% USC surcharge has been in effect since the introduction of the USC in 2011 and its yield is as follows:

In relation to reducing the 8% USC rate to 5%, I am advised by the Revenue Commissioners that the estimated cost on a first year and full year basis is €343m and €440m respectively. The cost on a first year and full year basis of reducing the 8% USC rate to 4% is €457m and €587m respectively.

Following clarification from the Deputy’s office as to the information sought by the Deputy, I am advised by the Revenue Commissioners that the first and full year cost of abolishing the 3% surcharge on self-employed earners is €69m and €123m respectively. The combined effect of the abolition of the 3% surcharge for self-employed earners and the reduction of the 8% USC rate to 5% on a first year and full year basis is €412m and €563m respectively. The combined cost of reducing the 8% USC rate to 4% and abolishing the 3% surcharge on self-employed earners on a first year and full year basis is €526m and €710m respectively.

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.