Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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153. To ask the Minister for Finance the full year cost of abolishing the universal social charge. [36293/17]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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154. To ask the Minister for Finance the full year cost of abolishing the universal social charge for persons earning less than €90,000. [36294/17]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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155. To ask the Minister for Finance the full year cost of abolishing the universal social charge for persons earning less than €80,000. [36295/17]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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165. To ask the Minister for Finance the amount that would be collected if extra tax bands were introduced (details supplied). [36307/17]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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166. To ask the Minister for Finance the amount that would be collected in a single year if the rate of USC was only applied to those earning more than €90,000. [36308/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 153 to 155, inclusive, 165 and 166 together.

The Universal Social Charge (USC) is projected to raise approximately €3.7 billion in Exchequer receipts terms in 2017, with this level expected to increase, on a dynamic basis, as employment and wage growth are projected to continue over the forecast horizon. 

For example, on a no policy change basis, which does not take account of the allocation of fiscal space beyond Budget 2017, but does include the carryover effect of Budget 2017 changes, the USC is expected to yield approximately €4.0 billion in 2018. Therefore, assuming abolition in 2018, the full-year cost of abolishing the Universal Social Charge would be in the order of €4.0 billion. As the Deputy will appreciate, these figures will be reviewed and are subject to change as part of the Budget 2018 process in October this year, which will incorporate the most up to-date macroeconomic data.

I am advised by the Revenue Commissioners that the first and full year cost of abolishing the USC for persons earning less than €90,000 is €1,884 million and €2,185 million respectively.

I am advised by the Revenue Commissioners that the first and full year cost of abolishing the USC for persons earning less than €80,000 is €1,730 million and €2,004 million respectively.

The Deputy may also wish to note that increasing the entry threshold to USC in this manner would create a significant step effect whereby a USC liability of over €3,589 or €4,389 would arise once income exceeds €80,000 or €90,000 respectively.

I am advised by Revenue that the first and full year yield of introducing additional income tax bands such that earnings between €100,000-€140,000 are subject to income tax at 50%; earnings between €140,000 and €180,000 are taxed at 55%; earnings between €180,000 and €250,000 are taxed at 60%; and earnings above €250,000 are taxed at 65%; is €1,636 million and €2,226 million respectively.

On the basis of the information provided above in respect of the cost of abolishing the USC for those earning under €90,000 and the projected 2018 USC yields, it is estimated that the amount that would be collected in 2018 if USC were to be applied only to those earning over €90,000, using the current system of rates and bands for the charge, would be in the region of €1,815 million.

These estimates have been generated by reference to 2018 incomes as calculated on the basis of actual data for the year 2015, 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.