Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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458.To ask the Minister for Finance the full-year cost of abolishing USC for all earners and replacing it with a higher income social charge of 10% on all earnings over €100,000 euro per year; the revenue that would be generated by the introduction of this new higher income social charge; and if he will make a statement on the matter. [33746/24]

Jack Chambers (Dublin West, Fianna Fail)
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As the Deputy will be aware, the USC yield was c. €5.4 billion in 2023, with a similar yield expected in 2024. The USC is an important source of revenue to the Exchequer to fund public services.

In relation to the Deputy’s proposal, I am advised by Revenue that restructuring the USC rates and bands so that only individual income in excess of €100,000 would be subject to a charge, at a rate of 10%, would cost an estimated €3.2 billion on a full year basis. The revenue raised by the 10% charge is an estimated €2.2 billion. Therefore, the Deputy’s proposal would have a negative net impact on the Exchequer of €3.2 billion on a full year basis.

It is important to be aware that estimates of tax policy changes for USC are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (published end August) will also be on the basis of Budget year 2025.