The universal social charge is a tax “pure and simple” for which the public sees no benefits in return, only more hardship, and it must be addressed by the new Government.
This is the view of Labour Galway West TD Derek Nolan who was speaking about taxation and the universal social charge in his maiden speech in Dáil Éireann.
The Programme for Government commits to a review of the USC but Dep Nolan said this “important issue” must “be addressed, not merely examined again”.
He said that while it would be difficult to change the taxation system mid-year, the USC is “causing real hardship” for people. He also said the period between starting the review and completing it must not be used “to create a breathing space” for the administrative acceptance of the USC.
“On the contrary, it must be used to draft necessary changes and find sufficient resources to ease the burden on the lowest earners in society whom the USC is hurting so badly,” he said.
Dep Nolan also said the name of the tax - the universal social charge - must be “viewed with much cynicism”.
“In the minds of many, it created the impression of a social insurance charge for which people would receive a tangible benefit in return, such as a guaranteed health benefit in the form of health care access, dental services, unemployment benefit or some such other social benefit,” he said.
“However, it did not do that. It is a tax, pure and simple. To attach such a euphemistic and confusing label as a universal social charge was cynical and deliberately confusing.”
Dep Nolan also called for a Dáil debate on taxation.
“The idea is not that we give up money to have it transferred to the State only to see it disappear, but rather that it is a give and take benefit which we receive and which is part of the State’s commitment that taxpayers and citizens will have their taxes used for their benefit,” he said.
“We need to rephrase our debate to explain how we want the taxation system to work in our country. We need the same buy-in in order that people appreciate that paying tax is part of a wider benefit to them.”
