Abolishing the Universal Social Charge for 330,000 of the most vulnerable low-paid workers marks the reversal of a “crude mechanism that hit all workers regardless of low income”.
This is the view of Labour Galway West TD Derek Nolan who welcomed the announcement in Tuesday’s Budget to raise the USC exemption limit to €10,036 from €4,004.
Dep Nolan said Labour “has ensured that vulnerable low earners will be protected in this Budget”. He added that the Budget also “vows to protect middle income families” by maintaining the current rate of income tax.
“This will provide security, certainty, and comfort to families that have seen their tax burden increase dramatically in recent years,” he said.
Dep Nolan said very high earners, who have sheltered income from tax for years will now have to pay their fair share due to the Budget’s significant moves on tax justice through a minimum effective tax rate, increases in capital taxes, and levies on property reliefs.
“The scandal where these earners could virtually write off their entire tax bill in reliefs is now over,” he said.
