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Finance Minister says abolitio...

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Finance Minister says abolition or cutting of USC would not be a wise move

RedFM News
RedFM News

08:38 11 Feb 2022


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The Finance Minister's denying that a cut to the Universal Social Charge would have been a better way to help people with higher livings costs.

The Government announced a package of measures last night including a €200, a 20% cut to public transport fares and an extra €125 payment for those in receipt of fuel allowance.

But critics say the help is not being properly targeted at those who need it most.

Minister Paschal Donohue says that the abolition of, or a cut to the USC , would not be a wise move.

"To remove the Universal Social Charge, particularly since I became Minister for Finance, but what happened with Brexit and now where we are with COVID isn't a feasible prospect.

"What we can do is we can reduce the amount of income of which are paying the higher rates of USC and the higher rates of personal tax.

"But at this point in time to be indicating that we can abolish Universal Social Charge, with where we are in particular we're COVID is not a claim that I believe you can make let alone implement.

Adjunct Professor of Economics at Trinity College John Fitzgerald says the money should have been targeted to those who need it most.

"Over the last two years, hourly earnings for the bulk of people are up about 7%, prices are up 4.5%, and because prices actually fell during the crisis, so the bulk of people are actually better off than they were two years ago.

"However people on welfare and people who are low incomes are worse off, and that's where all the money should have gone."


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