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Michael Noonan hints that the Universal Social Charge may never be abolished

Michael Noonan has hinted that the Universal Social Charge might never be abolished. The Minister...
Newstalk
Newstalk

07.25 15 Oct 2014


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Michael Noonan hints that the...

Michael Noonan hints that the Universal Social Charge may never be abolished

Newstalk
Newstalk

07.25 15 Oct 2014


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Michael Noonan has hinted that the Universal Social Charge might never be abolished.

The Minister says the charge brings in too much money - and that it's easier to change than income taxes are.

The charge, which was cut for lower earners yesterday, but raised for higher earners, is responsible for around a quarter of all income tax.

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Although the government has now floated the idea of reversing some other financial measure, like the private pension levy, or pay cuts for public workers, it seems the Social Charge will be staying.

Last night the Finance Minister Michael Noonan said he had no plans to merge the charge with the straightforward income tax and that it's actually more "flexible" than income taxes are.

He said the charge was designed to be easier to change so it's much more simple to increase rates for higher earners in the social charge, than it is to raise the income tax.

He also said that a tax which brings in over four billion euro is difficult to scrap, suggesting that while other relics from the crisis might eventually be scrapped, Universal Social Charge is here to stay.

Meanwhile, Brendan Howlin spoke about the new measures introduced in the Budget: 

Here is how the public reacted to the budget last night:


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