According to reports this morning the phasing out of the Universal Social Charge could be highly beneficial to high income earners.
The news comes after the Department of Finance released a number of documents outlining how the scrapping of the charge would effect high and low income earners.
A department spokesperson revealed: “The Government never intended abolishing USC in one go. The plan is to phase out the USC.” “While scope is limited in this year’s budget, there will be a further move to curb USC, especially for mid- to low-income earners.”
It is thought the detailed documents also outline a number of options if the levy was scrapped. The Department believes phasing out the tax can be achieved, but there is no room for other measures.
According to the documents say a person earning more than €150,000 a year would greatly benefit as they would receive an extra €9,500 a year. However a person currently receiving the minimum wage would receive an annual increase of just €316 a year.