Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Ireland's much-hated tax that just won't go away: The Universal Social Charge

It’s difficult to remember a time when those three letters weren’t on your payslip.

CAST YOUR MIND back to late 2010. Ireland was floundering in recession and it was about to be handed over to the Troika.

The property market had well and truly crashed to the ground and it had taken all those precious stamp duties with it.

Ireland was facing into one of the toughest Budgets in its history.

Due to a massive hole in the country’s revenues, the government needed a quick fix, fast.

Emergency 

On 7 December 2010, the then Minister for Finance, Fianna Fáil’s Brian Lenihan replaced the well-known income levy and health levy with the Universal Social Charge (USC).

7/12/2010. Budget 2011 Press Conferences The late Minister for Finance Brian Lenihan. Eamonn Farrell / Photocall Ireland Eamonn Farrell / Photocall Ireland / Photocall Ireland

The taxpayer was led to believe it was an emergency, temporary tax, imposed to see us through the dark days.

“The Universal Social Charge requires that everyone makes some contribution, however small, to the provision of services,” said Lenihan.

Lenihan stated the change was a “major step forward in the reform process” and told the public and his party members the USC would not be greater than the previous levies people were paying.

7/12/2010. Budget Day 2011 Fianna Fail Minister for Finance Brian Lenihan. /Photocall Ireland /Photocall Ireland

That day, the charge went under the radar for some.

“It was a mad time. Ireland was in crisis, there was a panicked atmosphere in Dáil Eireann that day, there was just so much being announced – it was hard to keep up,” said one member of the media.

Due to the reassurances given, the USC slipped by a bit, they said.

The USC kicked in 1 January 2011, and it wasn’t until people opened their pay packets that month did they see the reality they were facing. Fianna Fáil were chastised for the low entry point at which the tax kicked in.

Despite assurances the charge was to be short-lived, there was nothing temporary about it.

Irish budget 2016 Niall Carson Niall Carson

In 2013, Fine Gael made some changes, raising the entry point from €4,004 to €10,036 per year.

The year later, another step was taken whereby incomes of €12,012 or less were exempt from USC.

Last year, many were left scratching their heads as to why the USC wasn’t scrapped.

And one year later, here we are, witnessing the current government still etching away, a fraction of a percentage at a time.

Here’s where we stand at the moment.

usc

As next week’s Budget approaches, there has been a lot of kite-flying as to what cut we can expect to see next Tuesday.

The Finance Minister Michael Noonan has confirmed there will be a cut – just not the 1% Fine Gael committed to in their manifesto.

Noonan explained the back-tracking at the recent Fine Gael think-in, where he stated that a Fine Gael majority was not voted into power – therefore, the manifesto promises did not stand.

Rather than an all-out abolition, it’s understood there could be cuts to all three bands of 0.5%.

13/10/2015 Budget Day 2016 Minister for Finance Michael Noonan holds a copy of the Comprehensive Expenditure Report at Government Buildings this year. Sam Boal Sam Boal

So what would the cuts mean to someone’s annual pay packet?

  • For a worker earning €36,699 – they will save €183.50
  • For a worker on €50,000 – they will save €260
  • For a worker on €70,000 – they will save €350

It’s understood the higher band rate of 8% will remain unchanged this year.

No surprises 

However, while Noonan has said there will be no surprises in this Budget – the negotiations appear to be ongoing.

On Friday it was announced there was an extra €200 million to play with, much to the annoyance of Fianna Fáil.

Whether that makes an impact or means at least one surprise announcement, we will have to wait for Budget Day.

What we do know is that this will be a Budget like no other. Maybe not in windfalls for all, but in terms of how many political players have a stake in it.

This year’s Budget and how it is delivered “will be a good reflection of this government,” said a senior government source.

“It has been the most engaged Budget there has ever been.”

“Leo likes to make you think he is all cuddly and caring. That’s not him”>

FactCheck: Does every other country in Europe have water charges?>

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
100 Comments
    Install the app to use these features.
    Mute CeannairBlue
    Favourite CeannairBlue
    Report
    Jun 14th 2017, 10:00 AM

    Australia have every right not to land anyone on their shores that they do not want.

    If only we had the balls – we send the bloody Navy halfway round the world to pick them up!

    388
    Install the app to use these features.
    Mute Kal Ipers
    Favourite Kal Ipers
    Report
    Jun 14th 2017, 10:07 AM

    @CeannairBlue: Actually they don’t hence the lawsuit and them losing. They broke international and their own national laws

    72
    Install the app to use these features.
    Mute CeannairBlue
    Favourite CeannairBlue
    Report
    Jun 14th 2017, 10:08 AM

    @Kal Ipers: Then I’ll rephrase. THEY BLOODY WELL SHOULD DO!

    144
    See 17 more replies ▾
    Install the app to use these features.
    Mute Kal Ipers
    Favourite Kal Ipers
    Report
    Jun 14th 2017, 10:15 AM

    @CeannairBlue: So you are fine with when countries refused to allow a ship with refugees fleeing the holocaust during WWII? They eventually returned to the Nazis and were killed in concentration camps. You think the agreements and laws brought in to never allow that to happen again should be scrapped?

    31
    Install the app to use these features.
    Mute CeannairBlue
    Favourite CeannairBlue
    Report
    Jun 14th 2017, 10:26 AM

    @Kal Ipers: Ah the old Godwin’s Law, where would the intellectually challenged be without it.

    No, I wouldn’t have been okay with that. But I’m okay with this and the knobheads legging from Syria and leaving their wives and kids behind because “THEY’RE NOT FLEEING A HOLOCAUST”.

    125
    Install the app to use these features.
    Mute Dave O Keeffe
    Favourite Dave O Keeffe
    Report
    Jun 14th 2017, 10:30 AM

    @CeannairBlue: quoting the relevant laws is not Godwins Law.

    23
    Install the app to use these features.
    Mute Kal Ipers
    Favourite Kal Ipers
    Report
    Jun 14th 2017, 10:34 AM

    @CeannairBlue: Hard not to mention the Nazis when they are the reason for the laws. Many of these people were fleeing certain death if they stayed.
    Do you know anything about the people and how they were treated? The suicide rate in Naru camps is shocking. Do you think these people killed themselves for a laugh?

    25
    Install the app to use these features.
    Mute Marie Agnew
    Favourite Marie Agnew
    Report
    Jun 14th 2017, 10:52 AM

    @CeannairBlue: so the millions that left Ireland because of the famine should have been abandoned as well huh!! Short memories eh!

    23
    Install the app to use these features.
    Mute Dave O Keeffe
    Favourite Dave O Keeffe
    Report
    Jun 14th 2017, 10:53 AM

    @Marie Agnew: abandoned? Abandoned would be preferable to internment

    13
    Install the app to use these features.
    Mute CeannairBlue
    Favourite CeannairBlue
    Report
    Jun 14th 2017, 10:56 AM

    @Dave O Keeffe: Did I say it was ? Invoking the Holocaust is.

    18
    Install the app to use these features.
    Mute CeannairBlue
    Favourite CeannairBlue
    Report
    Jun 14th 2017, 10:58 AM

    @Marie Agnew: We also weren’t leaving the country to sponge off the nearest country – we went there because a third of the country were dying of starvation.
    One in those places, we bloody well went to work.

    Honestly I used to be a left wing socialist but ffs the “left” nowadays want a slap.

    80
    Install the app to use these features.
    Mute CeannairBlue
    Favourite CeannairBlue
    Report
    Jun 14th 2017, 10:59 AM

    @Clever Jake: The Pope is a better man than I am. Thank God.

    12
    Install the app to use these features.
    Mute Suzie Sunshine
    Favourite Suzie Sunshine
    Report
    Jun 14th 2017, 11:00 AM

    So how does this effect their refugee status ??

    8
    Install the app to use these features.
    Mute Ben Gunn
    Favourite Ben Gunn
    Report
    Jun 14th 2017, 11:12 AM

    @CeannairBlue: I think this issue was dealt with at Nuremberg. All people have human rights which should not be subject to artificial borders arbitrarily drawn for political reasons.

    8
    Install the app to use these features.
    Mute Robert Preston
    Favourite Robert Preston
    Report
    Jun 14th 2017, 11:15 AM

    @Marie Agnew: Read a history book and educate yourself how can you compare the irish leaving to go to america and the rest of the world with whats going on now .

    45
    Install the app to use these features.
    Mute Suzie Sunshine
    Favourite Suzie Sunshine
    Report
    Jun 14th 2017, 11:24 AM

    @Kal Ipers: I doubt they even care about that . . They protected their borders and sent a message out and it stopped the boats arriving illegally. .

    33
    Install the app to use these features.
    Mute Dave O Keeffe
    Favourite Dave O Keeffe
    Report
    Jun 14th 2017, 11:52 AM

    @CeannairBlue: The law around this issue was created because of the legal grey area that existed on people fleeing the threat of concentration camps. To call mentioning where the law originated Godwin’s Law shows your absolute lack of understanding of the issue and human rights laws.

    6
    Install the app to use these features.
    Mute CeannairBlue
    Favourite CeannairBlue
    Report
    Jun 14th 2017, 12:06 PM

    @Dave O Keeffe: No, you would like it to. Nice try.

    11
    Install the app to use these features.
    Mute Gordon McCabe
    Favourite Gordon McCabe
    Report
    Jun 14th 2017, 12:08 PM

    @CeannairBlue: I think you seriously need to look into what’s actually happening in countries like Syria.

    6
    Install the app to use these features.
    Mute Peter donnelly
    Favourite Peter donnelly
    Report
    Jun 14th 2017, 3:10 PM

    @Kal Ipers:if they were fleeing certain death why did they go so far ? im sure there were nearer countrys they could go to, but hold on they probably wouldnt have been allowed in and would not of got any support or special treatment, would it not make more sence to stay at home and fight for your country….

    17
    Install the app to use these features.
    Mute SteveW
    Favourite SteveW
    Report
    Jun 14th 2017, 10:10 AM

    Even sovereign countries have no control over their own borders and rules.

    122
    Install the app to use these features.
    Mute Kal Ipers
    Favourite Kal Ipers
    Report
    Jun 14th 2017, 10:26 AM

    @SteveW: Not when they sign agreements saying they will take in refugees and then don’t. They actually broke their own rules. Their own courts and laws are what is being enforced.

    32
    Install the app to use these features.
    Mute Siouxsie Dumbtime
    Favourite Siouxsie Dumbtime
    Report
    Jun 14th 2017, 11:46 AM

    @SteveW: History will look harshly upon Australia’s treatment of asylum seekers, a continent pillaged by Europeans.

    9
    See 4 more replies ▾
    Install the app to use these features.
    Mute CeannairBlue
    Favourite CeannairBlue
    Report
    Jun 14th 2017, 12:06 PM

    @Siouxsie Dumbtime: Such an appropriate screen name with a comment like that.

    28
    Install the app to use these features.
    Mute Larissa Caroline Nikolaus
    Favourite Larissa Caroline Nikolaus
    Report
    Jun 14th 2017, 12:16 PM

    @CeannairBlue: In how far is it incorrect that she mentioned that Australia was pillaged by Europeans?

    7
    Install the app to use these features.
    Mute Siouxsie Dumbtime
    Favourite Siouxsie Dumbtime
    Report
    Jun 14th 2017, 1:06 PM

    @CeannairBlue: It’s an historically accurate statement so bully you!

    8
    Install the app to use these features.
    Mute billy Dorney
    Favourite billy Dorney
    Report
    Jun 14th 2017, 4:30 PM

    @Siouxsie Dumbtime: sure the Aussies are worried

    2
    Install the app to use these features.
    Mute Carl Ingalls
    Favourite Carl Ingalls
    Report
    Jun 14th 2017, 10:15 AM

    Irish Right’s groups will be licking their lips as we speak.

    108
    Install the app to use these features.
    Mute Coles
    Favourite Coles
    Report
    Jun 14th 2017, 11:14 AM

    @Clever Jake: Best to ignore them. Everybody else does.

    15
    Install the app to use these features.
    Mute Polly Dolan
    Favourite Polly Dolan
    Report
    Jun 14th 2017, 11:21 AM

    @Clever Jake: block them!!

    5
    See 1 more reply ▾
    Install the app to use these features.
    Mute Deborah Behan
    Favourite Deborah Behan
    Report
    Jun 14th 2017, 2:14 PM

    @Carl Ingalls: the horror of not helping people who weren’t lucky enough to be born in a free society. If you had your way we’d be back in far-right paradise with human rights very restricted. No thanks.

    7
    Install the app to use these features.
    Mute Alex
    Favourite Alex
    Report
    Jun 14th 2017, 10:02 AM

    Go home

    79
    Install the app to use these features.
    Mute Siouxsie Dumbtime
    Favourite Siouxsie Dumbtime
    Report
    Jun 14th 2017, 11:47 AM

    @Alex: The colonists?

    13
    Install the app to use these features.
    Mute Trevor W
    Favourite Trevor W
    Report
    Jun 14th 2017, 12:41 PM

    @Siouxsie Dumbtime: it’s a pity the originals didn’t send them packing centuries ago.

    14
    See 1 more reply ▾
    Install the app to use these features.
    Mute Siouxsie Dumbtime
    Favourite Siouxsie Dumbtime
    Report
    Jun 14th 2017, 1:08 PM

    @Trevor W: So true, they have treated the aboriginals disgracefully and now asylum seekers, one set of rules for the white man and another for anyone of colour.

    8
    Install the app to use these features.
    Mute Peter donnelly
    Favourite Peter donnelly
    Report
    Jun 14th 2017, 12:41 PM

    simple answer send them back from whever they came from, no asylum….

    43
    Install the app to use these features.
    Mute Siouxsie Dumbtime
    Favourite Siouxsie Dumbtime
    Report
    Jun 14th 2017, 1:10 PM

    @Peter donnelly: The Europeans? We’d have no room for all those descendants of Irish convicts.

    10
    Install the app to use these features.
    Mute Peter donnelly
    Favourite Peter donnelly
    Report
    Jun 14th 2017, 2:56 PM

    @Siouxsie Dumbtime: slight problem there the irish who were forced onto death ships god knows how long age were forced to go they diddnt chose to go, and when they finished their sentance they worked for a living not expecting any one to feed and house them any irish who emmigrated went to work and try to better themselves but unfortunatly not all of them made it….

    20
    Install the app to use these features.
    Mute Ben McArthur
    Favourite Ben McArthur
    Report
    Jun 14th 2017, 10:35 AM

    I’d say a lot of Australians will consider that money well spent.

    32
    Install the app to use these features.
    Mute Kal Ipers
    Favourite Kal Ipers
    Report
    Jun 14th 2017, 10:10 AM

    As there will be a flood of people saying how this is riddiculious I suggest you read up on what they did to these people. Also read what Australia did to Naru and to the captain of a boat who rescued people from a sinking boat.

    28
    Install the app to use these features.
    Mute Dave O Keeffe
    Favourite Dave O Keeffe
    Report
    Jun 14th 2017, 10:34 AM

    @CeannairBlue: *can’t

    14
    Install the app to use these features.
    Mute Larissa Caroline Nikolaus
    Favourite Larissa Caroline Nikolaus
    Report
    Jun 14th 2017, 10:43 AM

    @CeannairBlue: You can’t be bothered reading, yet comment here, venting your faux outrage about refugees having a right to be treated humanely, the sure sign of a hypocrite and troll

    24
    See 2 more replies ▾
    Install the app to use these features.
    Mute CeannairBlue
    Favourite CeannairBlue
    Report
    Jun 14th 2017, 11:00 AM

    @Dave O Keeffe: Difference between hitting the wrong key and the inability to spell. Troll.

    8
    Install the app to use these features.
    Mute Dave O Keeffe
    Favourite Dave O Keeffe
    Report
    Jun 14th 2017, 11:57 AM

    @CeannairBlue: best not to make a mistake when correcting others, makes you look ridiculous. Ha, troll. Says the moron that has no idea why most laws around concentration camps and many about refugees seem to have been agreed upon in the 40′s.

    9
    Install the app to use these features.
    Mute Mumpsimus
    Favourite Mumpsimus
    Report
    Jun 14th 2017, 2:05 PM

    Why don’t all the lefties move to all their countries and make it better for them so they don’t have to leave. Problem solved

    27
    Install the app to use these features.
    Mute Deborah Behan
    Favourite Deborah Behan
    Report
    Jun 14th 2017, 2:22 PM

    @Mumpsimus: why don’t all righties F off to their own country? Oh yeah they still want to get a woman!!!

    7
    Install the app to use these features.
    Mute billy Dorney
    Favourite billy Dorney
    Report
    Jun 14th 2017, 4:31 PM

    @Mumpsimus: keyboard warriors

    1
    Install the app to use these features.
    Mute Tony Daly
    Favourite Tony Daly
    Report
    Jun 14th 2017, 11:19 AM

    Who let all of the white Caucasian Christian immigrants into Australia? The place is overrun with them.

    The Aboriginal people should not have let all of the white foreigners in.

    23
    Install the app to use these features.
    Mute Suzie Sunshine
    Favourite Suzie Sunshine
    Report
    Jun 14th 2017, 11:21 AM

    Who all entered legally into the country ….

    33
    Install the app to use these features.
    Mute Tony Daly
    Favourite Tony Daly
    Report
    Jun 14th 2017, 11:57 AM

    @Suzie Sunshine: no, they did not.

    11
    See 4 more replies ▾
    Install the app to use these features.
    Mute Greg Cavey
    Favourite Greg Cavey
    Report
    Jun 14th 2017, 12:20 PM

    @Tony Daly: and look how prosperous the country is all these decades later. Germany decided to let in 500,000+ migrants into their country and they stab 5 year old boys, assault and women and plough through innocent people shopping at a Christmas market. Infact lets compare east Europe to west europe. West lets in migrants = dramatic increase in terror attacks. East stands firmly against letting in migrants = virtually no terror attacks to my knowledge. Coincidence?

    39
    Install the app to use these features.
    Mute Siouxsie Dumbtime
    Favourite Siouxsie Dumbtime
    Report
    Jun 14th 2017, 1:09 PM

    @Suzie Sunshine: Time to revisit your primary school history books.

    7
    Install the app to use these features.
    Mute Suzie Sunshine
    Favourite Suzie Sunshine
    Report
    Jun 14th 2017, 1:19 PM

    @Siouxsie Dumbtime: they weren’t the migrants I was referring to

    6
    Install the app to use these features.
    Mute Dave O Keeffe
    Favourite Dave O Keeffe
    Report
    Jun 14th 2017, 1:48 PM

    @Suzie Sunshine: who were you referring to then?

    6
    Install the app to use these features.
    Mute Dave O Keeffe
    Favourite Dave O Keeffe
    Report
    Jun 14th 2017, 10:33 AM

    You can’t put refugees in a concentration camp? Who knew!

    24
    Install the app to use these features.
    Mute just readin
    Favourite just readin
    Report
    Jun 14th 2017, 12:33 PM

    Australians should stop messing about and deport all immigrants and their families who arrived since 1606

    16
    Install the app to use these features.
    Mute Rodney Monaghan
    Favourite Rodney Monaghan
    Report
    Jun 14th 2017, 5:41 PM

    I hope they have the decency now to repay the Australian taxpayers, for the cost incurred by them, for the provision of their refugee accommodation…
    Regardless of the level of accommodation, the burden of its cost shouldn’t now be borne by Australia, given these people’s new found wealth!

    9
    Install the app to use these features.
    Mute Trevor W
    Favourite Trevor W
    Report
    Jun 14th 2017, 12:48 PM

    It’s a small justice. As multi-cultural as it is in Oz it is seriously racist in many ways.

    Read up on the Tampa affair. Will explain a lot for the keyboard warriors on here.

    10
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.
JournalTv
News in 60 seconds