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Confirmed: USC will be cut

The cuts in the tax mean that people earning €35,000 a year will save €175.

Greece Bailout AP / Press Association Images AP / Press Association Images / Press Association Images

THE UNIVERSAL SOCIAL Charge is to be cut, Finance Minister Michael Noonan has confirmed.

Noonan said that the cuts were being announced to “ease the burden” on many. It forms part of a €500 million tax cut for Irish workers.

Under the Budget plan, the lowest three rates of USC will be cut by half a percent each.

That will amount to a €335 million cut in USC across the board. Noonan said it was a further step towards abolishing the tax entirely.

Though relatively small, these changes will have a material impact on the disposable income of lower and middle-income earners – more importantly it signals this Government’s intent to phase out the USC over time as resources permit. The impact on different levels of income is reflected in the distributional tables published in the Budget book.

It will mean workers will pay .5% on the first €12,012, 2.5% on the next tranche of €6,760 and 5% on the next €51,376.

The tax will also not kick in until a person earns €18,782, up €104 from last year.

The cuts in the tax mean that people earning €35,000 a year will save €175, or €3.36 a week.

Noonan also announced that Dirt tax would be cut by 2% a year until 2020, bringing it down to 33%.

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Read: Budget 2017: Here are the details of the new ‘help to buy’ scheme for first-time-buyers

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    Sep 17th 2019, 10:50 AM

    It’s about control,” they” lost it when “social media” become the main means of getting information. The old bill board, state TV, way of getting out their message to the masses is dying. So now they’re using the old vilify it, then Control it. Be smart look at why…. they’re vilifying. Information is ammunition, knowledge Is Power.

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    Sep 17th 2019, 11:12 AM

    @Dave Walsh: Sure yeah…because the nonsense being posted on social media is “knowledge”

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    Sep 17th 2019, 11:19 AM

    @Gavin Conran: your Wright some of it is, but freedom of speech must include the b. S.

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    Sep 17th 2019, 11:21 AM

    Say no to internet censorship and control

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    Sep 17th 2019, 11:28 AM

    This is news?

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    Sep 17th 2019, 4:43 PM

    Wow the journal and its deleting comments. The author is a troll.

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