Public set for major income boost as Government look to slash controversial tax
A welcome piece of news for taxpayers ahead of Budget 2024.
Ahead of Budget 2024, it has emerged that the Coalition tandem of Fine Gael and Fianna Fáil are set to slash one of the country's most controversial taxes, in what will be a major financial boost to the Irish public.
The tax in question is the much-maligned Universal Social Charge (USC), which was first introduced back in 2011 as the Government sought to boost funds in the aftermath of the economic crash.
Now, according to the Business Post, the USC is set to receive its most significant cut since its initial introduction, along with an increase to the entry point of the higher tax bracket. It is expected that these concessions will be worth an estimated €11 billion.
Moreover, Tánaiste Micheal Martin this weekend confirmed that these proposed tax breaks were "under consideration" ahead of the October 10th Budget Day.
Fianna Fáil lead drive to cut USC:
The cuts to USC have been championed by Fianna Fáil ministers, who believe that it would offer more benefit than the proposed €1,000 tax cuts to middle income works.
Meanwhile, Fine Gael's taxation priority has been to raise the standard cut-off rate for income tax to above €40,000, resulting in fewer people paying the top rate of tax.
The Coalition Government has already confirmed that it would deliver a relief package worth €6.4 billion in Budget 2024, including a €5.25 billion increase in spending and further tax cuts worth over €1 billion.
However, there is reported to be some concern amongst ministers that any further concessions are being placed at risk by the enormous deficit facing the HSE, which is predicted to cost an estimated €2 billion.
Other budgetary measures which are likely to be listed in Budget 2024 include the extending of the free school books scheme, increased spending to secure an additional 1,000 new Garda recruits and a once-off €200 energy credit.
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