Universal Social Charge
Dail Éireann — 2026-06-25
============================================================

Simon Harris (FG), Wicklow

As I know Deputy Callaghan is aware, the programme for Government and our party manifesto commit to making progressive changes regarding income tax. The aim here is to make sure that people can keep some more of their own money. People in this country still feel that when they work hard, play by all the rules and then look at the slip at the end of the week or month and see the take-home pay figure, they are left struggling to get by, let alone get ahead. We want to make progress on that over the course of the next four budgets. There was not a personal income tax package in the previous budget. There will be one in this budget. I expect and hope there will be one in each of the next four budgets. Over the course of those four budgets, we can make real progress. In the previous Dáil, to give an example, we managed to get from a situation where people were paying the higher rate of tax at €33,000 and brought that up to the higher rate of tax being paid at €44,000. We also made some progress on the USC in the previous Dáil when we saw the middle rate of USC, of 4.5%, reduce by 1.5 percentage points to 3%.
About a third of people are not paying any income tax or USC, which we need to factor in too. When people talk about progressivity, we need to balance that. The USC is an individualised tax, which means that a person's liability for the tax is determined on the basis of his or her individual income or personal circumstances. It is therefore seen by some as a more sustainable charge than those it replaced, and it is applied at a lower rate on a wide base. The USC yield for last year was €5.6 billion. For this year, it is projected to be €5.9 billion, so there is a significant yield. What we decide to do on personal income tax, whether on income thresholds, tax credits or the USC, will be considered in the weeks ahead. The ultimate aim will be to see how we can most help people who are either working hard or the people who, as the Deputy recognised today, have worked hard with respect to their net income. We will consider all the options in the round.

---

Source: Houses of the Oireachtas. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). The Official Report is revised after first publication; the fetch timestamp below identifies the version quoted.

Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-06-25/debate/main
Retrieved: 2026-08-27T06:54:51+00:00
Sitting date: 2026-06-25