Senator Sarah O’Reilly has welcomed and strongly supported the motion passed by councillors in Tipperary County Council calling for the scrapping of the Universal Social Charge, saying hard working families are being “taxed to the hilt while getting little back in return.”
Senator O’Reilly said the USC was introduced as a temporary emergency measure after the financial crash and questioned why it remains in place while the State records massive surpluses.
“Back in 2011, after the crash, the Government asked taxpayers to help right the ship and introduced the USC as a temporary measure. The question now is simple, will the Government give back now that the tables are turned?”
The Senator said workers are being taxed at every stage of the day.
“A worker commuting from Virginia to Blanchardstown can pay multiple tolls just to get to work. If he fills his van with €100 of diesel, almost half of that cost is tax. If he buys lunch, he pays VAT again. Then he pays the tolls all over again on the way home.
“Meanwhile, people willing to work overtime and put in the hard graft are punished for it. In countries like Canada, hard work is rewarded, not penalised.”
Senator O’Reilly said USC places a major burden on middle income workers already struggling with the cost of living.
“Someone earning €45,000 to €50,000 a year could have roughly €100 extra in their pocket every month if USC was abolished. That money would go directly back into helping families meet rising costs.”
She pointed to Department of Finance figures estimating that increasing the USC exemption threshold to €50,000 would cost approximately €790 million annually.
“That figure sounds significant until you compare it to the scale of waste in Government spending. I think the Government has too much money and are spending it with no oversight like a child in a sweet shop. Cutting spending by just 1% would save the State around €1 billion a year. The Government does not have a revenue problem; it has a spending problem.”
“Workers who get up early, commute long distances and put in honest work should not be punished for doing so.”
