Collins slams ‘outdated’ USC

The Government must immediately abolish the Universal Social Charge (USC) to bring financial relief to Ireland’s “squeezed middle”, a Cork County Councillor has said.

At Monday’s full council meeting, Independent Ireland councillor Danny Collins condemned the Government’s continued enforcement of what he reminded the chamber was always supposed to be a temporary measure.

Cllr Collins branded the USC as an outdated austerity measure that has left the people of Ireland paying for the historical mismanagement of the state.

Introduced in 2011 at the height of Ireland's economic crash, the USC was put in place to a as a temporary tool to help bolster national finances.

“This charge has gone on for far too long now,” Cllr Collins said.

He continued: “People are fed up with paying and paying. They have well overpaid their dues. We have had Fine Gael and Fianna Fáil making pre-election promises since 2016 that they would get rid of this, and over ten years down the road, nothing has happened but false promises.”

Cllr Collins argued that abolishing the tax, which applies to incomes exceeding €13,000, would offer immediate financial relief to families most affected by the current cost-of-living crisis.

The motion found backing from several councillors. Seconding the proposal, Independent Ireland councillor Ger Curley highlighted the disproportionate weight of the tax on mid-tier earners, pointing out the 4% rate on incomes over €44,000 and 8% on those over €70,000.

“Now the state coffers are green, but households are struggling,” he said.

Independent Cllr Ben Dalton-O'Sullivan also supported the motion, referencing a recent economic study indicating that abolished USC funds would filter straight back into communities.

He said: “If someone has an extra €20, €30, or €40 a week, that’s going to go into the local coffee shop, the local butcher, and back into the local economy.”

Independent Cllr William O'Leary went further, labelling the USC “the second most hated tax of all time behind the household charge”.

However, Cllr Collins’ motion wasn’t met with unanimous support, with Social Democrats cCllr Ann Bambury questioning whether pulling the plug on a tax that generates between €4 billion and €5 billion annually would be a responsible idea.

“How do we propose that €4 to €5 billion is going to be covered alternatively?” Cllr Bambury asked, warning that total abolition could lead to regressive public spending cuts or worse tax implications elsewhere.

Cllr Collins’ motion was passed and a letter will be written to the Minister for Finance, Tánaiste Simon Harris TD, calling for the immediate abolition of the USC.