LIMERICK Council were urged to write to Finance Minister Simon Harris calling for the abolishment of the Universal Social Charge (USC) with effect from January 2027.
But councillors from the Government parties suggested that the proposal from Independent councillors Eddie Ryan and Jerome Scanlan might as well be “sent to the parish priest” as it was so “ill-conceived” and “daft”.
Proposing the scrapping of USC at the recent full meeting of Limerick Council, Cllr Jerome Scanlan said that for a person earning €45,000, their USC is the equivalent of one and a half month’s rent.
“All these people cannot get a mortgage, so basically that is one good reason for considering its abolition. The squeezed middle are those that are affected most by this, and the people at the lower end, they need to be relieved.
“We have a cost of living crisis at the moment, and the only way it can be relieved is in terms of giving the people more disposable income. Abolish the Universal Social Charge and review the taxation system,” Cllr Scanlan declared.
Fine Gael councillor Peter Doyle opposed the motion, telling the chamber: “In the Dáil last year, Jack Chambers was asked a question on the cost of abolishing USC, and in 2025 that was €5.6billion.”
“For self-employed people who earn over €100,000, they pay 11 per cent USC. For people in the PAYE, who earn over €70,000, they pay eight per cent USC. For those under €13,000, they pay zero. In fairness to my colleagues here, their motion is well-intentioned, but they haven’t a pup’s chance of finding €5.6billion of tax revenue to replace this. I think it’s ill-conceived.”
Mayor John Moran, with a background in finance, was asked for his views on the matter. He said that it would be lovely to have less tax. However, the reality, he explained, is that USC is a tax much loved by the International Monetary Fund (IMF).
“I think you’ll hear the IMF will also look to raise local property tax. They’ll look to basically make the tax base broader, and I think it’s fair to say that we all understand the vulnerabilities now at the moment with the reliance on corporation tax. But I wouldn’t be recommending raising local property tax unless the Government actually came to the table with a proper reform of local government funding at the same time and giving giving autonomy to us,” Mayor Moran commented.
Fine Gael councillor John Sheahan proposed an amendment to change the wording of the motion, instead calling for a review of all personal taxes, which was agreed by members.
– Local Democracy Reporting Scheme