Universal Social Charge is Still Unfair- O'Brien

Universal Social Charge is Still Unfair-O'Brien

Sinn Féin councillor Jonathan O’Brien has said the government’s universal social charge remains unfair, despite the changes announced by the Finance Minister yesterday, and called for it to be repealed.

Cllr O’Brien said:

“The universal social charge is basically a flat tax: everyone with an income above €16,000 pays it at the same rate of 7%. As such it breaches the fundamental principal of progressive taxation - that those who have more, pay more.”

“Yesterday the Minister for Finance announced that Medical Card Holders will now be taxed at the lower level of 4%. While this is welcome, it does not go far enough. Hundreds of thousands of low paid earners will still be paying 7% of their income.”

“These are the people who have opened their pay packets over the past few weeks to find a large chunk has disappeared from their wages. The Minister’s announcement has done nothing for them. The inevitable result will be that families and households cut back further on discretionary spending, damaging local businesses and costing the country jobs.”

“Meanwhile the Minister has comprehensively failed to go after those who could and should pay more – the tax exiles and the wealthy. Sinn Féin has proposed a wealth tax of 1% on assets of over €1 million (excluding the family home) and a 48% tax rate on individual incomes over €100,000. There is no evidence that either proposal was even considered by the government. Even the limited measures announced in the budget – ending the remaining property tax reliefs – are being kicked to touch, with their implementation postponed pending “review” by a government-appointed committee.”

“This Finance Bill is the sting of a dying wasp. Even in their last days in government, Fianna Fail are targeting the low-paid and welfare recipients, while letting their cronies from the tent at the Galway Races off the hook. Sinn Féin wants the repeal of the Universal Social Charge. Any party wanting to form a government after the next election should introduce a new budget as its first priority.”

For further information or comment contact Cllr Jonathan O’Brien @ 085-2133907