Labour announces USC and PRSI reforms if re-elected

Labour announces USC and PRSI reforms if re-elected

Juno McEnroe, Irish Examiner Political Correspondent, Mullingar.

Labour have promised to reduce taxes for workers on €25,000 by as much as a third if returned to power as part of a €3bn tax reform package.

Workers on up to €50,000 would also see their taxes reduced by up to 15% under the promised reforms.

Public Expenditure Minister Brendan Howlin unveiled the tax cut promises this evening in Mullingar, ahead of the Labour's conference taking place here tomorrow.

The plan would put more than €1,000 a year back into the pocket of a worker on €25,000.

However, a high earner on €120,000 or more more would continue to pay the same amount in taxes as they do now and not see any reductions in their obligations.

As part of the pre-election promise, Labour say that USC would be abolished on incomes up to €72,000. In addition, workers would also see top ups by paying less PRSI once their income amounts to less than €704 a week.

Any gains under the changes for higher earners would be clawed back by adjusting their tax intake.

Announcing the changes, Minister Howlin said that the USC was the "most draconian" of the charges introduced during the recession.

However, Labour still wanted to keep a broad tax base and would limit reductions, he said.

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