Lowering the USC rate could cost €364m

Lowering the cost of the Universal Social Charge by a percentage point for 1.28m taxpayers earning over €17,575 would cost the exchequer €364m, or over half of all the amount that Finance Minister Michael Noonan has indicated would be available for tax cuts in his pre-election budget next month.

Increasing the €12,012 threshold for paying the USC charge to €14,000 would benefit 80,000 taxpayers and cost the exchequer €22m.

And increasing the same €12,012 entry point for paying the USC by €1,000 and re-aligning the 1.5% band would benefit all 1.74m taxpayers who pay the USC, or 72% of all income earners. That measure alone would cost €49.7m.