Michael Noonan defends plan to cut USC

Finance Minister Michael Noonan has said the decision to reduce the universal social charge (USC) is a political one, despite mounting calls for the tax to be retained. Mr Noonan was speaking at the Dáil’s new Budget Oversight Committee and restated his intention to phase out the USC by 2021.

“You [the committee] have heard many opinions, and those opinions should be valued but there are other opinions as well. Political parties have felt the USC should be reduced,” Mr Noonan said.

As reported in the Irish Examiner yesterday, the European Commission in its latest report on Ireland’s economy, warned against abolishing the USC which at its height brought in more than €4bn to the exchequer.