Holly Cairns: Social Democrats would not cut USC in budget

Social Democrats leader Holly Cairns during the party's think-in in Dublin on Thursday. Picture: Gareth Chaney/ Collins

The leader of the Social Democrats, Holly Cairns, criticised the Government for moving to cut income tax in the upcoming budget, saying funds should instead go to improving public services.

The Cork South-West TD said if the Social Democrats were in government, they would not move to cut Universal Social Charge (USC).

“A cut in USC will put a few euro of people’s own money back in their pockets and it won’t make the significant difference that people are looking for. We wouldn’t be cutting the USC at this time,” Ms Cairns said.

“I think it’s more important to be honest with people than, kind of, promise tax cuts. Fine Gael are the boy who cried wolf on this, continuously promising to abolish the USC and all of these things that have yet to happen.” 

Currently, the Government is signalling there will be a move to cut the USC in the upcoming budget. Finance Minister Michael McGrath confirmed that cuts to the tax are under consideration, adding the primary focus is on people on low and middle incomes.

Public services 'threadbare'

Ms Cairns said it was “understandable” why people have an aversion to paying tax, adding public services across the country are “threadbare”.

“Our approach is, unashamedly, to build those public services and we think that, if you’re paying taxes then and you see things like genuinely free education, free childcare, all of those things would be the thing that would have an impact.

We wouldn’t go around promising cuts like that to try and buy people’s votes. I think the electorate see through it.”

Asked if there were any circumstances where the party would move to cut the USC, Ms Cairns said it was one of Ireland’s more progressive taxes due to it increasing depending on how much a person earns.

“It wouldn’t be a focus for the party,” Ms Cairns said.

“If we want to genuinely make Ireland more equal and a nicer place for everyone to live, you have to build those public services.

“People are sick and tired of hearing about a tax cut, a tax break. What we need is proper public services, and that benefits everybody.”