The Irish government is considering a move to reduce the universal social charge (USC) from 4 per cent to 3 per cent for individuals with incomes between €25,760 and €70,004 in next week’s budget, according to a report in the Business Post.
This move is part of ongoing discussions about income tax relief and other financial measures aimed at easing the tax burden on middle-income earners.
Finance Minister Jack Chambers introduced the USC reduction proposal during a meeting with party leaders on Thursday evening.
The proposal marks a significant shift, following last year’s half-percentage point cut made by Michael McGrath, Chambers’ predecessor.
Chambers has emphasised that revisions to the USC, which was originally introduced during the austerity period, will be a “central” component of the upcoming €1.4 billion tax package.
In addition to the USC cuts, discussions are also focusing on adjusting income tax thresholds as part of the broader tax relief measures. These changes are expected to form a core part of Budget 2025, which will be presented to the public on October 1.