Monday 26 September 2016

Fianna Fail to cut tax for all workers regardless of income if elected to government

Published 12/01/2016 | 13:10

Fianna Fail’s Michael McGrath. Photo: Tom Burke
Fianna Fail’s Michael McGrath. Photo: Tom Burke

Fianna Fail is to cut tax for all workers regardless of income next year if elected to government.

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The party has promised to abolish the 1pc rate of Universal Social Charge and slash the 3pc rate in the next budget if elected.

Finance spokesman Michael McGrath described the promise as "cautious" and while admitted that Fianna Fáil has to prove itself to the electorate they would be "responsible".

In government, Fianna Fail would move to immediately get rid of the lowest rate of USC which applies on incomes up to €12,012.

They would then halve the 3pc rate which applies to the next €6,600 of income.

The combination of USC reductions would mean anyone earning over €18,668 would take home an extra €220 over a year.

"This cut in the USC will be worth proportionately more to low and middle income earners though all income earners in the USC net will benefit," Mr McGrath said.

Fianna Fáil will also extend reliefs on Capital Gains Tax to bring them closer to the UK model.

Mr McGrath also committed to setting up a rainy day fund which could be accessed in the event of another economic shock.

"We are determined to ensure in the future that there will be a buffer in place," the Cork TD said.

He said the party had "learned from past mistakes" and would stay within economic forecasts set out by the Department of Finance.

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