Editorial: USC cut could be easy option for Coalition
Tampering with the tax system is a dangerous exercise that requires understanding and dexterity.
Two aspects of the Irish income tax system grate with most workers. The first is that they reach the top rate of income tax at such a low income threshold. The second is that many, if not most employees, consider the introduction of Universal Social Charge (USC) as unfair and an imposition that robbed them of their disposable income. This in turn has caused havoc in the retail industry as people literally stopped spending and devoted spare cash to mortgages and paying down debt.
Now, as the good news seeps through and tax cuts of some sort or other have been flagged for hard pressed workers, the government is faced with the dilema of how it can meet the expectations of workers, while at the same time keeping its fiscal targets on track.