The Minister for Finance, Michael Noonan TD, has said that workers who are due to benefit from reductions to the Universal Social Charge on January 1st would pay more tax under Fianna Fáil.
Minister Noonan said: “As we approach the new year, low and middle income earners can expect an increase in their take home pay. This is due to reductions in the Universal Social Charge that were introduced in the most recent budget.
“The USC reductions will bring the higher rate of tax under 50% for the first time since 2009. Fianna Fáil opposed these reductions because they do not grasp the concept that putting extra money in people’s pockets has a positive effect on our economic recovery.
“The low and middle income earners who will benefit from the USC reductions would pay more tax under Fianna Fáil. That’s because Fianna Fáil are wedded to the same high tax, high spend approach by which they ruined our economy last time they were in government.
“While in opposition, Fianna Fáil have proposed raising income tax and USC rates – something the Government has steadfastly refused to do. Their 2013 pre-budget submission would have taken the marginal rate of tax for the self-employed to an eye-watering 58%. And they still have no plan for creating jobs.
“We cannot go back to the same old Fianna Fail who wrecked the economy, have learned nothing from the past and are still the high tax, high spend party.
“Fine Gael has a long term plan to keep the recovery going and we are committed to abolishing the USC over the course of the next Government. We are seeing economic progress, with over 135,000 more people at work, but we cannot take for granted that stability and recovery will continue.”