Integration of PRSI and USC


Frequent Poster
I note that the Report of the Working Group on the Amalgamation of USC and PRSI has been published.

The Group’s terms of reference were:

“To examine and present options for the amalgamation of PRSI and USC in a manner which seeks to address, inter alia:

(i) the need to preserve the tax base having regard to the need for certainty, equity, and ease of compliance and administration,

(ii) current and future funding challenges facing the Social Insurance Fund,

(iii) issues likely to arise from a phased implementation over a number of years of the new instrument,

(iv) simplification of the personal tax and social insurance systems, and

(v) any other relevant matters arising.

The key finding of the Group was:

“Amalgamation of USC and PRSI is technically feasible and there are a number of options to achieve this. However, the Group concluded that it was not possible to identify a single approach which at once is simple in design and implementation, minimises the costs to the State and avoids losers at the individual income earner level.

All possible options or variations thereof involve trade-offs between these three factors and raise significant parallel policy choices for Government as well as the resolution of practical implementation issues which arise.

This is a summary from the Irish Times, “The working group considered various ways this option could be achieved. However, all but one involved a significant loss for the exchequer of between €617 million and €1.08 billion.

This is the Group's report.