usc thresholds increased; rates reduced

[Brendan Burgess]

usc threshold 12012 130000

1.5% to 1% first 12012
3.5 to 3% 12012 to 18668
7% to 5/.5% >18868 70 044

will reduce marginal rate to 49.5%

No changes on income over €70,000 but they will benefit from cuts at lower rates.

 

[ainefitz]

Noonan says that it is approx equal to a extra weeks wages a year, is that before or after tax ?

 

[DB74]

Re USC changes:

Anyone on €30,000 will see an increase of €320 per year in take-home pay

Every additional €10,000 in Gross salary over and above €30,000 up to approx €70K will see an extra increase of €150 per year

 

[elcato]

1.5% to 1% first 12012 - saves ~ 60.00
3.5 to 3% 12012 to 18668 - saves ~ 30.00
7% to 5/.5% >18868 70 044 - saves ~ 770.00

So if you're on 70k you get an extra 860 net after tax

 

[DB74]

Noonan says that it is approx equal to a extra weeks wages a year, is that before or after tax ?

I think this quote relates to people who can also claim the Home Carers Tax credit on top of the USC reductions

 

[Brendan Burgess]

 

[Duke of Marmalade]

Increasing threshold from 12k to 13k takes 40,000 out of USC net. Two observations - really hard to believe so many are in such a narrow income band. Second point - the average effect for these people will be that €500 will be taken out of the 1.5% net giving a benefit of €7.50 per annum.

 

[Savvy]

Some USC figures here - the extra take home pay is nowhere near a weeks pay - don't know where Noonan got his figures. http://www.*****************.com/usc-cuts-2016-how-much-difference-will-it-make.html

As you get close to the 70k you find that it does get close!