usc thresholds increased; rates reduced

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Brendan Burgess

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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.
 
Noonan says that it is approx equal to a extra weeks wages a year, is that before or after tax ?
 
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
 
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
 
ainefitz said:
Noonan says that it is approx equal to a extra weeks wages a year, is that before or after tax ?
Click to expand...

I think this quote relates to people who can also claim the Home Carers Tax credit on top of the USC reductions
 
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.
 
sahd said:
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
Click to expand...

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