What is the USC

http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/universal_social_charge.html

I know it replaces the older health and income levies. I can work out all the percentages and exemptions and whatnot and I know how much I'm paying.

My question is what is it for and where does the money go?

Is just another tax that goes to the same pot whether it was intended for other use or not?

Is just another tax that goes to the same pot whether it was intended for other use or not?

Click to expand...

Frayed sew

They don’t want to categorize it as social security/pensions/health related or otherwise the hole in the PRSI fund disappears, and they’d have surplus cash to fund the health service. The USC is being used for general spending not for one particular problem.

But they also don’t want to categorize as income tax as they don’t want it affected be income tax banding or reliefs.

The closest international comparison I’ve seen is the French very similar 7.5% CSG, contribution sociale généralisée . This may be where the Francophile Brian Lenihan got the idea.

However the French do use that tax for their social security. When you hear about French people paying large amounts in social security they include their CSG in that figure.

Possibly when we eventually do balance the budgets the USC will switch to funding social security.