SIPTU has called for the elimination of the Universal Social Charge (USC).
The National Executive Council (NEC) of SIPTU has also placed a motion on the agenda of the Labour Party conference in February calling for the abolition of the charge and its replacement by a progressive tax which could secure the €4 billion which is recovered through the USC.
According to SIPTU President Jack O’Connor, “the USC is at odds with the generally progressive character of the PAYE system in that a person on the minimum wage pays at the same level as those at the top of the income spectrum”.
He called for the elimination of the USC over successive budgets, commencing with those lower paid workers hit by the charge.
The USC was a tax introduced in January 2011 and is paid on gross income. Under Budget 2015, incomes of €12,012 or less will be exempt from the charge.
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