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Finance Minister Michael McGrath confirms USC tax cut being considered in budget

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McGrath has now given the clearest indication yet that he is willing to move on the big promise

Finance Minister Michael McGrath has confirmed that he is considering cutting the hated USC tax in next month’s budget.

The Programme for Government of the Coalition had agreed to start unravelling the supposed ‘emergency’ tax introduced during the economic crash - but it has not been touched yet in the three years of this government’s lifetime.And he was backed up by Tanaiste Micheal Martin when both were speaking at day one of the Fianna Fail parliamentary party think-in at the Horse and Jockey hotel in Tipperary on Monday.For example, reducing the 8 per cent to 7 per cent would cost €257million in a full year.

Mr McGrath said: “I’m examining a range of options across the income tax and USC codes to see what best achieves that and the ultimate tax package will be consistent with the Programme for Government.” Mr McGrath said he was “doing a trawl” through the entire taxation code ahead of the Budget in October.

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