Noel Rock welcomes Taoiseach’s pledge to further cut USC rate
Fine Gael General Election candidate Noel Rock today welcomed news that the Government intends to further reduce the USC rate in the October Budget.
An Taoiseach confirmed that following the income tax and USC cuts introduced earlier this year, the Government will cut the 7% rate of USC to reduce the marginal tax rate on all those earning less than €70,000 per year to below 50%. The Government has assessed a fiscal space in the next budget of between €1.2 billion to €1.5 billion – shared on a 50:50 basis between expenditure and tax measures
“An Taoiseach also said that despite a stronger than expected performance in tax receipts and public finances, the Government will not be gong back to the “when we have it we spend it” approach to budget management, which was the way of previous governments. This is to be welcomed. As a result of the policies pursued by this Government, and the people’s willingness to stay the course through a very difficult period, our economy should grow by around 4 per cent this year, which would bring our level of GDP above its pre-crisis peak. That is a remarkable turnaround in a relatively short period of time,” Councillor Rock stated.
“Projecting ahead, the economy has the potential to expand by around 3 per cent per year.
That means we’re perfectly placed to deliver a decade of strong growth, of good jobs, of opportunity for all our people. However, these growth rates cannot be taken for granted and will require a continuation of this Government’s prudent and sustainable approach to managing the economy,” he added.