TRALEE LABOUR NEWS Arthur J. Spring TD November 2015
USC SLASHED Workers will see big gains from the Budget decision to significantly reduce the Universal Social Charge (USC). 700,000 low earners will be taken out of the USC entirely and middle income earners will benefit substantially. An employee on the average industrial wage will benefit by more than €400 per year, while someone with a yearly income of €55,000 will increase their take home pay by €677.
A married couple with three children and a joint income of €41,500 will benefit by €1,457 in net pay. A married couple, no children and joint income of €58,460 will benefit by €1,002 per annum. Employees on salaries of up to €70,000 will see a benefit of up to €902 and for people earning more than €70,000 the benefit will be capped. The increases in take home pay will commence from January 1st. The Universal Social Charge was introduced as an emergency tax by the last Fianna Fáil Government after the crash in 2010. The Labour/Fine Gael Government has gradually reduced it and Labour is now committed to phasing out the USC for low and middle income earners.
SELF-EMPLOYED TAX In the modern economy a growing proportion of the workforce is becoming selfemployed. For the first time, a Government has acknowledged this in the Budget. A special Tax Credit of €550 will now be allowed for self-employed. There is also a targeted reduction to a Capital Gains Tax rate of 20%.
CHILDCARE From now children will be eligible for Free Childcare from 3 years of age until 5½ years or until they start primary school. A further €15 million has been allocated to facilitate the full participation of children with disabilities. A new 2 weeks Paternity Benefit will be launched from September 2016.
9% TOURISM VAT RATE RETAINED The 9% VAT rate has been retained again in Budget 2016, the measure has helped to see the industry grow and expand, creating employment and revenue for local communities. It is estimated that measures supporting the tourism and hospitality industry has created over 1,000 direct and indirect jobs in Kerry. Nationally 22,300 jobs have been created in the restaurant and tourism industry since the VAT reduction in July 2011.
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