Abolishing USC 'fanciful' says Rabbitte

Labour TD Pat Rabbitte has said the notion that you could abolish the Universal Social Charge was "fanciful" as it brings in €4bn per year.

Asked about SIPTU's call to abolish the tax, he said the Government's task was bigger than keeping the union happy.

He said the Government is concentrating on tackling the erosion of living standards.

Labour's Pat Rabbitte says USC will not be scrapped

The head of SIPTU Jack O'Connor has said that Mr Rabbitte misunderstands their position on the USC.

He said SIPTU would like it to be replaced by a progressive tax, with an emphasis on wealthier and higher incomes.

Mr O'Connor said that he wanted to alleviate the burden on those between the minimum wage and the standard tax threshold.

He said SIPTU was not about causing trouble for anyone, it was about achieving a fairer outcome for everyone. 

Speaking on RTÉ's The Week in Politics, he also said the suggestion that new political parties might be able to fix everything was complete nonsense in the absence of a policy platform.

Mr Rabbitte said they had seen lots of platitudes and "tugging of the forelocks" on reform but they had not seen a policy platform.

He said the existing parties already represented every colour of the rainbow politically.

Mr Rabbitte also said there is no question of a mini-Budget in the Spring as it was not realistic and he did not think the Government would do it.

He said there may a statement along the lines of what the British Chancellor outlined recently in the UK's Autumn statement, but the next Budget would be in October 2015.

SIPTU calls for USC to be abolished

 

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