Tipperary County Council calls for Universal Social Charge to be abolished

Eva Osborne

Tipperary County Council is calling for the Government to abolish the Universal Social Charge (USC) from January next year.

The charge on pensions and workers' incomes was introduced in the 2011 Budget and was intended to be a temporary austerity measure.

Last year, Revenue collected €5.6 billion in USC payments.

Liam Browne is one of two Independent Tipperary County Councillors who proposed the motion to abolish the charge.

Speaking to Newstalk, he said: "The USC was a temporary tax which was brought about during the financial crisis. And as far as I'm concerned, and as far as I think a lot of people are concerned...it's time has passed.

"You know, we think we've paid back what we owed during the financial crisis, and it's now time to start putting money back into ordinary workers' pockets.

"If you give people back the USC, those people will spend that money. That money will circulate in the economy.

"It will create jobs. It will create extra spending, which will create retail taxes like VAT, and that money will go into the Government coffers.

"So, you know, money spent in the economy generates more money itself."