Fine Gael Councillor Derek Mitchell 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%.
“AnTaoiseach 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. I welcome this. 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 and has been tough to achieve,” Councillor Derek Mitchell stated.
The strong ecconomy means we’re well 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.