Cllr Evelyn Parsons outside County Hall.

Councillor gains support for abolition of Universal Social Charge

Motion supported at County Hall

Patrick Flaherty

Published: Thu 23 Jul 2026, 9:27 AM

ABOLISHING the Universal Social Charge (USC) will help Ireland retain its skilled workers. That is the opinion of Cllr Evelyn Parsons, who raised a motion calling for the phased abolition of the tax from January 2027, during a recent meeting of Galway County Council.

USC is a tax on income, paid by those who earn a gross income of more than €13,000 per year. It does not apply to social welfare or similar payments, and there are certain other exceptions as well depending on a person’s circumstances. It was introduced at the height of the financial crisis in December 2010. “This is an important measure, which was introduced during a very difficult time for Ireland economically, but things have changed so much since then,” commented Cllr Parsons.

“We have had so many skilled workers leaving Ireland as the cost of living was just too much to bear. We should be rewarding workers for staying here by abolishing this tax.

“We need a taxation which is fairer to everyone and not attacking the people who had to bail this country out.”

Her motion called on the Minister for Finance to set out a clear pathway towards the phased abolition of the USC, which she feels has become a disproportionate burden on workers and families during a cost-of-living crisis.

It also asks that any reform or abolition of the USC is implemented in a fair, balanced and fiscally sustainable manner, avoiding increases in Income Tax or PRSI and safeguarding essential frontline public services.

The motion was seconded by Loughrea District Councillor Geraldine Donohue and was largely supported, but some voiced their concerns about the impact it could have on services.

“If we get rid of the USC, do we increase other taxes, as we don’t have a magic money tree to pick up the slack,” warned Loughrea District Councillor Jimmy McClearn.

“The USC was about broadening the tax system. If you take it away something else needs to replace it, or else we would have a shortfall,” he concluded.