Fianna Fáil would abolish the 1% USC, if elected

Party also outlines plans to cut Universal Social Charge of 3% by half

Newstalk, Universal Social Charge, Fianna Fáil, USC, rainy day fund, economy, recession, downturn, election manifesto, GE16

File photo: Fianna Fail Finance Spokesperson Michael McGrath TD, pictured at his party's Pre Budget Submission last year. Photo: /Rollingnews.ie

Fianna Fáil says it would abolish the 1% Universal Social Charge (USC) rate in its first budget after the election.

The party says it would also halve the 3% rate, with both measures costing €336 million a year.

It says workers earning up to €80,000 would be taken out of the USC net altogether, over five yers.

Finance spokesman, Michael McGrath says their proposal includes a 'rainy day fund' built by saving the extra money coming now from corporation tax:

"In essence, in the event of an economic downturn, which would be measured by a 1% increase in the unemployment rate for example. And that fund could then be used as a buffer, against any future economic shock.

So that if any economic downturn emerges, that there would be a fund there that could be used for investment purposes to stimulate the economy at a time of economic difficulty."