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The Government is examining plans to cut USC by 1pc on incomes between €25,000 and €70,000.
Last year, the Government cut 0.5pc in the first move to cut the tax in many years.
Finance Minister Jack Chambers tonight put forward proposals to the Coalition party leaders for even greater cuts to the tax, from 4pc to 3pc on incomes between €25,000 and €70,000.
The plans build on the reduction of half a percent that was made last year by then finance Minister Michael McGrath.
The biggest ever cut to USC – if agreed by the leaders – is seen as a priority by Fianna Fáil to target low and middle income earners in the income tax package.
This change is likely to feature alongside other changes to credits and bands, according to a government source.
