It is reported this morning that additional cuts to the USC will benefit an extra 1.7 million earners.

Plans to cut the main rate of USC, as well as the two lower rates, are set to be confirmed at a cabinet meeting today.

The debates on how to use the state’s extra spending money are likely to go on for another few days – but the general thrust of the Government’s tax plans could be decided when the cabinet meets this evening.

Among the plans is a deal reportedly reached between Fine Gael and Fianna Fáil yesterday.

Fine Gael was already planning cuts to the bottom two rates of USC, which would have seen lower earners gain proportionately more.

But amid concerns that the so-called “squeezed middle” were being overlooked, the Irish Times reports this morning that the 5.5% rate will also be cut.

That means those on the average salary will save €183 a year, compared to the €93 they would have received otherwise.

The extra measure will benefit 1.7 million earners. It means almost all of the money available for tax cuts will be used on USC.