The Taoiseach is vowing further tax cuts if Fine Gael is returned to power after the general election.
It is reported today that Enda Kenny wants Irish rates to be comparable to the US.
He has already committed to phase out the Universal Social Charge if re-elected, with a significant cut to USC rates for 2017 expected to be a central aspect of Fine Gael's election manifesto.
His plan to bring our income tax bands in line with America could see those on higher incomes with much greater take home pay.
The ESRI has already warned against tax cuts and splurging on spending.
Fine Gael's current coalition partner Labour wants higher earners to pay more. Previous reports have suggested Fine Gael is planning income levies for those earning above a certain amount or increases to PSRI to compensate for the USC abolition.
Fine Gael is also planning to make a pre-election pledge to young parents that they will earn at least €11.75 per hour, no matter where they are working.
The shake-up could see low-paid mothers and fathers receive the €2.60 top-up per hour from the State.
