The Taoiseach says young Irish emigrants aren't coming home because they feel they'll be 'screwed' by income tax.
Speaking at MacGill Summer School in Co Donegal, Enda Kenny said the higher rate of PAYE is 'too high' and kicks in too early.
He says the next Budget will see the Universal Social Charge drop from 7% - and the marginal rate of tax for anyone earning under €70,000 will come under 50%.
Taoiseach Enda Kenny says he hopes that will encourage emigrants to return.
Kenny also warned that a Government of Sinn Féin and Independents would be a ‘political freakshow’ - leading Ireland’s economy on a ‘mined and untested road’.
The Taoiseach was speaking about the General Election, and said any government propped up by independents would be a ‘Tower of Babel’ where no work could be done.
He said the coalition has returned stability to the country, and if re-elected, it will cut tax to encourage emigrants to return home. Kenny says an alternative involving Sinn Féin and Independents would be a gamble.
Before the event a number of protesters gathered in the town of Glenties.