A third tax band of 30% continues to be considered for Budget 2023.

Tánaiste Leo Varadkar has asked Finance Minister Paschal Donohoe to examine whether a new rate could be introduced, in an effort to alleviate some pressure on middle-income earners.

Karina Doorley, Research Area Coordinator for the Tax, Welfare and Pensions team at the ESRI spoke to Pat Kenny this morning and had this to say.

Fine Gael Senator Barry Ward joined Kieran Cuddihy on the show.