The Progressive Democrats today pledged to slash the tax burden on low and middle income earners if the party gets into government after the next General Election.
The junior Coalition partner told delegates on the final day of its national conference that it will cut the top tax rate by 2 per cent to 40 per cent if it wins a third term in office.
Chairman of the party's Economics Committee, Senator John Minihan also announced that its policies would ensure that a couple who are both working can earn €100,000 (or €50,000 for a single person) while paying tax on the standard 20 per cent rate.
Tax credits will also be increased so that couples will pay no tax on earnings up to €40,000, or €20,000 for a single worker.
Mr Minihan pointed out that while the PDs were in government, the top tax rate was cut by 14 per cent and the standard band by 11 per cent.
"When we were not in Government, a miserly 1 per cent was cut off the top rate. We have the credibility when it comes to reducing the tax burden," he added.
The party said the '100-40-40' pledges would cost €5 billion over the lifetime of the next government and may be increased depending on prevailing economic conditions.
Mr Minihan said the PDs believed that workers on minimum wage should be kept out of the tax net and middle income earners should see clear, measurable savings.
Party leader and Tanaiste Mary Harney said the proposed tax cuts wouldn't impact on public spending or reduce Exchequer funds.
She didn't rule out speculation that she may push for an economic ministry for one of her TDs in the next government. "I think Michael McDowell would make a great Minister for Finance," she joked.
Ms Harney said the party stopped short of proposing a third tax rate for the super rich. "Any tax system should be a simple one and that is the essence of our party's thinking on this," she added.
Ms Harney also warned against unrealistic pay increases in the public sector arising from the ongoing social partnership talks.
"I'm all in favour of paying good wages to good people. But we must also pay for flexibility and change as well."
Party president and Minister for Justice Michael McDowell warned that tax reforms must benefit the 'coping classes' who struggle to pay bills on a weekly basis.
"These tax policies must make sense to Joe and Josephine Soap out there whose incomes are under pressure in trying to run a household," he said.
The PDs, which has eight TDs and five Senators, debated a wide variety of motions at its three-day national conference in Limerick but rejected the controversial prospect of a pre-election pact with Fianna Fail.
Guest speakers included finance guru Eddie Hobbs, Chris McGimpsey of the Ulster Unionist Party, Siptu president Jack O'Connor, Health Service Executive ceo Prof Brendan Drumm and One in Four founder and director Colm O'Gorman.
Ms Harney used her keynote leader's address to call for members of the public to have a greater say in the Irish Medical Council under sweeping health reforms.
She also insisted that Accident and Emergency services in the country would be dramatically improved to ensure that no one, especially older people, would be left on a trolley overnight.
The Dublin Mid-West TD reminded delegates about the recent Lourdes Hospital report that raised serious concerns about how Dr Michael Neary was able to carry out nearly 130 hysterectomies over 25 years at the hospital.
"After the Lourdes Hospital report, there is reforming work to be done to protect patients," she said.