Pat Rabbitte has pledged the Labour Party will not increase the rates of personal taxation if in government after the next election.
The Labour leader said he was convinced that a low rate of tax was key to Ireland's future economic development strategy.
Speaking at a parliamentary party meeting in Tipperary, the Labour leader rejected recent Government claims that a Fine Gael/Labour government would increase taxes.
Mr Rabbitte claimed "the economy could generate adequate resources for investment in economic and social priority areas without having to raise tax levels".
"What we will insure, however, is a rebalancing of the tax system, so that those on higher incomes do not avoid making a fair contribution to the common purse," he said.
Labour leader Pat Rabbitte
Last week Fine Gael similarly ruled out increasing income or corporate taxes and pledged not to introduce property or wealth taxes if elected to government.
Mr Rabbitte said Labour's pre-election pact with Fine Gael had "introduced a new dynamic to politics" and had "struck a chord with the Irish people".
"Gradually the Irish people are being made aware that there is now a credible alternative government in prospect," he said.
The Labour leader labelled the Government coalition as an "arrogant alliance", claiming for all the talk about their economic competence, Fianna Fáil and the PDs have failed the Irish people.
Mr Rabbitte said: "The extent of economic growth started under the former rainbow government has helped to conceal these failures".
"Instead of competent economic management, we have seen their taste for waste."
"We have had electronic voting, but no electronic tolling; We have had an aquatic centre with no roof, and no ceiling on the cost of the roads programme.
"Proper procedures were not allowed to stand in the way of the Punchestown Equestrian Project, but no such drive is shown when it comes to tackling the childcare crisis," he said.
He also claimed the Government had embarked on a "denigratory whispering campaign" against TV personality and financial adviser Eddie Hobbs.
He said an investigation following the collapse of Taylor investment group - Mr Hobbs's former employer - did not implicate Mr Hobbs in any wrongdoing.
"Clearly Fianna Fail still believe that the national broadcaster is an arm of Government," he said.
Mr Rabbitte said the economy will be one of the central issues in the forthcoming general election.
The two-day meeting in Clonmel was addressed by the Dr John Fitzgerald of the Economic Social Research Institute this morning.
