The Finance Minister is looking into new measures to ease the rising cost of living for middle income workers.
Currently, those earning below 36,800 euro a year pay 20 percent income tax while those over that salary are taxed at 40 percent.
The Tánaiste has asked Paschal Donohoe to consider introducing a 30 percent tax band.
Professor of Economics Stephen Kinsella says income tax bands should be in line with inflation: