Progressive Democrats leader and Tánaiste Michael McDowell has proposed cutting income tax to 38 per cent at the marginal rate, 18 per cent at the standard rate and the widening of tax bands during the lifetime of the next government.
In his first keynote speech to a party conference as leader last night, Mr McDowell said the PDs were committed to keeping Ireland properous and economically strong, with reform of the taxation system at the heart of its policies.
"Tax reform means sharing prosperity with the people who create it," Mr McDowell said.
Despite describing Labour Party leader Pat Rabbitte's promise to cut the standard tax rate to 18 per cent as "auction politics", Mr McDowell told the conference today, that tax bands would be adjusted so an individual's earnings up to €50,000 would only be liable income tax at the standard rate, while earnings under €20,000 would not be liable to any income tax.
As part of a package of measures to help families, he also said child benefit increases would be index-linked, the early childcare supplement would be doubled to €2,000 and 50,000 new childcare places would be created by 2010.
He also vowed to abolish Stamp Duty for first time homebuyers and introduce a system by which purchasers would only pay higher rates of duty on the proportion that exceeds each threshold. Currently if a price falls into a higher band, the higher rate is paid on the whole price.
He warned the electorate against voting in a Fine Gael / Labour / Green Party "slump coalition" which he said would be weak, divided and inexperienced.
Fine Gael and Labour have agreed a joint electoral strategy and while the Greens have said they would prefer Fianna Fál out of office, they are keeping their options open until after the General Election.
"If Ireland sleepwalks into electing a Dáil in which the balance of power is held by an incoherent patchwork of incompatible parties, that Dáil will end up with a makeshift, confused and fragmented Government."
The conference themed: "New Ireland. New Opportunities" was being held in Co Wexford in a bid to boost the election hopes of local candidate Colm O'Gorman.
All the main parties have said they will not allow Sinn Féin into government, but Mr McDowell who is also Minister for Justice insisted the PDs had protected Ireland from a party connected to criminals in the Provisional IRA.
"If it hadn't been for this party and the line we took in confronting the provos, they might have very well succeeded in entering the political mainstream while still engaged in organised crime," he said.
"The St Andrew's Agreement to bring about the final implementation of the Good Friday Agreement simply could not have occurred if we had not stood firmly for the rule of law.
Despite criticism over the failure to stamp out gangland crime, Mr McDowell did not shy away from the issue. His recent proposal to restrict the rights of suspects must be balanced, he said against the rights of victims.
"There is also a constitutional right not to be murdered? There is a constitutional right not to have your family taken hostage. There is a constitutional right not to have your child die of a drug overdose. There is a constitutional right not to bury your innocent son as the victim of gangland violence."
He said the party will have met its committment in the 2002 election to increase Garda numbers to 14,000 and said the figure would rise to 15,00 next year.
The environment has pushed its way up the campaign agenda in recent months and Mr McDowell deflected criticism of Government policy, particularly its roads programme
"If we call a halt to our motorway programme we condemn Ireland to an economic recession, as inward investment, tourism and business will fall farther and farther behind."
Mr McDowell also heaped praise on his predecessor as PD leader, Minister for Health Mary Harney.
He said her reforms, such as the establishemnt of the Health and Safety Executive, were feeding through to the system and reflected in shorter A & E waiting times adn better care for the elderly.
"In two and a half years than any other minister for health has done in the history of the State. Mary, we are proud of you."
Mr McDowell reiterated his commitment to increase the State pension by €100 over the next five years and propsoed a scheme to encourage younger people to take out pensions. He said the State would add an extra 50 per cent to savers' contributions in an SSIA-type scheme for pensions.