The Labour Party's commitment to cut the standard rate of tax to 18 per cent if elected to government, has been dismissed by the Taoiseach as an admission that party leader Pat Rabbitte has been wrong on the issue for years.
Taoiseach Bertie Ahern said the announcement on Saturday at the Labour Party annual conference was inconsistent given Mr Rabbitte's opposition to tax cuts in the past.
He said inconsistency was not surprising in the run up to an election and that he did not think the issue would be the main priority on the campaign trail.
"If I was to announce this weekend we were going to continue to cut tax by three per cent, I'd be in the editorials this morning criticised for trying to buy votes," Mr Ahern said.
He said economic stability and investment in infrastructure was a higher priority but that lower income taxes were possible in the coming years.
Tánaiste Michael McDowell said Mr Rabbitte's announcemnt was an admission that his previous position was wrong.
"He is now saying after 20 years of empty, unsuccessful, hypocritical rhetoric that he accepts that he's wrong," Mr McDowell said.
Sinn Féin enterprise and employment spokesperson Arthur Morgan said a reduction would eat into revenue needed to pay for public services while failing to address the inequities of the tax system.
"If Labour was really concerned with helping those on low incomes, as opposed to boosting its own election hopes, it would be bringing forward proposals to tackle stealth charges and user fees," Mr Morgan said.
Those on lower and middle incomes would be better served by an increase in the minimum wage and a review of indirect taxation and VAT which hits low income earners the hardest, he added.
Mr Rabbitte made the surprise announcement at the party's annual conference at the weekend, leading to political commentators to say the Governemnt parties had been wrong-footed.
Making the first major move in the General Election campaign, Mr Rabbitte proposed cutting the standard income tax rate from 20 per cent to 18 per cent over two years at a projected cost of just over €1 billion.
He also launched the party's five commitments for change at the conference - the first of the major parties ahead of the General Election.
The commitments are: more beds in clean hospitals; free pre-school education for all children for one year; more gardaí on the beat; the abolition of the means test for carers and a scheme to help those who cannot afford to buy their own home.
The party is launching a new poster campaign tomorrow.