Labour leader Pat Rabbitte has indicated that his party would push for an increase in capital gains tax in a Rainbow government.
He said yesterday that it was an area he would look at before the next general election.
"I am not prepared to rule out that there would not be an increase in capital gains tax, depending on the circumstances at the time," he said.
In an interview with Ursula Halligan in the TV3 programme, The Political Party, Mr Rabbitte ruled out an increase to 40 per cent.
"To draw any conclusion that because a decision was made to cut it from 40 per cent to 20 per cent, that you could similarly increase it from 20 to 40 is nonsense," he added.
Mr Rabbitte also said the Government should consider taking legal action against the consultants hired for the PPARs health technology project.
"In my view, the Government should take action, if that is the advice they have from the Attorney General.
"The problem seems to have been that this was an open-ended chequebook, that no-one was minding what was happening," he added.
"The thing is a disaster, and it may be that the contract was so badly put together from our point of view - the taxpayers - that an action does not lie against the consultants. But certainly that question has to be examined and pursued with vigour."
Mr Rabbitte said public sector services were in urgent need of reform.
"I think the public sector unions would be very happy to respond to a programme of reform and change," he added.