Taoiseach Enda Kenny has promised to reduce the marginal rate of tax to 50 per cent, and below that if the government is in power after the next general election.

Speaking to the American Chamber of Commerce in Ireland Thanksgiving lunch in Dublin Enda Kenny highlighted how the cut from 41% to 40% in the top rate and changes to the universal social charge and bands would cut the marginal rate from 52 to 51% in January.

Mr Kenny promised a further similar tax cut next year:

“From January the marginal rate of tax on earnings below 70,000 will be cut from 52% to 51%,” he said.

“In the budget next October, for 2016, we will reduce the rate of tax on middle income on earners to at most 50% and we will reduce the rate of income tax further in subsequent budgets if the people decide to re-elect this government.”