The coalition will reportedly slash Universal Social Charge in the upcoming Budget.
Cuts of 1 to 1.5% in each of the five USC bands are predicted by the Sunday Business Post, who cites Government sources close to budgetary discussions.
Extensive research is believed to have revealed a huge public appetite for tax cuts and the Government is said to be planning a €750m tax package, the centrepiece of which will be the USC.
Finance Minister Michael Noonan has previously said that he planned to cut the Universal Social Charge by 1%, if not more, in the next Budget.
The Government has also previously said it had room for a Budget adjustment of between €1.2bn-€1.5bn, due to improving economic conditions and increased tax-take.
Minister Noonan said that he wanted to cut personal taxes to raise take-home pay for everyone and encourage more people to work.
Labour TD for Dublin Central Joe Costello said USC was a huge money earner for the Exchequer.
"It brings in about €4bn. It was introduced at the height of the recession as an add-on to the normal tax take...It's seen as an emergency measure by people at large, naturally enough" he said.
"We're committed to eliminating it at the lower and middle income levels."