Tax changes to go ahead despite Fianna Fáil warning

The Government still plans to merge the USC with PRSI and alter tax levels for low-and middle-income earners despite Fianna Fáil leader Micheál Martin warning there is not enough money to do both and that it breaches the minority government deal.

The commitment to the moves was reiterated by a spokesperson for Taoiseach Leo Varadkar last night, as Finance Minister Paschal Donohoe prepares to hold crunch budget talks with his Fianna Fáil counterparts in the next 48 hours.

Under plans flagged for the past two weeks by Mr Varadkar and Mr Donohoe, the Government intends to change the rate for when low and middle-income earners pay the highest amount of tax in next month’s budget.