A new 30% tax rate would benefit over one million people.
It has been suggested as a way to ease the cost-of-living crisis for middle income earners, with a number of Government Ministers said to be in favour of the move.
The Department of Finance will today publish it's Tax Strategy Group papers, outlining the options for next months budget, with one of the papers suggesting the 30% rate would benefit 1 million Irish tax payers if implemented.
Business Editor Joe Lynham says Irish tax rates don't compare well with our neighbours.
"Up to €36,000 they will pay a 20% income tax, after that they will pay 40%.
"A lot of people feel that is a very low threshold to start paying the high rate of tax.
"In other countries in Europe, in the UK it is 60,000 before they start paying their 40% income tax rate, in Germany it is 282,000 before they start paying a 49% income tax rate."