Fianna Fail has advised against tax cuts in the upcoming budget over Brexit uncertainty.
The main opposition party, which props up the Fine Gael-led government, wants to prioritise public spending instead.
TD Michael McGrath said uncertainty over the EU split means it is not the time for tax cut promises in the Budget.
He added: “I think the decision you make in terms of the composition of tax changes and expenditure changes really does depend on what the economic outlook is come early October, and in particular, what is the outlook in relation to Brexit.
“If we are looking down the barrel of a no-deal Brexit, then there’s little point in giving money to people on one hand and having to take it back off them a week later.”
This is in contrast to Fine Gael’s promises to ease the burden on the wealthy by raising the higher tax rate entry point.
But Fianna Fail effectively has a veto on the budget through the confidence and supply arrangement.
In an interview with RTE’s Today With Sean O’Rourke Show yesterday, Mr McGrath said: “I would point out as a result of the agreement we entered into in 2016, we have secured modest but important reductions in the Universal Social Charge, where key rates of the USC have been reduced over the last three budgets and indeed the bands have been widened as well.
“There has been an increase in the past number of budgets in the entry point to the higher rate of tax, so there have been improvements.
"But if we are to be honest with people, if we are looking down the gun of a no-deal Brexit, tax cuts are not the priority.
“There will certainly be spending increases, there’s no question about that.”
