Media speculation suggests that Immediate increases in the new income levy are being considered by the government as key measures in next month's emergency budget (due on the 1st of April).
The levy is currencly charged at 1 per cent on incomes up to €100,000, 2 per cent on the balance up to €250,000, and 3 per cent on incomes above this, with the lowest earners excluded.
The government is expected to increase the income levy charge until the end of the year. In 2010 the headline tax rates (currently 20% and 41%) are expected to increase.
One option which will be considered is the introduction of a 48 per cent income rate for high earners (those earning more that €100k) at the start of 2010.