Labour will reduce tax rate from 20% to 18%

Labour used their 2007 conference to announce a policy for government that will put the "tax and spend" story to bed. Fears that Labour would not reduce tax or might even increase taxes were ended last night when Pat Rabbitte announced that Labour in Government will reduce the standard or Joe Bloggs rate of tax by 2%.

This will be a great benefit to low and middle income earners who have done so much to build the country up.

In his televised keynote address to 1,000 delegates at the Labour Party national conference at the Helix in Dublin, Rabbitte pledged a 2 per cent cut in the standard tax rate within two years of being returned to government.He said Fianna Fail and the PDs had made a choice to cut the top tax rate from 41 per cent to 40 per cent, in a move that would benefit high income earners