It's claimed a cut to the Universal Social Charge would benefit struggling families more than changes to the Income Tax system.
According to the Irish Independent, a report from the Irish Tax Institute for the Finance Minister says a cut to the USC would impact the greatest number of people.
However Michael Noonan is understood to be in favour of changing the Income Tax system in the next budget as a means of easing the burden on Irish families.
Dermot O'Leary, chief economist at Goodbody Stockbrokers, says it would cost the government more money to reduce the USC than the Income Tax rate.
