Renua has decided to drop the flagship tax policy of its former leader Lucinda Creighton as the party continues to rebuild after it was wiped out in the general election.

Creighton faced criticism during the election campaign after she unveiled Renua's plan to introduce a 23pc flat tax rate that would be paid by all workers.

However, Renua's new leader John Leahy has scrapped the policy in favour of a more moderate tax initiation aimed at attracting voters in Middle Ireland.

Leahy has proposed lowering the point at which a worker enters the 40pc tax band from €43,800 to €33,800, over the space of five years. Currently an Irish worker will pay a marginal rate of 49.5pc on all income earned past €33,800.

Renua also wants to retain the controversial universal social charge (USC), as the party believes removing it will narrow the tax base.

The tax policy document, which will be unveiled next week, states that removing USC during uncertain economic times in the wake of Brexit and Donald Trump's election as US President "represents populism of the most dangerous kind".

Renua would also seek to reverse individualisation tax policies that it believes punish single-income families.

Sunday Independent