The 2002 Fianna Fail/PD Programme for Government included a commitment "to ensure that 80% of all earners pay tax only at the standard rate".

But the tax strategy group which advises Finance Minister Brian Cowen costed the 80% target at 1.54 bn and told the minister that it was "not feasible".

The group's document showed that prior to last year's budget 66% of taxpayers were on the standard rate . . . 14% short of its target of 80%.

A more "achievable" and "responsible" objective would be to ensure that all those on the average industrial wage ( 33,200 in 2007) pay at the lower rate, advised the Group.

The blow for low-to-middle-income earners comes in a week in which a report from Bank Of Ireland showed that, excluding property, 33,000 Irish people are worth more than 1m.