According Minister for Justice McDowell, the choice for voters after the next election is now "clearly" between a coalition involving the Progressive Democrats which is committed to tax reductions, or a coalition containing the Greens and/or Labour, which is committed to keeping income and corporation tax levels at current levels.

“The Progressive Democrats believe in low taxes because low taxes deliver economic and employment growth, and thereby give us the resources to tackle our infrastructure deficits and outstanding social issues. Low taxes enable those whose hard work has created the boom to fully enjoy the fruits of their labours,” he stated.

Among the solutions discussed by the party's think in were the abolition of stamp duty for moving home, a reduction in stamp duty rates, banding stamp duty across the rates, and the option of allowing stamp duty to be paid over the lifetime of a mortgage.

“Stamp duty is an issue of huge concern for thousands of home owners and would-be home owners around the country. It is our belief that there is scope for a significant re-adjustment of the stamp duty situation as it pertains to homeowners," McDowell said.

“We intend in our election manifesto, which will be published next year, to address this issue head on," he added.

Stamp duty on homes, charged at rates of up to 9%, is increasingly integral source of revenue for the Exchequer. So far this year, the Government has received EUR1.9 billion in stamp duties, up 43% on the same time last year.

The PD's proposals threaten to open up a rift with fellow governing party Fianna Fail, which has made no plans to cut stamp duty.

Speaking to the Irish press after McDowell made his comments, Finance Minister Brian Cowen said that any cut in capital taxes such as stamp duty would have to be made up from other sources, such as income tax.

"As Minister for Finance, I am very conscious of the need to ensure that any proposals that would reduce revenue raising from one area would be compensated in some area," he was quoted as stating by the Irish Times.

"We have seen an increased contribution from capital taxes so we have reduced the burden, if you like, on personal taxes and shifted that burden to a contribution from capital taxes," he added.