THE ECONOMIC AND Social Research Institute (ESRI) is to outline plans for a 7.5 per cent universal social charge, which would combine employee PRSI, the health levy and the income levy later today.

Such a move would mean top rate tax payers pay less, while low earners pay more, RTE reports.

Last year, Finance Minister Brian Lenihan announced plans to combine PRSI and the two levies into a single social charge that would be applied to all income, but at a lower rate.

Under the scheme proposed by the ESRI, the top rate tax payers would see their marginal rate fall from 52% to 48.5%, but those on lower incomes will pay more.

THE ESRI will outline its plans at a pre-Budget conference today, at which the government will also be urged to create a new crisis fund to help the country through future shocks. It will also urge the government to impose property tax and increase income tax.

The ESRI’s Joe Durkan will also encourage ordinary people to establish their own personal “rainy day fund”, rather than relying on property and pensions.

It points out that most people in wealthy non-English-speaking countries own assets such as shares, bonds, gold and businesses as well as houses and pensions.